RE/MAX Holdings, Inc., a leading global real estate franchisor, released its Q2 2024 results against a backdrop of continued market volatility and evolving housing dynamics. Despite declines in agent count and revenue, the company demonstrated resilience through disciplined cost management and growth within its mortgage brand, Motto Mortgage. This quarter reveals both the challenges RE/MAX faces in a tighter real estate market and the strategic levers it’s pulling to adapt.
Key Financial Highlights
In Q2 2024, RE/MAX reported total revenue of $78.5 million, down 4.8% year-over-year. The decrease was primarily driven by lower U.S. agent count and reduced contributions from past acquisitions. However, Adjusted EBITDA rose to $28.1 million, marking a 5.4% increase and resulting in an Adjusted EBITDA margin of 35.8%, up 350 basis points from the same period last year.
Other notable financial results include:
Adjusted diluted EPS of $0.41
Recurring revenue declined 5.4%, accounting for 65.9% of revenue excluding marketing funds
A year-over-year agent count decline of 0.7%, driven by a 6.3% decrease in the U.S., partially offset by a 4.2% increase internationally
Cost discipline was evident with selling, operating, and administrative expenses decreasing by 13.3%, aided by lower personnel, legal, technology, and bad debt expenses.
Strategic Initiatives and Market Performance
RE/MAX continued to bolster its Motto Mortgage brand, which now includes 241 open offices, a 2.6% increase year-over-year. This growth underscores the brand’s position as the first and only national mortgage brokerage franchise in the U.S.
Despite declining U.S. and Canadian agent counts, the international footprint grew, reflecting the strength of the RE/MAX brand in global markets. Revenue from broker fees increased slightly, suggesting franchisees are transacting in higher-value markets or increasing productivity despite a smaller agent base.
The company also finalized a significant industry litigation settlement, funding the final $27.5 million installment from cash reserves. While this impacted liquidity, it removes a major overhang and enables management to refocus on strategic execution.
Challenges and Outlook
The primary challenge remains the decline in agent count within North America, which continues to pressure recurring revenue. The company also faces a soft housing market, with existing home sales and loan originations projected to remain below pre-pandemic levels through 2024.
Looking forward, RE/MAX provided the following guidance:
Q3 2024 revenue is projected between $75 million and $80 million
Full-year 2024 revenue is expected to land between $305 million and $315 million
Adjusted EBITDA for 2024 is forecasted in the range of $93 million to $98 million
While U.S. market softness persists, RE/MAX continues to benefit from global growth and improved operational efficiency. The company’s ability to maintain margins amid top-line pressure highlights its franchise model’s durability.
