RE/MAX(US:RMAX)2025-05-01 20:15Financial Performance - Total revenue for Q1 2025 was $74.5 million, a decrease of 4.9% compared to $78.3 million in Q1 2024[3] - Revenue excluding Marketing Funds decreased by 4.3% to $55.6 million, driven by negative 3.2% organic growth and 1.1% adverse foreign currency movements[5] - Net loss attributable to RE/MAX Holdings was $(2.0) million, with a loss per diluted share of $(0.10)[9] - Net income for Q1 2025 was a loss of $3.236 million, an improvement from a loss of $5.607 million in Q1 2024[40] - Adjusted net income increased to $7.549 million in Q1 2025, compared to $6.267 million in Q1 2024, reflecting a growth of 20.4%[40] EBITDA and Margins - Adjusted EBITDA increased by 1.5% to $19.3 million, with an adjusted EBITDA margin of 25.9%[10] - Adjusted EBITDA for Q1 2025 was $19.287 million, up from $18.993 million in Q1 2024, with an adjusted EBITDA margin of 25.9% compared to 24.3% in the prior year[36] - Adjusted free cash flow was negative at $(1.161) million in Q1 2025, compared to positive $4.543 million in Q1 2024[47] - Adjusted free cash flow as a percentage of Adjusted EBITDA was (6.0)% in Q1 2025, down from 23.9% in Q1 2024[47] Agent Count and Franchise Performance - 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[4] - The agent count in the U.S. decreased to 49,854 as of March 31, 2025, down from 51,286 as of December 31, 2024, reflecting a decline of 2.8%[34] - Total open Motto Mortgage franchises decreased by 7.8% to 224 offices[3] Expenses and Liabilities - Total operating expenses decreased by 6.3% to $69.1 million, primarily due to lower selling, operating, and administrative expenses[7] - Total liabilities decreased to $626.914 million as of March 31, 2025, from $639.988 million at the end of 2024, a reduction of 2.0%[30] Cash Flow and Cash Position - Cash and cash equivalents as of March 31, 2025, were $89.1 million, a decrease of $7.5 million from December 31, 2024[13] - Cash flow from operations decreased to $5.661 million in Q1 2025, down from $9.381 million in Q1 2024[47] - The company reported a net cash provided by operating activities of $5.661 million for Q1 2025, down from $9.381 million in Q1 2024, a decline of 39.0%[32] - Cash and cash equivalents as of March 31, 2025, were $89.107 million, down from $96.619 million at the end of 2024, a decrease of 7.8%[30] Future Outlook - The company expects Q2 2025 revenue in the range of $70.0 million to $75.0 million and adjusted EBITDA in the range of $22.5 million to $25.5 million[17] - For the full year 2025, the company anticipates revenue between $290.0 million and $310.0 million, with adjusted EBITDA between $90.0 million and $100.0 million[17] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 19,292,210 in Q1 2025 from 18,481,848 in Q1 2024[28] - Total basic pro forma shares outstanding increased to 31,851,810 in Q1 2025 from 31,041,448 in Q1 2024[45] Other Financial Metrics - Operating income for Q1 2025 was $5.367 million, an increase of 18.7% from $4.524 million in Q1 2024[28] - The company incurred interest expense of $7.924 million in Q1 2025, down from $9.256 million in Q1 2024, a decrease of 14.4%[36] - The company incurred $619,000 in settlement and impairment charges during Q1 2025[40]