Over the past few weeks, some of the biggest names in real estate have released their financial and operational results for the third quarter ending September 30, 2024.
Read on for highlights from Q3 2024 financial updates for the following companies:
A few acronyms to keep in mind:
- GAAP = generally accepted accounting principles
- EPS = earnings per share
- EBITDA = earnings before interest, taxes, depreciation, and amortization
- BPS = basis points (100 bps = 1% change; 0.01bps = 1% change)
Across the board, results have been mixed due to challenging market conditions, but leadership remains optimistic about company gains over the past three months as well as prospects for the fourth quarter and 2025.
Q3 Earnings for Industry-Leading Real Estate Companies
Anywhere
Anywhere Real Estate, Inc. (NYSE: HOUS) reported its financial results for the third quarter ending September 30, 2024.
Q3 2024 Financial & Operational Highlights
- Revenue: Generated $1.5 billion, a decrease of 3% year-over-year. Combined closed transaction volume was flat, with units down 5% and average price up 6%.
- Luxury Market Performance: Corcoran and Sotheby’s International Realty brands saw 5% growth in transaction volume. Continued to grow luxury unit share year-over-year.
- Net Income: Reported $7 million, down $122 million compared to Q3 2023, primarily due to a reduction in gains from early debt extinguishment. Adjusted Net Income was $6 million, a decrease of $11 million year-over-year.
- Operating EBITDA: Reported $94 million, down $13 million from the previous year.
- Cost Savings: Achieved approximately $30 million in cost savings for Q3, on track to realize $120 million in full-year savings.
- Agent Commission Splits: Increased by 15 basis points to 80.4% year-over-year, marking the 10th consecutive quarter of stable splits around 80%.
- Free Cash Flow: Improved to $99 million, up from $95 million in Q3 2023.
- Debt Reduction: Repaid $196 million on Term Loan A. Repurchased $26 million of unsecured notes for $19 million, realizing a $7 million discount.
- Preliminary October Results: Closed transaction volume increased by approximately 9% year-over-year. Open transaction volume (new contracts) grew 16% year-over-year, adjusted for an extra business day in October 2024
- Awards and Recognition: Anywhere’s AI-enhanced Listing Concierge platform won the Inman AI Award for Best Use of AI by a Brokerage in October 2024. Recognized by Forbes as a World’s Best Employer for the fourth consecutive year in October 2024.
I am proud of our third quarter performance as Anywhere delivered strong Operating EBITDA and free cash flow, invested meaningfully in the business for future growth, gained luxury share, and strengthened our balance sheet. Anywhere stands out because of our strategic strengths and profitability, along with our outstanding affiliated agents, franchisees, and employees who continue to deliver great value to consumers as we move real estate to what’s next.
Compass
Compass, Inc. (NYSE: COMP) shared the highlights of its financial and operational results for the third quarter ending September 30, 2024.
Q3 2024 Highlights:
- Revenue: $1.5 billion, up 11.7% year-over-year, driven by a 16.1% increase in transactions, while the overall residential market saw a 1.9% decline in transactions (according to NAR).
- Organic Revenue Growth: 5.3%.
- Revenue Growth from M&A: 6.4%.
- GAAP Net Loss: $1.7 million, an improvement of $37.7 million compared to a $39.4 million loss in Q3 2023. Included $32.5 million in non-cash stock-based compensation and $20.5 million in depreciation and amortization.
- Adjusted EBITDA: $52.0 million, up from $21.8 million in Q3 2023, marking an improvement of $30.2 million.
- Cash Flow:
- Operating Cash Flow: $37.4 million.
- Free Cash Flow: $32.8 million.
- Cash Position: $211.2 million in cash and cash equivalents at the end of Q3, with no outstanding draws on the revolving credit facility.
Q3 2024 Operational Highlights:
- Market Share: National market share of 4.80% in Q3 2024, up 49 basis points year-over-year, though down 33 basis points sequentially from Q2 2024 due to seasonal geographic mix.
- Principal Agents: Total principal agents reached 17,542, a 20.0% increase from 14,615 in Q3 2023. Sequential growth of 545 agents (up 3.2%) from Q2 2024. Strong retention rate of 97.8%, the best in four quarters.
- Transactions: Compass agents closed 55,872 transactions in Q3 2024, a 16.1% increase from 48,134 in Q3 2023. Overall U.S. market transactions decreased by 1.9% during the same period (NAR data).
- Gross Transaction Value (GTV): Reached $57.7 billion, up 13.4% from $50.9 billion in Q3 2023. The broader U.S. market GTV rose only 1.9% in the same period (NAR data).
- Technology Platform:
- Title & Escrow Integrations: Completed integrations, resulting in a 700 basis point increase in attach rates over the last three quarters.
- Client Dashboard (Compass One): Beta version launched in October 2024; national rollout expected in early Q1 2025.
- Compass Reverse Prospecting: New feature providing sellers with insights into buyer interest, tracking engagement from Compass’s network of 33,000+ agents and their clients.
- Make-Me-Sell Tool: Phase 1 launched, with full release expected by late Q1 2025, aiming to convert CRM contacts into passive ‘willing-to-sell’ inventory exclusive to Compass agents.
In what remains a challenging environment for the real estate market, we grew Adjusted EBITDA significantly year-over-year and delivered a substantial improvement in free cash flow. Our results this quarter put Compass in a position to deliver meaningful Adjusted EBITDA for 2024 and to be free cash flow positive for the full year despite a multi-decade low for existing home sales, demonstrating our ability to generate significant free cash flow as the market makes its way to mid-cycle levels. We continue to grow faster than the market – third quarter transactions increased 16.1% year-over-year versus a market that declined 1.9% as we grew our Number of Principal Agents 20% year-over-year and increased our quarterly market share to 4.80% in Q3 2024 from 4.31% in Q3 2023. The third quarter was also our strongest quarter in the last four quarters for quarterly principal agent retention at 97.8%.
When the market recovers, we believe the combination of our cost discipline and structural advantages, which include our end-to-end proprietary technology platform, national scale, network of top agents and depth of inventory, positions Compass to capture significant upside at attractive unit economics.
We continue to fortify our balance sheet and ended the quarter with a cash balance of $211.2 million. In Q3 2024, we generated positive operating cash flow of $37.4 million and free cash flow of $32.8 million. We reduced OPEX4 in the third quarter to $215.0 million, an improvement of $3.8 million from Q3 2023 OPEX of $218.8 million. Excluding the impact from M&A of $9.6 million, year-over-year OPEX reduced by $13.4 million. OPEX was also down sequentially Q3 2024 to Q2 2024 by $2.4 million even with Parks and Latter & Blum fully loaded into our operating costs. These results exhibit our commitment to control costs as we continue to outpace market growth.
CoStar
CoStar Group (NASDAQ: CSGP) announced its Q3 financial highlights, with an 11% annual increase in revenue for the three months ending September 30, 2024.
Q3 2024 Financial Highlights:
- Total Revenue: $692.6 million, up 11% from $624.7 million in Q3 2023.
- Net Income: $53 million, a significant increase of 176% from Q2 2024.
- Net Income per Diluted Share: $0.13, down from $0.22 in Q3 2023.
- Gross Profit: $552 million—up from $501 million in Q3 2023
- Operating Expenses:
- Selling & marketing (excluding customer base amortization): $331.2 million, up from $266.9 million in Q3 2023
- Software development: $81 million, up from $67.9 million in Q3 2023
- General & administrative: $105.8 million, up from $94.4 million in Q3 2023
- Customer base amortization: $10.3 million, up from $10.2 million one year ago
- Net Income: $53 million, down from $90.6 million in Q3 2023
- EBITDA: $51 million, up 320% from Q2 2024.
- Adjusted EBITDA: $76 million, an 86% increase from Q2 2024—exceeding the midpoint of the Company’s guidance by 54%.
We achieved another strong quarter of results with our 54th consecutive quarter of double-digit revenue growth. CoStar Group revenue grew 11% year-over-year, as our two billion-dollar run rate businesses, Apartments.com and CoStar, continue to deliver double-digit revenue growth. Net income, EBITDA and Adjusted EBITDA increased significantly versus each of the first and second quarters of 2024. Our commercial information and marketplace businesses continue to perform very well and delivered 43% profit margins in the third quarter of 2024.
Our marketing investment continues to deliver strong results as we lay the groundwork for sustained long-term growth as interest rates move down, transaction volume increases and our brands gain even more traction. CoStar Group had a 28% increase year-over-year in average monthly unique visitors to 163 million in the third quarter 2024. In the U.S., the Homes.com network had 130 million average monthly unique visitors as unaided awareness increased to 33% in September 2024, up from 4% before the marketing campaign launch in February 2024. For Homes.com, we delivered 15 billion impressions year-to-date and nearly 5 billion impressions in Q3. In the U.K., just 10 months after our acquisition of OnTheMarket, we have grown year-over-year traffic by 212%, unique visitors by 348%, listing agents by 27%, sales leads by 76% and total stock by 45%.
eXp Realty
eXp Realty (Nasdaq: EXPI) released its financial results for the third quarter ending September 30, 2024.
Q3 2024 Financial Highlights (Compared to Q3 2023):
- Revenue: Increased 2% to $1.2 billion, driven by higher home sales prices and improved agent productivity.
- Net (Loss) Income: Net loss from continuing operations of ($6.5 million) vs. net income of $2.3 million in Q3 2023, impacted by an $18.0 million litigation contingency provision related to an antitrust settlement. Adjusted net income (excluding litigation and discontinued operations) was $7.8 million, up from $2.3 million, with adjusted net income per diluted share of $0.05 vs. $0.01 last year.
- Operating Costs: Adjusted operating costs were $78.0 million, a 1% decrease due to lower technology, development, and marketing expenses, despite increased legal costs.
- Adjusted EBITDA: $23.9 million, up 15%, reflecting better business efficiencies and cost management.
- Cash Position: Cash and cash equivalents at $130.4 million, up from $120.4 million.
- Repurchased $35.0 million in common stock during Q3 2024.
- Paid a $0.05 per share dividend in Q3 and declared the same for Q4.
Q3 2024 Operational Highlights (Compared to Q3 2023)
- Global Agent Satisfaction (aNPS): Increased to 76 from 74.
- Agent Count: Decreased by 4% to 85,249 due to off-boarding less productive agents, focusing on retaining high performers in the U.S. and Canada.
- Real Estate Transactions: Slight decline of 1% to 117,830 transactions.
- Transaction Volume: Grew 5% to $50.8 billion.
- New Brokerage Teams: Welcomed several high-profile independent brokerage teams.
- New Initiatives:
- Launched “Groups Within eXp Commercial” for enhanced advisor collaboration.
- Appointed Donald Cherry as Vice President of Sustainability.
We are thrilled to announce that eXp Realty welcomed several high-achieving independent brokerages and agent teams to our platform in the third quarter. Leading independent brokerages, recognized as powerhouses in their regions, are choosing eXp to accelerate their growth and maximize their earnings potential. Our innovative business model and exceptional value proposition set us apart in the industry, and our strategic investments in cutting-edge programs and technology make eXp an incredibly attractive option for independent brokerages. By joining eXp, they gain access to resources and support that would be prohibitively expensive to develop independently.
In the third quarter, we increased our margins and profitability, despite a continued challenging market, demonstrating the strength and sustainability of our business model. Simultaneously, we are committed to investing in our agents by hosting inspiring events like eXpcon in the fourth quarter and continuing to lead the industry in agent technology innovations.
Offerpad
Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD) reported its financial and operational results from the third quarter ending September 30, 2024.
Q3 2024 Financial Highlights:
- Net Loss: Improved by 32% compared to the prior year.
- Adjusted EBITDA: Improved by 53% compared to the prior year.
- Gross Profit per Home Sold: $27.9k.
- Contribution Profit After Interest per Home Sold: $12.4k, with 30% of the contribution from asset-light services.
- Total Operating Expenses: Decreased to $26.1 million from $43.5 million the prior year, representing a $17.4 million or 40% improvement.
Q3 2024 Operational Highlights:
- Time to Cash for Homes Sold: 110 days, up from 106 days in the prior quarter.
- Renovate Closed Projects: 227 projects, up 43% versus the prior year, generating $4.0 million in revenue.
- Acquisitions from Agent Partnership Program: Grew to 33% of total acquisitions.
- Customer Engagement Process: Improved through new technology implementation, reducing the time for delivering initial estimated offers from 24 hours to minutes.
During the third quarter, we delivered revenue at the high end of our guidance. We’ve expanded our asset-light services, strengthened partnerships, and optimized our organization. This positions Offerpad well as we return to normalized acquisition levels in our cash offer business with a streamlined cost structure.
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Opendoor
Opendoor Technologies Inc. (Nasdaq: OPEN) released its financial and operational results for the third quarter ending September 30, 2024.
Q3 2024 Financial & Operational Highlights
- Revenue: $1.4 billion, up 41% versus Q3 2023, and down 9% versus Q2 2024.
- Homes Sold: 3,615 total homes, up 35% versus Q3 2023, and down 11% versus Q2 2024.
- Gross Profit: $105 million, compared to $96 million in Q3 2023 and $129 million in Q2 2024.
- Gross Margin: 7.6%, compared to 9.8% in Q3 2023 and 8.5% in Q2 2024.
- Net Loss: $(78) million, compared to $(106) million in Q3 2023 and $(92) million in Q2 2024.
- Inventory Balance: $2.1 billion, representing 6,288 homes, up 64% versus Q3 2023, and down 4% versus Q2 2024.
- Homes Purchased: 3,504 homes, up 12% versus Q3 2023, and down 27% versus Q2 2024.
- Homes Under Contract: 1,006 homes, down 39% versus Q3 2023, and down 44% versus Q2 2024.
- Non-GAAP Key Highlights:
- Contribution Profit: $52 million, compared to $43 million in Q3 2023 and $95 million in Q2 2024.
- Contribution Margin: 3.8%, compared to 4.4% in Q3 2023 and 6.3% in Q2 2024.
- Adjusted EBITDA: $(38) million, compared to $(49) million in Q3 2023 and $(5) million in Q2 2024.
- Adjusted EBITDA Margin: (2.8%), compared to (5.0%) in Q3 2023 and (0.3%) in Q2 2024.
- Adjusted Net Loss: $(70) million, compared to $(75) million in Q3 2023 and $(31) million in Q2 2024.
Opendoor’s third quarter acquisition volumes, revenue, Contribution Profit, and Adjusted EBITDA all exceeded our guidance, notwithstanding persistent housing market headwinds. In August, many anticipated that interest rate cuts would bring buyers and sellers back to the market. However, mortgage rates remain stubbornly high and the housing market continues to be challenged by high delistings, low clearance, and strained affordability.
We are focused on what we can control, operating our business as efficiently as possible, and streamlining our cost structure while managing risk. The combination of the actions we took in the second half of this year will result in annualized savings of approximately $85 million as we enter 2025. With a simplified organization and ongoing enhancements in our core products, we are well-positioned to rescale the business as conditions improve.
Real Brokerage
Last week, The Real Brokerage (NASDAQ: REAX) announced its financial results for the third quarter ending September 30, 2024.
Q3 2024 Operational Highlights
- Total Value of Completed Transactions: $14.4 billion, up 78% from $8.1 billion in Q3 2023.
- Total Number of Transactions Closed: 35,832 transactions, up 76% from 20,397 in Q3 2023.
- Total Number of Agents on the Platform: 21,770 agents at the end of Q3 2024, up 79% from Q3 2023. As of November 7, 2024, the number of agents increased to approximately 22,500.
Q3 2024 Financial Highlights
- Revenue: $372.5 million, up 74% from $214.6 million in Q3 2023.
- Gross Profit: $32.1 million, up 71% from $18.8 million in Q3 2023.
- Net Loss Attributable to Owners: $(2.6) million, improved from a net loss of $(4.0) million in Q3 2023.
- Adjusted EBITDA: $13.3 million, up from $3.5 million in Q3 2023.
- Operating Expenses: $34.6 million, a 52% increase from $22.7 million in Q3 2023.
- Revenue Share Expense (Marketing): $11.7 million, up 47% from $7.9 million in Q3 2023.
- Adjusted Operating Expenses: $16.8 million, up 47% from $11.4 million in Q3 2023.
- Adjusted Operating Expense per Transaction: $468, down 16% from $558 in Q3 2023.
- Loss per Share: $(0.01), improved from a loss per share of $(0.02) in Q3 2023.
- Share Repurchase: 2.7 million common shares repurchased for $15.1 million under the normal course issuer bid.
- Cash and Cash Equivalents (as of September 30, 2024): $32.0 million, comprising $21.6 million of unrestricted cash and $10.4 million in investments in financial assets.
- Debt Status: The Company continues to have no debt.
Business Highlights and Recent Updates
- Real Wallet: A fintech product enabling U.S. agents to access their earnings instantly through a Real-branded debit card with Thread Bank, and Canadian agents to access a credit line based on their earnings history. Future plans include expanding to a comprehensive business banking solution.
- Leo CoPilot: An upgraded AI assistant serving as a personal command center for agents, integrated with Real’s reZEN software, designed to anticipate agent needs and streamline daily tasks for enhanced productivity.
- Leo for Clients: A communication tool that allows agents to interact with clients via SMS and iMessage, offering 24/7 property information, open house details, tour scheduling, and mortgage application support, improving client engagement and experience.
Real delivered another exceptional quarter underpinned by industry-leading growth and innovation. Our technology leadership was on full display at our recent RISE 2024 conference, with the official launch of Real Wallet, our first fintech product, and the announcement of Leo AI for clients. These innovations reflect our ongoing commitment to creating a seamless, technology-first real estate experience that empowers both agents and their clients.
Even with current market challenges, Real’s ability to attract high-performing agents highlights the strength of our value proposition. Our focus on providing agents with world-class tools, support, and training — evidenced by our preparation for the recent NAR practice changes — ensures they can navigate shifts in the industry and grow their businesses with confidence.
Our strong top- and bottom-line performance this quarter reflects a balanced approach of disciplined cost control and strategic investments in high-impact areas. We remain focused on executing our value-creation strategy and building on our recent momentum as we prepare for an even stronger 2025.
Redfin
Redfin Corporation (NASDAQ: RDFN) announced its financial results for the third quarter ending September 30, 2024.
Q3 2024 Financial Highlights:
- Revenue: $278.0 million, an increase of 3% compared to Q3 2023.
- Gross Profit: $101.9 million, an increase of 4% year-over-year.
- Real Estate Services Gross Profit: $48.7 million, a decrease of 10% year-over-year.
- Real Estate Services Gross Margin: 28%, compared to 30% in Q3 2023.
- Net Loss: $33.8 million, compared to a net loss of $19.0 million in Q3 2023.
- Net Loss Attributable to Common Stock: $34.1 million.
- Net Loss Per Share (Diluted): $0.28, compared to $0.17 in Q3 2023.
- Adjusted EBITDA: $3.9 million, down from $7.7 million in Q3 2023.
Q3 2024 Operational Highlights:
- Market Share: 0.76% of U.S. existing home sales by units, compared to 0.78% in Q3 2023.
- Average Lead Agents: 1,757, up 1% compared to Q3 2023, marking the second straight quarter of sequential agent growth.
- Mortgage Attach Rate: 27%, up from 22% in Q3 2023.
- Loyalty Sales: 37% of sales came from loyalty customers, compared to 36% in Q3 2023.
- Redfin Next Agent Pay Plan: Nationwide expansion announced, transitioning all existing agents on October 27, with more than 500 agents hired to join the brokerage under the plan.
- Redfin Teams: Launched nationwide, allowing teams of up to five agents to formally partner. More than 180 agents joined since the launch, including 50+ new to the brokerage.
- Redfin Redesign: Expanded reach by partnering with five additional MLSs, now available on over 355,000 for-sale listings across the U.S.
- Redfin Rental Tools: Expanded nationwide, allowing property managers to list rental homes for free and manage the application and screening process.
- Consumer-Facing Changes: Integrated a consumer-friendly fee agreement into the tour scheduling process and introduced Sign & Save, offering better deals to customers committing to Redfin early.
Redfin’s third-quarter results were within our guidance range, and we’re now forecasting fourth-quarter growth in market share and revenues. Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we’re emerging from a year of record low U.S. home sales ready to go on the attack.
RE/MAX
RE/MAX Holdings, Inc. (NYSE: RMAX) posted the highlights of its financial and operational results for Q3 2024.
Q3 2024 Financial & Operational Highlights:
- Revenue:
- Total Revenue: $78.5 million, a decrease of 3.4% year-over-year.
- Revenue excluding Marketing Funds: $58.4 million, down 3.3%, impacted by -3.0% organic growth and 0.3% adverse foreign currency movements.
- Profitability:
- Net Income: $1.0 million.
- GAAP Earnings per Diluted Share (EPS): $0.05.
- Adjusted EBITDA: $27.3 million, an increase of 2.0% with an Adjusted EBITDA margin of 34.8%. Adjusted Earnings per Diluted Share (Adjusted EPS): $0.38.
- Agent Count:
- Total Agent Count: 145,483, a slight increase of 174 agents (or 0.1%).
- U.S. and Canada Combined Agent Count: Decreased 4.4% to 78,201 agents.
- Motto Mortgage Franchises: Total open Motto Mortgage franchises decreased 3.3% to 234 offices.
We continue to drive operational efficiency across the enterprise, which helped generate better-than-forecasted third-quarter financial results. Our team is developing new revenue opportunities while working to run our core business better each day. That effort has contributed to our strong margin performance the past two quarters, which is an encouraging trend.
Business optimization, having a growth mindset, and delivering the absolute best customer experience possible are the cornerstones of our playbook. We are making measurable progress on each of these. With increasing optimism about the trajectory of future interest rates, our growing global agent count, and our bold new initiatives – including providing innovative and enhanced technology products to our RE/MAX affiliates, improving the agent-customer experience by cultivating leads, and starting to monetize our digital assets – we are well-positioned to finish the year with positive momentum.
Zillow
In a press release dated November 6, 2024, Zillow (NASDAQ: Z and ZG) published its consolidated financial results for the third quarter ending September 30.
Q3 2024 Financial & Operational Highlights:
- Total Revenue: $581 million, up 17% year over year, exceeding the company’s outlook midpoint by $28 million.
- Residential Revenue: $405 million, up 12%, driven by better buyer-seller conversions with Zillow agent partners.
- Rentals Revenue: $123 million, up 24%, with multifamily revenue growing 38%.
- Mortgages Revenue: $39 million, up 63%, boosted by an 80% increase in purchase loan origination volume to $812 million.
- Net Loss (GAAP): $20 million, representing 3% of total revenue.
- Adjusted EBITDA: $127 million, or 22% of total revenue, surpassing the outlook midpoint by $24 million, mainly due to strong Residential revenue.
- Cash and Investments: $2.2 billion at the end of Q3, down from $2.6 billion at the end of Q2.
- User Engagement:
- Average Monthly Unique Users: 233 million, up 1% year over year.
- Total Visits: 2.4 billion, up 3% year over year.
Zillow had another strong quarter, with 17% total revenue growth year over year. I’m proud of how we are executing our strategy to serve renters, buyers, sellers, agents and the broader residential real estate industry. We continue to invest in tech solutions to build the integrated transaction experience consumers demand and deserve. These investments give Zillow an advantage as we connect high-intent movers with high-performing agents, driving adoption of our services and contributing to increased revenue.
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