Anywhere(US:HOUS)2025-11-04 14:00Financial Data and Key Metrics Changes - Q3 revenue was $1.6 billion, up 6% year-over-year, while operating EBITDA was $100 million, down $8 million compared to the prior year due to increased employee long-term cash incentive costs and elevated health and welfare costs [15][16] - The company realized $28 million in cost savings in Q3 and $67 million year-to-date, on track to achieve $100 million in cost savings for 2025 [16] - Free cash flow was $92 million, down $7 million year-over-year, primarily due to increased capital expenditures for AI initiatives [16] Business Line Data and Key Metrics Changes - Anywhere Brands operating EBITDA was $155 million, up $4 million year-over-year, with a 57% operating EBITDA margin [17] - Anywhere Advisors operating EBITDA was negative $11 million, flat year-over-year, with an operating EBITDA margin of negative 1% [17][18] - Anywhere Integrated Services operating EBITDA was negative $1 million, down $3 million year-over-year, reflecting the high fixed-cost nature of the business [18][19] Market Data and Key Metrics Changes - Q3 closed transaction volume increased by 7%, marking the first growth in units since Q4 2024, outperforming NAR's volume growth by over 2 percentage points [8] - Luxury business saw a 12% year-over-year volume growth, driven by a 9% increase in units and a 3% increase in price [9] - Advisors recruited nearly 500 productive agents in the quarter, with a 12% year-over-year growth in business recruited [9] Company Strategy and Development Direction - The proposed merger with Compass is expected to create a platform that enhances value for agents, franchisees, and employees while preserving brand independence [6][7] - The company is focused on leveraging AI technology to streamline operations and improve customer experiences, with significant progress in automating document processing [11][20] - The Reimagine 25 initiative aims to enhance operations and unlock growth opportunities through AI-enabled technology [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for Q4, with September seeing a 9% increase in open volume and continued growth into October [8] - The company is confident in its financial position, with no significant note maturities until 2029 and ample liquidity available [16] - Management emphasized the importance of innovation and AI in transforming the transaction experience and driving long-term value [22] Other Important Information - The company is suspending forward guidance due to the pending merger, and will not hold a Q&A session following the call [5][20] - The company has repurchased $22 million of exchangeable notes during Q3, building on previous repurchases [16] Summary of Q&A Session - No questions were taken during the conference call due to the pending merger and the decision to suspend forward guidance [5][20]