RE/MAX HOLDINGS, INC. REPORTS FOURTH QUARTER 2024 RESULTS

DENVER, Feb. 20, 2025

• Total Revenue decreased 5.4% to $72.5 million
• Revenue excluding the Marketing Funds¹ decreased 3.9% to $53.8 million, driven by negative 3.5% organic growth² and 0.4% adverse foreign currency movements
• Net income attributable to RE/MAX Holdings, Inc. of $5.8 million and earnings per diluted share (GAAP EPS) of $0.29
• Adjusted EBITDA³ increased 1.6% to $23.3 million, Adjusted EBITDA margin³ of 32.2% and Adjusted earnings per diluted share (Adjusted EPS³) of $0.30
• Total agent count increased 1.2% to 146,627 agents
• U.S. and Canada combined agent count decreased 4.8% to 76,457 agents
• Total open Motto Mortgage franchises decreased 8.5% to 225 offices⁴

Full-Year 2024 Highlights
(Compared to full year 2023 unless otherwise noted)

• Total Revenue decreased 5.5% to $307.7 million
• Revenue excluding the Marketing Funds¹ decreased 5.4% to $228.7 million, driven by negative 5.2% organic growth² and adverse foreign currency movements of 0.2%
• Net income attributable to RE/MAX Holdings, Inc. of $7.1 million and earnings per diluted share (GAAP EPS) of $0.37
• Adjusted EBITDA³ increased 1.5% to $97.7 million, Adjusted EBITDA margin³ of 31.8% and Adjusted earnings per diluted share (Adjusted EPS³) of $1.30

Operating Statistics as of January 31, 2025
(Compared to January 31, 2024, unless otherwise noted)

• Total agent count increased 1.5% to 145,626 agents
• U.S. and Canada combined agent count decreased 5.0% to 75,411 agents
• Total open Motto Mortgage franchises decreased 8.6% to 223 offices⁴

RE/MAX Holdings, Inc. (the "Company" or "RE/MAX Holdings") (NYSE: RMAX), parent company of RE/MAX, one of the world's leading franchisors of real estate brokerage services, and Motto Mortgage ("Motto"), the first and only national mortgage brokerage franchise brand in the U.S., today announced operating results for the quarter and year ended December 31, 2024. 

"Our continued focus on operational efficiencies contributed to higher-than-forecasted fourth-quarter profit and margin performance, a trend we have seen now for three quarters in a row," said Erik Carlson, RE/MAX Holdings Chief Executive Officer. "With a strengthened leadership team overseeing exciting new initiatives and revenue opportunities, we are entering 2025 with increasing momentum and remain centered on delivering the absolute best customer experience possible."

Fourth Quarter 2024 Operating Results

Agent Count

The following table compares agent count as of December 31, 2024 and 2023:

Revenue

RE/MAX Holdings generated revenue of $72.5 million in the fourth quarter of 2024, a decrease of $4.1 million, or 5.4%, compared to $76.6 million in the fourth quarter of 2023. Revenue excluding the Marketing Funds was $53.8 million in the fourth quarter of 2024, a decrease of $2.2 million, or 3.9%, versus the same period in 2023. The decrease in Revenue excluding the Marketing Funds was attributable to negative organic revenue growth of 3.5% and adverse foreign currency movements of 0.4%. Negative organic revenue growth was principally driven by a decrease in U.S. agent count and a reduction in revenue contribution from previous acquisitions (excluding independent region acquisitions).

Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $2.0 million, or 5.0%, compared to the fourth quarter of 2023 and accounted for 69.9% of Revenue excluding the Marketing Funds in the fourth quarter of 2024 compared to 70.7% of Revenue excluding the Marketing Funds in the prior-year period.

Operating Expenses

Total operating expenses were $68.2 million for the fourth quarter of 2024, a decrease of $18.1 million, or 21.0%, compared to $86.3 million in the fourth quarter of 2023. Fourth quarter 2024 total operating expenses decreased primarily due to lower settlement and impairment charges and lower selling, operating and administrative expenses. Fourth quarter 2024 settlement and impairment charges included an expense of approximately $5.5 million related to the proposed settlement of certain industry class-action lawsuits in Canada.

Selling, operating and administrative expenses were $35.8 million in the fourth quarter of 2024, a decrease of $3.4 million, or 8.6%, compared to the fourth quarter of 2023 and represented 66.5% of Revenue excluding the Marketing Funds, compared to 69.9% in the prior-year period. Fourth quarter 2024 selling, operating and administrative expenses decreased primarily due to a decrease in bad debt and events-related expenses, partially offset by higher personnel costs.

Net Income (Loss) and GAAP EPS

Net income attributable to RE/MAX Holdings was $5.8 million for the fourth quarter of 2024 compared to net loss of ($10.9) million for the fourth quarter of 2023. Reported basic and diluted GAAP earnings per share were $0.31 and $0.29, respectively, for the fourth quarter of 2024 compared to basic and diluted GAAP loss per share of ($0.60) each in the fourth quarter of 2023.

Adjusted EBITDA and Adjusted EPS

Adjusted EBITDA was $23.3 million for the fourth quarter of 2024, an increase of $0.4 million, or 1.6%, compared to the fourth quarter of 2023. Fourth quarter 2024 Adjusted EBITDA increased primarily due to a decrease in bad debt and events-related expenses, partially offset by a decrease in U.S. agent count. Adjusted EBITDA margin was 32.2% in the fourth quarter of 2024, compared to 30.0% in the fourth quarter of 2023.

Adjusted basic and diluted EPS were $0.32 and $0.30, respectively, for the fourth quarter of 2024 compared to Adjusted basic and diluted EPS of $0.30 each for the fourth quarter of 2023. The ownership structure used to calculate Adjusted basic and diluted EPS for the quarter ended December 31, 2024, assumes RE/MAX Holdings owned 100% of RMCO, LLC ("RMCO"). The weighted average ownership RE/MAX Holdings had in RMCO was 60.1% for the quarter ended December 31, 2024.

Balance Sheet

As of December 31, 2024, the Company had cash and cash equivalents of $96.6 million, an increase of $14.0 million from December 31, 2023. As of December 31, 2024, the Company had $440.8 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $444.6 million as of December 31, 2023.

Share Repurchases and Retirement

As previously disclosed, in January 2022 the Company's Board of Directors authorized a common stock repurchase program of up to $100 million. During the three months ended December 31, 2024, the Company did not repurchase any shares. As of December 31, 2024, $62.5 million remained available under the share repurchase program.

Outlook

The Company's first quarter and full year 2025 Outlook assumes no further currency movements, acquisitions, or divestitures.

For the first quarter of 2025, RE/MAX Holdings expects:

• Agent count to increase 1.0% to 2.0% over first quarter 2024;
• Revenue in a range of $71.0 million to $76.0 million (including revenue from the Marketing Funds in a range of $18.0 million to $20.0 million); and
• Adjusted EBITDA in a range of $16.0 million to $18.5 million.

For the full year 2025, the Company now expects:

• Agent count to change negative 1.0% to positive 1.0% over full year 2024;
• Revenue in a range of $290.0 million to $310.0 million (including revenue from the Marketing Funds in a range of $71.0 million to $75.0 million); and
• Adjusted EBITDA in a range of $90.0 million to $100.0 million.

Webcast and Conference Call

The Company will host a conference call for interested parties on Friday, February 21, 2025, beginning at 8:30 a.m. Eastern Time. Interested parties can register in advance for the conference call using the link below:

https://registrations.events/direct/Q4I941153786 

Interested parties also can access a live webcast through the Investor Relations section of the Company's website at http://investors.remaxholdings.com. Please dial-in or join the webcast 10 minutes before the start of the conference call. An archive of the webcast will be available on the Company's website for a limited time as well.

Basis of Presentation

Unless otherwise noted, the results presented in this press release are consolidated and exclude adjustments attributable to the non-controlling interest.

Footnotes:

¹Revenue excluding the Marketing Funds is a non-GAAP measure of financial performance that differs from U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and a reconciliation to the most directly comparable U.S. GAAP measure is as follows (in thousands):

²The Company defines organic revenue growth as revenue growth from continuing operations excluding (i) revenue from Marketing Funds, (ii) revenue from acquisitions, and (iii) the impact of foreign currency movements. The Company defines revenue from acquisitions as the revenue generated from the date of an acquisition to its first anniversary (excluding Marketing Funds revenue related to acquisitions where applicable).

³Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS are non-GAAP measures. These terms are defined at the end of this release. Please see Tables 5 and 6 appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.

⁴Total open Motto Mortgage franchises includes only "bricks and mortar" offices with a unique physical address with rights granted by a full franchise agreement with Motto Franchising, LLC and excludes any "virtual" offices or Branchise^SM offices.

About RE/MAX Holdings, Inc.

RE/MAX Holdings, Inc. (NYSE: RMAX) is one of the world's leading franchisors in the real estate industry, franchising real estate brokerages globally under the RE/MAX^® brand, and mortgage brokerages within the U.S. under the Motto^® Mortgage brand. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Now with more than 145,000 agents in nearly 9,000 offices and a presence in more than 110 countries and territories, nobody in the world sells more real estate than RE/MAX, as measured by total residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Franchising, LLC, a ground-breaking mortgage brokerage franchisor, in 2016. Motto Mortgage, the first and only national mortgage brokerage franchise brand in the U.S., has over 220 offices across more than 40 states.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. Forward-looking statements include statements related to agent count; Motto open offices; franchise sales; revenue, including new revenue opportunities; the Company's outlook for the first quarter and full year 2025; non-GAAP financial measures; housing and mortgage market conditions; operational efficiencies; litigation settlement; the Company's expectations around its leadership team and new initiatives; our belief that we are entering 2025 with increased momentum; and our focus on delivering the best customer experience possible. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily accurately indicate the times at which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, without limitation, (1) changes in the real estate market or interest rates and availability of financing, (2) changes in business and economic activity in general, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (5) changes in laws and regulations, (6) the Company's ability to enhance, market, and protect its brands, (7) the Company's ability to implement its technology initiatives, (8) risks related to the Company's leadership transition, (9) fluctuations in foreign currency exchange rates, (10) the nature and amount of the exclusion of charges in future periods when determining Adjusted EBITDA is subject to uncertainty and may not be similar to such charges in prior periods, and (11) those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remaxholdings.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no obligation, to update this information to reflect future events or circumstances.