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• Total Revenue: $74.5 million.

• Adjusted EBITDA: $19.3 million, up 1.5% over Q1 of last year.

• Adjusted EBITDA Margin: 25.9%, an increase of 164 basis points over Q1 2024.

• Adjusted Diluted EPS: $0.24.

• Revenue Excluding Marketing Funds: $55.6 million, a decrease of 4.3% compared to the same period last year.

• Operating Expenses: Decreased by $2.7 million, or 5.9%, to $43 million.

• Total Leverage Ratio: 3.61 to 1 as of March 30.

• Agent Count Growth Guidance for Q2 2025: Expected to increase 1.5% to 2.5% over Q2 2024.

• Revenue Guidance for Q2 2025: Expected in the range of $70 to $75 million.

• Adjusted EBITDA Guidance for Q2 2025: Expected in the range of $22.5 to $25.5 million.

• Full Year 2025 Revenue Guidance: Expected in the range of $290 to $310 million.

• Full Year 2025 Adjusted EBITDA Guidance: Expected in the range of $90 to $100 million.

• Warning! GuruFocus has detected 4 Warning Signs with RMAX.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RE/MAX Holdings Inc (NYSE:RMAX) reported higher than expected revenue, margins, and profits for the first quarter of 2025.

• The company introduced several new initiatives, including a refreshed branding, advanced marketing resources, and a comprehensive global referral system.

• The Aspire program aims to attract and develop the next generation of top-producing RE/MAX agents, enhancing recruitment and retention.

• International agent growth was strong, with a 10% increase in global agent count in Q1.

• Operational efficiencies led to improved margin performance for the fourth consecutive quarter.

Negative Points

• Revenue excluding marketing funds decreased by 4.3% compared to the same period last year, driven by lower US agent counts and adverse foreign currency movements.

• The challenging mortgage market continues to impact the mortgage segment, with expectations of a few more quarters before consistent revenue growth returns.

• Franchise sales revenue was down year over year, partly due to the wind down of prior technology acquisitions.

• The macroeconomic environment and real estate market remain uncertain, affecting forecasting and strategic planning.

• US agent count has been declining, although there are signs of stabilization and potential growth.

Q & A Highlights

Q: Can you explain the decline in franchise sales revenue and whether it's due to conference attendance or other strategic initiatives? A: Karri Callahan, CFO: The decline is partly due to lower conference attendance, which impacted revenue by a few hundred thousand dollars. Additionally, the wind-down of prior technology acquisitions, like Gadbury, is pressuring the line by over $50 million. However, newer initiatives like our lead concierge program and RE/MAX Media Network are offsetting some of this decline. We see potential for significant revenue growth from these initiatives in the long term.