Core Insights - REMAX celebrates the achievements of its agents recognized in the 2025 RealTrends Verified Top Agents and Teams rankings, highlighting their productivity and commitment to excellence [1][3] Performance Highlights - Over 45,000 U.S. agents participated, with more than 6,000 REMAX agents qualifying, including 4,461 individuals and 1,901 teams, showcasing REMAX's strong presence in the rankings [2][7] - REMAX agents have consistently ranked highest for individual agent transactions in "The Thousand" for 13 consecutive years, reflecting their dedication to exceptional service [3][7] Ranking Criteria - To qualify for the RealTrends Verified rankings, individual agents must have closed at least 25 residential transaction sides or $10 million in sales volume in 2024, while teams must have closed at least 40 transaction sides or $16 million in sales volume [4] Industry Position - REMAX is recognized as a leading global real estate franchisor with over 145,000 agents in nearly 9,000 offices across more than 110 countries, emphasizing its dominant market position [6] - One in seven of America's top-producing agents and teams is affiliated with REMAX, with agents averaging nearly 40 home sales each in 2024 [7] Team Productivity - REMAX teams achieved the highest sides-per-agent average among brands with at least 150 qualifying team members, with agents averaging 17.2 transaction sides each across 1,584 teams [7] - REMAX earned 118 placements in "The Thousand," ranking in the top 65 in all 10 categories and in the top 10 in five categories [7]

Core Insights - RE/MAX Holdings (RMAX) operates in the real estate sector through a franchise model, distinguishing itself from other real estate companies analyzed previously [1] Company Overview - RE/MAX Holdings is an American company focused on real estate, utilizing a franchise model to expand its operations [1] Industry Context - The article does not provide specific details about the broader real estate industry or market trends [1]

Group 1 - RE/MAX Holdings, Inc. has announced the sale of master franchise rights in Côte d'Ivoire and the opening of a franchised brokerage in Bahrain, enhancing its presence in Western Africa and the Middle East [1][2] - The Côte d'Ivoire region aims to leverage RE/MAX's globally recognized brand, agent-centric business model, and innovative technology to establish trust in the local real estate market [2] - The newly formed REMAX Premier in Bahrain has set an ambitious growth strategy, focusing on recruiting innovative agents and exploring cross-border partnerships in residential, commercial, and luxury real estate [3][4] Group 2 - RE/MAX's management emphasizes the importance of providing global affiliates with resources and support to expand their businesses, highlighting the brand's strong network of professionals [5] - Over the past three months, RE/MAX shares have decreased by 20.6%, contrasting with a 2.8% decline in the broader industry [5] - Other real estate stocks with better rankings include Ferrovial SE and Berkeley Group, both currently rated as Zacks Rank 2 (Buy) [6]

Core Insights - April home sales increased by 11.3% compared to March, but were down 1.4% year-over-year, indicating a mixed market trend [1][6] - New listings rose by 6.2% from March and 7.5% year-over-year, contributing to a growing inventory [1][4] - The median sales price for homes in April reached $440,000, up 1.2% from March and 2.3% from the previous year [2][9] Sales and Inventory - Active inventory across the surveyed metro areas increased by 35.7% year-over-year, marking a significant rise in available homes [2][15] - The months' supply of inventory was 2.3, up from 1.7 a year ago, indicating a more balanced market [15] - Days on market decreased to an average of 40 days, down from 44 days in March, suggesting quicker sales [6][13] Market Performance - The markets with the largest year-over-year increase in new listings included Las Vegas, NV (+27.7%), Burlington, VT (+24.8%), and Fayetteville, AR (+22.5%) [4][5] - Conversely, the largest year-over-year decreases in closed transactions were observed in Miami, FL (-14.1%), New Orleans, LA (-7.6%), and Tampa, FL (-7.2%) [6][8] - The average close-to-list price ratio was 99%, consistent with March but down from 100% in April 2024, indicating a slight shift in buyer negotiation power [11] Price Trends - The median sales price saw the highest year-over-year increases in Cleveland, OH (+10.9%), Hartford, CT (+10.3%), and Birmingham, AL (+9.0%) [9][10] - The markets with the largest year-over-year decrease in median sales price included Bozeman, MT (-4.4%), Honolulu, HI (-2.3%), and Tampa, FL (-1.6%) [9][10] Regional Insights - Miami, FL had the highest months' supply of inventory at 6.9, followed by Honolulu, HI at 5.6 and Tampa, FL at 4.0, indicating a more saturated market in these areas [15][16] - The highest days on market were recorded in Fayetteville, AR (79 days), Miami, FL (78 days), and Orlando, FL (70 days), suggesting slower sales in these regions [13][14]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $74.5 million, with adjusted EBITDA of $19.3 million, reflecting a 1.5% increase year-over-year [18] - Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points compared to Q1 2024 [18] - Adjusted diluted EPS was reported at $0.24 [18] - Revenue excluding marketing funds decreased by 4.3% year-over-year, primarily due to a 3.2% decline in organic growth and adverse foreign currency movements of 1.1% [18] Business Line Data and Key Metrics Changes - The mortgage segment continues to face challenges, impacting revenue, with expectations for recovery taking several quarters [18] - Despite the decline in organic growth, higher broker fees partially offset the negative trends [18] - The company experienced a 10% growth in global agent count in Q1 2025 [12] Market Data and Key Metrics Changes - The U.S. agent count showed signs of stabilization, with April 2025 being the best month of April since 2022, despite a slight decline [54] - The overall real estate market remains under pressure, but the company believes its agents are better positioned due to their productivity and trust [52][78] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing profitability, and building a strong foundation for long-term success [4][8] - New initiatives include the Aspire onboarding program aimed at attracting and developing top-producing agents, and the Max Engage social influencer platform to modernize branding [9][10] - The company is committed to transparency and fairness in real estate, supporting the recent changes in the National Association of Realtors' policies [5][6][83] Management's Comments on Operating Environment and Future Outlook - The macroeconomic situation and real estate market are characterized by uncertainty, with various factors influencing performance [5] - Management expressed optimism about ongoing initiatives and the potential for revenue growth in the second half of 2025 [21] - The company expects agent count to increase by 1.5% to 2.5% in Q2 2025 compared to the same period in 2024 [22] Other Important Information - The company announced the retirement of Ward Morrison, who has been with REMAX for 20 years, marking a significant transition in leadership [23][60] - The company is actively searching for new leadership for the Motto and Weimlo segments following Morrison's departure [61] Q&A Session Summary Question: Concerns about franchise sales decline - Management noted that the decline in franchise sales was partly due to the wind down of prior technology acquisitions and a successful annual conference despite lower attendance [25][26] Question: Operational expenses management - Management highlighted their focus on strategic spending and cost control, with expectations for continued efficiency improvements [33][34] Question: Feedback on the Aspire program - Early feedback on the Aspire program has been positive, with higher than expected adoption rates, indicating a widening interest in the REMAX brand [50][52] Question: Revenue trends in the Motto segment - The decline in revenue for the Motto segment is primarily driven by macroeconomic factors, with stabilization observed on a sequential basis [57][58] Question: International agent growth momentum - The growth in international agents is attributed to outstanding operators and brand momentum in various markets [70][72] Question: Market share trends in the U.S. - The company is monitoring market share across multiple dimensions, noting that their agents are more productive than the industry average [77][78] Question: NAR's clear cooperation policy impact - The company supports transparency and believes in the broad distribution of listings, aligning with consumer interests [81][83]

First Quarter 2025 Earnings May 2, 2025 Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other similar words and expressions that predict or indicate future events or ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $74.5 million, with adjusted EBITDA of $19.3 million, reflecting a 1.5% increase year-over-year [17] - Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points compared to Q1 2024 [17] - Adjusted diluted EPS was reported at $0.24 [17] - Revenue excluding marketing funds decreased by 4.3% year-over-year, primarily due to a 3.2% decline in organic growth and 1.1% from adverse foreign currency movements [17] Business Line Data and Key Metrics Changes - The mortgage segment continues to face challenges, impacting revenue, with expectations for recovery taking several quarters [17] - Despite the decline in organic growth, higher broker fees partially offset the revenue decrease [17] - The company experienced a 10% growth in global agent count in Q1 2025 [10] Market Data and Key Metrics Changes - The real estate market remains uncertain, influenced by tariffs, rising inventory, and interest rate fluctuations [4] - The National Association of Realtors modified its clear cooperation policy, which aims to enhance flexibility for home sellers while maintaining transparency [4][5] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing profitability, and strengthening its foundation through improved processes and products [3][6] - New initiatives include the Aspire onboarding program, aimed at attracting and developing top-producing agents, and the Max Engage social influencer platform [10][12] - The company is committed to modernizing its branding and expanding its product offerings to enhance competitive advantage [7][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic uncertainties but expresses confidence in the company's ability to adapt and succeed [4][6] - The outlook for Q2 2025 anticipates a 1.5% to 2.5% increase in agent count and revenue between $70 million and $75 million [21] - For the full year 2025, revenue is expected to range from $290 million to $310 million, with agent count projected to remain stable [21] Other Important Information - The company is undergoing a leadership transition, with Ward Morrison retiring after 20 years [23] - The company emphasizes the importance of transparency and fairness in real estate practices [5] Q&A Session Summary Question: Franchise sales line performance - Management noted that franchise sales were down due to the wind down of prior technology acquisitions and a slight decline in conference revenue [25][26] Question: Operational expenses management - Management confirmed ongoing discipline in operational expenses, with a focus on strategic spending and efficiency [32] Question: Aspire program's competitive positioning - The Aspire program is designed to enhance recruitment and onboarding, providing flexibility and support to agents and brokers [36][39] Question: International growth momentum - Management highlighted strong operators and brand recognition as key drivers of international growth, with plans for further marketing initiatives [70][72] Question: Market share trends in the U.S. - Management indicated that while the overall industry has contracted, REMAX's agent productivity remains higher than the industry average [77] Question: NAR's clear cooperation policy impact - The company supports transparency and broad distribution of listings, aligning with consumer interests while providing guidance to franchisees [80][82]

Core Insights - RE/MAX reported revenue of $74.47 million for the quarter ended March 2025, reflecting a year-over-year decline of 4.9% [1] - The company's EPS for the same period was $0.24, an increase from $0.20 a year ago, resulting in an EPS surprise of +33.33% compared to the consensus estimate of $0.18 [1] Revenue Breakdown - Marketing Funds fees amounted to $18.86 million, exceeding the two-analyst average estimate of $18.10 million, but showing a year-over-year decline of 6.6% [4] - Continuing franchise fees were reported at $29.35 million, slightly above the estimated $29.32 million, with a year-over-year decrease of 5.6% [4] - Franchise sales and other revenue totaled $7.03 million, below the average estimate of $7.99 million, marking a year-over-year decline of 12.7% [4] - Broker fees reached $11.43 million, surpassing the estimated $11.12 million, and showing a year-over-year increase of 6.7% [4] - Annual dues were reported at $7.79 million, slightly below the average estimate of $8.02 million, with a year-over-year decline of 5.3% [4] Stock Performance - Over the past month, RE/MAX shares have returned -8.7%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - RE/MAX reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of 33.33% [1] - The company posted revenues of $74.47 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.09%, and a decrease from $78.29 million year-over-year [2] - Over the last four quarters, RE/MAX has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] 分组2 - The stock has underperformed, losing about 28.3% since the beginning of the year compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $76.22 million, and for the current fiscal year, it is $1.30 on revenues of $299.06 million [7] - The Zacks Industry Rank for Real Estate - Operations is currently in the bottom 40% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Revenue Performance - Total revenue for Q1 2025 was $74.5 million, a decrease of 4.9% compared to Q1 2024[114] - Revenue excluding Marketing Funds decreased 4.3% to $55.6 million, driven by negative organic revenue growth of 3.2% and adverse foreign currency movements of 1.1%[114] - Continuing franchise fees decreased by 5.6% to $29.4 million, primarily due to a reduction in U.S. agent count[123] - Franchise sales in the U.S. and Canada decreased by 18.2% to 27[119] - Economic uncertainties and high interest rates have led to declines in the number of U.S. REMAX agents and total revenue[115] Income and Expenses - Net income attributable to RE/MAX Holdings, Inc. was a loss of $2.0 million, an improvement from a loss of $3.4 million in the prior year[114] - Total operating expenses for the three months ended March 31, 2025, were $69,100,000, a decrease of 6.3% from $73,763,000 in the same period of 2024[129] - Selling, operating, and administrative expenses decreased by $2,677,000, or 5.9%, from $45,705,000 in Q1 2024 to $43,028,000 in Q1 2025[130] - Adjusted EBITDA increased 1.5% to $19.3 million, with an Adjusted EBITDA margin of 25.9%, up 164 basis points from the prior year[117] - Adjusted EBITDA for the three months ended March 31, 2025, was $19,287,000, an increase of $294,000 from $18,993,000 in the comparable prior year period[138] - Interest expense decreased by $1,332,000, or 14.4%, from $9,256,000 in Q1 2024 to $7,924,000 in Q1 2025[134] - Total other expenses, net, decreased by $1,894,000, or 22.0%, from $8,627,000 in Q1 2024 to $6,733,000 in Q1 2025[134] - Personnel expenses decreased by $754,000, or 2.9%, from $25,832,000 in Q1 2024 to $25,078,000 in Q1 2025[130] - Depreciation and amortization expense decreased from $7,852,000 in Q1 2024 to $6,589,000 in Q1 2025, primarily due to lower franchise agreements amortization[131] Agent and Office Metrics - Total agent count increased by 2.0% to 146,126 agents, while U.S. and Canada combined agent count decreased by 5.0% to 75,010 agents[117] - The number of open Motto Mortgage offices decreased by 7.8% to 224 offices[117] Cash Flow and Capital Expenditures - Cash provided by operating activities decreased to $5.661 million for the three months ended March 31, 2025, compared to $9.381 million for the same period in 2024[160] - Total capital expenditures for the three months ended March 31, 2025, were $1.7 million, with expectations for 2025 to be between $6.0 million and $7.5 million[166] Debt and Financial Obligations - The Senior Secured Credit Facility includes a $460 million term loan and a $50 million revolving loan, with a repayment requirement of approximately $1.2 million per quarter[150] - As of December 31, 2024, no Excess Cash Flow payment was required because the Total Leverage Ratio was below 3.75:1[152] - As of March 31, 2025, RE/MAX, LLC's consolidated EBITDA was $97.8 million, with a Total Leverage Ratio (TLR) of 3.61:1[154] - The company had $442.8 million in term loans outstanding and no revolving loans under the Senior Secured Credit Facility as of March 31, 2025[158] - The interest rate on the term loan facility was 6.9% as of March 31, 2025, with a hypothetical 0.25% increase resulting in an additional annual interest expense of $1.1 million[180] Strategic Initiatives - The AspireSM program was launched to help brokerages attract new agents, with a performance-based financial model[116] - The company plans to pursue acquisitions of RE/MAX Independent Regions in the U.S. and Canada to access new markets and revenue streams[165] Shareholder Returns - The company suspended its quarterly dividend in Q4 2023 and did not approve any dividends for the first quarters of 2025 and 2024[168] - A common stock repurchase program of up to $100 million was authorized, with $62.5 million remaining available as of March 31, 2025[169] Bad Debt and Currency Impact - Bad debt expense for the three months ended March 31, 2025, was 2.1% of revenue, compared to 1.7% for the same period in 2024[177] - A hypothetical 5% strengthening/weakening of the U.S. dollar against the Canadian dollar would have impacted operating income by approximately $0.4 million[182]