New data reveals property and financing options prospective homebuyers are willing to consider. DENVER, Jan. 23, 2024 /PRNewswire/ -- From purchasing multi-family properties to co-owning with friends and family, prospective buyers are willing to get creative to become homeowners in the next 12 months, new data reveals. In a consumer survey, released today, RE/MAX, the #1 name in real estate1, showcases Americans' plans for achieving homeownership in 2024. The housing market has experienced a few years of r ...

Home stretch of 2023 features familiar end-of-year dynamics DENVER, Jan. 17, 2024 /PRNewswire/ -- December 2023 exhibited a traditional end-of-year slowing in housing market activity, punctuated by many similarities to December 2022. Three metrics showed no change year over year: Homes sold were on the market an average of 47 days in both Decembers – seven days longer than in November 2023 December 2023 sales averaged 98% of the listing price, the same as the prior year and slightly down from 99% in Novemb ...

New offices, conversions and expansions in the U.S. bring nearly 330 agents into network, strengthening brand presence  DENVER, Jan. 8, 2024 /PRNewswire/ -- RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, celebrates the addition of 24 RE/MAX offices in its U.S. company-owned regions between Oct. 2 and Dec. 31, welcoming nearly 330 agents to the brand. The recent additions, which are a mix of new offices, conversions of formerly unaffiliated brokerages, and expansions o ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $81.2 million, a decline of 8.7% year-over-year, with adjusted EBITDA of $26.7 million and an adjusted EBITDA margin of 32.9% [38][60] - Excluding marketing funds, revenue was $60.4 million, down 8.8% compared to the same period last year, driven by an 8.2% organic growth decline and adverse foreign currency movements of 0.6% [38][39] - The total leverage ratio as of September 30, 2023, was seven to one, expected to persist for the next four quarters before moderating significantly [43] Business Line Data and Key Metrics Changes - The mortgage segment continued to grow, with Motto's office count increasing nearly 15% year-over-year [54] - Franchise sales in U.S. owned regions were up 35% year-over-year through September 30, 2023 [51] - The company recorded a reduction in selling, operating, and administrative expenses by 13.3% to $43.1 million, primarily due to lower severance and reorganization charges [40] Market Data and Key Metrics Changes - The agent count is expected to increase by 0.25% to 1.25% over Q4 2022, with full-year 2023 guidance also reflecting a similar increase [19][20] - The overall decline in existing home sales has negatively impacted broker fees and transactions per agent, contributing to organic growth decline [39] Company Strategy and Development Direction - The company remains focused on long-term growth initiatives, including increasing U.S. agent count and expanding its mortgage business [74] - A significant settlement of $55 million was agreed upon to resolve industry class-action lawsuits, which the company believes was the best decision for all stakeholders [41][49] - The company has suspended its quarterly dividend to preserve capital in light of the recent settlement and challenging market conditions [44][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current challenges and anticipates growth when industry conditions improve, citing historical patterns [60] - The management team noted that many franchisees are pleased with the actions taken to settle litigation and protect the company [25][26] - There is an expectation of continued pressure on commission rates driven by supply and demand dynamics in the market [32][36] Other Important Information - The company has implemented a reduction in force, streamlining operations and reducing workforce by approximately 7%, expected to yield annual cash savings of about $6.5 million [40][49] - The company has seen positive trends in franchise sales and agent recruitment, with a notable increase in team formations [76] Q&A Session Summary Question: What are the conversations with broker customers looking like today? - Management noted that agent count follows market conditions, with a contraction in the number of agents as the real estate market faces pressure [4][5] Question: What are the implications of the settlement and industry lawsuits? - Management believes the settlement will not materially affect business practices or profitability, as many changes were already adopted [25][26] Question: What is the outlook for agent count and revenue? - The company expects a slight increase in agent count and has narrowed revenue guidance for Q4 2023 [19][20] Question: How is the company managing its capital allocation? - The company has suspended its dividend to preserve capital and is focused on long-term growth opportunities [44][75] Question: What is the impact of the current market conditions on agent attrition? - Attrition is attributed to a combination of retirements, competitive dynamics, and overall market conditions [87][92]

Financial Performance - Total revenue for Q3 2023 was $81.2 million, a decrease of 8.7% compared to $88.9 million in Q3 2022[5, 7, 8] - Revenue excluding the Marketing Funds was $60.4 million in Q3 2023, down 8.8% from $66.207 million in the same period in 2022[8, 80] - Adjusted EBITDA for Q3 2023 was $26.7 million, a 15.0% decrease compared to $31.5 million in Q3 2022[5, 69, 71] - Adjusted EBITDA margin was 32.9% in Q3 2023, compared to 35.4% in Q3 2022[5, 48, 71] - Selling, operating, and administrative expenses decreased by 13.3% to $43.1 million in Q3 2023[19, 20, 38] Agent Network - Total agent count increased by 1,009 agents, or 0.7%, year-over-year to 145,309 agents[5, 45, 47] - Agent count in the U S and Canada combined decreased 3 9%[13] Recurring Revenue - Recurring revenue decreased by $1.9 million, or 4.6%, compared to Q3 2022[17] - Recurring revenue accounted for 66.7% of Revenue excluding the Marketing Funds in Q3 2023, compared to 63.8% in the prior-year period[17] Q4 and Full Year 2023 Outlook - The company expects agent count to increase 0.25% to 1.25% over Q4 2022[40] - Revenue is projected to be in the range of $74.0 million to $79.0 million for Q4 2023[40] - Adjusted EBITDA is expected to be in the range of $20.5 million to $23.5 million for Q4 2023[40]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023. OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-36101 RE/MAX Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Financial Data and Key Metrics Changes - In Q2 2023, total revenue declined by 10.6% to $82.4 million, with adjusted EBITDA of $26.6 million and an adjusted EBITDA margin of 32.3% [21][68] - Excluding marketing funds, revenue was $61.4 million, a decrease of approximately 11% compared to the same period last year, driven by negative 10.5% organic growth and adverse foreign currency movements of 29% [21][24] - Selling, operating, and administrative expenses decreased by 1.4% to $40.2 million, primarily due to changes in the fair value of contingent consideration liabilities and lower legal fees [23] Business Line Data and Key Metrics Changes - The mortgage segment is expected to generate approximately $1 million less in revenue than originally forecasted due to challenging market conditions [71] - The mortgage business continues to grow, with the company optimistic about increasing the pace of Motto franchise sales in the second half of 2023 [47][55] Market Data and Key Metrics Changes - The U.S. agent count losses narrowed during Q2 compared to Q1, indicating some positive momentum despite overall market contraction [37][53] - International agent count growth accelerated to 7% during Q2, particularly in countries like Turkey, Peru, Brazil, and South Africa [34] Company Strategy and Development Direction - The company is focused on strategic growth initiatives, including enhancing the recruiting value proposition through technology and training programs [18][42] - The MAX Recruit program has gained traction, with participation exceeding expectations, indicating a commitment to improving recruiting efforts [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, which has pressured top-line growth and margins, but remains optimistic about long-term growth potential as the housing market normalizes [42][55] - The company expects agent count to change by 0% to 1% over the full year 2022, with revenue guidance slightly adjusted downward [25][24] Other Important Information - The company is actively managing legal expenses related to ongoing industry lawsuits, with a focus on maintaining operational efficiency [13][15] - The CEO search is ongoing, with robust interest from multiple candidates expected to conclude by the end of summer [54] Q&A Session Summary Question: Can you provide more color on the EBITDA guidance changes? - Management indicated that the changes are influenced by revenue and expense dynamics, with specific details expected to be discussed further [3] Question: What are the trends in U.S. agent count compared to competitors? - Management noted that while there is overall contraction in agent licenses, the company is seeing a narrowing of agent count losses, which is a positive sign [63][79] Question: How is the mortgage segment performing relative to expectations? - The mortgage segment is expected to generate less revenue than initially forecasted, but management remains optimistic about its growth potential [71][86]

RE/MAX Holdings, Inc. Investor Presentation August 2023 2 tto awards please see www.mottomortgage.com/awards-disclaimers sides per agent calculated by RE/MAX based on 2023 REAL Trends 500 data, citing 2022 transaction sidos for the 1,561 largest participating U.S. brokerages. RE/MAX avvarage: a presence in more than 110 countries and territories 5Source: MMR Strategy Group study of unaided awareness Shareholder Return Driven By H O L D I N G S, I N C. This presentation includes "forward-looking statements" ...

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's H1 2023 financial statements reflect significant declines in revenue, net income, and operating cash flow due to challenging market conditions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets, liabilities, and stockholders' equity all decreased compared to December 31, 2022 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$655,020** | **$695,234** | | Cash and cash equivalents | $96,757 | $108,663 | | Goodwill | $259,712 | $258,626 | | **Total Liabilities** | **$630,995** | **$663,532** | | Debt, net of current portion | $441,846 | $443,720 | | **Total Stockholders' Equity** | **$24,025** | **$31,702** | [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) Q2 and H1 2023 saw significant year-over-year declines in total revenue and net income attributable to RE/MAX Holdings Q2 2023 vs Q2 2022 Income Statement (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Total Revenue | $82,447 | $92,172 | | Operating Income | $13,150 | $16,909 | | Net Income | $3,244 | $10,275 | | Net Income attributable to RE/MAX Holdings, Inc. | $2,010 | $5,829 | | Diluted EPS | $0.11 | $0.30 | Six Months 2023 vs 2022 Income Statement (in thousands, except per share data) | Metric | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | | Total Revenue | $167,848 | $183,176 | | Operating Income | $20,061 | $24,511 | | Net Income | $2,565 | $13,220 | | Net Income attributable to RE/MAX Holdings, Inc. | $1,339 | $7,280 | | Diluted EPS | $0.07 | $0.38 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities sharply decreased in H1 2023, leading to a significant overall reduction in cash and equivalents Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,242 | $38,919 | | Net cash used in investing activities | ($2,397) | ($6,144) | | Net cash used in financing activities | ($24,198) | ($36,919) | | **Net decrease in cash** | **($23,692)** | **($4,590)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the franchisor model, declining revenue, significant debt, ongoing antitrust litigation, and segment performance - The company operates as a **100% franchisor** for both RE/MAX and Motto brokerages, not owning any operating entities[25](index=25&type=chunk)[26](index=26&type=chunk) - Multiple class action antitrust lawsuits, including Moehrl-related litigations, challenge NAR rules on buyer broker compensation, with a trial scheduled for October 2023, and the financial impact is currently **unestimable**[86](index=86&type=chunk)[87](index=87&type=chunk)[92](index=92&type=chunk) - The Senior Secured Credit Facility includes a **$460.0 million term loan** maturing in 2028, with an interest rate of **7.8%** as of June 30, 2023[67](index=67&type=chunk)[71](index=71&type=chunk) Adjusted EBITDA by Segment (in thousands) | Segment | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Real Estate | $28,721 | $36,331 | | Mortgage | ($1,457) | ($1,164) | | Other | ($620) | ($36) | | **Consolidated** | **$26,644** | **$35,131** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue and profit declines to challenging market conditions, impacting liquidity and influencing capital allocation priorities [Financial and Operational Highlights](index=23&type=section&id=Financial%20and%20Operational%20Highlights) Q2 2023 highlights include revenue and Adjusted EBITDA declines, global agent growth offsetting U.S. and Canada decreases, and Motto expansion Q2 2023 Key Metrics vs. Q2 2022 | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $82.4M | $92.2M | -10.6% | | Adjusted EBITDA | $26.6M | $35.1M | -24.2% | | Total Agent Count | 144,510 | 143,939 | +0.4% | | U.S. & Canada Agent Count | 82,205 | 85,679 | -4.1% | | Motto Open Offices | 235 | 200 | +17.5% | - Challenging market conditions, including rising interest rates and tight housing supply, have led to declines in **U.S. agent count** and **total revenue**[112](index=112&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 and H1 2023 revenue declines were driven by reduced broker and franchise fees, with operating expenses increasing as a percentage of revenue Q2 2023 vs Q2 2022 Revenue Breakdown (in thousands) | Revenue Stream | Q2 2023 | Q2 2022 | Change % | | :--- | :--- | :--- | :--- | | Continuing franchise fees | $32,101 | $34,128 | (5.9)% | | Broker fees | $14,321 | $19,317 | (25.9)% | | Marketing Funds fees | $21,077 | $22,909 | (8.0)% | | **Total Revenue** | **$82,447** | **$92,172** | **(10.6)%** | - The decrease in Broker fees was attributed to lower average transactions per agent and a decline in **U.S. agent count**[122](index=122&type=chunk) - Selling, operating, and administrative expenses increased as a percentage of revenue to **48.8%** in Q2 2023 from **44.2%** in Q2 2022[127](index=127&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity tightened significantly in H1 2023 due to lower operating cash flow, impacting capital allocation priorities including share repurchases and dividends - Cash provided by operating activities decreased due to a **$17.0 million** decrease in Adjusted EBITDA and a **$9.5 million** increase in interest payments in H1 2023[173](index=173&type=chunk) - The Total Leverage Ratio was **3.20:1** as of June 30, 2023, below the **3.50:1** covenant, permitting unlimited restricted payments[164](index=164&type=chunk) - A **$100 million** share repurchase program, authorized in January 2022, has **$62.5 million** remaining as of June 30, 2023[179](index=179&type=chunk) - A quarterly dividend of **$0.23 per share** was declared on August 1, 2023[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company faces increased credit risk from franchisees, significant interest rate risk on its variable-rate debt, and managed currency risk - Bad debt expense increased to **2.1% of revenue** in H1 2023 from **0.2%** in H1 2022, indicating heightened franchisee credit risk[188](index=188&type=chunk) - A hypothetical **0.25%** increase in interest rates on **$450.8 million** in variable-rate term loans would add **$1.1 million** in annual interest expense[190](index=190&type=chunk)[191](index=191&type=chunk) - A hypothetical **5%** change in the USD/CAD exchange rate would impact operating income by approximately **$0.8 million** for H1 2023[192](index=192&type=chunk)[193](index=193&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - Disclosure controls and procedures were concluded to be **effective** as of June 30, 2023, by the Principal Executive and Financial Officers[195](index=195&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2023[196](index=196&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company faces significant class action antitrust lawsuits challenging industry rules, with an unpredictable outcome and unestimable financial impact - The company is a defendant in multiple class action antitrust lawsuits, including Moehrl, Burnett, and Nosalek, regarding **NAR rules on buyer broker compensation**[86](index=86&type=chunk)[92](index=92&type=chunk) - A trial in the Burnett case is scheduled for **October 2023**, with plaintiffs seeking trebled damages for buyer commissions paid by sellers in four MLSs[87](index=87&type=chunk) - The company is unable to reasonably estimate the financial impact of the litigation or predict its material effect on financial position[92](index=92&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the 2022 Annual Report on Form 10-K - No material changes to risk factors previously disclosed in the **2022 Annual Report on Form 10-K** have occurred[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q2 2023, with **$62.5 million** remaining under the **$100 million** share repurchase program - No shares were repurchased during the three months ended **June 30, 2023**[201](index=201&type=chunk) - As of June 30, 2023, **$62.5 million** remained available under the company's **$100 million** share repurchase program[201](index=201&type=chunk)

Financial Data and Key Metrics Changes - RE/MAX Holdings reported total revenue of $85.4 million for Q1 2023, a decrease of 6.2% compared to the previous year [12][26] - Adjusted EBITDA was $19.9 million, with an adjusted EBITDA margin of 23.3% [12][37] - Selling, operating, and administrative expenses increased by 2.7% to $49.1 million, primarily due to higher costs associated with the annual RE/MAX agent convention and bad debt expense [27] Business Line Data and Key Metrics Changes - The company saw agent count growth in Canada and global regions, with a regain in momentum for Motto franchise sales [11][14] - Wemlo's business increased month-over-month throughout Q1, meeting or exceeding expectations for loans submitted and cleared [15] - Franchise sales regained momentum, with 10 franchises sold in Q1, aligning with historical sales pace [38] Market Data and Key Metrics Changes - The overall housing market continued to adjust to higher interest rates, impacting agent count growth negatively [35] - RE/MAX agents averaged 13.6 transaction sides, significantly outperforming competitors who averaged 6.2 sides [19] - The Canadian market showed signs of decline but rebounded faster than the U.S. market, maintaining strong growth potential [104][134] Company Strategy and Development Direction - The company is focused on growth through strategic initiatives, including the MAXRecruit program aimed at enhancing local affiliates' skills [20][21] - Investments are being directed towards technology and support for mortgage business growth, with a long-term goal of generating $100 million in annual mortgage-related revenue [40] - The company is strategically investing in its network to better position itself as the market regains momentum [44][77] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the spring selling season, noting improved transaction volume trends [52] - The outlook for Q2 2023 anticipates a slight decline in agent count and revenue in the range of $79 million to $84 million [29][76] - Management acknowledged the challenges in forecasting due to the current macroeconomic environment but remains optimistic about potential improvements [54][112] Other Important Information - The company is undergoing a CEO transition, with a global leadership advisory firm assisting in the selection process [13] - The annual RE/MAX agent convention had robust attendance, reinforcing the value of in-person networking [74] - The company plans to return capital to shareholders through stock buybacks, although the pace has slowed for monitoring performance [75] Q&A Session Summary Question: Can you provide insights on bad debt expense and historical trends? - Management noted that bad debt expense levels are comparable to pre-pandemic levels, with expectations for a slight decrease in Q2 [32][59] Question: What are the expectations for existing home sales and interest rates? - Management indicated that stabilization in interest rates could lead to increased consumer confidence and activity in the housing market [60][62] Question: How is the competitive landscape evolving? - The company is not seeing competitors offering large signing bonuses, which has slowed down significantly, and agents are focusing more on productivity [86] Question: What are the implications of the guidance for adjusted EBITDA? - Management acknowledged that increased costs from conventions and bad debt expenses impacted margins, but they expect to maintain a reasonable SO&A run rate [66][110] Question: Can you provide updates on the CEO search? - The company is working with a well-known recruiting firm and expects to have a permanent CEO in place by summer [115][116]