RE/MAX Holdings, Inc. reported a total revenue of $70.2 million for the first quarter of 2026, reflecting a decrease of 5.7% compared to $74.5 million in the same period of 2025. The decline was attributed to a 12.1% drop in continuing franchise fees, which fell to $25.8 million, and a 10.6% decrease in Marketing Funds fees, totaling $16.9 million. In contrast, broker fees increased by 10.3% to $12.6 million, partially offsetting the overall revenue decline. The company recorded a net loss attributable to RE/MAX Holdings of $9.7 million, compared to a loss of $2.0 million in the prior year, resulting in a basic and diluted loss per share of $0.48.

Operating expenses for the quarter rose to $78.1 million, up from $69.1 million in the previous year, primarily due to a significant increase in settlement and impairment charges, which amounted to $8.5 million. Selling, operating, and administrative expenses also increased by 8.8% to $46.8 million, driven by higher professional fees related to the pending merger with The Real Brokerage Inc. Adjusted EBITDA decreased by 19.3% to $15.6 million, with an adjusted EBITDA margin of 22.2%, down from 25.9% in the prior year.

In terms of operational metrics, RE/MAX's total agent count increased by 2.1% to 149,192 agents, although the combined agent count in the U.S. and Canada decreased by 2.3% to 73,292 agents. The number of open Motto Mortgage offices saw a significant decline of 29.9%, dropping to 157 offices. The company has been focusing on enhancing its value proposition for franchisees and agents through new performance-based economic models and technology investments, which have shown early signs of success in agent recruitment.

Looking ahead, RE/MAX has entered into a definitive merger agreement with The Real Brokerage Inc., which is expected to close in the second half of 2026, subject to regulatory approvals and shareholder consent. Under the terms of the agreement, RE/MAX shareholders will have the option to receive either shares of the new holding company or cash, with the transaction structured to qualify as a tax-free exchange. The merger is anticipated to provide strategic benefits and enhance the company's competitive position in the real estate market.

About RE/MAX Holdings, Inc.

RE/MAX Holdings, Inc. is a leading global franchisor specializing in residential real estate and mortgage brokerage services. It operates through the RE/MAX brand, offering franchise opportunities to real estate agents and brokerages, and through Motto, providing mortgage brokerage franchises. The company leverages brand recognition, agent productivity, and technology to support its networks, generating recurring fee-based revenue and emphasizing agent independence, brand strength, and international presence.

This description was generated via AI from an annual report. Updated 8 months ago.

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