Q3 2025 Business Update & Supplementary Information | 1 | | --- | This presentation includes forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. These statements include, but are not limited to, statements regarding our future performance, including expected financial results for the fourth quarter of 2025, planned non-GAAP OPEX and free cash flow expectations for the full year of 2025, and our expectations for operational achieveme ...

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Financial Performance - Revenue in Q3 2025 increased by 23.6% year-over-year to $1.85 billion, meeting the high-end of guidance[1] - Adjusted EBITDA was $93.6 million, an increase of 80% from $52 million in Q3 2024, marking the highest Adjusted EBITDA for any Q3 period[4] - Operating cash flow grew 102% year-over-year to $75.5 million, with free cash flow increasing 124% year-over-year to $73.6 million[1] - Revenue for Q3 2025 was $1,846.0 million, a 23.5% increase from $1,494.0 million in Q3 2024[25] - Total operating expenses for Q3 2025 were $1,853.2 million, up from $1,497.4 million in Q3 2024, reflecting a 23.8% increase[25] - Net loss attributable to Compass, Inc. for Q3 2025 was $4.6 million, compared to a net loss of $1.7 million in Q3 2024[29] - Adjusted EBITDA for Q3 2025 was $93.6 million, representing an increase from $52.0 million in Q3 2024, with an adjusted EBITDA margin of 5.1%[29] - Free cash flow for Q3 2025 was $73.6 million, significantly higher than $32.8 million in Q3 2024[31] Agent and Transaction Growth - A record 851 gross principal agents joined Compass in Q3 2025, contributing to a total of 21,550 agents, a 22.8% increase year-over-year[8] - Total transactions closed by Compass agents increased by 21.5% year-over-year to 67,886, while organic transactions grew by 6.6%[8] - Quarterly market share rose to 5.63%, an increase of 83 basis points year-over-year, with organic market share growing by 32 basis points[8] - Gross Transaction Value (GTV) reached $70.7 billion, up 22.5% from $57.7 billion in Q3 2024[8] - Compass maintained a strong principal agent retention rate of 97.3% in Q3 2025[8] Assets and Liabilities - Total assets increased to $1,553.5 million as of September 30, 2025, compared to $1,178.0 million on December 31, 2024, reflecting a growth of approximately 32%[23] - Cash and cash equivalents decreased to $170.3 million from $223.8 million, a decline of about 24%[23] - Goodwill rose significantly to $479.4 million from $233.6 million, indicating an increase of approximately 105%[23] - Total liabilities increased slightly to $775.1 million from $765.6 million, showing a marginal growth of about 1.9%[23] - Stockholders' equity improved to $778.4 million from $412.4 million, representing an increase of approximately 88%[23] Operational Strategy - Adjusted EBITDA, non-GAAP OPEX, free cash flow, and organic revenue are utilized to assess performance alongside GAAP measures, providing a more consistent overview of operations[19] - The company continues to focus on integrating machine learning and artificial intelligence into its platform to enhance service delivery[23] - The company aims to expand operations and offer additional integrated services to create value for agents[23] - The company is actively pursuing acquisitions to enhance its existing operations and market position[23] - The company emphasizes the importance of maintaining relationships with third-party service providers to ensure operational reliability[23] Expenses and Compensation - Stock-based compensation expense for Q3 2025 totaled $59.6 million, compared to $32.5 million in Q3 2024[29] - GAAP sales and marketing expenses for Q3 2025 were $93.8 million, up from $88.2 million in Q3 2024, representing a 6.4% increase[33] - Non-GAAP operations and support expenses for Q3 2025 were $98.9 million, compared to $80.2 million in Q3 2024, reflecting a 23.7% increase[33] - GAAP research and development expenses increased to $67.4 million in Q3 2025 from $47.5 million in Q3 2024, a rise of 41.9%[33] - Non-GAAP general and administrative expenses for Q3 2025 were $29.0 million, up from $21.5 million in Q3 2024, indicating a 35.1% increase[33] - Total non-GAAP operating expenses excluding commissions for Q3 2025 reached $252.4 million, compared to $211.2 million in Q1 2024, marking a 19.6% increase[34] - Non-GAAP research and development expenses for the nine months ended September 30, 2025, were $114.7 million, up from $97.2 million in 2024, reflecting a 18.0% increase[33] - The company reported a significant increase in GAAP general and administrative expenses for the nine months ended September 30, 2025, totaling $100.9 million, down from $132.5 million in the same period of 2024, a decrease of 24.0%[33]

Core Insights - Anywhere Real Estate Inc. reported a revenue of $1.626 billion for Q3 2025, an increase of $91 million or 6% year-over-year [4][11] - The company experienced a net loss of $13 million, a decline of $20 million compared to the previous year, resulting in a loss per share of $0.12 [4][11] - The proposed merger with Compass is expected to create a leading platform for real estate services, enhancing innovation and operational efficiency [2][11] Financial Performance - Revenue for Q3 2025 was $1,626 million, up from $1,535 million in Q3 2024, marking a 6% increase [4] - Operating EBITDA decreased to $100 million from $108 million, a decline of 7% [4] - Free Cash Flow was reported at $92 million, down from $99 million year-over-year [4][11] Key Operational Metrics - Closed homesale sides increased by 2% to 193,485 compared to 189,833 in Q3 2024 [4] - The average homesale price rose by 5% to $526,210 from $502,512 [4] - The company welcomed 13 new U.S. franchisees and one international expansion during the quarter [11] Cost Management and Savings - The company achieved $28 million in cost savings in Q3 2025 and is on track to realize $100 million in total cost savings for the year [3][11] - Additional temporary cost controls generated $6 million in savings during the same quarter [11] Market Position and Trends - The combined closed transaction volume increased by 7% year-over-year, outperforming the National Association of Realtors' reported market growth by over 2 percentage points [9][11] - Continued strength in luxury real estate brands, with closed transaction volume increasing by 12% year-over-year [11] Debt and Financial Health - Total corporate debt, net of cash and cash equivalents, stood at $2.5 billion as of September 30, 2025 [12] - The Senior Secured Leverage Ratio was reported at 0.85x, while the Net Debt Leverage Ratio was 6.7x [12]

Financial Data and Key Metrics Changes - CoStar Group reported Q3 2025 revenue of $834 million, a 20% year-over-year increase, marking the 58th consecutive quarter of double-digit revenue growth [4][51] - Adjusted EBITDA rose to $115 million, up 51% over Q3 2024, with a profit margin of 47% in commercial information and marketplace businesses [4][51] - Net new bookings totaled $84 million, reflecting a 92% year-over-year increase [4][51] Business Line Data and Key Metrics Changes - Residential portals, including Apartments.com, Homes.com, OnTheMarket, and Domain, generated $411 million in revenue for the quarter, with a 31.3% year-over-year growth [5][6] - Apartments.com revenue reached $303 million in Q3, an 11% increase year-over-year, with a 99% monthly renewal rate [6][7] - Homes.com saw annualized net new bookings rise to $16 million, a 53% quarter-over-quarter increase, and a 1,225% year-over-year increase [8][9] Market Data and Key Metrics Changes - Homes.com achieved 115 million unique monthly visitors in Q3, with organic traffic increasing by 87% year-over-year [14] - The UK residential marketplace OnTheMarket reported a 21% year-over-year increase in leads [33] - CoStar's European business reached record net new bookings of $5.7 million in Q3 2025, representing a 51% year-over-year growth [49] Company Strategy and Development Direction - The company aims to enhance its market share by increasing the reliance of real estate agents and homeowners on its platforms for exposure [13] - CoStar Group is focusing on integrating AI technologies into its products, particularly Homes.com, to improve user engagement and search capabilities [17][20] - The acquisition of Domain is expected to expand market share in Australia, leveraging CoStar's technology and resources [34][37] Management's Comments on Operating Environment and Future Outlook - Management highlighted the competitive challenges faced by Zillow, including multiple lawsuits that could impact its business model [27][28] - The company anticipates continued strong performance in Q4 2025, with revenue growth expected to remain robust across its product lines [51][54] - Management expressed confidence in the long-term growth potential of its residential and commercial marketplaces, particularly with the integration of Matterport technology [40][47] Other Important Information - CoStar Group's cash balance as of September 30 was $2 billion, with a net interest income of $26 million for Q3 [56] - The company repurchased 576,000 shares for $51 million in Q3, with plans for additional repurchases in Q4 [56] - The integration of Matterport is expected to unlock significant value across CoStar's product offerings [40] Q&A Session Summary Question: Inquiry about seasonal behaviors in bookings - Management noted that Apartments.com typically experiences seasonality due to the NAA event, but current sales trends for Homes.com show a linear progression without significant seasonality [59][61] Question: Follow-up on residential side seasonality - Management confirmed that while some seasonality may occur around year-end holidays, the current sales line for Homes.com remains smooth and linear [61]

Financial Data and Key Metrics Changes - CoStar Group reported Q3 2025 revenue of $834 million, a 20% year-over-year increase, marking the 58th consecutive quarter of double-digit revenue growth [4][52] - Adjusted EBITDA for Q3 rose to $115 million, up 51% from Q3 2024, with a profit margin of 47% in commercial information and marketplace businesses [4][52] - Net new bookings totaled $84 million, representing a 92% year-over-year increase [4][52] Business Line Data and Key Metrics Changes - Revenue from residential real estate portals reached $411 million in Q3, with a 22.7% quarter-over-quarter and 31.3% year-over-year growth [5][6] - Apartments.com generated $303 million in Q3 revenue, an 11% increase year-over-year, with a 99% monthly renewal rate [6][7] - LoopNet achieved 10% revenue growth in Q3, with expectations for low double-digit growth next year [44][55] Market Data and Key Metrics Changes - Homes.com rental traffic grew 55% year-over-year, with annualized net new bookings rising to $16 million, a 53% quarter-over-quarter increase [8][10] - The U.K. marketplace OnTheMarket saw leads up 21% year-over-year in Q3 2025, with significant ROI delivered to its 16,000 subscribing customers [33] - Domain's residential marketplace generated over 50% direct contribution margin, with a 24% year-over-year increase in audience metrics [35][36] Company Strategy and Development Direction - The company aims to enhance its AI capabilities, particularly with the launch of AI Smart Search on Homes.com, which is expected to improve user engagement significantly [18][19] - CoStar Group plans to leverage its proprietary data resources and expertise to capitalize on the opportunities presented by generative AI in the real estate sector [20][24] - The acquisition of Domain is expected to expand market share in Australia, with plans to integrate Homes.com, CoStar, and LoopNet platforms [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the residential portals and the potential for long-term margins exceeding 40% adjusted EBITDA [6][7] - The company anticipates strong performance in Q4 2025, with revenue expectations of $885 million to $895 million, driven by the Domain acquisition [59] - Management highlighted the legal challenges facing Zillow, predicting that these could significantly impact Zillow's operations and market position [27][29] Other Important Information - CoStar's cash balance as of September 30 was $2 billion, with a net interest income of $26 million in Q3 [58] - The company repurchased 576,000 shares for $51 million in Q3, with plans for an additional $50 million in share repurchases in Q4 [58] Q&A Session Summary Question: Inquiry about seasonal behaviors in bookings - Management noted that Apartments.com typically experiences seasonality, particularly around the NAA event, but current sales trends for Homes.com show a linear progression without significant seasonality [61][62] Question: Follow-up on seasonal trends - Management confirmed that while some seasonality may occur during year-end holidays, the current sales line for Homes.com remains smooth, indicating strong performance [63]

Market Overview - The market has shown surprising strength despite various challenges such as government shutdowns, tariffs, and geopolitical tensions, driven largely by an AI-driven bull market [4][5][18]. - The sentiment among investors is shifting towards a more optimistic view, with many focusing on the potential for continued growth rather than the risks [18][24]. Investment Opportunities - The technology sector, particularly companies involved in AI and utilities, is highlighted as a key area for capturing alpha [6][7]. - Small-cap stocks, particularly those in the Russell 2000, are gaining attention as they are tied to technology, industrials, and utilities, with notable performers like Credo Technology and Bloom Energy [10][11]. Economic Data and Market Sentiment - Economic data has been puzzling, with mixed signals regarding job markets and consumer behavior, leading to uncertainty among investors [48][50]. - The lack of key economic reports due to the government shutdown is causing complacency among investors, who are not as concerned as expected [56][60]. Earnings Growth - Earnings are expected to grow by 8% year-over-year in the third quarter, with estimates suggesting a potential 13% growth, indicating strong underlying support for the current market highs [81][82]. ETF Market Dynamics - The ETF market is experiencing a surge, with 115 launches in September, reflecting a bullish sentiment among ETF managers [33][34]. - ETFs are seen as a good way for retail investors to gain diversification, especially in sectors like uranium, which has seen significant growth [75][76]. Gold Market Insights - Gold has been rallying, attracting retail investors looking for diversification, although its long-term performance compared to equities is questioned [67][70][72]. Government and Geopolitical Factors - The government's support for companies like Intel is noted, but investing solely based on government backing is seen as speculative [73][74]. - The geopolitical landscape, particularly regarding China and tech, remains a concern for investors [73].

Core Viewpoint - Altria's stock is considered undervalued, with its valuation reflecting negative free cash flow per share growth for the next decade [1] Group 1: Investment Strategy - The investment approach focuses on GARP (growth at a reasonable price) stocks while also seeking opportunities in other areas [1] - There is no specified time horizon for investments; the strategy is to hold stocks as long as the investment thesis remains valid [1] Group 2: Analytical Background - The analyst has developed market-beating algorithms using Python to identify attractive investment opportunities [1] - Previous experience includes roles at TipRanks as an analysis/news writer and editor, enhancing market awareness and understanding of reader interests [1] - The analyst emphasizes the importance of accuracy and detail in financial information, aiming to correct misinformation in the market [1]

Core Insights - Christie's International Real Estate has added Talamona Real Estate as its newest affiliate in Italy, enhancing its presence in the luxury real estate market in northwest Italy [1][7] Company Overview - Talamona Real Estate, founded and led by Theodor Talamona, is known for its high level of client service and operates in key locations including Luino, Laveno-Mombello, Verbania, and Genoa [2][3] - The affiliation with Christie's International Real Estate will provide Talamona Real Estate with international exposure and referral opportunities through a global luxury network that spans nearly 50 countries [3][4] Market Dynamics - Northwest Italy, particularly the Piedmont and Liguria regions, is experiencing increased interest from U.S. buyers and those outside Europe, highlighting the strategic importance of the Christie's alliance [4] - The Piedmont region is characterized by its historic cities, wine-producing villages, and proximity to Milan and the French border, making it an attractive destination for both international visitors and second home buyers [5] - Liguria, known for its Mediterranean living and historic character, offers access to the Italian Riviera and is strategically located near Monaco and major European transit hubs, appealing to luxury buyers [6]

内容提要： 2025统计年度，外国人购买美国现房激增三分之一。认为美国必将衰败的中国买家以137亿美元、1.17万套房产位居榜首，占总额 24.5%，购房中位数75.96万美元，远超全美平均水平。受高房价和高房贷利率影响，美国本地购房需求低迷，外国富裕群体趁机投资。 出于安全和房价上涨担忧，美国30个州通过限制外国人购房的法案。 一、2025统计年度，外国人购买美国现房增长三分之一，其中四分之一为排名第一的中国人购买。 在美国房价高涨导致美国人购房放缓的背景下，以中国人为主的外国富裕群体，将此视为在美国置业投资的良机。2024 年 4 月至 2025 年 3 月统计年度，外国人在美国购买的现房数量同比大增三分之一，其中中国人的购买金额暴涨8成。尽管外国人的购房量仅占美国总销 量的2%。 根据全美房地产经纪人协会2025年美国住宅房地产国际交易报告，从2024年4月到2025年3月的2025统计年度（下同），外国买家购买了 价值560亿美元的美国现房。这比前12个月增长了 33.3%，创下2018年以来的最高增长。国际买家购买了7.81万处房产，比上年增长 44%，是自 2017 年以来的首次同比增长，增幅为2 ...