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Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for RE/MAX, with a consensus estimate of $0.28 per share, reflecting a -6.7% change, and revenues expected to be $71.25 million, down 1.7% from the previous year [3]. Earnings Report Expectations - The earnings report is scheduled for February 19, and if the actual results exceed expectations, the stock may rise; conversely, missing estimates could lead to a decline [2]. - Management's discussion during the earnings call will significantly influence the sustainability of any immediate price changes and future earnings expectations [2]. Estimate Revisions and Predictions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Zacks Earnings ESP model shows a positive Earnings ESP of +14.29% for RE/MAX, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. Historical Performance - RE/MAX has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +2.78% surprise in the most recent quarter [13][14]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook [12]. Investment Considerations - While a positive earnings surprise is a strong predictor of stock performance, other factors can also influence stock movement, making it essential to consider the broader context [15][17]. - Investors are encouraged to utilize the Earnings ESP and Zacks Rank to identify potential investment opportunities ahead of earnings releases [16].

Summary of The Real Brokerage FY Conference Call Company Overview - **Company Name**: The Real Brokerage (NasdaqCM:REAX) - **Industry**: Real Estate Technology - **Founded**: 2014 - **Current Revenue**: Expected to exceed $2 billion in 2023, up from approximately $300 million in 2022, representing a growth of about 7x in two to three years [4][5] Core Business Model - **Agent Monetization**: Revenue is generated through commission splits with agents and additional fees. The company has diversified its revenue streams by entering mortgage, title, and fintech products [4][5]. - **Agent Acquisition**: 100% organic growth, with 85% of new agents coming from referrals and 15% from inbound inquiries. The company does not spend on upfront marketing costs [10][11]. - **Agent Churn**: The company experiences a 7% quarterly churn rate among agents, but revenue churn from productive agents is significantly lower at 1.4% [16][17]. Competitive Advantages - **Value Proposition**: Offers agents more freedom, flexibility, and lower costs compared to traditional brokerages. Agents pay about half of what they would at traditional firms [6][7]. - **Technology Suite**: Provides a comprehensive operating system for agents, including marketing and productivity tools [7][8]. - **Collaborative Culture**: Focuses on collaboration rather than competition among agents, fostering a unique company culture [8]. Recent Developments - **AI Integration**: Launched "Leo," an AI assistant that handles support tickets and will soon engage with clients directly, enhancing agent productivity and client interaction [20][25]. - **New Features**: Leo will assist agents in nurturing leads and pre-qualifying clients for mortgages, potentially increasing transaction volumes [25][26]. - **Attach Rates**: The company is working on increasing attach rates for its mortgage and title services, currently at 1% and 4% respectively, with joint ventures showing over 30% attach rates [82][88]. Market Outlook - **Housing Market Predictions**: Anticipates around 4.3 million homes sold in 2026, with a gradual recovery expected as affordability improves and demand is unlocked [54][61]. - **Interest Rates**: Low mortgage rates in the low fives are seen as a potential catalyst for market recovery [62][64]. Strategic Focus for 2026 - **Growth Goals**: Aims to continue adding agents and increasing transaction counts while focusing on high-margin services such as title and mortgage [119]. - **Operational Efficiency**: Plans to reduce operating expenses per transaction through technology and scale, which will enhance profitability [115][116]. Additional Insights - **Private Label Program**: Allows small independent brokerages to operate under Real's umbrella while maintaining their branding, contributing to 15% of growth [12][13]. - **Agent Engagement**: The company is focused on keeping agents engaged through various monetization opportunities, including a share purchase program and referral incentives [17][96]. This summary encapsulates the key points discussed during the conference call, highlighting the company's growth trajectory, competitive advantages, and strategic initiatives moving forward.

Core Insights - The U.S. housing market experienced a seasonal slowdown in November 2025, with a decrease in new listings and home sales compared to October, while inventory levels remained elevated [1][3] Inventory Trends - Active inventory increased by 14.5% year-over-year across 51 metro areas surveyed, marking the 23rd consecutive month of year-over-year inventory increases [1][3] - The supply of homes declined by 5.5% from October but was still 14.5% higher than the previous year [1][17] New Listings - New listings dropped by 30.7% month-over-month and fell by 8.3% year-over-year [2][6] - Markets with the largest year-over-year decreases in new listings included Dover, DE (-48.6%), Trenton, NJ (-48.3%), and Washington, DC (-45.2%) [6][8] Home Sales - Home sales decreased by 18.5% from October to November and were down 4.7% compared to November 2024 [3][9] - The markets with the largest year-over-year decreases in home sales included San Antonio, TX (-22.9%), Bozeman, MT (-15.7%), and Anchorage, AK (-13.5%) [9][10] Median Sales Price - The median sales price in November 2025 was $438,000, reflecting a 1.7% year-over-year increase but a 1.5% decrease from October [3][11] - Markets with the largest year-over-year increases in median sales price included Trenton, NJ (+13.6%), Cleveland, OH (+11.8%), and Cincinnati, OH (+10.2%) [11][12] Close-to-List Price Ratio - The average close-to-list price ratio was 98% in November 2025, down from 99% in November 2024 [13] - The largest year-over-year decreases in close-to-list price ratios were observed in Burlington, VT (-2.1 percentage points) and Dover, DE (-1.5 percentage points) [13][15] Days on Market - Homes took an average of 54 days to sell in November 2025, an increase from 47 days in November 2024 [7][16] - The markets with the largest year-over-year increases in days on market included St. Louis, MO (+39.1%) and Manchester, NH (+38.7%) [16] Months' Supply of Inventory - The months' supply of inventory increased to 3.3 months, up from 2.9 months a year ago [7][17] - Miami, FL had the highest months' supply of inventory at 7.5, while Hartford, CT had the lowest at 1.3 [17][18]

Core Insights - Homeownership remains a strong priority for many Americans despite current housing market challenges, with 71% of respondents indicating that market conditions have delayed their plans but not deterred them from pursuing homeownership [1][3][4] Group 1: Market Conditions and Buyer Sentiment - 88% of buyers plan to purchase a home in 2026, yet 71% report that current market conditions have caused delays in their homebuying timeline [3][5] - Economic uncertainty and rising costs are significant factors influencing prospective buyers, with affordability being a critical concern [4][5] - More than three-quarters (78%) of buyers would be prompted to buy within the next six months if home prices were more affordable [5] Group 2: Buyer Preferences and Community Focus - Buyers are increasingly prioritizing neighborhood safety, social connection, and access to lifestyle-enhancing amenities, indicating a shift towards homes that support both lifestyle and financial goals [2][4] - 60% of respondents are willing to pay a premium for shared community amenities, with 76% of these buyers willing to pay 5% or more of the home's price for such features [5][9] - A strong sense of community is becoming a key factor in purchasing decisions, especially among younger generations like Gen Z and Millennials [6][9] Group 3: Geographic and Lifestyle Considerations - Over half (51%) of respondents are looking to buy a home in suburban areas, while 32% prefer urban locations [9] - Safety is a top concern for nearly 80% of prospective homebuyers, followed by the availability of affordable homes (69%) and the type of homes available (47%) [9] - Proximity to work, shopping, and schools are also important geographic considerations for buyers, with 58% indicating that proximity to work is crucial [9]

Core Insights - The housing market showed positive trends in October 2025, with home sales increasing by 3.2% compared to October 2024 across 51 metro areas surveyed [1] Group 1 - Home sales in October 2025 marked the fifth consecutive month where sales exceeded the levels of the previous year [1]

Core Insights - REMAX Canada has appointed Damon Conrad as Vice President of Commercial, bringing over 20 years of experience in commercial real estate to the role [1][2][3] - The appointment aims to drive innovation and expansion in Canada's commercial real estate sector, enhancing REMAX's market leadership [2][3] - REMAX currently has over 15,000 commercial brokers across more than 580 offices in over 110 countries, indicating a strong global presence [2][5] Company Strategy - The company is focusing on national growth and modernization of its commercial platform, including a refreshed branding strategy with a new REMAX Commercial logo [3][4] - Damon Conrad's expertise in strategic growth is expected to be crucial for advancing the REMAX brand's position in the competitive Canadian real estate market [2][3] - The leadership transition reflects REMAX's commitment to investing in leadership that understands the complexities of various real estate markets [3] Leadership and Recognition - Damon Conrad has a proven track record in building national platforms and expanding agent networks, making him a valuable addition to the REMAX team [3][4] - His contributions to the industry have been recognized with awards such as the NAIOP Real Estate Excellence Award and being named one of the Top 100 Most Influential Voices in Canadian Real Estate [4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $73.3 million, with adjusted EBITDA of $25.8 million and an adjusted EBITDA margin of 35.2%, an increase of 40 basis points compared to Q3 2024 [17][19] - Revenue excluding marketing funds was $55.1 million, a decrease of 5.6% year-over-year, primarily due to a decline in organic revenue of 5.4% and adverse foreign currency movements of 0.2% [17][18] - Adjusted diluted EPS was $0.37, reflecting the company's profitability despite a challenging housing market [17] Business Line Data and Key Metrics Changes - The agent count reached over 147,500, marking a record high, with the U.S. agent count showing the best performance in three years [6][4] - The Aspire program has seen approximately 1,500 agents benefiting, contributing to higher retention rates and recruitment of newer agents [9][38] - The RE/MAX Marketing as a Service platform is expected to generate a seven-digit revenue contribution, indicating strong engagement and effectiveness [11][27] Market Data and Key Metrics Changes - Inventory in the housing market increased by 20% year-over-year, marking the 21st consecutive month of growth [5] - New listings rebounded in September, growing 4.5% over August, which is seen as a positive sign for transaction activity [5] - Canadian agent count saw a slight year-over-year decline but modest sequential growth, indicating resilience in a challenging market [8] Company Strategy and Development Direction - The company is focused on enhancing its value proposition through innovation and operational excellence, aiming to drive profitability and margin performance [4][6] - RE/MAX is strategically reinvesting in the business while evaluating opportunities for share repurchases, indicating a shift towards returning capital to shareholders [19][57] - The introduction of new economic models like Aspire, Ascend, and Appreciate aims to attract a diverse range of agents and improve retention [39][40] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term potential of their initiatives despite the current housing market challenges [12][20] - The company is tightening its revenue and adjusted EBITDA guidance for the full year 2025, reflecting a pragmatic approach to the market conditions [20] - Management highlighted the importance of operational efficiencies and the cash-generative nature of the business, with a total leverage ratio now below 3.5 times [19][57] Other Important Information - The company is expanding its marketing services and leveraging AI to enhance customer experience and operational efficiency [10][14] - New leadership appointments, including a President of Mortgage Services, are expected to drive growth in the mortgage business [12][13] Q&A Session Summary Question: Can you provide more detail on the expected incremental revenue from the marketing and Aspire programs in 2026? - Management indicated that the RE/MAX Marketing as a Service platform is showing strong engagement and is expected to contribute significantly to revenue in 2026, with a margin profile differing from the core business [25][28] Question: What are the implications of M&A activity in the sector on recruitment rates? - Management noted that ongoing consolidation in the market presents opportunities for RE/MAX, with increased inbound interest from potential franchisees [31][33] Question: How are the Aspire, Ascend, and Appreciate models being received by franchisees? - The models are resonating well with the network, with Aspire showing higher retention rates and incremental recruitment of newer agents [38][39] Question: What is the outlook for Motto and its profitability? - Management is optimistic about the mortgage opportunity and is exploring changes to the business model to enhance profitability, though specifics will be shared later [46][48] Question: Will there be share buybacks by year-end? - With the total leverage ratio now below 3.5 times, management is considering share repurchases as an attractive use of capital [19][57]

Financial Performance - RE/MAX Holdings' revenue for Q3 2025 was $73.3 million, a decrease of $5.2 million or 6.7%, compared to $78.5 million in Q3 2024[6, 22] - Adjusted EBITDA for Q3 2025 was $25.8 million, down 5.6% compared to Q3 2024[6, 27] - Adjusted EBITDA margin increased by 40 basis points to 35.2% in Q3 2025[6, 27] - Adjusted Diluted EPS was $0.37[6] Agent Network - Total agent count increased 1.4% year-over-year to 147,547 agents as of September 30, 2025[6, 9] - Agent count in the U S and Canada combined decreased 5.1% to 74,198 agents[6] - Agents outside the U S and Canada increased 9.0% (+6,067 agents)[8] - Agents in Canada decreased 1.5% (-373 Agents)[8] - Agents in the U S decreased 6.9% (-3,630 Agents)[8] Expenses - Selling, operating, and administrative expenses decreased by $3.5 million, or 9.7%, to $32.5 million in Q3 2025, representing 58.9% of Revenue excluding Marketing Funds[23, 24] Outlook - For Q4 2025, the company expects revenue between $69.5 million and $73.5 million and Adjusted EBITDA between $19.0 million and $23.0 million[28] - For full year 2025, the company expects revenue between $290.0 million and $294.0 million and Adjusted EBITDA between $90.0 million and $94.0 million[28]

Core Insights - RE/MAX reported a revenue of $73.25 million for the quarter ended September 2025, reflecting a decrease of 6.7% year-over-year, while EPS was $0.37, down from $0.38 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $73.14 million by 0.15%, and the EPS surpassed the consensus estimate of $0.36 by 2.78% [1] Revenue Breakdown - Marketing Funds fees amounted to $18.14 million, slightly above the average estimate of $18.05 million, but down 9.7% year-over-year [4] - Continuing franchise fees were reported at $27.45 million, below the estimated $29.2 million, representing a decline of 10.9% compared to the previous year [4] - Franchise sales and other revenue reached $5.14 million, exceeding the average estimate of $4.25 million, with a year-over-year increase of 9.5% [4] - Broker fees totaled $14.9 million, surpassing the estimated $13.89 million, with a minimal decline of 0.1% year-over-year [4] - Annual dues were reported at $7.62 million, slightly below the average estimate of $7.81 million, reflecting a year-over-year decrease of 4.4% [4] Stock Performance - Over the past month, RE/MAX shares have returned -11.3%, contrasting with a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]