RE/MAX Reports $307.7 Million Revenue for Fiscal Year 2024, Net Income Recovery

RE/MAX Holdings, Inc. reported a total revenue of $307.7 million for the fiscal year ending December 31, 2024, marking a decrease of 5.5% from $325.7 million in 2023. The decline in revenue was attributed to challenging housing and mortgage market conditions, primarily driven by high interest rates that affected affordability and transaction volumes. Revenue excluding Marketing Funds also decreased by 5.4% to $228.7 million, influenced by a negative organic growth rate of 5.2% and adverse foreign currency movements. Despite these challenges, the company achieved a net income of $7.1 million, a significant recovery from a net loss of $69.0 million in the previous year.

In terms of operational metrics, RE/MAX's total agent count increased by 1.2% to 146,627 agents, with notable growth in global regions, while the U.S. and Canada combined agent count fell by 4.8% to 76,457 agents. The number of open Motto Mortgage offices decreased by 8.5% to 225. The company has focused on enhancing operational efficiency, which contributed to an 11.2% reduction in selling, administrative, and operating expenses, leading to improved profit margins. Adjusted EBITDA rose by 1.5% to $97.7 million, with an Adjusted EBITDA margin of 31.8%, up from 29.6% in the prior year.

Strategically, RE/MAX has been refining its growth initiatives and enhancing its value proposition for franchisees. The company has also settled costly litigation related to antitrust claims, agreeing to pay a total of $55 million as part of a U.S. Settlement Agreement. This settlement is expected to protect the company from ongoing legal challenges and allow it to focus on its core business operations. Additionally, RE/MAX has reached substantial agreement on terms to resolve Canadian antitrust litigations, which includes a proposed settlement amount of approximately $5.4 million in U.S. dollars.

The company continues to maintain a low fixed-cost structure, primarily due to its franchising model, which allows it to capitalize on recurring fee-based revenue streams. As of December 31, 2024, RE/MAX had 536 full-time employees, a slight decrease from 544 in the previous year. The company’s outlook remains cautious, with expectations of continued challenges in the housing market due to macroeconomic conditions. However, RE/MAX is optimistic about future growth opportunities stemming from its technology initiatives and strategic partnerships aimed at improving the agent-consumer experience.