During RE/MAX Holdings, Inc.’s Q4 2024 earnings call, the company reported total revenue of $72.5 million, an annual decline of 5.4% with negative organic growth of 3.5%.
This is despite a 1.6% improved Adjusted EBITDA of $23.3 million and CEO Erik Carlson’s claim of a “better-than-anticipated profit performance for third consecutive quarter.” In Q4 2024, RE/MAX brought in a net income of $5.8 million, compared to a net loss of $10.9 million in Q4 2023. The company’s quarterly operating expenses were also down to $68.2 million, compared to $86.3 million in Q4 2023.
Carlson, who has been CEO of RE/MAX Holdings since 2023, has also taken on the responsibilities of president following the departure of Amy Lessinger in January. Carlson attributed “a strengthened leadership team” along with “better-than-forecasted” fourth quarter profit margins as reasons that RE/MAX is prepared for 2025.
During 2024, RE/MAX’s Motto Mortgage franchises decreased by 8.6% to 223 offices. RE/MAX’s recurring revenue streams were also down by 5%, or $2 million.
Offsetting the revenue decline, the company’s earnings call presentation highlighted how RE/MAX agent count increased year-over-year in Q4 by 1.2%, to 146,627 agents. These numbers are driven by RE/MAX’s international agent recruitment, because U.S. and Canada combined agent count decreased by 5% to 75,411 agents. This trend is consistent with previous results from Q3 2024, which also saw domestic agent count decline and international agent count increases.
Internationally, RE/MAX has also settled Canadian-based commission lawsuits. Pending final court approval, RE/MAX’s settlement payment would be 7.8 million Canadian dollars and would make “changes” to its Canadian business practices similar to those agreed upon in U.S. settlements, per RE/MAX’s filing with the Securities and Exchanges Commission (SEC).
RE/MAX Holdings Chief Financial Officer Karri Callahan stated on the investor call, “We continue to deny the allegations made in the complaint and in no way acknowledge any wrongdoing. We believe that protecting our Canadian network from the risk of potential damages and the uncertainty of litigation makes this decision the right course of action.”
During the investor Q&A section of the earnings call, Callahan responded to a question about post-settlement broker commission rates and how homebuyers are adjusting to the new market. Callahan said that rates have been “remarkably consistent throughout 2024,” attributing RE/MAX’s adaptation to its well-reputed and “trusted” network.
“I think if anything it has put us in a stronger position,” Callahan said, citing RE/MAX agents’ continued statistic of outselling competition 2-to-1 “and what the brand stands for from a trust perspective with consumers.”
In a subsequent question about RE/MAX’s position on the Clear Cooperation Policy, Carlson said “there is an anti- and a pro-(Clear Cooperation) fight happening and there is a lot of middle ground there to explore,” and maintained the company is prepared for whatever the decision on Clear Cooperation.
Carlson added, though, that RE/MAX is “probably” more on the side of “pro-(Clear Cooperation) with flexibility” than in the “anti camp.”
“Generally, we believe in transparency and what’s in the best interest of the customer…there are obviously pockets of customers that feel they get a better price from being kind of off a listing and doing things in a private way,” explained Carlson. “I think overall, though, what the data shows is that when you have transparency and you get more people to see your property…you’re going to see potentially the price being better than what you could have gotten otherwise.”
Looking forward to Q1 2025, RE/MAX projects agent count to increase from 1% – 2% compared to Q1 2024. For the full year of 2025, the company projects revenue between $290 – $310 million and EBITDA between $90 – $100 million.
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