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RE/MAX Holdings continues to feel the pressure of a challenging real estate market, reporting a 4.9 percent annual revenue drop in the first quarter of 2025, according to financial results posted after the market closed on Thursday.
Revenue fell to $74.5 million, down from $78.3 million a year earlier — marking the 11th consecutive quarter of decline.
Despite the downturn, the results met expectations set in the previous quarter, when the company projected Q1 revenues between $71 million and $76 million.
Revenue guidance for the full year also exceeded analysts’ estimates, but next quarter’s guidance of $72.5 million was less impressive, coming in at 4.2 percent below expectations.
The company cited lower agent count, weaker mortgage revenue and reduced contributions from earlier acquisitions as the primary drivers of its decline in revenue.
Despite softer top-line results, RE/MAX made modest gains in profitability. Adjusted EBITDA rose slightly to $19.3 million, up 1.5 percent year over year. The company achieved an EBITDA margin of 25.9 percent, up from 24.3 percent a year ago. Adjusted earnings per share improved $0.24.
The company also cut operating expenses by $4.7 million or 6.4 percent year over year. Total expenses fell to $69.1 million, down from $73.8 million, aided by lower selling, general and administrative costs, and depreciation.
RE/MAX ended the quarter with $89.1 million in cash and $439.9 million in debt, reflecting slight decreases from the end of 2024. Operating expenses dropped by $4.7 million, or 6.3 percent, due to cost-cutting efforts in administration and operations.
Agent headcount offered a mixed picture. Total agent count grew 2 percent to 146,126 year over year, but the combined U.S. and Canada count dropped 5 percent to 75,010. During the previous quarter, the company reported a total agent count of 146,627.
Motto Mortgage franchises also declined 3.3 percent year over year, down to 234 offices.
During a Thursday investor call, CEO Erik Carlson emphasized a slate of strategic initiatives aimed at revitalizing growth.
“We are continually elevating our value proposition,” he said. “This quarter, we also introduced several new initiatives to help our affiliates win more listings, do so more efficiently and profitably grow their businesses.”
One cornerstone of that effort is AspireSM, a new onboarding program designed to attract high-performing agents through a combination of world-class education, advanced technology and financial incentives. Carlson also highlighted a refreshed brand identity, featuring an updated RE/MAX logo and balloon emblem introduced at the company’s R4 Convention in February.
Additional marketing and tech tools are being rolled out in 2025, including a customizable global marketing platform for local franchise and agent use, enhanced AI-driven websites and the MaxTech lead nurturing program. The company also launched the HomeView app to facilitate post-sale client engagement.
Later this year, RE/MAX plans to debut MaxRefer, a full-service, AI-powered global referral system that will help agents easily match with referral partners, track performance and manage fee distribution seamlessly.
For the second quarter of 2025, RE/MAX Holdings expects revenue between $70 million and $75 million. Agent count is anticipated to increase by 1.5 percent to 2.5 percent.
