RE/MAX Holdings (RMAX -4.02%), the franchisor behind one of the world’s largest real estate agent networks, announced its second quarter 2025 earnings on July 29, 2025. The company reported Non-GAAP earnings per share (EPS) of $0.39, beating analyst estimates of $0.36. GAAP revenue came in at $72.8 million, falling short of the $73.68 million consensus. The quarter was shaped by ongoing revenue pressure in the U.S. and Canada, as well as record global agent growth. Overall, the period highlighted the company’s tighter operational control while also pointing to persistent challenges in its core North American business.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.39 | $0.36 | $0.41 | (4.9%) |
| Revenue (GAAP) | $72.8 million | $73.68 million | $78.5 million | (7.3%) |
| Adjusted EBITDA (Non-GAAP) | $26.3 million | $28.1 million | (6.4%) | |
| Adjusted EBITDA Margin (Non-GAAP) | 36.1% | 35.8% | 0.3 pp | |
| Total Agent Count | 147,073 | 143,542 | 2.5% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
RE/MAX Holdings operates as a franchisor, offering real estate and mortgage brokerage services primarily through its RE/MAX and Motto Mortgage brands. Its business centers on recruiting, retaining, and supporting real estate agents worldwide, backed by a well-known brand and a history of agent productivity.
Recent company initiatives have targeted brand modernization, technology investment, and agent value propositions. The organization aims to strengthen its global presence, support agent productivity, and diversify revenue through new digital tools and onboarding programs. Maintaining brand recognition and agent count, especially in North America, remains a critical measure of success for the business.
Quarter in Review: Financial and Operational Developments
Non-GAAP EPS of $0.39 outpaced expectations by $0.03, driven by continued cost discipline and better-than-expected profit margins. GAAP revenue fell 7.3% from the prior-year period, coming in at $72.8 million (GAAP) and missing analyst forecasts. This decline was due in part to lower U.S. and Canadian agent counts, softer broker fees, and reduced revenue from prior acquisitions. Adjusted EBITDA decreased 6.4% year over year but the Adjusted EBITDA margin improved to 36.1%, a slight gain fueled by lower expenses despite top-line pressure.
Recurring revenue, which mainly includes continuing franchise fees and annual dues, dropped 4.7% year over year. Broker fees revenue fell by 7.4% year over year and franchise sales plus other revenue slid 19.8% year-over-year (GAAP) as the company wound down earlier tech acquisitions and saw fewer new franchise sales. Global agent count reached an all-time high of 147,073, up 2.5%. But within North America, agent numbers decreased: U.S. agent count fell 7% compared to Q2 2024 and Canada slipped by 0.9%, marking another period of contraction for these markets. In contrast, international agent count growth rose 11.5% year-over-year, with the strongest momentum in South America and Portugal.
The company’s Motto Mortgage segment, which operates a network of mortgage broker franchise offices, saw a 9.1% decrease in open franchises compared to Q2 2024. Management attributed this decline to ongoing macroeconomic pressures in the U.S. mortgage sector. Operating expenses totaled $58.7 million, down 5.7% year over year (GAAP), reflecting cost-cutting efforts across marketing, personnel, and administrative areas. Selling, operating, and administrative expenses represented 62.2% of revenue excluding marketing funds, a rise from 59.7% in the previous year, as operating leverage was affected by the decrease in overall revenue.
RE/MAX Holdings continued to roll out technology-driven initiatives during the period. This included the BoldTrail platform, which offers digital tools and AI enhancements for agents, and new programs like ASPIRE (an onboarding system for agent recruiting and retention) and a global AI-powered referral platform. These investments aim to improve agent productivity and franchisee success.
Dividend, Cash Flow, and Balance Sheet
Cash and equivalents totaled $94.3 million at period end (GAAP), a decrease of $2.3 million from December 31, 2024. Outstanding debt was $439 million. Adjusted free cash flow for the first six months of 2025 was $9.8 million, down from $16.8 million in the same period of 2024.
Share repurchases were paused during the quarter, with $62.5 million remaining on the current authorization.
Looking Forward: Guidance and What to Watch
Management offered guidance for the upcoming quarter and revised its full-year 2025 outlook. Agent count is projected to increase between 1.0% and 2.0% in Q3 2025, with GAAP revenue expected in the range of $71.0 million to $76.0 million and adjusted EBITDA anticipated between $23.5 million and $26.5 million. For FY2025, expected GAAP revenue has been trimmed to $290.0 million–$296.0 million, down from the previous range of $290.0 million–$310.0 million. Adjusted EBITDA is expected to reach $90.0 million–$95.0 million for the full year, also revised downward. These updates reflect continued caution around revenue trends and core North American agent counts.
Key factors to monitor going forward include efforts to stabilize U.S. and Canadian agent counts, progress in attracting and retaining agents through onboarding and technology programs, and any further impact from high interest rates on home sales and mortgage origination volumes. International agent growth and operational efficiency gains will also play important roles as the company works to offset persistent market headwinds in its core business.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
