RE/MAX Holdings Reports $74.5 Million Revenue in Q1 2025, Net Loss Improves

RE/MAX Holdings, Inc. reported a total revenue of $74.5 million for the first quarter of 2025, reflecting a decrease of 4.9% compared to $78.3 million in the same period of 2024. The decline was attributed to a 3.2% drop in organic revenue and adverse foreign currency movements of 1.1%. The company's net loss attributable to RE/MAX Holdings, Inc. was $1.96 million, an improvement from a loss of $3.35 million in the prior year. Adjusted EBITDA increased by 1.5% to $19.3 million, with an adjusted EBITDA margin of 25.9%, up from 24.3% in the previous year.

In terms of operational metrics, the total agent count rose by 2.0% to 146,126 agents, although the combined agent count in the U.S. and Canada fell by 5.0% to 75,010 agents. The number of open Motto Mortgage offices decreased by 7.8% to 224. The company also experienced a decline in franchise sales, with a total of 135 sales in the first quarter, down from 145 in the same period last year. The decrease in agent count and franchise sales was attributed to ongoing economic uncertainties and challenging market conditions, including high interest rates and affordability issues.

RE/MAX Holdings has made strategic moves to enhance its service offerings, including the launch of the AspireSM program on April 2, 2025. This performance-based financial model aims to attract and develop new agents by reducing upfront costs for franchisees during the initial year of an agent's career. The company continues to focus on growth initiatives and enhancing the value proposition for its affiliates, despite the challenges faced in the housing and mortgage markets.

The company’s total assets as of March 31, 2025, were $571.4 million, a decrease from $581.6 million at the end of 2024. Total liabilities also decreased to $626.9 million from $640.0 million. The company reported cash and cash equivalents of $89.1 million, down from $96.6 million at the end of the previous year. RE/MAX Holdings has suspended its quarterly dividend to preserve capital amid ongoing litigation settlements and market challenges, while maintaining a share repurchase program with $62.5 million remaining available.

Looking ahead, RE/MAX Holdings anticipates continued challenges in the housing and mortgage markets, but remains committed to its growth strategies and enhancing its operational efficiencies. The company is focused on leveraging its technology and marketing capabilities to support its franchisees and improve the overall agent-consumer experience.