RE/MAX Holdings: Navigating Market Challenges in Q3
RE/MAX Holdings Inc. Reports Third Quarter Results
Total Revenue of $73.3 Million, Adjusted EBITDA of $25.8 Million
RE/MAX Holdings Inc. (NYSE: RMAX) today published its operational results for the period concluding on September 30, 2025. The real estate franchising giant announced that total revenue reached $73.3 million, reflecting a decrease of 6.7% compared to the same timeframe in 2024.
Financial Performance Highlights
In analyzing the financial performance for Q3 2025, several key metrics stood out. Here are the main highlights:
- Total revenue declined by 6.7% to $73.3 million.
- Revenue, excluding the Marketing Funds, dropped by 5.6% to $55.1 million, influenced by a negative organic growth rate of 5.4% and adverse currency movements impacting sales by 0.2%.
- Net income attributed to RE/MAX Holdings stood at $4.0 million, translating to earnings per diluted share of $0.19.
- Adjusted EBITDA decreased by 5.6%, totaling $25.8 million, with an Adjusted EBITDA margin of 35.2%.
- Agent count saw a 1.4% increase to 147,547 agents globally.
- However, the agent count decreased by 5.1% in the U.S. and Canada, reaching 74,198 agents, alongside a 10.3% reduction in Motto Mortgage franchises to 210 offices.
CEO’s Insights
Erik Carlson, CEO of RE/MAX Holdings, expressed his thoughts on the performance, stating: "Our total RE/MAX agent count reached another all-time high this quarter, driven by steady global growth and the strongest U.S. agent count results we have seen in the last three years. Our emphasis on operational excellence continues to support profitability and margin performance that exceeds expectations. Moreover, our new offerings, like the AI-powered REMAX Marketing as a Service platform, are structured to enhance franchisee capabilities and their service quality to consumers.”
Quarterly Review
Examining the operational metrics provides a detailed picture of the company's standing:
Revenue Breakdown
The revenue for Q3 2025 was primarily generated through various streams. Excluding the Marketing Funds, the revenue ratios indicated a decrease related to a drop in organic revenue and fluctuations in foreign currency rates. Recurring revenues, including franchise fees and annual dues, also saw a contraction of 9.6%, accounting for reduced revenue performance.
Operating Expenses
The company reported total operating expenses of $54.9 million, which is an encouraging decline of 13.2% from $63.3 million in Q3 2024. Major contributors to this reduction were lower selling, operational, and administrative costs, alongside decreased marketing funds and depreciation expenses.
Net Income and Earnings Performance
Net income attributable to RE/MAX Holdings Inc. rose to $4.0 million compared to $1.0 million in the prior year. The GAAP earnings per share showed significant improvement, with basic and diluted EPS of $0.20 and $0.19, respectively, surpassing the previous year’s performance.
Future Outlook
Looking ahead, RE/MAX Holdings expresses cautious optimism about its agent performance and overall revenue growth. The company anticipates a stable agent count over the coming quarter, predicting a slight increase of 0.0% to 1.5% against the fourth quarter of the prior year. Expected revenue ranges are forecasted to be between $69.5 million and $73.5 million, including Marketing Funds’ fees. Adjusted EBITDA is expected to stay between $19.0 million and $23.0 million.
Conference Call Information
The company invites stakeholders and interested parties to join a conference call on Friday to discuss these results further. Participants can expect a detailed analysis and an open forum for questions regarding the financial situation and strategic initiatives.
Frequently Asked Questions
What financial results did RE/MAX report for Q3 2025?
RE/MAX reported total revenue of $73.3 million with an adjusted EBITDA of $25.8 million for Q3 2025.
What factors contributed to the revenue decline?
The revenue decline was influenced by reduced organic growth and adverse foreign currency fluctuations.
How many agents does RE/MAX currently have?
As of Q3 2025, RE/MAX has a total agent count of 147,547 worldwide.
What changes in operating expenses were noted?
The total operating expenses decreased by 13.2%, with lower administrative costs significantly contributing to this reduction.
What is the future outlook for RE/MAX?
RE/MAX expects stable agent counts with already established plans to drive profitability and sustain growth through innovation and operational excellence.
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