RE/MAX revenue stagnates as US agent losses persist
But the company reported an all-time high for its global agent count, with its international pool growing 9% year-over-year.
RE/MAX Holdings' revenue fell 6.7% year-over-year to $73.3 million in the third quarter, the Denver-based franchisor reported on Oct. 30.
Though a slight improvement from the $72.8 million in revenue reported in the previous quarter, the year-over-year drop reflects ongoing pressure from slow home sales and a shrinking U.S. agent base.
The company's net income rose to $4 million, up from $1 million a year ago, while adjusted EBITDA came in at $25.8 million, down 5.6% year-over-year. The company's adjusted EBITDA margin held steady at 35.2%, signaling continued cost discipline.
But international expansion helped offset declines in North America. The brand's global network grew to 147,547 agents, a record high and a 1.4% year-over-year increase driven by 9% growth abroad. Agent count in the U.S. and Canada fell 5.1% compared to Q3 2024.
What RE/MAX said
New economic models offer flexibility: CEO Erik Carlson said the company posted its strongest U.S. agent count performance in three years and pointed to "encouraging underlying agent fundamentals." Additionally, Carlson noted RE/MAX's new Ascend and Appreciate economic models, which will build on the success of its Aspire program, provide franchisees more flexibility in pay and fee structures — a move aimed at improving recruiting and retention.
'Exciting opportunities' ahead: Carlson also touched on the rollout of RE/MAX Marketing as a Service, a data-driven AI-powered system that automates listing packages, campaigns and analytics for agents. "Given existing industry dynamics, we believe the current state of change creates exciting opportunities for our company and networks," he said.
Finding ways to 'accelerate our strategy': There could also be more opportunities for agent growth moving forward, especially as "there will be continued consolidation in the market," Carlson suggested during an Oct. 31 earnings call's Q&A section, noting "a big announcement" — Compass' plans to acquire Anywhere — has been made since RE/MAX's last earnings call in July.
"We think that just brings additional opportunities for us and could help accelerate our strategy," Carlson said. "Obviously, we're open for business. We are seeing a lot of inbound requests, meaning, 'Hey, something's happening over at RE/MAX. What is that? I want to talk more about that.'"
Key numbers
Revenue: $73.3 million in Q3, down 6.7% year-over-year but up slightly from $72.8 million in Q2.
Cash and cash equivalents: $107.5 million as of Sept. 30, up from $94.3 million at the end of June.
Net income: $4 million, down from $4.7 million in Q2 but up from $1 million in Q3 of 2024.
Adjusted EBITDA: $25.8 million, down 5.6% year-over-year.
Agent count: 147,547 total agents worldwide, up 1.4% year-over-year. U.S. and Canada: 74,198 agents (down 5.1% year-over-year); international: 73,349 agents (up 9% year-over-year).
Motto Mortgage franchises: Office count decreased 10.3% year-over-year to 210 at the end of Q3.
Notable moves
RE/MAX recently added two senior leaders: President of Mortgage Services Vic Lombardo, who is tasked with expanding Motto Mortgage and related operations; and Chief Digital Information Officer Tom Flanagan.
Carlson said Lombardo is taking "a new view of the mortgage opportunity," exploring ways to make the model "less fixed and more variable" to boost profitability for loan originators and franchisees.