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RE/MAX Holdings, Inc. Reports Fourth Quarter 2024 Results

On February 20, 2025, RE/MAX Holdings, Inc. (NYSE: RMAX), the parent company of the renowned real estate franchise, announced its financial performance for the fourth quarter and the entire year of 2024. Despite its prominent position in the real estate market, the company faced a challenging quarter, reporting a total revenue of $72.5 million, a decrease of 5.4% compared to $76.6 million for Q4 2023.

Financial Performance Overview

The company's revenue, when excluding the Marketing Funds, also declined by 3.9% to $53.8 million, primarily due to a negative organic growth rate of 3.5% and an adverse currency effect of 0.4%. The net income attributable to RE/MAX Holdings stood at $5.8 million, equating to an earnings per diluted share of $0.29, a significant recovery from a net loss of $10.9 million in the same quarter the previous year.

In terms of profitability, the Adjusted EBITDA for this quarter rose slightly by 1.6% to reach $23.3 million, accompanied by an adjusted EBITDA margin of 32.2%.

Agent Count Statistics

As of December 31, 2024, the total agent count increased modestly by 1.2%, totaling 146,627 agents globally. However, it was noted that the combined agent count for the U.S. and Canada experienced a decline of 4.8%, settling at 76,457 agents. This trend was largely attributed to various market pressures affecting recruitment and retention within the industry.

Operational Efficiency Initiatives

Despite the challenges reflected in their revenues and agent counts, CEO Erik Carlson emphasized the company's focus on improving operational efficiencies, which he believes have contributed to the company's profitability in the face of declining total revenues. He expressed optimism moving into 2025, asserting that the leadership team's strategic initiatives aimed at enhancing customer experience would bolster future growth.

Yearly Overview

For the full year of 2024, RE/MAX Holdings reported an overall revenue decrease of 5.5%, totaling $307.7 million. Similar constraints prevailed in revenue excluding marketing funds, which fell by 5.4% to $228.7 million, reflecting ongoing organic growth challenges and foreign currency effects.

The company managed to maintain a net income of $7.1 million for the year, translating to an annual diluted earnings per share of $0.37. The adjusted EBITDA for the year slightly increased to $97.7 million.

Outlook for 2025

Looking ahead, RE/MAX Holdings projected an increase in agent count by approximately 1% to 2% for Q1 2025 as compared to the same period in the previous year. For the full year, the company anticipates total revenue to range from $290 million to $310 million, alongside an expected Adjusted EBITDA between $90 million and $100 million. This optimism stems from resilient market strategies and anticipated operational improvements.

Conclusion

As RE/MAX Holdings, Inc. navigates through a landscape punctuated by operational hurdles and fluctuating market conditions, the results from the fourth quarter of 2024 shed light on both opportunities and challenges the company faces. With a recovery in net income and adaptations to enhancing customer experience, the outlook remains cautiously optimistic as the company enters 2025.