Core Insights - U.S. home sales decreased by 1.6% year-over-year in August 2025, marking a decline of 5.5% from July 2025, coinciding with the end of a 17-month growth streak in new listings [1][2][7] - Active inventory increased by 24.4% year-over-year, although it saw a slight decrease of 0.4% from the previous month [2][14] - The median sales price rose by 1.9% year-over-year to $448,000, continuing a trend of annual price gains for 26 consecutive months [2][11] Sales Activity - Home sales in August 2025 were down 1.6% compared to August 2024 and down 5.5% from July 2025 [1][10] - The average close-to-list price ratio remained at 99%, indicating that buyers paid nearly the asking price [7][12] - Homes spent an average of 47 days on the market, which is an increase of eight days from the previous year [3][13] Inventory Trends - The number of new listings fell by 5.9% year-over-year and 9.2% month-over-month, with significant decreases in markets like Trenton, NJ (-44.8%) and Philadelphia, PA (-37.6%) [8][9] - The months' supply of inventory was stable at 2.8 months, up from 2.3 months in August 2024 [7][14] Price Trends - The median sales price across 51 metro areas was $448,000, with notable increases in markets like Manchester, NH (+9.2%) and Coeur d'Alene, ID (+9.0%) [11][12] - The markets with the lowest median sales prices included Cleveland, OH and Wichita, KS, both at $260,000 [5][6] Market Dynamics - Seasonal shifts and broader economic factors are influencing housing market activity, with affordability remaining a challenge despite improvements in mortgage rates [4] - Certain metro areas continue to provide more accessible entry points for buyers, highlighting the importance of local market conditions [4][6]

Core Insights - REMAX has launched Marketing as a Service (MaaS), a data-driven platform aimed at enhancing marketing efficiency for its affiliates in the U.S. and Canada [1][2] - MaaS is designed to provide REMAX agents with advanced marketing tools, enabling them to connect with clients effectively and drive business growth [1][3] Group 1: Product Features - MaaS is powered by AI and offers a seamless experience for affiliates to launch marketing campaigns with minimal effort [2] - The platform includes a no-cost base package featuring flyers, digital content, and performance tracking, with advanced features like lead generation and video campaigns to be introduced later [5][6] - Key features of MaaS include simplified marketing tools, smart automation for campaign preferences, performance reporting with real-time metrics, and polished brand presence reflecting REMAX's refreshed branding [8] Group 2: Strategic Importance - The introduction of MaaS aligns with REMAX's strategy to provide competitive advantages to its affiliates, particularly in social and digital marketing [6][7] - This launch comes alongside other innovations such as MAXReferSM and MAXEngageSM, reinforcing REMAX's commitment to leveraging technology for agent success [6][7] - MaaS strengthens the REMAX value proposition by facilitating easier marketing, prioritizing client engagement, and supporting business growth [7]

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 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]

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 - RE/MAX Holdings reported total revenue of $72.8 million for Q2 2025, a decrease of 7.3% compared to Q2 2024, primarily due to a decline in U.S. agent count and lower Broker Fees revenue [4][10] - The company achieved an adjusted EBITDA of $26.3 million, down 6.4% year-over-year, with an adjusted EBITDA margin of 36.1% [11][10] - The total agent count increased by 2.5% to 147,073 agents, with a notable 11.5% increase in agents outside the U.S. and Canada [3][10] Revenue Performance - Total revenue for Q2 2025 was $72.8 million, down from $78.5 million in Q2 2024, reflecting a decrease of $5.7 million [4][10] - Revenue excluding Marketing Funds was $54.5 million, a decline of 6.8% year-over-year, attributed to a 5.7% decrease in organic revenue and 1.1% adverse foreign currency movements [4][10] - Recurring revenue streams, including franchise fees and annual dues, accounted for 67.3% of revenue excluding Marketing Funds, down from 65.9% in the prior year [5] Operating Expenses - Total operating expenses decreased to $58.7 million in Q2 2025, down 5.7% from $62.3 million in Q2 2024 [6][10] - Selling, operating, and administrative expenses were $33.9 million, representing 62.2% of revenue excluding Marketing Funds, compared to 59.7% in the prior year [7] Profitability Metrics - Net income attributable to RE/MAX Holdings was $4.7 million for Q2 2025, an increase from $3.7 million in Q2 2024 [8][10] - Basic and diluted GAAP earnings per share were both $0.23 for Q2 2025, compared to $0.20 and $0.19 in Q2 2024, respectively [8][10] - Adjusted earnings per diluted share were $0.39, down from $0.41 in the same quarter last year [12] Balance Sheet and Cash Flow - As of June 30, 2025, the company had cash and cash equivalents of $94.3 million, a decrease of $2.3 million from the end of 2024 [13] - Outstanding debt was $439.0 million, slightly down from $440.8 million at the end of 2024 [13] - Cash flow from operations for the first half of 2025 was $10.2 million, down from $25.3 million in the same period of 2024 [26] Outlook - For Q3 2025, RE/MAX Holdings expects revenue in the range of $71.0 million to $76.0 million and adjusted EBITDA between $23.5 million and $26.5 million [19] - The full-year 2025 revenue outlook has been adjusted to a range of $290.0 million to $296.0 million [19]

Core Viewpoint - RE/MAX Holdings, Inc. will release its financial results for Q2 2025 on July 29, 2025, and will host a conference call on July 30, 2025, at 8:30 a.m. Eastern Time [1][2]. Company Overview - RE/MAX Holdings, Inc. is a leading franchisor in the real estate industry, operating under the REMAX® brand globally and the Motto® Mortgage brand in the U.S. [4] - Founded in 1973, RE/MAX has grown to over 145,000 agents in nearly 9,000 offices across more than 110 countries and territories, making it the largest real estate seller by total residential transaction sides [4]. - Motto Mortgage, launched in 2016, is the first and only national mortgage brokerage franchise brand in the U.S., with over 220 offices in more than 40 states [4].

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]

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 ...