Anywhere Real Estate’s third-quarter earnings call was markedly different, as a looming $1.6 billion all-stock merger with Compass prevented leaders from delving deep into the company’s performance.
“As is typical in situations where there’s a pending merger, the company’s suspending its forward guidance, and we will no longer provide an update on how it’s tracking towards its prior guidance,” Anywhere Vice President Tom Hudson said in a lengthy disclosure to kick off the call. “However, we will continue to share updates on our execution towards the $100 million cost savings target.”
“… As such, the company will not be taking any questions following the conference call,” he added.
Ryan Schneider | Anywhere
Anywhere President and CEO Ryan Schneider and Chief Financial Officer Charlotte Simonelli spent the next 15 minutes floating through company statistics — transaction units finally ticked up after several quarters — and reiterating the independence of Anywhere’s family of brands after the merger closes during Q2 2026.
“On our second quarter call, we outlined our intent to drive meaningful innovation across the real estate experience,” Schneider said. “Over 90 days later, we have taken an important step forward.”
“The proposed merger with Compass advances that journey. By bringing together two of the most innovative and respected organizations in real estate, Anywhere and Compass, we expect to create a platform where agents, franchisees, and employees can thrive while delivering even greater value to home buyers and sellers across every phase of the transaction,” he added. “Importantly, we expect that this can be done while preserving the unique independence and identity of each leading brand.”
Breaking out of a transaction slump
Recent market dynamics haven’t been kind to many of real estate’s most prominent players, including Anywhere. The company was hopeful during its Q2 earnings call in July that a rebound was on the horizon, as open volume and Anywhere Advisor listings experienced a mid-summer pop.
That momentum is proving to be more than a blip on the radar, with both open and closed transaction volumes edging up during the three months ending on September 30.
- Closed transaction volume increased 7 percent year over year, the first gain in units since Q4 2024.
- Anywhere’s luxury segment saw a 12 percent year-over-year volume growth. The increase in volume was driven by rising units and prices, which increased by 9 percent and 3 percent, respectively. The share of homes sold at $10 million or higher increased 30 percent from Q3 2024.
Amid the boost in transaction volume, agent commissions remained solid.
- Agent commission splits rose 30 basis points, or 0.03 percent, to 80.7 percent.
- Commission splits have been relatively stable in the 80-81 percent range for the past several years, Simonelli said.
Zoom out: Anywhere’s transaction statistics show that the company’s AI-centered strategy to boost agent productivity is working.
During Anywhere’s Q1 and Q2 earnings calls, Schneider said that AI would enable the company to enhance brokerage transaction processing, streamline workflows for its sales and relocation segments, and accelerate agent operations with AI-generated comparative market analyses.
Anywhere’s bet on AI paid off during Q3, with the percentage of fully-automated documents increasing from 33 percent to 50 percent in one quarter. AI also reduced listing and listing agreement entry times from 10 to 15 minutes to under 60 seconds, which the company said has improved both agent and consumer experiences.
Bullish on Compass
A pending $1.6 billion all-stock merger with Compass underscored the call, as Schneider and Simonelli stated that the deal would only enhance the experience of sales associates in both of its company-owned and franchisor-owned segments.
- Anywhere Advisors experienced a 12 percent year-over-year growth in recruitment and achieved 95 percent agent retention among the top half of producing agents in Q3.
- Anywhere Brands welcomed 13 new U.S. franchisees and one new international expansion.
- Anywhere Advisors’ operating earnings before interest, taxes, depreciation and amortization (EBITDA) was negative $11 million, due to an increase in transaction volume but offset by higher employee costs. Excluding the intercompany payments, Advisors’ operating EBITDA was $79 million.
- Anywhere Brands, which includes lease and relocation, reported an operating EBITDA of $155 million, a $4 million increase from the previous year.
Schneider and Simonelli said these numbers, alongside continued cost-saving measures and increased investments in AI, reflect Anywhere’s strength, which will only grow once the merger is complete.
“We are executing the momentum across multiple growth sectors, transforming the transaction experience through innovation and generative AI, delivering better experiences faster and at lower costs,” Schneider said. “Carrying that momentum with the proposed merger with Compass will create the premier real estate platform and mark a defining step forward for the industry. I want to thank our nearly 8,000 employees whose dedication makes all of this possible. We are energized by the opportunity ahead.”
Zoom out: The Compass-Anywhere merger has sparked plenty of questions about the futures of Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA, and Sotheby’s International Realty, and their ability to maintain autonomy as a competitor takes charge. (You can read Inman’s merger FAQ here)
Compass CEO Robert Reffkin published a brief Inman op-ed in October, reassuring anxious Anywhere-affiliated brokers about their brand independence. Reffkin said not much would change for those under Anywhere’s umbrella, except they’d now have access to Compass’s expansive suite of tools, programs, networking groups and support. “Joining forces gives us the resources to build a place where real estate professionals and franchise owners can thrive for decades to come,” he said.
Other numbers to remember:
- Anywhere’s revenue increased 6 percent year over year to $1.6 billion.
- Realized cost savings of $28 million during Q3, putting Anywhere on track to deliver $100 million in realized cost savings for FY 2025.
