Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $71.1 million, with Adjusted EBITDA at $22.4 million and an Adjusted EBITDA Margin of 31.5% [23] - Adjusted Diluted EPS was $0.30, while revenue excluding the marketing fund decreased by 0.4% compared to the same period last year [23][24] - The total leverage ratio decreased to 3.12x as of December 31, remaining below the 3.5x level, providing greater flexibility for capital allocation [25] Business Line Data and Key Metrics Changes - The decline in organic revenue was primarily due to a reduction in U.S. agent count and the impact of new incentives, partially offset by increased broker fees and contributions from new initiatives [24] - The Aspire program has seen adoption by over 2,000 agents, contributing to reduced churn and improved productivity among participants [29][48] Market Data and Key Metrics Changes - The overall worldwide agent count reached over 148,500, with significant growth outside the U.S. and Canada, now exceeding 75,000 agents [8][9] - The housing market is showing signs of normalization, with increased inventory and new listings compared to the previous year, indicating a more balanced market [7] Company Strategy and Development Direction - The company views 2026 as a year of tremendous opportunity, focusing on enhancing brand value and expanding its network [4] - Strategic investments in technology and marketing are aimed at improving agent productivity and consumer engagement [14][15] - The introduction of new economic models like Aspire, Ascend, and Appreciate is designed to provide brokers with greater flexibility and support sustainable growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market's recovery and the company's ability to capitalize on it, despite challenges faced in 2025 [6][7] - The company anticipates agent count growth of 1.5%-3.5% for the full year 2026, with revenue expectations between $285-305 million [26] Other Important Information - The company is exploring new ways to leverage its global sales power and enhance its competitive advantages [10][11] - The RE/MAX Media Network is expected to see significant advertising revenue growth, driven by increased interest from brands [15] Q&A Session Summary Question: Insights on the Aspire program's impact on agent productivity - Management noted that the Aspire program has led to reduced churn and improved productivity among agents, contributing to stabilization in U.S. agent count [29][30] Question: Factors influencing the recent addition of agents to RE/MAX - The CEO highlighted a combination of brand modernization, technology offerings, and the global footprint as key factors attracting new agents [31][32] Question: Perspectives on AI-driven automation in the industry - Management emphasized a purposeful approach to AI deployment, focusing on tools that help agents win listings and improve efficiency [38][40] Question: Key factors influencing revenue guidance for 2026 - Management indicated that macroeconomic conditions, U.S. agent count stabilization, and growth in new monetization initiatives could influence revenue outcomes [42][44] Question: Ongoing versus one-time cost pressures in operating expenses - Management clarified that some costs in Q4 were one-time in nature, and ongoing expenses are expected to remain consistent moving forward [52]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $71.1 million, with Adjusted EBITDA at $22.4 million and an Adjusted EBITDA Margin of 31.5% [21] - Revenue excluding the marketing fund was $53.6 million, a decrease of 0.4% compared to the same period last year, driven by a decline in organic revenue and flat foreign currency movements [21][22] - The total leverage ratio decreased to 3.12x as of December 31, remaining below the 3.5x level, which provides greater flexibility for capital allocation [23] Business Line Data and Key Metrics Changes - The Aspire program has seen adoption by over 2,000 agents, contributing to reduced churn and improved productivity among participants [11][26] - Selling, operating, and administrative expenses increased by $1.6 million, or 4.4%, to $37.3 million, primarily due to losses on asset sales and increased expenses from other events [22] Market Data and Key Metrics Changes - The overall worldwide agent count reached an all-time high of over 148,500 agents, with significant growth outside the U.S. and Canada, now exceeding 75,000 agents [7][8] - The housing market is showing signs of normalization, with higher inventory and new listings compared to the previous year, indicating a more balanced market [6] Company Strategy and Development Direction - The company views 2026 as a year of tremendous opportunity, focusing on enhancing brand value and expanding its network [4] - Strategic investments in technology and marketing are aimed at improving agent productivity and overall business growth [10][12] - The introduction of new economic models, such as Aspire, Ascend, and Appreciate, is designed to provide greater flexibility for brokers and support long-term growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market's recovery and the company's ability to capitalize on it, despite challenges faced in the previous years [5][6] - The company anticipates agent count to increase by 1.5%-3.5% in 2026, with revenue projected between $285-305 million [24] Other Important Information - The company is exploring new ways to leverage its global sales power and enhance its competitive advantages [9] - The RE/MAX Media Network is expected to see significant growth in advertising revenue this year [13] Q&A Session Summary Question: Impact of Aspire program on agent productivity - Management noted that the Aspire program has led to reduced churn and improved productivity among agents, with positive trends in recruitment activity [26][27] Question: Factors influencing the recent addition of agents - The decision to join RE/MAX was influenced by a combination of brand positioning, technology offerings, and the company's global footprint [28][29] Question: AI-driven automation in the industry - Management emphasized a purposeful approach to AI deployment, focusing on tools that help agents win listings and improve efficiency [34][35] Question: Key factors for revenue guidance in 2026 - Key swing factors include macroeconomic conditions, stabilization of U.S. agent count, and growth from new monetization initiatives [39][41] Question: Ongoing versus one-time cost pressures - Management indicated that some costs in Q4 were one-time in nature, and the run rate for selling, operating, and administrative expenses is expected to normalize [47][48] Question: Share repurchase strategy - The company is considering share repurchases due to improved leverage and cash flow generation, balancing this with reinvestment in the business [50][52]

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]