REMAX misses the mark as revenue falls 6%
The franchisor reported lower-than-expected revenue in Q2 as operating costs rose, resulting in a net loss of more than $4 million.
In what could be its last quarterly earnings release as RE/MAX Holdings, the franchise giant delivered a disappointing report.
Revenue declined nearly 6% year-over-year to $68.5 million, falling short of analyst expectations of $72.8 million for the second quarter. Also missing the mark were earnings per share and adjusted EBITDA, both of which came in more than 13% below Wall Street forecasts.
Global agent count ticked up, however, increasing 1.5% to 149,267, but combined U.S. and Canada agent count dipped 2.2% to 72,968. REMAX's North American agent count has dropped by nearly 10,000 over a three-year period.
What REMAX had to say
Due to its acquisition by The Real Brokerage — which is expected to close later this year pending regulatory approvals and a shareholder vote on Aug. 14 — REMAX did not hold an investor call, but the report offered some insight into the numbers.
New fee models, fewer mortgage offices took a toll: Revenue declines, the earnings report noted, were largely driven by changes to the company's fee models — specifically its Aspire and Ascend offerings — which CEO Erik Carlson touted last year as offering franchisees more flexibility in pay and fee structures to improve recruiting and retention.
Falling U.S. agent count and a waning mortgage business also accounted for the lower-than-expected numbers, according to the report. A significant number of REMAX's Motto Mortgage franchises have been shuttered over the past year, with office count down 32% year-over-year to 149.
Losses rise alongside expenses: After ending 2025 with a positive balance sheet, REMAX reported a second consecutive quarter of net losses. Combined losses for the first half of this year totaled more than $14 million, compared to a net income of $2.7 million for the same period last year.
The reversal was due in part to a 14% jump in operating expenses in Q2, resulting primarily from merger-related transaction costs, the report noted.
Key numbers
Revenue: $68.5 million in Q2, down 5.8% year-over-year.
Cash and cash equivalents: $112.4 million at the close of the quarter, down from $118.7 million on Dec. 31.
Net income/loss: A net loss of $4.3 million in Q2, which was an improvement over the net loss of $9.7 million in the first quarter but a reversal from REMAX's $4.7 million net income reported a year earlier.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $22.9 million in Q1, down 12.6% year-over-year.
Agent count: The company had 149,267 agents globally at the end of June, an increase of 1.5% year-over-year. The combined agent count for the U.S. and Canada fell 2.2% to 72,968.
Motto Mortgage franchises: Office count decreased 32% to 149 at the end of Q2.
Notable moves
Even as it prepares to unite with The Real Brokerage, REMAX is continuing to pursue growth. The company announced several recruiting wins in recent months, including the opening of a new franchise in Texas, the return of a 20-agent firm in Chicago and the conversion of a 40-agent former Royal LePage brokerage in Ontario, Canada.
REMAX also announced its partnership with the American Real Estate Association (ARA) in June, with REMAX President Chris Lim joining the ARA board.