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RE/MAX Holdings, Inc. Reports Second Quarter 2025 Results

Overview
On July 29, 2025, RE/MAX Holdings, Inc. (NYSE: RMAX) announced its financial results for the second quarter, revealing significant changes in its revenue and agent count compared to the same period last year. The company reported a total revenue of $72.8 million, which marks a 7.3% decline year-over-year. This downturn occurred despite an overall increase in the total agent count, indicating challenges particularly in the U.S. and Canadian markets.

Financial Highlights

RE/MAX's Q2 performance presents a mixed picture. Below are key highlights:

• - Total Revenue: $72.8 million, down 7.3% from Q2 2024.
• - Revenue excluding Marketing Funds: $54.5 million, a drop of 6.8%.
• - Net Income: $4.7 million, with an earnings per share (EPS) of $0.23.
• - Adjusted EBITDA: $26.3 million, down 6.4%, leading to an Adjusted EBITDA margin of 36.1%.
• - Agent Count: 147,073, reflecting a 2.5% increase overall, while U.S. and Canada saw a 5% decrease to 74,635.

Market Dynamics

The revenue decline can be primarily attributed to a 5.7% drop in organic revenue and adverse currency movements impacting sales not only in North America but globally. Factors contributing to this situation include a fall in U.S. agent numbers and lower broker fees.

CEO Erik Carlson expressed optimism despite the figures, emphasizing the company's commitment to enhancing operational efficiency and customer experience. He noted that the ASPIRE onboarding program received positive feedback, and innovative tools, such as an AI-powered global referral system, aim to improve business outcomes for RE/MAX affiliates.

Agent Count Breakdown

As of June 30, 2025, the agent count stands as follows:

• - U.S. Agents: 49,669, down from 53,406, marking a decrease of 7.0%.
• - Canada Agents: 24,966, decreasing slightly by 0.9%.
• - International Agents: Outside North America, total agents increased by 11.5% to 72,438.
• - The overall agent count, however, reached a high of 147,073 on a global scale, showcasing the brand's growing influence in international markets.

Revenue and Expenses

The company’s revenue streams reflected on diverse operational costs. Operating expenses decreased to $58.7 million, down 5.7%, including reductions in marketing and administrative costs. However, selling, operating, and administrative expenses represented 62.2% of revenue excluding marketing funds, indicating a squeeze on margins.

Moving forward, RE/MAX anticipates a modest increase in agent numbers for the third quarter of 2025, projecting a range in revenue of $71 million to $76 million. Adjusted EBITDA is forecasted between $23.5 million to $26.5 million.

Looking Ahead

RE/MAX Holdings, Inc. remains committed to navigating through current market uncertainties. The focus on enhancing technological offerings and maintaining brand value will be crucial as the company prepares its next steps toward reclaiming growth. The next earnings conference call is scheduled for July 30, 2025, allowing stakeholders to gain further insights into strategic moves for the remainder of the fiscal year.

In conclusion, while RE/MAX Holdings faced challenges in Q2 2025, the company’s global expansion, investment in technology, and emphasis on agent support appear poised to position it favorably in the competitive landscape ahead.