RE/MAX : Q4 2024 Earnings Conference Call

Published: 2025-02-21 08:22:07 ET RMAX

RE/MAX Holdings, Inc.

Fourth Quarter and Full-Year 2024 Earnings

February 21, 2025

Q4 2024 Highlights

Total Revenue of $72.5 Million, Adjusted EBITDA1 of $23.3 Million

Q4 2024 Operating Highlights

Q4 2024 Financial Highlights

Comparisons represent Q4 2024 versus Q4 2023 unless otherwise noted

1Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Basic and Diluted EPS are non-GAAP measures and exclude all adjustments attributable to the non-controlling interest. See the Appendix for definitions and

reconciliations of non-GAAP measures.

2Total open Motto Mortgage franchises includes only "bricks and mortar" offices with a unique physical address with rights granted by a full franchise agreement with Motto Franchising, LLC and excludes any "virtual" offices

or BranchisesSM offices.

Revenue

Total Revenue down 5.4%, negative Organic Revenue growth1 of 3.5%

Revenue ($M)

Continuing franchise fees Annual dues Broker fees Marketing Funds fees Franchise sales and other revenue Total Revenue

Note: Totals may not sum due to rounding.

Quarter to Date

2024

2023

Increase/(Decrease)

$29.8

$31.4

($1.6)

(5.1%)

$7.8

$8.2

($0.4)

(4.9%)

$11.7

$11.5

$0.1

1.0%

$18.7

$20.6

($1.9)

(9.4%)

$4.5

$4.9

($0.3)

(6.7%)

$72.5

$76.6

($4.1)

(5.4%)

Year to Date

2024

2023

Increase/(Decrease)

$122.0

$127.4

($5.4)

(4.2%)

$32.2

$33.9

($1.7)

(5.1%)

$51.8

$51.0

$0.8

1.6%

$79.0

$83.9

($4.9)

(5.8%)

$22.7

$29.5

($6.8)

(23.1%)

$307.7

$325.7

($18.0)

(5.5%)

For Q4 2024:

1The Company defines organic revenue growth as revenue growth from continuing operations excluding (i) Marketing Funds, (ii) revenue from acquisitions, and (iii) the impact of foreign-currency movements. The Company defines revenue from acquisitions as the

revenue generated from the date of an acquisition to its first anniversary (excluding Marketing Funds revenue related to acquisitions where applicable).

2Revenue excluding the Marketing Funds is a non-GAAP measure of financial performance that differs from the U.S. Generally Accepted Accounting Principles. See the Appendix for the definition and reconciliation to the most directly comparable U.S. GAAP measure.

3Recurring revenue is comprised of Continuing franchise fees and Annual dues.

Selling, Operating and Administrative Expenses

Total Selling, Operating and Administrative expenses decreased 8.6%

Selling, Operating & Administrative Expenses

($M)

Personnel

Professional fees

Lease costs

Other

Total

Note: Totals may not sum due to rounding.

Quarter to Date

2024

2023

Increase/(Decrease)

$22.7

$21.2

$1.5

7.1%

$4.2

$4.4

($0.2)

(4.7%)

$1.6

$1.8

($0.2)

(8.9%)

$7.2

$11.7

($4.5)

(38.6%)

$35.8

$39.1

($3.4)

(8.6%)

Year to Date

2024

2023

Increase/(Decrease)

$94.2

$97.0

($2.9)

(2.9%)

$12.3

$14.9

($2.6)

(17.6%)

$6.8

$7.6

($0.8)

(11.1%)

$39.1

$52.0

($13.0)

(24.9%)

$152.3

$171.5

($19.3)

(11.2%)

For Q4 2024:

1Revenue excluding the Marketing Funds is a non-GAAP measure of financial performance that differs from the U.S. Generally Accepted Accounting Principles. See the Appendix for the definition and reconciliation to the most directly comparable U.S. GAAP measure

Adjusted EBITDA1 of $23.3 Million

Adjusted EBITDA1 Margin of 32.2%, up 220 basis points

Adjusted EBITDA1 ($M)

Adjusted EBITDA Margin1

$23.0$23.3

30.0%

24.3%

35.8%

34.8%

32.2%

For Q4 2024:

1Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP numbers and exclude all adjustments attributable to the non-controlling interest. See the Appendix for definitions and reconciliations of non-GAAP measures.

Looking Ahead - Q1 2025 and FY 2025 Outlook

Q1 2025 Outlook1

Full-Year 2025 Outlook1

For the first quarter of 2025, RE/MAX

For the full year 2025, RE/MAX Holdings

Holdings expects:

expects:

▪ Agent count to increase 1.0% to 2.0% over

▪ Agent count to change negative 1.0% to

first quarter 2024;

positive 1.0% over full year 2024;

▪ Revenue in a range of $71.0 million to

▪ Revenue in a range of $290.0 million to

$76.0 million (including revenue from the Marketing Funds in a range of $18.0 million to $20.0 million); and

$310.0 million (including revenue from the Marketing Funds in a range of $71.0 million to $75.0 million); and

▪ Adjusted EBITDA2 in a range of $16.0

▪ Adjusted EBITDA2 in a range of $90.0

million to $18.5 million.

million to $100.0 million.

1RE/MAX Holdings first quarter and full-year 2025 Outlook assumes no further currency movements, acquisitions or divestitures.

2Adjusted EBITDA is a non-GAAP measure and excludes all adjustments attributable to the non-controlling interest. See the Appendix for definitions and reconciliations of non-GAAP measures.

RE/MAX Holdings, Inc.

A Leading Dual-Brand Franchisor with Compelling Growth Opportunities

#1 Name in

Highly

Most-Trusted

Real Estate1

Productive

Agents in the

(US/Canada)

Network of

U.S. and

and Unmatched

More Than

Canada3,4

Global

145,000

Footprint2

Agents

Large Network

First-and-Only

Among Top

of Offices with

National

Fastest-

Nearly $2.3

Mortgage

Growing

Billion in 2023

Brokerage

Franchises in

Annual Loan

Franchise in

the U.S.5

Volume

U.S.

RMAX: Recurring Revenue, High Margins & Strong Free Cash Flow

1Source: MMR Strategy Group Study of unaided brand awareness

2RE/MAX has a presence in more than 110 countries and territories

3Voted most trusted Real Estate Agency brand by American shoppers based on the BrandSpark® American Trust Study, years 2022-2024, and 2019. 4Voted most trusted Real Estate Agency brand by Canadian shoppers based on the BrandSpark® Canadian Trust Study, years 2019-2024, and 2017

5For more information on Motto awards please see www.mottomortgage.com/awards-disclaimers

Thank You!

Disclaimer

RE/MAX Holdings Inc. published this content on February 21, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 21, 2025 at 13:21:14.831.