Anywhere Real Estate Sees Q2 Commission Dip, Service Revenue Holds

TL;DR

**Anywhere Real Estate's commission revenue is shrinking, signaling a tough housing market ahead; I'm bearish on their short-term prospects.**

AI Summary

Anywhere Real Estate Group LLC reported a mixed financial performance for the second quarter and first six months of 2025. Gross Commission Income for the second quarter of 2025 was $1.5 billion, a decrease from $1.6 billion in the second quarter of 2024. For the six months ended June 30, 2025, Gross Commission Income also declined to $2.8 billion from $3.0 billion in the prior year period. Service revenue showed a slight increase, reaching $250 million in Q2 2025 compared to $240 million in Q2 2024, and $480 million for the first six months of 2025, up from $460 million in the same period of 2024. Franchise revenue remained relatively stable at $180 million for Q2 2025 and $350 million for the first six months of 2025, consistent with 2024 figures. Other service revenue decreased to $50 million in Q2 2025 from $60 million in Q2 2024, and to $100 million for the first six months of 2025 from $110 million in 2024. The company's deferred compensation plan assets, measured at fair value, totaled $120 million as of June 30, 2025, with $100 million in Level 1 inputs and $20 million in Level 2 inputs, indicating a stable asset base. The overall revenue picture suggests ongoing challenges in the commission-based real estate market, partially offset by resilience in service and franchise segments.

Why It Matters

Anywhere Real Estate's declining Gross Commission Income signals a challenging housing market, directly impacting investor returns and potentially leading to lower agent commissions. This trend could force the company to re-evaluate its competitive strategies against rivals like Compass and eXp World Holdings, who are also navigating market shifts. For employees, particularly real estate agents, sustained commission declines could affect their livelihoods and lead to talent migration. Customers might see a more competitive environment for agent services as companies vie for market share. The broader real estate market could experience further consolidation if smaller players struggle, impacting overall industry dynamics.

Risk Assessment

Risk Level: medium — The primary risk stems from the declining Gross Commission Income, which fell from $1.6 billion in Q2 2024 to $1.5 billion in Q2 2025, representing a 6.25% decrease. This trend is also evident in the year-to-date figures, dropping from $3.0 billion to $2.8 billion. While service and franchise revenues show some stability, the core commission business is under pressure, indicating vulnerability to real estate market downturns.

Analyst Insight

Investors should closely monitor future Gross Commission Income trends and the company's strategies to diversify revenue streams. Consider holding off on new investments until there's clear evidence of stabilization or growth in their core commission business, or significant expansion in their more stable service and franchise segments.

Financial Highlights

revenue

$1.98B

revenue Growth

-4.85%

Revenue Breakdown

Key Numbers

• $1.5B — Gross Commission Income (Q2 2025) (Decreased from $1.6B in Q2 2024, indicating a 6.25% decline.)
• $2.8B — Gross Commission Income (H1 2025) (Down from $3.0B in H1 2024, reflecting a continued downward trend.)
• $250M — Service Revenue (Q2 2025) (Increased from $240M in Q2 2024, showing resilience in this segment.)
• $480M — Service Revenue (H1 2025) (Up from $460M in H1 2024, indicating consistent growth.)
• $180M — Franchise Revenue (Q2 2025) (Stable compared to Q2 2024, providing a steady revenue stream.)
• $350M — Franchise Revenue (H1 2025) (Consistent with H1 2024, demonstrating stability.)
• $50M — Other Service Revenue (Q2 2025) (Decreased from $60M in Q2 2024, a minor decline.)
• $100M — Other Service Revenue (H1 2025) (Down from $110M in H1 2024, a slight contraction.)
• $120M — Deferred Compensation Plan Assets (June 30, 2025) (Represents the fair value of assets, with $100M in Level 1 and $20M in Level 2 inputs.)

Key Players & Entities

• Anywhere Real Estate Group LLC (company) — filer of the 10-Q
• Anywhere Real Estate Inc. (company) — parent company
• $1.5 billion (dollar_amount) — Gross Commission Income for Q2 2025
• $1.6 billion (dollar_amount) — Gross Commission Income for Q2 2024
• $2.8 billion (dollar_amount) — Gross Commission Income for H1 2025
• $3.0 billion (dollar_amount) — Gross Commission Income for H1 2024
• $250 million (dollar_amount) — Service revenue for Q2 2025
• $240 million (dollar_amount) — Service revenue for Q2 2024
• $180 million (dollar_amount) — Franchise revenue for Q2 2025
• $120 million (dollar_amount) — Deferred compensation plan assets as of June 30, 2025

FAQ

Industry Context

The real estate brokerage industry is highly sensitive to interest rate fluctuations and overall economic health, which directly impact housing demand and transaction volumes. Competition remains intense, with a mix of large national brands, regional players, and independent brokerages vying for market share. Technology adoption, including digital marketing and virtual tours, continues to reshape how services are delivered and experienced by consumers.

Regulatory Implications

The real estate industry is subject to various federal, state, and local regulations concerning fair housing, advertising, licensing, and anti-trust laws. Changes in these regulations, or increased enforcement, could impact brokerage operations, commission structures, and compliance costs.

What Investors Should Do

1. Monitor Gross Commission Income trends closely.
2. Evaluate the growth drivers for Service and Franchise Revenue.
3. Assess the impact of interest rate policies on future transaction volumes.

Glossary

Gross Commission Income

The total amount of commissions earned by real estate agents and brokers before deducting any expenses or splits. (A primary revenue driver for real estate brokerage firms, directly impacted by transaction volume and market conditions.)

Deferred Compensation Plan Assets

Assets set aside to fund future payments to employees under a deferred compensation plan, typically for executives. (Represents a financial commitment by the company and the fair value of these assets can fluctuate based on market performance.)

Level 1 Inputs

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. (Indicates that a significant portion of the deferred compensation plan assets are valued based on readily available market prices, suggesting lower valuation uncertainty.)

Level 2 Inputs

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. (Suggests that some of the deferred compensation plan assets are valued using observable market data, but not direct quotes, implying a slightly higher degree of valuation judgment.)

Year-Over-Year Comparison

Compared to the prior year period, Anywhere Real Estate Group LLC experienced a decline in its primary revenue stream, Gross Commission Income, by 6.25% in Q2 and a similar trend for the first six months. However, this was partially offset by modest growth in Service Revenue, which increased by approximately 4.17% in Q2 and 4.35% for the year-to-date period. Franchise Revenue remained stable, indicating a consistent contribution from this segment. The decrease in 'Other Service Revenue' suggests a minor contraction in ancillary services.

Key Financial Figures

• $0.01 — eal Estate Inc. Common Stock, par value $0.01 per share HOUS New York Stock Exchange

Filing Documents

• hous-20250630.htm (10-Q) — 1812KB
• ex104bod2025rsuagreementfi.htm (EX-10.4) — 45KB
• ex105formofpsuawardagreeme.htm (EX-10.5) — 74KB
• ex151q22025.htm (EX-15.1) — 3KB
• ex311q22025.htm (EX-31.1) — 9KB
• ex312q22025.htm (EX-31.2) — 9KB
• ex313q22025.htm (EX-31.3) — 9KB
• ex314q22025.htm (EX-31.4) — 9KB
• ex321q22025.htm (EX-32.1) — 6KB
• ex322q22025.htm (EX-32.2) — 6KB
• hous-20250630_g1.jpg (GRAPHIC) — 1202KB
• hous-20250630_g2.jpg (GRAPHIC) — 165KB
• 0001398987-25-000108.txt ( ) — 13987KB
• hous-20250630.xsd (EX-101.SCH) — 47KB
• hous-20250630_cal.xml (EX-101.CAL) — 73KB
• hous-20250630_def.xml (EX-101.DEF) — 295KB
• hous-20250630_lab.xml (EX-101.LAB) — 656KB
• hous-20250630_pre.xml (EX-101.PRE) — 494KB
• hous-20250630_htm.xml (XML) — 2408KB

Forward-Looking Statements

Forward-Looking Statements 1

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4 Report of Independent Registered Public Accounting Firm for Anywhere Real Estate Inc. 4 Report of Independent Registered Public Accounting Firm for Anywhere Real Estate Group LLC 5 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 6 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025 and 2024 7 Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 8 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 9 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures about Market Risks

Item 3. Quantitative and Qualitative Disclosures about Market Risks 47

Controls and Procedures

Item 4. Controls and Procedures 47

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 50

Signatures

Signatures 51 Table of Contents INTRODUCTORY NOTE Except as otherwise indicated or unless the context otherwise requires, the terms "we," "us," "our," "our company," "Anywhere" and the "Company" refer to Anywhere Real Estate Inc., a Delaware corporation, and its consolidated subsidiaries, including Anywhere Intermediate Holdings LLC, a Delaware limited liability company ("Anywhere Intermediate"), and Anywhere Real Estate Group LLC, a Delaware limited liability company ("Anywhere Group"). Neither Anywhere, the indirect parent of Anywhere Group, nor Anywhere Intermediate, the direct parent company of Anywhere Group, conducts any operations other than with respect to its respective direct or indirect ownership of Anywhere Group. As a result, the consolidated financial positions, results of operations and cash flows of Anywhere, Anywhere Intermediate and Anywhere Group are the same. As used in this Quarterly Report on Form 10-Q: "Senior Secured Credit Agreement" refers to the Amended and Restated Credit Agreement dated as of March 5, 2013, as amended, amended and restated, modified or supplemented from time to time, that governs the senior secured credit facility, or "Senior Secured Credit Facility", which includes the "Revolving Credit Facility"; "9.75% Senior Secured Second Lien Notes" and "7.00% Senior Secured Second Lien Notes" refer to our 9.75% Senior Secured Second Lien Notes due 2030 (issued in June 2025) and 7.00% Senior Secured Second Lien Notes due 2030, respectively, and are referred to collectively as the "Senior Secured Second Lien Notes"; "5.75% Senior Notes" and "5.25% Senior Notes" refer to our 5.75% Senior Notes due 2029 and 5.25% Senior Notes due 2030, respectively, and are referred to collectively as the "Unsecured Notes"; and "Exchangeable Senior Notes" refers to our 0.25% Exchangeable Senior Notes due 2026.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "believe," "expect," "anticipate," "intend," "project," "estimate," "potential," "plan," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could." In particular, information appearing under "Management's Discussion and Analysis of Financial Condition and Results of Operations" includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, it is based on management's current plans and expectations, expressed in good faith and believed to have a reasonable basis. However, we can give no assurance that any such expectation or belief will result or will be achieved or accomplished. The following include some, but not all, of the risks and uncertainties that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements: The residential real estate market is cyclical, and we are negatively impacted by downturns and disruptions in this market, including factors that impact homesale transaction volume (closed homesale sides times average homesale price), such as: prolonged periods of a high mortgage rate and/or high inflation rate environment; continued or accelerated reductions in housing affordability, whether at initial purchase or ongoing ownership cost; insuffi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Anywhere Real Estate Inc. Results of Review of Interim Financial Statements We have reviewed the accompanying condensed consolidated balance sheet of Anywhere Real Estate Inc. and its subsidiaries (the "Company") as of June 30, 2025, and the related condensed consolidated statements of operations, of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2025 and 2024 and the condensed consolidated statement of cash flows for the six-month periods ended June 30, 2025 and 2024, including the related notes (collectively referred to as the "interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of December 31, 2024, and the related consolidated statements of operations, of comprehensive loss, of equity and of cash flows for the year then ended (not presented herein), and in our report dated February 25, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet information as of December 31, 2024 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results These interim financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Co

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