RE/MAX revenue continues to slip despite agent gains
While revenue fell 7.3% in the second quarter, profits and margin performance were up, and global agent count reached an all-time high.
RE/MAX revenue missed the mark during the second quarter as the sluggish spring real estate market kept sales in check.
The Denver-based franchise giant tallied $72.8 million in revenue, down 7.3% compared to a year ago and below the consensus estimate of $74.2 million.
One bright spot was the company's global agent count, which was more than 147,000 at the end of June — an all-time high — thanks to an 11.5% jump in international growth. But North American agent count fell 5% year-over-year, continuing a trend seen every quarter since late 2022, largely due to a 7% drop in the number of U.S. agents.
RE/MAX's stock price was down about 3% in early July 31 trading to $8.24 a share.
What RE/MAX had to say
Despite a net loss of more than 3,700 U.S. agents year-over-year, "we had our best quarter of U.S. agent count performance" in three years, RE/MAX Holdings CEO Erik Carlson said in the earnings release, adding that while revenue was down, profit and margin performance exceeded expectations.
Carlson expressed optimism about U.S. agent count stabilizing, noting during the July 31 investor call that the company's Aspire onboarding program, introduced earlier this year, is helping with recruitment.
Also during the call, the company announced the addition of RE/MAX Hawaii and its 170 agents, a "strategic move" that "adds a strong and well-regarded operator to our system and reinforces that influential brokers continue to see real value in what we're building at RE/MAX," Carlson said.
Even with that recent gain, RE/MAX is reducing its expectations for revenue growth in the third quarter given the ongoing market slowdown, but "remains focused on delivering an exceptional customer experience," Carlson said.
Key numbers
Revenue: $72.8 million in the second quarter, down 7.3% compared to a year ago, and a decline from $74.5 million in Q1.
Cash and cash equivalents: $94.3 million at the end of June, down from $96.6 million at the end of 2024.
Net income: $4.7 million, up from $3.7 million a year ago, and an improvement over the net loss of $2 million the previous quarter.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $26.3 million, down 6.4% compared to a year ago.
Agent count: Total agent count rose 2.5% year-over-year to 147,073, including 72,438 agents outside the U.S. and Canada (up 11.5%). U.S. agent count fell 7% to 49,669, while Canada agent count dropped slightly to 24,966.
Motto Mortgage franchises: Office count decreased 9.1% year-over-year to 219 in Q2.
Notable moves
RE/MAX Canada announced a new president in April. Don Kottick, who previously served as president and CEO of Sotheby's International Realty Canada, replaced Christopher Alexander, who left in March. In the U.S., the company brought in veteran brokerage executive Daniel Dennis in May to lead the sales team as the senior vice president of sales and service.
During the earnings call, Carlson mentioned that the company has made progress in its search for a new CEO of Motto Mortgage and expects to have an announcement in the coming weeks. Ward Morrison retired from the position on June 15.
RE/MAX was one of several brokerage firms to tally a court victory earlier this month as a U.S. District court judge dismissed charges of anticompetitive behavior and steering in a lawsuit brought by flat-fee brokerage Homie.