RE/MAX (RMAX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $74.5 million, down 4.9% year-over-year, but Adjusted EBITDA rose 1.5% to $19.3 million with margin improving to 25.9% from 24.3% year-over-year.

• Total agent count reached 146,126, up 2.0% year-over-year, driven by 10.5% international growth offsetting a 5.0% decline in U.S. and Canada.

• Net loss attributable to the company was $2.0 million, improved from a $3.4 million loss in Q1 2024; adjusted diluted EPS was $0.24, up from $0.20.

• New initiatives include refreshed branding, agent education, digital marketing tools, Aspire onboarding, and a social influencer platform to boost agent recruitment and productivity.

• The company is navigating macroeconomic uncertainty, including tariffs, interest rates, inventory shifts, and industry policy changes.

Financial highlights

• Revenue excluding Marketing Funds was $55.6 million, down 4.3% year-over-year due to lower U.S. agent count, mortgage segment revenue, and FX headwinds.

• Recurring revenue streams fell 5.5% and comprised 66.8% of revenue excluding Marketing Funds.

• Selling, operating, and administrative expenses fell by 5.9% to $43 million, mainly from lower professional fees and personnel costs.

• Adjusted free cash flow was negative $1.2 million, down from $4.5 million in Q1 2024; cash flow from operations was $5.7 million.

• Net income was a loss of $2.0 million, improved from a $3.4 million loss in Q1 2024.

Outlook and guidance

• Q2 2025: Agent count expected to rise 1.5%–2.5% year-over-year; revenue projected at $70–$75 million; Adjusted EBITDA at $22.5–$25.5 million.

• Full year 2025: Agent count expected between -1% and +1% over 2024; revenue of $290–$310 million; Adjusted EBITDA of $90–$100 million.

• Guidance assumes no further currency movements, acquisitions, or divestitures.