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]

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 [17] - Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points compared to Q1 2024 [17] - Adjusted diluted EPS was reported at $0.24 [17] - Revenue excluding marketing funds decreased by 4.3% year-over-year, primarily due to a 3.2% decline in organic growth and 1.1% from adverse foreign currency movements [17] Business Line Data and Key Metrics Changes - The mortgage segment continues to face challenges, impacting revenue, with expectations for recovery taking several quarters [17] - Despite the decline in organic growth, higher broker fees partially offset the revenue decrease [17] - The company experienced a 10% growth in global agent count in Q1 2025 [10] Market Data and Key Metrics Changes - The real estate market remains uncertain, influenced by tariffs, rising inventory, and interest rate fluctuations [4] - The National Association of Realtors modified its clear cooperation policy, which aims to enhance flexibility for home sellers while maintaining transparency [4][5] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing profitability, and strengthening its foundation through improved processes and products [3][6] - New initiatives include the Aspire onboarding program, aimed at attracting and developing top-producing agents, and the Max Engage social influencer platform [10][12] - The company is committed to modernizing its branding and expanding its product offerings to enhance competitive advantage [7][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic uncertainties but expresses confidence in the company's ability to adapt and succeed [4][6] - The outlook for Q2 2025 anticipates a 1.5% to 2.5% increase in agent count and revenue between $70 million and $75 million [21] - For the full year 2025, revenue is expected to range from $290 million to $310 million, with agent count projected to remain stable [21] Other Important Information - The company is undergoing a leadership transition, with Ward Morrison retiring after 20 years [23] - The company emphasizes the importance of transparency and fairness in real estate practices [5] Q&A Session Summary Question: Franchise sales line performance - Management noted that franchise sales were down due to the wind down of prior technology acquisitions and a slight decline in conference revenue [25][26] Question: Operational expenses management - Management confirmed ongoing discipline in operational expenses, with a focus on strategic spending and efficiency [32] Question: Aspire program's competitive positioning - The Aspire program is designed to enhance recruitment and onboarding, providing flexibility and support to agents and brokers [36][39] Question: International growth momentum - Management highlighted strong operators and brand recognition as key drivers of international growth, with plans for further marketing initiatives [70][72] Question: Market share trends in the U.S. - Management indicated that while the overall industry has contracted, REMAX's agent productivity remains higher than the industry average [77] Question: NAR's clear cooperation policy impact - The company supports transparency and broad distribution of listings, aligning with consumer interests while providing guidance to franchisees [80][82]