The RE/MAX Q4 2024 earnings report shows solid financial performance, highlighting resilience, efficiency, and international growth. Despite ongoing challenges in North American markets, the company posted gains in profitability and maintained momentum through operational improvements and strategic adjustments.
Key Financial Highlights
In Q4 2024, RE/MAX reported total revenue of $72.5 million, marking a 5.4% decrease year-over-year. However, revenue excluding the Marketing Funds declined only 3.9%, primarily due to a 3.5% dip in organic growth and a minor 0.4% foreign currency impact.
Notably, Adjusted EBITDA rose 1.6% to $23.3 million, boosting the Adjusted EBITDA margin to 32.2%, up from 30.0% a year earlier. The company’s net income reached $5.8 million, reversing a loss of $10.9 million in Q4 2023. Adjusted earnings per share came in at $0.30, reflecting improved operational efficiencies and cost management.
Meanwhile, RE/MAX closed the quarter with $96.6 million in cash and cash equivalents, up from $82.6 million the previous year.
Strategic Initiatives and Market Performance
Throughout 2024, RE/MAX focused heavily on operational streamlining and leadership transformation. CEO Erik Carlson emphasized the importance of customer experience and introduced new revenue opportunities, supported by a strengthened executive team.
Although the U.S. and Canada agent count dropped by 4.8%, international markets offset this with an 8.7% increase in agents, bringing the total global agent count to 146,627, a 1.2% year-over-year growth. This demonstrates the company’s strategic shift toward international expansion and diversification.
The Motto Mortgage franchise network, however, contracted by 8.5%, ending the year with 225 offices, reflecting broader mortgage market pressures.
Challenges and Outlook
RE/MAX continues to face headwinds in North America, especially with declining agent counts and shrinking recurring revenue streams. Yet, disciplined cost management—evident in a 21.0% decrease in operating expenses—has helped cushion these impacts.
Looking ahead, the company anticipates Q1 2025 revenue between $71.0 and $76.0 million and Adjusted EBITDA between $16.0 and $18.5 million. For the full year, revenue is projected in the range of $290.0 to $310.0 million, with Adjusted EBITDA reaching up to $100 million.
Despite a challenging environment, RE/MAX enters 2025 with growing confidence, fueled by its focus on delivering exceptional service and expanding its global footprint.
