RE/MAX Holdings continued to experience decreasing revenue and U.S. agent count in the new quarter, but also significantly improved its net income compared to the previous year.
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During the third quarter of 2024, RE/MAX Holdings saw its revenue decline for the ninth consecutive quarter, with total revenue dropping by 3.4 percent year over year to $78.5 million. This decline was attributed to negative organic revenue growth of -3.0 percent, mainly due to a decrease in U.S. agent count and reduced revenue from previous acquisitions.
Despite the revenue challenges, the company’s net income improved significantly to $1 million, with earnings per diluted share of $0.05, compared to a net loss of $59.5 million in the third quarter of 2023. RE/MAX Holdings also reduced its operating expenses by $39 million, or 38.1 percent, year over year.
While U.S. agent attrition continued, the overall agent count grew slightly, adding 174 agents globally. International growth was highlighted, with agent numbers outside the U.S. and Canada reaching a record high. RE/MAX also achieved a record number of agents in Canada, despite market challenges.
RE/MAX Holdings remains optimistic about the future, citing growth in global agent count, initiatives to enhance technology products, improve the agent-customer experience, and monetize digital assets. The company anticipates finishing the year with positive momentum, despite challenges such as recent hurricanes impacting affiliates.
As a result of storm destruction, RE/MAX Holdings expects fourth-quarter revenue to be lower than previously anticipated, as the company supports impacted affiliates by waiving fees.
The company revised its revenue estimates for the fourth quarter and full year, reducing them by approximately $1 million to $1.5 million.
Following after-hours trading on Thursday, the franchisor’s stock price experienced a decline of about 4.98 percent or $0.61, settling at around $11.63.
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