Core Insights - RE/MAX reported revenue of $72.47 million for the quarter ended December 2024, reflecting a year-over-year decline of 5.4% and an EPS of $0.30, unchanged from the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $75.6 million, resulting in a surprise of -4.14%, while the EPS exceeded the consensus estimate of $0.29 by 3.45% [1] Financial Performance Metrics - RE/MAX's agent count outside the U.S. and Canada totaled 70,170, surpassing the average estimate of 69,085 [4] - The total agent count was 146,627, slightly above the average estimate of 146,114 [4] - The U.S. total agent count was 51,286, below the average estimate of 51,643 [4] - In Canada, the independent regions had an agent count of 4,860, compared to the average estimate of 5,010 [4] - Company-owned regions in the U.S. had an agent count of 44,911, below the average estimate of 45,373 [4] - Independent regions in the U.S. had an agent count of 6,375, slightly above the average estimate of 6,270 [4] - Company-owned regions in Canada had an agent count of 20,311, close to the average estimate of 20,376 [4] Revenue Breakdown - Revenue from marketing funds fees was $18.65 million, below the average estimate of $19.53 million, representing a year-over-year decline of 9.4% [4] - Continuing franchise fees generated $29.79 million, compared to the average estimate of $30.66 million, reflecting a decline of 5.1% year over year [4] - Franchise sales and other revenue amounted to $4.53 million, below the average estimate of $5.03 million, indicating a year-over-year change of -6.7% [4] - Broker fees were reported at $11.66 million, slightly below the average estimate of $11.78 million, with a year-over-year increase of 1% [4] - Annual dues revenue was $7.84 million, below the average estimate of $8.30 million, representing a year-over-year decline of 4.9% [4] Stock Performance - Over the past month, RE/MAX shares returned +2%, compared to the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - RE/MAX reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, with a year-over-year comparison showing no change in earnings per share [1][2] Financial Performance - The company posted revenues of $72.47 million for the quarter ended December 2024, which was 4.14% below the Zacks Consensus Estimate and down from $76.6 million in the same quarter last year [2] - Over the last four quarters, RE/MAX has surpassed consensus EPS estimates four times and topped consensus revenue estimates twice [2] Stock Performance - RE/MAX shares have declined approximately 1.9% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $78.12 million, and for the current fiscal year, it is $1.31 on revenues of $311.44 million [7] - The trend of estimate revisions for RE/MAX has been unfavorable leading up to the earnings release [6] Industry Context - The Real Estate - Operations industry, to which RE/MAX belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact RE/MAX's stock performance [5]

Financial Performance - Total revenue for 2024 was $307.685 million, a decrease of 5.5% from $325.671 million in 2023 [323]. - Net income attributable to RE/MAX Holdings, Inc. for 2024 was $7.123 million, compared to a net loss of $69.022 million in 2023 [324]. - Operating income for 2024 was $40.181 million, a significant recovery from an operating loss of $10.637 million in 2023 [324]. - Comprehensive income attributable to RE/MAX Holdings, Inc. for 2024 was $4.621 million, compared to a comprehensive loss of $67.989 million in 2023 [326]. - Net income for the year ended December 31, 2024, was $8,077 thousand, a significant recovery from a net loss of $98,486 thousand in 2023 [332]. - Basic earnings per share (EPS) for 2024 was $0.38, compared to a loss of $3.81 in 2023, indicating a strong turnaround in performance [423]. Cash and Liquidity - Cash and cash equivalents increased to $96.619 million in 2024, up from $82.623 million in 2023, reflecting a growth of 16.1% [321]. - The total cash, cash equivalents, and restricted cash at the end of 2024 was $169,287 thousand, up from $125,763 thousand at the end of 2023 [332]. - Cash provided by operating activities increased to $59,652 thousand in 2024, compared to $28,264 thousand in 2023 [332]. - Total cash, cash equivalents, and restricted cash increased to $169.287 million in 2024 from $125.763 million in 2023, a rise of 34.5% [368]. Debt and Liabilities - As of December 31, 2024, $443.9 million in term loans were outstanding under the Senior Secured Credit Facility, with an interest rate of 7.0% [283]. - The Company is required to repay term loans at approximately $1.2 million per quarter under the Senior Secured Credit Facility [437]. - As of December 31, 2024, the Company had $436.2 million in net debt, slightly down from $440.0 million in 2023 [435]. - Total liabilities decreased to $639.988 million in 2024 from $653.211 million in 2023, a reduction of approximately 2% [321]. Revenue Sources - The company reported a decrease in franchise sales and other revenue to $22.687 million in 2024, down from $29.510 million in 2023, a decline of 23.1% [323]. - Revenue from U.S. Company-Owned Regions was $131.375 million, down from $138.499 million in 2023, reflecting a decline of 4.1% [365]. - Franchise sales and other revenue decreased to $18.829 million in 2024 from $25.794 million in 2023, a decline of 27.1% [365]. - The company recognized $7.9 million in revenue from franchise sales and $12.5 million from annual dues for the year ended December 31, 2024 [361]. Expenses and Cost Management - Selling, operating, and administrative expenses were reduced to $152.258 million in 2024, down from $171.548 million in 2023, a decrease of 11.3% [324]. - The Company incurred $1.3 million in severance and related expenses during the restructuring in 2024, along with $0.3 million in accelerated equity compensation expenses [394]. - The total lease cost for the Company was $14.267 million in 2024, down from $17.160 million in 2023 and $19.241 million in 2022, reflecting a decrease of approximately 16.5% year-over-year [408]. Strategic Initiatives - The company is focused on increasing the number of RE/MAX agents and closed transaction sides, as well as expanding Motto Mortgage offices [16]. - The company is pursuing future acquisitions and expects benefits from past acquisitions, impacting future performance positively [16]. - The company aims to enhance its franchise model to attract and retain top-performing agents, which is central to its growth strategy [336]. Currency and Interest Rate Management - A hypothetical 5% strengthening of the U.S. dollar against the Canadian dollar would have resulted in a decrease of approximately $1.3 million in operating income for the year ended December 31, 2024 [287]. - The company is actively managing currency risk through short-term foreign currency forwards and converting cash balances into U.S. dollars [286]. - A hypothetical 0.25% increase in interest rates would result in an additional annual interest expense of $1.1 million [284]. Management and Governance - The company emphasizes the importance of retaining senior management and key employees for future growth and operational success [16]. - The ownership percentage of non-controlling interest in RMCO decreased from 40.7% in 2023 to 39.8% in 2024 [414]. Tax and Regulatory Matters - The provision for income taxes for the year ended December 31, 2024, was $(1.877) million, reflecting a negative effective tax rate of (30.3)% [450]. - The uncertain tax position liabilities decreased from $258,000 in 2023 to $30,000 in 2024, reflecting a reduction in tax positions related to prior years [461]. Legal Matters - The Company is involved in ongoing antitrust litigations related to the National Association of Realtors, which may impact future financial performance [474]. - Plaintiffs in the Moehrl Action sought class certification for home sellers who paid commissions between March 6, 2015, and December 31, 2020 [475].

Financial Performance - Total revenue for Q4 2024 was $72.5 million, a decrease of 5.4% compared to Q4 2023[3] - Revenue excluding Marketing Funds decreased 3.9% to $53.8 million, driven by negative organic growth of 3.5% and adverse foreign currency movements of 0.4%[5] - Adjusted EBITDA increased 1.6% to $23.3 million, with an Adjusted EBITDA margin of 32.2%[11] - Net income attributable to RE/MAX Holdings was $5.8 million, with GAAP EPS of $0.29, compared to a net loss of $10.9 million in Q4 2023[9] - Total operating expenses for Q4 2024 were $68.2 million, a decrease of 21.0% compared to Q4 2023[7] - For Q4 2024, RE/MAX Holdings reported a net income of $4,080,000, a significant improvement from a net loss of $18,379,000 in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was $23,341,000, compared to $22,976,000 in Q4 2023, reflecting an adjusted EBITDA margin of 32.2%[36] - Adjusted net income for the year ended December 31, 2024, was $41,494,000, slightly down from $41,695,000 in 2023[40] - Adjusted EBITDA for 2024 was $97,700 million, slightly up from $96,288 million in 2023, indicating a growth of 1.5%[46] Agent Count and Franchise Operations - Total agent count increased 1.2% to 146,627 agents, while U.S. and Canada combined agent count decreased 4.8% to 76,457 agents[4] - Total open Motto Mortgage franchises decreased 8.5% to 225 offices[3] - The total agent count in the U.S. decreased to 51,286 in Q4 2024 from 55,131 in Q4 2023, indicating a decline of approximately 7% year-over-year[34] - The total number of independent regions outside the U.S. and Canada increased to 70,170 in Q4 2024, up from 64,536 in Q4 2023, representing an increase of about 8%[34] Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $96.6 million, an increase of $14.0 million from the previous year[13] - Cash and cash equivalents increased to $96,619,000 as of December 31, 2024, up from $82,623,000 in 2023[30] - Total current assets rose to $218,511,000 in 2024, compared to $176,565,000 in 2023, reflecting a growth of 23.7%[30] - The company reported a net cash provided by operating activities of $59,652,000 for the year ended December 31, 2024, compared to $28,264,000 in 2023[32] - Cash flow from operations for the year ended December 31, 2024, was $59,652 million, a significant increase from $28,264 million in 2023, representing a growth of 111%[46] - Adjusted free cash flow reached $51,002 million in 2024, up from $35,670 million in 2023, marking an increase of 43%[46] - Unencumbered cash generated amounted to $46,402 million in 2024, an increase from $31,058 million in 2023, which is a rise of 49%[46] Debt and Expenses - Total liabilities decreased to $639,988,000 in 2024 from $653,211,000 in 2023, a reduction of 2%[30] - Interest expense for the year ended December 31, 2024, was $36,258,000, compared to $35,741,000 in 2023, indicating a slight increase[36] - Debt principal payments remained consistent at $4,600 million for both years, indicating stable debt management[46] Strategic Initiatives - The company restructured its support services in Q4 2024 to enhance customer experience, alongside a reduction in force announced in Q3 2023 aimed at long-term cost savings[42] - The company emphasizes that adjusted free cash flow is a key measure for assessing cash available for strategic opportunities, including acquisitions and reinvestments[58] Dividends and Shareholder Returns - RE/MAX Holdings, Inc. declared no cash dividends for the year ended December 31, 2024, compared to $0.69 per share in 2023[28] - The weighted average shares of Class A common stock outstanding increased to 18,921,229 in Q4 2024 from 18,253,608 in Q4 2023[28] - Total basic pro forma shares outstanding increased to 31,480,829 in Q4 2024 from 30,813,208 in Q4 2023, reflecting a growth of approximately 2.2%[44]

Earnings Announcement and Conference Call - RE/MAX Holdings, Inc will release financial results for Q4 and full year 2024 after market close on February 20, 2025 [1] - The company will host a conference call and webcast on February 21, 2025 at 8:30 AM Eastern Time [1] - Investors can register for the telephonic conference call in advance and will receive dial-in information, a unique passcode, and registrant ID [3] - The webcast will be available on the Investor Relations website for a limited time after the call [2] Company Overview - RE/MAX Holdings, Inc is a leading global franchisor in the real estate industry, operating under the RE/MAX and Motto Mortgage brands [4] - The company franchises real estate brokerages globally and mortgage brokerages within the US [4] - RE/MAX was founded in 1973 and has an entrepreneurial culture that allows agents and franchisees to operate with great independence [4] - The company has over 140,000 agents in nearly 9,000 offices across more than 110 countries and territories [4] - RE/MAX sells more real estate than any other company worldwide, as measured by total residential transaction sides [4] - Motto Mortgage, launched in 2016, is the first and only national mortgage brokerage franchise brand in the US, with over 225 offices across more than 40 states [4]

Core Insights - RE/MAX Holdings has appointed Travis Saxton as Executive Vice President of Strategy to enhance real estate strategy and technology innovation [2][4] - Saxton brings over 20 years of experience in residential real estate technology and digital marketing, previously serving as Executive Vice President of Enterprise Solutions at T3 Sixty [3][4] - The leadership changes, including Saxton's appointment, are part of a broader strategy to improve services and resources for RE/MAX's network [6] 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 225 offices in more than 40 states [8] Leadership Vision - CEO Erik Carlson emphasized that Saxton's technology experience and understanding of real estate operations will be crucial for the company's vision [4][6] - Saxton aims to leverage technology to maximize business outcomes for RE/MAX's network and enhance productivity [5][6] - The recent hiring of Chris Lim as Executive Vice President and Chief Growth Officer further strengthens the leadership team [5]

December Continues Momentum, Marking Eighth Month of 2024 to Surpass 2023 Sales DENVER , Jan. 16, 2025 /PRNewswire/ -- December became the eighth month of 2024 to top 2023, with home sales up 13.3% over December 2023 and 4.4% above November 2024. The number of homes for sale in the 52 metro markets surveyed remained 22.0% higher year over year but dropped 12.4% from November, reflecting seasonal trends. Additionally, new listings rose 7.5% year over year after a 24.9% drop from November, in contrast to dec ...

Lim, former President of Christie's International Real Estate and founder of Climb Real Estate, to spearhead U.S. growth, strengthen affiliate support and enhance affiliate experience for the real estate franchisor. DENVER, Jan. 14, 2025 /PRNewswire/ -- RE/MAX Holdings, Inc. (the "Company" or "RE/MAX Holdings") (NYSE:RMAX), parent company of RE/MAX, one of the world's leading franchisors of real estate brokerage services, today announced industry veteran Chris Lim is joining RE/MAX as Executive Vice Preside ...

Core Viewpoint - Recent home sales reports show a slight increase, providing some optimism for the real estate sector, but one month of positive data is insufficient to indicate a full recovery after several months of decline [1] Real Estate Sector Trends - A significant trend is emerging that could create long-term growth opportunities, particularly in the real estate services sector, focusing on leasing and transactional services [2] - Zillow Group, SoFi Technologies, and RE/MAX Holdings are identified as potential beneficiaries of this trend, with expectations of double-digit upside in the coming quarters as the U.S. housing market enters a growth cycle [3] Zillow Group Insights - Zillow acts as a middleman in real estate transactions and leasing, with its financial performance closely tied to the cyclicality of these markets [4] - The company is increasingly focusing on the rental segment due to high price-to-income ratios and rising mortgage rates, which have dampened demand for new homes [5] - Zillow's rental division is expected to capture a larger share of net revenue as the rental market expands, with 36% of Americans currently renting, a 50% increase from pre-COVID levels [7] Stock Performance and Projections - Analysts at Jefferies Financial Group have set a price target of $90 for Zillow stock, indicating a potential upside of 10% from current levels, following a 110% rally over the past year [9] - The stock has gained institutional support, with FMC LLC increasing its holdings by 179.5%, now owning 2.2% of the company, reflecting confidence in Zillow's long-term prospects [3] SoFi Technologies Outlook - SoFi Technologies could benefit from a rebound in the mortgage market, which is currently at a 1996 low, with potential for significant growth if market conditions improve [10] - The company's short interest has decreased by 10.2% recently, indicating a shift from bearish to bullish sentiment among investors [10] - State Street Corp. has increased its holdings in SoFi by 1.7%, reflecting optimism about future growth, with EPS forecasts predicting a doubling from $0.05 to $0.10 per share over the next 12 months [11][12] RE/MAX Holdings Potential - RE/MAX stock has rallied 45% over the past year and is positioned to benefit from trends in both the rental and buying markets [13] - The stock trades at a low price-to-book ratio of 0.6, offering a 40% discount to its book value, which could attract investors [15] - With 93.2% institutional ownership, RE/MAX is well-positioned to capitalize on the momentum generated by Zillow and the overall market [14]

RE/MAX Holdings, Inc. Third Quarter 2024 Earnings November 1, 2024 Forward-Looking Statements 1 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 ...