RE/MAX (RMAX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $78.5 million, down 4.8% year-over-year, with adjusted EBITDA up 5.4% to $28.1 million and margin rising to 35.8% from 32.3%.

• Net income attributable to RE/MAX Holdings rose to $3.7 million, with adjusted EPS of $0.41.

• Total agent count declined 0.7% to 143,542, with U.S. and Canada agent count down 4.4% and international agent count up 4.2%.

• Motto Mortgage franchises grew 2.6% year-over-year to 241 offices, with continued resilience despite market headwinds.

• Achieved stronger-than-expected performance through cost management, strategic conversions, and leadership actions.

Financial highlights

• Q2 total revenue was $78.5M; adjusted EBITDA was $28.1M, up 5.4% year-over-year; adjusted EBITDA margin rose to 35.8%.

• Adjusted diluted EPS was $0.41; net income attributable to RE/MAX Holdings was $3.7M.

• Revenue excluding Marketing Funds was $58.4M, down 4.8% year-over-year, with recurring revenue streams making up 65.9%.

• Selling, operating, and administrative expenses fell 13.3% to $34.9M, aided by lower personnel, legal, and IT costs.

• Adjusted free cash flow for the first half of 2024 was $16.8M, up from $11.2M a year ago.

Outlook and guidance

• Q3 2024: Agent count expected to change -1.5% to 0% year-over-year; revenue $75M–$80M; adjusted EBITDA $24.5M–$27.5M.

• Full year 2024: Agent count guidance narrowed to -1% to +1%; revenue $305M–$315M; adjusted EBITDA $93M–$98M.

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

• Focus remains on rebuilding cash reserves and navigating industry changes post-litigation.

• Capital expenditures for 2024 expected between $7.0M and $8.5M.