RE/MAX Holdings Reports Mixed Q3 Results, Turnaround in Profitability Amid Ongoing Market Challenges

RE/MAX Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance amid ongoing market challenges. Total revenue for the three months was $78.5 million, a decrease of 3.4% from $81.2 million in the same period of 2023. For the nine months, revenue fell to $235.2 million from $249.1 million, marking a decline of 5.6%. The decrease in revenue was attributed to negative organic growth and adverse foreign currency movements, alongside a reduction in U.S. agent count impacting franchise fees.

Despite the revenue decline, the company achieved a significant turnaround in profitability. Net income for the third quarter was $3.4 million, a substantial recovery from a net loss of $82.7 million in the prior year. For the nine months, net income reached $4.0 million, compared to a loss of $80.1 million in the same period of 2023. This improvement was driven by a 38.1% reduction in total operating expenses for the quarter, which fell to $63.3 million from $102.2 million, and a 20.3% decrease for the nine months, totaling $199.3 million.

The company’s strategic cost management initiatives, including a reduction in workforce by approximately 7% in 2023, contributed to lower personnel costs and decreased professional fees. Selling, operating, and administrative expenses for the third quarter decreased to $35.9 million from $43.1 million in 2023, reflecting effective cost control measures.

RE/MAX's total current assets increased to $201.9 million as of September 30, 2024, up from $176.6 million at the end of 2023. Cash and cash equivalents rose slightly to $83.8 million, while restricted cash saw a significant increase to $72.6 million. The company’s total stockholders' equity improved to $423.1 million, compared to $411.1 million at the end of 2023.

The company continues to navigate a challenging environment, with a total agent count in the U.S. declining by 6.5% to 52,808 agents. However, the global agent count outside the U.S. and Canada saw a slight increase. The company has also suspended its quarterly dividend since Q4 2023 due to litigation settlements and market conditions, while maintaining a strong liquidity position with available cash and credit facilities.

Looking ahead, RE/MAX plans to pursue acquisitions of independent regions and complementary businesses, supported by its existing cash flow and financing options. Total capital expenditures for the nine months were $5.8 million, reflecting increased investment in technology and leased buildings.