RE/MAX (RMAX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $78.5 million, down 3.4% year-over-year, with adjusted EBITDA rising 2.0% to $27.3 million and margin improving to 34.8% due to strong cost management and operational efficiency.

• Net income attributable to RE/MAX Holdings was $1.0 million, reversing a prior-year loss of $59.5 million, which included a $55 million litigation settlement.

• Total agent count reached a record 145,483, up 0.1% year-over-year, with international and Canadian growth offsetting a 4.4% decline in U.S. and Canada.

• Navigated industry changes, including NAR settlement-driven business practice adjustments, macroeconomic headwinds, and hurricane impacts.

• Continued investments in technology, digital asset monetization, and customer experience initiatives support future growth.

Financial highlights

• Revenue excluding Marketing Funds was $58.4 million, down 3.3% year-over-year, mainly due to lower U.S. agent count and reduced acquisition revenues.

• Adjusted EBITDA margin expanded to 34.8%, a 190 basis point increase over Q3 2023.

• Selling, operating, and administrative expenses fell 16.6% to $35.9 million, reflecting broad-based cost reductions.

• Adjusted diluted EPS was $0.38 for Q3 2024.

• Adjusted free cash flow for the nine months ended September 30, 2024, was $35.1 million, up from $27.6 million in the prior year period.

Outlook and guidance

• Q4 2024 revenue expected between $71.0 million and $76.0 million; adjusted EBITDA between $20.5 million and $23.5 million.

• Full-year 2024 revenue guidance narrowed to $306.0–$311.0 million; adjusted EBITDA at $95.0–$98.0 million.

• Agent count for Q4 and full-year 2024 expected to be flat to up 1% over prior year.

• Guidance reduced by $1.0–$1.5 million due to hurricane-related support and fee waivers.

• Focus remains on operational efficiency and cost management amid challenging market conditions.