Denver, Colorado-based RE/MAX Holdings, Inc., parent company of RE/MAX, announced on July 29 operating results for the quarter ended June 30, 2025. The company generated revenue of $72.8 million in the second quarter of 2025, a decrease of $5.7 million, or 7.3%, compared to $78.5 million in Q2 2024.
The company reported a $4.7 million Q2 profit, which is $1 million more than Q2 2024, helped by trimming expenses by 6% to $58.7 million.
“We achieved an all-time high in total agent count this quarter, and our U.S. agent count performance was the best since Q2 2022,” stated Erik Carlson, RE/MAX CEO. “This growth underscores how agents recognize the compelling power of our brand, extensive scale and continuously improving value proposition.”
Carlson detailed what he described as recent innovations.
“In the second quarter, we launched a new AI-powered global referral system, Aspire, designed to help RE/MAX agents leverage the strength, size and scale of our network. Additionally, we introduced a new pricing engine for Motto loan officers, enhancing their efficiency and enabling them to better serve their customers.”
Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $1.8 million, or 4.7%, compared to the second quarter of 2024, and accounted for 67.3% of revenue excluding the marketing funds in the second quarter of 2025 compared to 65.9% in the prior-year period.
Continued Carlson: “While we continue to navigate through existing uncertainty in the housing and macroeconomic climate, our team remains focused on delivering an exceptional customer experience. For the fifth consecutive quarter, we surpassed our profit and margin expectations, a direct result of our unwavering commitment to operational excellence.”
During an investors Q&A July 30, the company was asked about its reduced guidance range, and how much of it is driven by “lower variable brokerage fee-driven volumes versus just lower more recurring fees driven by the agent count.”
“I would point to three things that are impacting the top line that’s been flowing through to the profit line,” answered Karri Callahan, CFO for RE/MAX Holdings: “The first is a little bit of a delay in the ramp up of our RE/MAX Media network. We did see some contribution in the first half of the year, but that ramp up is a little bit slower than we expected.
“The second component is a tempered outlook on the broker fee, a little bit more on the variable side. The third component is really more of a near-term impact kind of in the back half of this year. It’s something that’s impacting us related to Aspire. We’ve seen fantastic results from a business perspective and from an adoption standpoint as it really accelerated recruiting. But from a revenue perspective, near term, it’s going to take a little while for us to see the revenue contribution.
“At scale, we think that the revenue per agent is on par or even a little bit better than what we see today. But on a near-term basis in the back half of the year, there’s a little bit of pressure as those things ramp up.”
Q2 2025 highlights compared to Q2 2024
- Total revenue decreased 7.3% to $72.8 million
- Total agent count increased 2.5% to 147,073 agents
- U.S. and Canada combined agent count decreased 5% to 74,635 agents
- Revenue excluding the marketing funds decreased 6.8% to $54.5 million, driven by negative 5.7% organic revenue growth and 1.1% adverse foreign currency movements
- Net income attributable to RE/MAX Holdings, Inc. of $4.7 million and income per diluted share (GAAP EPS) of $0.23
- Adjusted EBITDA decreased 6.4% to $26.3 million, Adjusted EBITDA margin of 36.1% and Adjusted earnings per diluted share (Adjusted EPS) of $0.39
- Total open Motto Mortgage franchises decreased 9.1% to 219 offices
