8-K: RE/MAX Holdings Reports Q4, Full Year 2025 Results

RE/MAX Holdings announced its fourth quarter and full year 2025 financial results, showing revenue and profit declines amidst a challenging housing market, but with global agent count growth.

Summary

• Total Revenue for the fourth quarter of 2025 decreased 1.8% to $71.1 million compared to the fourth quarter of 2024.
• Revenue excluding the Marketing Funds for Q4 2025 decreased 0.4% to $53.6 million, primarily due to a decline in organic revenue.
• Net income attributable to RE/MAX Holdings, Inc. for Q4 2025 was $1.4 million, down from $5.8 million in Q4 2024.
• GAAP earnings per diluted share for Q4 2025 was $0.07, down from $0.29 in Q4 2024.
• Adjusted EBITDA for Q4 2025 decreased 4.0% to $22.4 million, with an Adjusted EBITDA margin of 31.5%.
• Total agent count increased 1.4% to 148,660 agents as of December 31, 2025.
• U.S. and Canada combined agent count decreased 4.6% to 72,977 agents as of December 31, 2025.
• Full-Year 2025 Total Revenue decreased 5.2% to $291.6 million compared to full year 2024.
• Full-Year 2025 Revenue excluding the Marketing Funds decreased 4.3% to $218.8 million.
• Net income attributable to RE/MAX Holdings, Inc. for Full-Year 2025 was $8.2 million, up from $7.1 million in Full-Year 2024.
• GAAP earnings per diluted share for Full-Year 2025 was $0.40, up from $0.37 in Full-Year 2024.
• Adjusted EBITDA for Full-Year 2025 decreased 4.1% to $93.7 million, with an Adjusted EBITDA margin of 32.1%.
• Cash and cash equivalents were $118.7 million as of December 31, 2025, an increase of $22.1 million from December 31, 2024.
• Outstanding debt, net of unamortized discount and issuance costs, was $436.8 million as of December 31, 2025.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed report with significant year-over-year declines in key financial metrics for Q4 and the full year's top-line and operating profit, partially offset by global agent growth, an increase in full-year net income/EPS, and management's positive outlook on strategic initiatives and future market recovery.

Positives

• Total agent count increased 1.4% to 148,660 agents globally as of December 31, 2025.
• Agent count outside the U.S. & Canada increased significantly by 7.9% (5,513 agents) year-over-year.
• Net income attributable to RE/MAX Holdings, Inc. for the full year 2025 increased to $8.2 million from $7.1 million in 2024.
• GAAP earnings per diluted share for the full year 2025 increased to $0.40 from $0.37 in 2024.
• Cash and cash equivalents increased by $22.1 million to $118.7 million as of December 31, 2025.
• Total operating expenses decreased by 9.4% in Q4 2025, primarily due to lower settlement and impairment charges, Marketing Funds expenses, and depreciation and amortization.
• Management reported strong momentum across both networks, driven by record global agent count growth and the best fourth quarter U.S. agent performance since 2021.
• A significant conversion of nearly 1,200 agents joined the Canadian network in January 2026, marking the largest conversion in company history.

Negatives

• Total Revenue decreased 1.8% in Q4 2025 and 5.2% for the full year 2025 compared to the prior year.
• Revenue excluding Marketing Funds decreased 0.4% in Q4 2025 and 4.3% for the full year 2025.
• Net income attributable to RE/MAX Holdings, Inc. decreased significantly in Q4 2025 to $1.4 million from $5.8 million in Q4 2024.
• GAAP earnings per diluted share decreased in Q4 2025 to $0.07 from $0.29 in Q4 2024.
• Adjusted EBITDA decreased 4.0% in Q4 2025 and 4.1% for the full year 2025.
• U.S. and Canada combined agent count decreased 4.6% (3,480 agents) as of December 31, 2025.
• Recurring revenue streams (continuing franchise fees and annual dues) decreased 8.5% in Q4 2025.
• Selling, operating and administrative expenses increased 4.4% in Q4 2025.
• Adjusted EBITDA margin decreased to 31.5% in Q4 2025 from 32.2% in Q4 2024.

Risks

• Changes in the real estate market or interest rates and availability of financing.
• Changes in business and economic activity in general, including enacted and proposed tariffs and other trade policies which could impact the global economy.
• The Company's ability to attract and retain quality franchisees.
• The Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators.
• Changes in laws and regulations.
• The Company's ability to enhance, market, and protect its brands.
• The Company's ability to implement its technology initiatives.
• Risks related to recent changes in the Company's leadership team.
• Fluctuations in foreign currency exchange rates.
• The nature and amount of the exclusion of charges in future periods when determining Adjusted EBITDA is subject to uncertainty and may not be similar to such charges in prior periods.

Future Outlook

For the first quarter of 2026, RE/MAX Holdings expects agent count to increase 1.50% to 2.50% over Q1 2025, revenue in a range of $69.0 million to $74.0 million, and Adjusted EBITDA between $14.0 million and $17.0 million. For the full year 2026, the company anticipates agent count growth of 1.50% to 3.50% over full year 2025, revenue between $285.0 million and $305.0 million, and Adjusted EBITDA in the range of $90.0 million to $100.0 million. This outlook assumes no further currency movements, acquisitions, or divestitures.

Management Comments

• "Our strategy is working and is beginning to yield results even though 2025 marked the third consecutive year of a historically tough housing market in the United States and Canada." Erik Carlson, CEO.
• "We exited 2025 with strong momentum across both of our networks, driven by record global agent count growth, our best fourth quarter U.S. agent performance since 2021, and a renewed excitement for the REMAX brand given enhancements to our overall value proposition." Erik Carlson, CEO.
• "In January we also saw the largest conversion in our history as nearly 1,200 agents led by visionary entrepreneurs chose to join our market-leading brand in Canada, an exciting start to the year." Erik Carlson, CEO.
• "Engagement throughout REMAX reflects growing enthusiasm for the recent strategic investments in our brand, including our Marketing as a Service and Lead Concierge platforms, reinforcing our confidence as we enter the year ahead." Erik Carlson, CEO.
• "At the same time, we continue to operate the business with discipline, with fourth quarter profit and margin performance at the high end of our expectations." Erik Carlson, CEO.
• "As signs of modest improvement in home sales activity are starting to emerge, we believe our networks are well positioned to capitalize on a recovering market, and we will continue to be laser focused on supporting our networks to win more business, in less time, and more profitably." Erik Carlson, CEO.

Industry Context

StockSavvy.ai notes that RE/MAX Holdings' results reflect the ongoing challenges in the U.S. and Canadian housing markets, which management described as "historically tough" for the third consecutive year. Despite these headwinds, the company's global agent growth suggests resilience in international markets and the effectiveness of strategic investments in its value proposition, potentially positioning it for recovery as market conditions improve. The focus on 'Marketing as a Service' and 'Lead Concierge' platforms aligns with broader industry trends towards technology-driven agent support and efficiency in a competitive real estate landscape.

Legal Proceedings

• In 2025, the Company recorded a cost recovery in connection with a previous settlement from an escrow fund from a prior acquisition, partially offset by the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada.
• In 2024, the company incurred settlements of certain industry class-action lawsuits and other legal settlements.

Related Party Transactions

• The company makes tax and other non-dividend distributions to RIHI, Inc. (RIHI), an entity majority owned and controlled by David Liniger, the Chairman and Co-Founder, and Gail Liniger, the Vice Chair Emerita and Co-Founder.

Stakeholder Impact

• Shareholders face mixed signals due to declining Q4 revenue and net income, but full-year net income and EPS increased, and the company maintains a positive outlook for agent growth and market recovery. The share repurchase program still has $62.5 million available.
• Franchisees and agents are impacted by the challenging housing market, particularly in the U.S. and Canada where agent count declined. However, strategic investments in 'Marketing as a Service' and 'Lead Concierge' platforms aim to enhance their value proposition and profitability.
• Employees may be affected by ongoing restructuring efforts, as indicated by restructuring charges in both 2025 and 2024, aimed at enhancing overall customer experience.

Next Steps

• Host a conference call for interested parties on Friday, February 20, 2026, at 8:30 a.m. Eastern Time.
• Continue to be laser focused on supporting networks to win more business, in less time, and more profitably.
• Capitalize on a recovering market as signs of modest improvement in home sales activity emerge.

Key Dates

Recommendation

While RE/MAX Holdings faces ongoing revenue and operating profit pressures in its core U.S. and Canadian markets, the global agent growth and strategic investments in technology and value proposition offer a potential turnaround as the housing market stabilizes. The full-year net income and EPS showed improvement, and the company maintains a healthy cash position. However, the significant Q4 declines and continued agent losses in key regions warrant a cautious "hold" stance until clearer signs of sustained recovery and the effectiveness of strategic initiatives are evident in financial performance.

Keywords

RE/MAX Holdings, RMAX, real estate, mortgage, franchise, financial results, earnings, Q4 2025, full year 2025, agent count, Adjusted EBITDA, revenue, GAAP EPS, Motto Mortgage, SEC filing