REMAX Holdings reported Q1 2026 results on May 8, presumably the company’s last financial report as an independent entity after being acquired by Real Brokerage for $880 million late last month.
The disclosure showed total revenue of $70.2 million, down 5.7% year-over-year. Adjusted EBITDA declined 19.3% to $15.6 million, with adjusted EBITDA margin contracting to 22.2% from 25.9% in Q1 2025.
The earnings report covered a period of ongoing weakness in the housing market. Existing-home sales remain low, putting pressure on the franchise model’s recurring revenue streams.
Revenue excluding marketing funds declined 4.0% to $53.4 million, driven by negative organic revenue growth of 4.7%, partially offset by foreign currency movements of 0.7%.
The company reported a net loss of $9.7 million, compared to a net loss of $2.0 million in Q1 2025.
Agent count and recurring revenue pressure
Total agent count increased 2.1% to 149,192 agents as of March 31, 2026, driven by international expansion. However, U.S. and Canada combined agent count declined 2.3% to 73,292 agents, signaling weakness in the company’s core markets.
REMAX has faced persistent struggles in the post-pandemic market—far from the only brokerage to experience declines in agent count and revenues. Company leadership had previously emphasized efforts to reverse the trend of agent losses in the U.S., as the total number of REMAX agents fell from around 63,000 pre-pandemic to 47,000 today.
Recurring revenue, consisting of franchise fees and annual dues, decreased $3.8 million, or 10.2%, compared to Q1 2025 and represented 62.5% of revenue excluding marketing funds, down from 66.8% in the prior-year period.
The company attributed the decline in organic revenue to modifications to its standard fee models, including Aspire and Ascend programs, and a decrease in U.S. agent count. These were partially offset by an increase in broker fees.
Merger announcement and strategic rationale
Real Brokerage announced its acquisition of REMAX on April 27 and the company held an investor call that morning to discuss the transaction and address questions about the business combination.
On the call, Real CEO Tamir Poleg discussed the strategic logic of combining the two companies.
“Real was built on a simple conviction that technology can fundamentally change the economics of real estate for agents, for franchisees and for consumers,” Poleg told investors. “REMAX was built on a different but equally powerful conviction that a trusted brand and an entrepreneurial franchise model can deliver superior results for agents and clients around the world.”
Poleg said the combined entity—the Real REMAX Group—would offer operational advantages.
“The Real REMAX Group will be the only major real estate company offering both cloud-based brokerage and global franchise office network, and it will benefit from two of the industry’s strongest agent cultures on one platform,” Poleg said.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including stockholder and regulatory approvals.
REMAX stated it is not hosting a quarterly earnings call for Q1 results and does not expect to do so for future quarters while the merger is pending.
