RE/MAX’s first quarter saw the company deliver better-than-expected revenue and profitability, with the market responding positively to higher margins and disciplined expense management. Management attributed the results to operational focus, improved broker fee revenue, and continued efforts to manage costs, despite industry-wide softness and a challenging macroeconomic backdrop. CEO Erik Carlson noted that the real estate market remains clouded by uncertainty, including shifting industry policies and economic pressures. He emphasized that RE/MAX’s ability to adapt and focus on operational excellence was key to the quarter’s performance.
Is now the time to buy RMAX? Find out in our full research report (it’s free).
RE/MAX (RMAX) Q1 CY2025 Highlights:
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Revenue: $74.47 million vs analyst estimates of $73.53 million (4.9% year-on-year decline, 1.3% beat)
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Adjusted EPS: $0.24 vs analyst estimates of $0.18 (35.2% beat)
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Adjusted EBITDA: $19.29 million vs analyst estimates of $17.62 million (25.9% margin, 9.5% beat)
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The company reconfirmed its revenue guidance for the full year of $300 million at the midpoint
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EBITDA guidance for the full year is $95 million at the midpoint, in line with analyst expectations
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Operating Margin: 7.2%, up from 5.8% in the same quarter last year
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Agents: 146,126, up 2,839 year on year
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Market Capitalization: $170 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions RE/MAX’s Q1 Earnings Call
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Anthony Paolone (JP Morgan) asked about the franchise sales decline and its drivers. CFO Karri Callahan attributed it to lower conference revenue and the wind-down of a prior tech acquisition, while CEO Erik Carlson discussed industry consolidation and the timing of potential M&A activity.
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Nick McAndrew (Zelman) inquired about how the Aspire program positions RE/MAX against competitors and whether it attracts different agent cohorts. CEO Erik Carlson explained Aspire’s role in widening recruitment and providing more flexibility to brokers, noting it complements traditional models.
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Stephen Sheldon (William Blair) questioned whether Aspire and other new initiatives could stabilize U.S. agent count. CEO Erik Carlson said early adoption was encouraging and that improved value propositions were drawing attention from agents inside and outside the network.
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John Campbell (Stephens Inc.) probed about margin sustainability and reinvestment needs if revenue growth returns. CFO Karri Callahan said future investments would focus on technology, marketing, and support to enhance agent productivity, with an emphasis on capital efficiency.
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Tommy McJoynt (KBW) asked about U.S. agent market share trends and corporate guidance on NAR policy changes. CFO Karri Callahan said RE/MAX agents remain more productive than industry averages, while CEO Erik Carlson affirmed the company’s stance on transparency and broad distribution of listings.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be tracking (1) the ramp-up and impact of Aspire and other agent-facing initiatives on U.S. agent count and productivity, (2) further margin improvements as operational discipline persists, and (3) the pace of recovery in the mortgage segment amid macroeconomic pressures. Additional developments in international agent growth and the adoption of new digital tools will also be important markers for execution.
RE/MAX currently trades at $8.47, up from $7.80 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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