Core Insights - The article discusses the merits of RE/MAX (RMAX) as a traditional player in the real estate market, emphasizing its continued relevance and value [1]. Company Overview - RE/MAX is highlighted for its established position in the real estate sector, suggesting that it still holds potential for investors despite being a traditional player [1]. Analyst Background - The author has over 10 years of experience in communications and has worked for various economic institutions, indicating a strong foundation for analyzing the real estate market [1].

Core Insights - U.S. home sales experienced a slight decline of 0.7% in July compared to June, but showed a year-over-year increase of 0.6% compared to July 2024, with homes taking longer to sell, averaging 44 days on the market, up from 37 days a year ago [1][14][15] Sales and Pricing Trends - The median sales price in July was $450,000, reflecting a decrease of 1.1% from June but an increase of 2.3% year-over-year [2][10] - The average close-to-list price ratio was 99%, consistent with June 2025 but down from 100% in July 2024, indicating homes sold for slightly less than the asking price [12] Inventory Dynamics - Active inventory rose by 27.7% year-over-year, although there was a slight month-over-month decline of 0.8% [2][3][17] - The months' supply of inventory increased to 2.8 months, up from 2.2 months in July 2024, indicating a more balanced market [7][17] New Listings - New listings were up 4.4% year-over-year but down 2.5% from June 2025, with notable increases in Houston, Burlington, and Raleigh [5][6] - The markets with the largest year-over-year increases in new listings included Houston, TX (+43.0%), Burlington, VT (+22.6%), and Raleigh, NC (+20.9%) [5][6] Closed Transactions - Overall closed transactions were up 0.6% compared to July 2024 but down 0.7% from June 2025, with Raleigh, NC showing the highest increase in sales at +19.5% [8][9] - The markets with the largest year-over-year decreases in closed transactions included Dover, DE (-10.9%) and San Antonio, TX (-10.3%) [8][9] Market Insights - The housing market is adjusting seasonally, with longer selling times but stable inventory and prices, indicating resilience and opportunities for buyers and sellers [3][4] - Local expertise is emphasized as critical for navigating pricing and strategy in a normalizing market [3][4]

Core Insights - RE/MAX Holdings, Inc. has appointed Vic Lombardo as President of Mortgage Services to enhance technology and customer-first initiatives for Motto Mortgage franchisees and RE/MAX Broker/Owners [1][2] - Lombardo brings over 30 years of experience in the mortgage and real estate industry, previously serving as COO at Guaranteed Rate Affinity [2][3] - The appointment aims to drive growth and operational efficiency in the company's mortgage services, including Motto Mortgage and wemlo, a digital mortgage processing solution [1][4] Company Overview - RE/MAX Holdings, Inc. is a leading franchisor in the real estate industry, operating under the RE/MAX® brand globally and the Motto® Mortgage brand in the U.S. [7] - The company was founded in 1973 and has grown to over 140,000 agents in nearly 9,000 offices across more than 110 countries [7] - Motto Mortgage, launched in 2016, is the first national mortgage brokerage franchise brand in the U.S., with over 210 open offices in more than 40 states [8] Leadership Transition - Lombardo's role was created following the retirement of Ward Morrison in June [2] - He will report directly to RE/MAX Holdings CEO Erik Carlson and is expected to contribute significantly to the Executive Leadership Team [2][4] - Lombardo expressed enthusiasm for scaling the growth of Motto and enhancing the customer experience [4] Inducement Grant - The company announced an inducement award of 75,000 restricted stock units (RSUs) to Lombardo, which will vest in equal installments on March 1 for the years 2026, 2027, and 2028 [5][6] - This award was granted outside of the RE/MAX Holdings, Inc. 2023 Omnibus Incentive Plan but will be governed as if issued under the Plan [6]

Core Insights - REMAX has expanded its global presence by signing a regional franchise agreement in Malaysia, joining a network that spans over 110 countries and territories [1][5] - The operation in Malaysia is led by Kelly Ang, an experienced entrepreneur in real estate, who emphasizes the importance of REMAX's reputation and international network [2][3] - REMAX Malaysia aims to grow its team of Registered Estate Agents (REAs) and Real Estate Negotiators (RENs) to better serve clients across the country [3] Company Strategy - The launch of REMAX Malaysia has already received recognition, including the 2025 International Prestige Brand Award, highlighting the professionalism of its affiliates [4] - REMAX is committed to integrity and client service, with a focus on delivering an elevated experience for both professionals and consumers [4] - The company has recently introduced MAXRefer, an AI-powered global referral platform designed to streamline the referral process for agents [4] Global Expansion - The launch in Malaysia follows other international milestones, including the sale of master franchise rights in Côte d'Ivoire and the opening of REMAX Premier in Bahrain, indicating a strategic focus on global growth [5] - REMAX is recognized as a leading global real estate franchisor, with over 145,000 agents in nearly 9,000 offices worldwide [6] - The brand's entrepreneurial culture allows agents and franchisees significant operational independence, contributing to its success in the real estate market [6]

Core Insights - REMAX collaborates with NFL rookie Matthew Golden to help him purchase a home for his grandmother, fulfilling a personal promise made after his draft selection [1][2] - The homebuying journey is documented through a series of videos and social media posts, showcasing the challenges and milestones faced during the process [5][6] Company Overview - REMAX is a leading global real estate franchisor with over 145,000 agents in nearly 9,000 offices across more than 110 countries and territories, recognized for selling the most real estate globally [8] - The company has a strong community focus, having donated over $218 million to Children's Miracle Network Hospitals since 1992, with all donations benefiting local hospitals [4] Partnership Details - Matthew Golden worked closely with Nimesh Patel, Broker/Owner of REMAX Fine Properties, to navigate the home search and purchase process, ultimately finding a suitable home in Kohrville, Texas [2][3] - The selected home is located near Golden's childhood neighborhood, emphasizing the personal significance of the purchase [3][4] Marketing and Outreach - REMAX is leveraging social media platforms to share the homebuying experience, aiming to connect with audiences by highlighting relatable challenges in the current real estate market [6] - The initiative is branded as "Get Golden Home," celebrating the journey of homeownership and the emotional aspects tied to it [6]

Core Insights - REMAX is accelerating innovation and enhancing its brand experience for agents and affiliates, focusing on modernization and strategic growth [3][4][8] - The annual Broker Owner Conference (BOC) gathered over 500 attendees to discuss new strategies and tools aimed at improving agent performance and brokerage profitability [2][8] Innovation and Strategy - The leadership team is committed to providing resources that help agents secure more listings efficiently, with a focus on building competitive strategies [4][8] - Key innovations include a lead concierge service, an AI-powered referral system, and a rewards platform for social media engagement, all designed to enhance lead generation and marketing effectiveness [4][8] Brand Evolution - The brand's evolution centers on placing agents at the forefront, as highlighted by the introduction of a refreshed logo and personalized branding materials [5][6] - Physical marketing assets, including yard signs, have been made available to support agents in their local markets [6] Company Culture and Growth - REMAX emphasizes maintaining its strong culture while scaling, ensuring that growth aligns with core values and community engagement [7][8] - The focus is on attracting productive professionals who can effectively close deals and win listings, reinforcing the brand's market position [7][8] Conference Highlights - The conference featured influential speakers who provided insights on market trends and strategies for success in a rapidly changing environment [11] - The event underscored REMAX's commitment to building a robust foundation for future growth through collaboration and innovation [9][11]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $72.8 million, with adjusted EBITDA of $26.3 million and an adjusted EBITDA margin of 36.1%, an increase of 30 basis points compared to 2024 [20][21] - Revenue excluding marketing funds decreased by 6.8% year-over-year, primarily due to negative organic growth of 5.7% and adverse foreign currency movements of 1.1% [20][21] - Selling, operating, and administrative expenses decreased by $1 million or 2.8% to $33.9 million, attributed to lower personnel expenses [21] Business Line Data and Key Metrics Changes - The decline in organic growth was mainly due to lower U.S. agent count, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams from REMAX Media Network and lead concierge initiatives [20][21] - The company reported a record high of over 147,000 agents in its global network, marking the best U.S. agent count performance since 2022 [3][9] Market Data and Key Metrics Changes - U.S. existing home sales have been slow to recover, but inventory levels increased by 30% compared to June 2024, with new listings growing year-over-year for the sixteenth consecutive month [5] - The company noted challenges in the housing market due to tariffs, inflation, and high mortgage rates, which tempered expectations for a housing rebound in the latter half of the year [5][6] Company Strategy and Development Direction - The company is focused on enhancing its value proposition and expanding its global agent network, particularly in the U.S. and Canada [16] - Recent strategic moves include the introduction of the Aspire onboarding program aimed at attracting and developing new agents, which has seen nearly 60% of U.S. and Canadian brokerages sign up [11][12] - The company is investing in technology and tools to empower agents, including a new AI-powered global referral system and a pricing engine for mortgage brokerage [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing solid momentum and resilience despite a challenging macro environment [4][16] - The company tightened its revenue and profit range expectations for the rest of the year but raised agent count expectations due to strong international growth [23][24] Other Important Information - The company is strategically reinvesting in the business and building cash reserves while working to lower its total leverage ratio [21][22] - The REMAX Media Network is beginning to contribute to the top line, although its launch has been slower than anticipated due to the macro environment [14] Q&A Session Summary Question: What drove the reduced guidance range? - Management indicated that the reduced guidance was influenced by a delay in the ramp-up of the REMAX Media Network, a tempered outlook on broker fees, and near-term impacts from the Aspire program [27][30] Question: How did different geographies contribute to the agent count change? - The international expansion was identified as a key driver for the agent count guidance, with significant contributions from the U.S. and a recent large-scale conversion in Hawaii [31][33] Question: How is the Aspire program resonating with agents? - The Aspire program has seen positive adoption, with nearly two-thirds of eligible brokerages participating, and it is helping to attract younger agents and those transferring books of business [36][39] Question: What is the engagement level with the new tools launched? - While it is early to assess the stickiness of multiple tool usage, management noted good adoption rates for the tools deployed, including the global referral platform and lead concierge [41][44]

Q2 2025 Performance Highlights - Total agent count increased by 3,531 agents, a 2.5% year-over-year increase, reaching 147,073 agents[14] - Agent count in the U S and Canada combined decreased by 5 0% to 74,635 agents[6] - Agents Outside U S & Canada increased 11 5% (+7,495 Agents)[12] - Revenue decreased by $5 7 million, or 7 3%, to $72 8 million compared to Q2 2024[19] - Adjusted EBITDA decreased by $1 8 million, or 6 4%, to $26 3 million[23] - Adjusted EBITDA margin increased by 30 basis points to 36 1%[6] Revenue Details - Continuing franchise fees decreased by $1 3 million, or 4 4%, to $29 0 million[16] - Annual dues decreased by $0 5 million, or 5 6%, to $7 7 million[16] - Marketing Funds fees decreased by $1 8 million, or 8 8%, to $18 3 million[16] - Franchise sales and other revenue decreased by $1 1 million, or 19 8%, to $4 3 million[16] Outlook - For Q3 2025, the company expects revenue between $71 0 million and $76 0 million and Adjusted EBITDA between $23 5 million and $26 5 million[24]

Core Insights - REMAX is expanding its global presence by integrating Better Homes and Gardens Real Estate Advantage Realty in Hawaii, effective August 1, 2025, which adds six offices and 170 agents to the REMAX network [1][5] - The Hawaii real estate market is characterized by a blend of local tradition and international demand, particularly from buyers in Asia, South America, and Canada, enhancing REMAX Hawaii's ability to serve diverse clients [2] - REMAX operates in over 110 countries and territories, boasting a reputation for productivity and professionalism, which continues to attract top agents and brokerages [3] Company Developments - Under the leadership of Myron Kiriu, the newly branded REMAX Hawaii has received numerous accolades, including being voted Hawaii's Best Real Estate Firm for 14 consecutive years by Honolulu Star-Advertiser readers [4] - The strategic move to incorporate REMAX Hawaii reflects the brand's commitment to growth and excellence, aligning with the values of professionalism and productivity [5] - This conversion is part of a broader trend of high-performing brokerages joining REMAX in 2025, indicating the brand's appeal among elite professionals seeking growth opportunities [5] Market Position - REMAX is recognized as the leading global real estate franchisor, with over 145,000 agents in nearly 9,000 offices, and is noted for selling more real estate than any other company [7] - The brand's innovative culture allows agents and franchisees significant operational independence, contributing to its strong market position [7] - REMAX agents are deeply integrated into their communities, raising millions annually for charitable causes, which enhances the brand's reputation and community ties [8]

Core Viewpoint - RE/MAX reported a decline in revenue and earnings for the quarter ended June 2025, indicating potential challenges in financial performance compared to previous periods and market expectations [1][3]. Financial Performance - Revenue for the quarter was $72.75 million, down 7.3% year-over-year, and below the Zacks Consensus Estimate of $73.47 million by 0.98% [1]. - Earnings per share (EPS) were $0.39, a decrease from $0.41 in the same quarter last year, but exceeded the consensus estimate of $0.35 by 11.43% [1]. Key Metrics - Marketing Funds fees revenue was $18.27 million, slightly above the average estimate of $18 million, but down 8.8% year-over-year [4]. - Continuing franchise fees revenue was $28.99 million, below the average estimate of $29.32 million, reflecting a 4.4% decline year-over-year [4]. - Franchise sales and other revenue totaled $4.34 million, significantly lower than the $4.87 million average estimate, marking a 19.8% decrease year-over-year [4]. - Broker fees revenue was $13.45 million, slightly above the average estimate of $13.39 million, with a year-over-year decline of 7.4% [4]. - Annual dues revenue was $7.69 million, below the estimated $7.85 million, representing a 5.6% decrease compared to the previous year [4]. Stock Performance - Over the past month, RE/MAX shares returned +0.1%, underperforming the Zacks S&P 500 composite's +3.6% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3].