Anywhere Real Estate Inc.

Good morning and welcome to the Anywhere Real Estate First Quarter 2025 Earnings Conference Call via webcast. Today's call is being recorded and a written transcript will be made available in the investor information section of the company's website tomorrow. A webcast replay will also be made available on the company's website. At this time, I would like to turn the conference over to Anywhere Senior Vice President, Alicia Swift, please go ahead, Alicia.

Thank you, Rebecca. Good morning and welcome to the first quarter 2025 earnings conference call for Anywhere Real Estate. On the call with me today are Anywhere CEO and President Ryan Schneider and Chief Financial Officer Charlotte Simonelli. As shown on slide three of the presentation, the company will be making statements about its future results and other forward-looking statements during this call. These statements are based on current expectations and the current economic environment. Forward-looking statements, estimates, and projections are inherently subject to significant economic, competitive, antitrust, and other litigation, regulatory, and other uncertainties and contingencies, many of which are beyond the control of management, including, among others, industry and macroeconomic developments. Actual results may differ materially from those expressed or implied in the forward-looking statements. References made to April month to date in these remarks are reflected data through April 25, 2025. We have three large previously disclosed and expected one-time free cash flow headwinds in 2025, which total approximately $115 million. We have excluded from our free cash flow guidance, and for further discussion of these matters, please see our SEC periodic report. Important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in our earnings release issued today, as well as in our annual and quarterly SEC filings. For those who listened to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, April 29th, and have not been updated subsequent to the initial earnings call. Now I will turn the call over to our CEO and President, Brian Schneider.

Thank you, Alicia. There's no one in real estate like anywhere. We have distinct advantages across our iconic brands, luxury leadership, franchise octane, and end-to-end integrated business model. Our strengths are evident when you look at what's happening in the brokerage ecosystem in the first quarter of 2025. We continue to sell more luxury real estate than anyone else, gaining share even as others try to catch up to our industry leading position. We generate very strong economics from our high margin franchise business. during a time when we saw private capital investing in this attractive market segment. Our integrated business model covers every step of the real estate transaction experience, from brokerage to title and mortgage, a strategic opportunity clearly resonating with others, as you saw by their actions in the quarter. We are transforming our business at scale with the early adoption of emerging technologies, like all leading companies. You can see our advantage position in our Q1 performance. Despite a historically challenging housing market, we continue to demonstrate strong financial performance and strategically invest in the business to propel us for future success faster. We generated $1.2 billion of revenue and effectively break even operating EBITDA. Our 6% volume increase, overwhelmingly organic, substantially outperformed NAR's 3% volume growth in the quarter. Our market share gain in the quarter was driven primarily by our luxury success. Our luxury segment outperformed our portfolio and the market with share gains driven by growth in both units and price. April volumes are relatively flat, softer than Q1 due to market and macroeconomic volatility, and luxury continues to outperform in April. We launched Reimagine 25 in Q1 to transform how we operate as a company. Reimagine 25 enables us as early adopters of new technologies to jumpstart a more innovative future and will serve as the foundation of our continued efforts to deliver better experiences for our customers faster and at lower cost. And speaking of cost, we deliver $14 million of cost savings in Q1 and continue to target full-year 2025 cost savings of $100 million, reinforcing our commitment to permanently lowering our cost base and enhancing our earnings power. Strategic growth highlights in Q1 include we meaningfully expanded our luxury leadership across Sotheby's International Realty, Corcoran, and Coldwell Banker Global Luxury, which are fueled by our unique value propositions and targeted, talented agent networks. Our luxury volume was up 16% year-over-year in the quarter, with both unit and price growth. Luxury listings increased 12% year-over-year. We sell more luxury homes than anyone across all luxury price points. For example, in Q1 we sold 345 $10 million-plus homes, nearly doubling our Q1 2024 results and our best Q1 results since 2022. We sold 35% more $5 million-plus homes in Q1 than in Q1 2024. Our concierge auction business, which earns both a buyer premium and a seller commission, ran successful auctions in New York City and Dubai in the quarter, selling high-end properties with an average sale price over $4 million. And our Corcoran brand is leveraging its unparalleled expertise in new development to expand within its franchise network. Excitingly, we are initiating our first new development project with a franchisee, an 84-unit development in Nashville slated to launch this spring. Now, both our own brokerage and franchise value propositions are increasingly resonating and paying off in our recruiting results. In Q1, our producing agent recruiting program in advisors delivered 30% year-over-year growth, with growth over 100% versus some of our biggest competitors. And in franchise, we welcomed 11 new U.S. franchisees to our high-margin franchise network and added a couple of new international franchisees. And we accelerated our aggressive AI agenda, deploying generative AI at scale across many parts of our business to drive better experiences faster and at lower costs. We expect it to increasingly shape our culture, employee training, goal setting, and daily operations. We shared with you before AI-driven successes in different parts of our company, customer-facing applications like listing concierge, product strategy, operational efficiency like brokerage document processing, and employee productivity. And since we last spoke, a couple of our newer developments include piloting AI assistance to enhance productivity for both agents and employees. experimenting with using AI to evaluate listing images to ensure the best photos are utilized for marketing the home, and piloting the automating production of more complex documents like a first draft of a franchise agreement. And now as we approach the nine-month mark since significant industry practice changes, we remain confident in our proactive approach to change and how our agents and franchisees have successfully navigated these shifts and consistently demonstrated their value to consumers. We are leveraging these changes to enhance our end-to-end capabilities. For instance, we are beginning to pilot mortgage and title marketing within the buyer broker agreements we use with customers to increase revenue capture opportunities and be a new avenue for future growth. Now, speaking of industry change, since we last spoke, NAR released a slightly modified clear cooperation policy. the debates about private listings have continued, and both Redfin and Zillow have announced that certain listings that start as private listings will ultimately not be permitted to be displayed on their websites. While the implementation of all of these topics is deeply in flux, and we expect a lot more change to occur, let me tell you our current thinking and why anywhere agents and franchisees are well positioned for success. Anywhere real estate is aggressively advocating for transparency and the broad and public distribution of nearly all listings because we believe it is best for buyers to see all the inventory and most critically, it helps sellers get the highest price for their home, full stop. With the recent announcements by Zillow, Redfin, and others intended to prevent certain private listings from ever appearing on their websites, we believe our strategic view gets even stronger, specifically, I do not think that advising the vast majority of sellers to do a private risk listing and risk their property not getting displayed on some of the most prominent public portals is a winning strategy. Now, Anywhere Real Estate has the world's largest network of trusted agents who are incentivized only to do what's right for their customer, even if a different action is more beneficial to the brokerage. And we remain committed to doing what's right for buyers and sellers. which we believe starts with advocating for transparency, consumer choice, and the broad and public distribution of listings. With that, let me turn it over to Charlotte for more details on Q1 2025.