The RE/MAX Q1 2025 results show a mixed performance. While revenue declined year-over-year, the company maintained strong profitability, expanded its global agent network, and introduced several strategic programs aimed at driving long-term growth. In an environment marked by industry headwinds, RE/MAX focused on operational discipline and brand enhancement to position itself for future success.
Key Financial Highlights
In the first quarter of 2025, RE/MAX reported:
Total revenue of $74.5 million, a 4.9% decrease from Q1 2024.
Revenue excluding Marketing Funds declined 4.3%, due to a 3.2% drop in organic growth and a 1.1% foreign currency impact.
Adjusted EBITDA rose 1.5% to $19.3 million, with a margin of 25.9%, up from 24.3% last year.
Adjusted EPS increased to $0.24, compared to $0.20 in Q1 2024.
However, the company recorded a net loss of $2.0 million (GAAP), an improvement from a $3.4 million loss in the prior year.
Notably, recurring revenue streams (franchise fees and annual dues) accounted for nearly 67% of revenue excluding Marketing Funds, despite declining 5.5% year-over-year.
Strategic Initiatives and Market Performance
RE/MAX has been proactive in evolving its value proposition. During Q1, the company launched several initiatives aimed at enhancing affiliate productivity and brand visibility:
Refreshed branding and new marketing resources support greater listing wins.
Expanded agent education offerings aim to boost productivity.
A user-friendly social influencer platform and global referral system further support agent growth.
The AspireSM onboarding program was introduced to attract and develop the next generation of top agents.
While domestic numbers fell, international expansion helped balance the scale. Total agent count rose 2.0% to 146,126, driven by a 10.5% increase outside the U.S. and Canada. However, U.S. and Canadian agent count declined 5.0%, falling to 75,010.
In the mortgage segment, the number of open Motto Mortgage offices dropped 7.8% to 224. This segment also contributed to the decline in organic revenue.
Challenges and Outlook
Looking ahead, RE/MAX acknowledges several challenges. The shrinking U.S. agent base, lower mortgage revenue, and increased technology expenses continue to pressure growth. Furthermore, the company expects full-year agent count to remain flat or decline by 1%.
Nevertheless, RE/MAX reaffirmed its guidance:
Q2 2025 revenue is expected between $70–75 million.
Adjusted EBITDA for Q2 is forecasted between $22.5–25.5 million.
For the full year, adjusted EBITDA is expected to land between $90–100 million, with total revenue between $290–310 million.
While near-term growth remains cautious, RE/MAX is clearly laying the groundwork for sustainable, strategic recovery through innovation, operational efficiency, and brand evolution.
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