Core Insights - The U.S. housing market experienced a seasonal slowdown in November 2025, with a decrease in new listings and home sales compared to October, while inventory levels remained elevated [1][3] Inventory Trends - Active inventory increased by 14.5% year-over-year across 51 metro areas surveyed, marking the 23rd consecutive month of year-over-year inventory increases [1][3] - The supply of homes declined by 5.5% from October but was still 14.5% higher than the previous year [1][17] New Listings - New listings dropped by 30.7% month-over-month and fell by 8.3% year-over-year [2][6] - Markets with the largest year-over-year decreases in new listings included Dover, DE (-48.6%), Trenton, NJ (-48.3%), and Washington, DC (-45.2%) [6][8] Home Sales - Home sales decreased by 18.5% from October to November and were down 4.7% compared to November 2024 [3][9] - The markets with the largest year-over-year decreases in home sales included San Antonio, TX (-22.9%), Bozeman, MT (-15.7%), and Anchorage, AK (-13.5%) [9][10] Median Sales Price - The median sales price in November 2025 was $438,000, reflecting a 1.7% year-over-year increase but a 1.5% decrease from October [3][11] - Markets with the largest year-over-year increases in median sales price included Trenton, NJ (+13.6%), Cleveland, OH (+11.8%), and Cincinnati, OH (+10.2%) [11][12] Close-to-List Price Ratio - The average close-to-list price ratio was 98% in November 2025, down from 99% in November 2024 [13] - The largest year-over-year decreases in close-to-list price ratios were observed in Burlington, VT (-2.1 percentage points) and Dover, DE (-1.5 percentage points) [13][15] Days on Market - Homes took an average of 54 days to sell in November 2025, an increase from 47 days in November 2024 [7][16] - The markets with the largest year-over-year increases in days on market included St. Louis, MO (+39.1%) and Manchester, NH (+38.7%) [16] Months' Supply of Inventory - The months' supply of inventory increased to 3.3 months, up from 2.9 months a year ago [7][17] - Miami, FL had the highest months' supply of inventory at 7.5, while Hartford, CT had the lowest at 1.3 [17][18]

Core Insights - Homeownership remains a strong priority for many Americans despite current housing market challenges, with 71% of respondents indicating that market conditions have delayed their plans but not deterred them from pursuing homeownership [1][3][4] Group 1: Market Conditions and Buyer Sentiment - 88% of buyers plan to purchase a home in 2026, yet 71% report that current market conditions have caused delays in their homebuying timeline [3][5] - Economic uncertainty and rising costs are significant factors influencing prospective buyers, with affordability being a critical concern [4][5] - More than three-quarters (78%) of buyers would be prompted to buy within the next six months if home prices were more affordable [5] Group 2: Buyer Preferences and Community Focus - Buyers are increasingly prioritizing neighborhood safety, social connection, and access to lifestyle-enhancing amenities, indicating a shift towards homes that support both lifestyle and financial goals [2][4] - 60% of respondents are willing to pay a premium for shared community amenities, with 76% of these buyers willing to pay 5% or more of the home's price for such features [5][9] - A strong sense of community is becoming a key factor in purchasing decisions, especially among younger generations like Gen Z and Millennials [6][9] Group 3: Geographic and Lifestyle Considerations - Over half (51%) of respondents are looking to buy a home in suburban areas, while 32% prefer urban locations [9] - Safety is a top concern for nearly 80% of prospective homebuyers, followed by the availability of affordable homes (69%) and the type of homes available (47%) [9] - Proximity to work, shopping, and schools are also important geographic considerations for buyers, with 58% indicating that proximity to work is crucial [9]

Core Insights - The housing market showed positive trends in October 2025, with home sales increasing by 3.2% compared to October 2024 across 51 metro areas surveyed [1] Group 1 - Home sales in October 2025 marked the fifth consecutive month where sales exceeded the levels of the previous year [1]

Core Insights - REMAX Canada has appointed Damon Conrad as Vice President of Commercial, bringing over 20 years of experience in commercial real estate to the role [1][2][3] - The appointment aims to drive innovation and expansion in Canada's commercial real estate sector, enhancing REMAX's market leadership [2][3] - REMAX currently has over 15,000 commercial brokers across more than 580 offices in over 110 countries, indicating a strong global presence [2][5] Company Strategy - The company is focusing on national growth and modernization of its commercial platform, including a refreshed branding strategy with a new REMAX Commercial logo [3][4] - Damon Conrad's expertise in strategic growth is expected to be crucial for advancing the REMAX brand's position in the competitive Canadian real estate market [2][3] - The leadership transition reflects REMAX's commitment to investing in leadership that understands the complexities of various real estate markets [3] Leadership and Recognition - Damon Conrad has a proven track record in building national platforms and expanding agent networks, making him a valuable addition to the REMAX team [3][4] - His contributions to the industry have been recognized with awards such as the NAIOP Real Estate Excellence Award and being named one of the Top 100 Most Influential Voices in Canadian Real Estate [4]

Core Insights - REMAX held its fifth annual Global REMAX Week from October 5-11, 2025, promoting community support through various acts of service and fundraising [1][2] - The initiative encouraged affiliates worldwide to engage in charitable activities, showcasing the brand's commitment to community beyond real estate [2][6] Community Engagement - In Mongolia, REMAX organized a Blood Donation Day, with over 60 agents participating, saving an estimated 200 lives [3] - REMAX Côte d'Ivoire donated backpacks and school supplies to children, emphasizing the importance of community support [4] - REMAX Cayman Islands hosted a Breast Cancer Foundation Gala and contributed to Meals on Wheels, while REMAX Dominican Republic and Ecuador focused on animal welfare by donating pet supplies [4][5] Employee Involvement - Employees at REMAX World Headquarters participated in various initiatives, including blood donation and community clean-up efforts [5] - The collective efforts of REMAX affiliates demonstrate a strong commitment to local community support [6] Future Plans - Global REMAX Week is scheduled to return on October 4-10, 2026, continuing the tradition of community service [6] Company Overview - REMAX, a leading global real estate franchisor, operates with over 145,000 agents in nearly 9,000 offices across more than 110 countries [7] - The company has a long-standing history of community involvement, raising millions for charities annually [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $73.3 million, with adjusted EBITDA of $25.8 million and an adjusted EBITDA margin of 35.2%, an increase of 40 basis points compared to Q3 2024 [17][19] - Revenue excluding marketing funds was $55.1 million, a decrease of 5.6% year-over-year, primarily due to a decline in organic revenue of 5.4% and adverse foreign currency movements of 0.2% [17][18] - Adjusted diluted EPS was $0.37, reflecting the company's profitability despite a challenging housing market [17] Business Line Data and Key Metrics Changes - The agent count reached over 147,500, marking a record high, with the U.S. agent count showing the best performance in three years [6][4] - The Aspire program has seen approximately 1,500 agents benefiting, contributing to higher retention rates and recruitment of newer agents [9][38] - The RE/MAX Marketing as a Service platform is expected to generate a seven-digit revenue contribution, indicating strong engagement and effectiveness [11][27] Market Data and Key Metrics Changes - Inventory in the housing market increased by 20% year-over-year, marking the 21st consecutive month of growth [5] - New listings rebounded in September, growing 4.5% over August, which is seen as a positive sign for transaction activity [5] - Canadian agent count saw a slight year-over-year decline but modest sequential growth, indicating resilience in a challenging market [8] Company Strategy and Development Direction - The company is focused on enhancing its value proposition through innovation and operational excellence, aiming to drive profitability and margin performance [4][6] - RE/MAX is strategically reinvesting in the business while evaluating opportunities for share repurchases, indicating a shift towards returning capital to shareholders [19][57] - The introduction of new economic models like Aspire, Ascend, and Appreciate aims to attract a diverse range of agents and improve retention [39][40] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term potential of their initiatives despite the current housing market challenges [12][20] - The company is tightening its revenue and adjusted EBITDA guidance for the full year 2025, reflecting a pragmatic approach to the market conditions [20] - Management highlighted the importance of operational efficiencies and the cash-generative nature of the business, with a total leverage ratio now below 3.5 times [19][57] Other Important Information - The company is expanding its marketing services and leveraging AI to enhance customer experience and operational efficiency [10][14] - New leadership appointments, including a President of Mortgage Services, are expected to drive growth in the mortgage business [12][13] Q&A Session Summary Question: Can you provide more detail on the expected incremental revenue from the marketing and Aspire programs in 2026? - Management indicated that the RE/MAX Marketing as a Service platform is showing strong engagement and is expected to contribute significantly to revenue in 2026, with a margin profile differing from the core business [25][28] Question: What are the implications of M&A activity in the sector on recruitment rates? - Management noted that ongoing consolidation in the market presents opportunities for RE/MAX, with increased inbound interest from potential franchisees [31][33] Question: How are the Aspire, Ascend, and Appreciate models being received by franchisees? - The models are resonating well with the network, with Aspire showing higher retention rates and incremental recruitment of newer agents [38][39] Question: What is the outlook for Motto and its profitability? - Management is optimistic about the mortgage opportunity and is exploring changes to the business model to enhance profitability, though specifics will be shared later [46][48] Question: Will there be share buybacks by year-end? - With the total leverage ratio now below 3.5 times, management is considering share repurchases as an attractive use of capital [19][57]

Financial Performance - RE/MAX Holdings' revenue for Q3 2025 was $73.3 million, a decrease of $5.2 million or 6.7%, compared to $78.5 million in Q3 2024[6, 22] - Adjusted EBITDA for Q3 2025 was $25.8 million, down 5.6% compared to Q3 2024[6, 27] - Adjusted EBITDA margin increased by 40 basis points to 35.2% in Q3 2025[6, 27] - Adjusted Diluted EPS was $0.37[6] Agent Network - Total agent count increased 1.4% year-over-year to 147,547 agents as of September 30, 2025[6, 9] - Agent count in the U S and Canada combined decreased 5.1% to 74,198 agents[6] - Agents outside the U S and Canada increased 9.0% (+6,067 agents)[8] - Agents in Canada decreased 1.5% (-373 Agents)[8] - Agents in the U S decreased 6.9% (-3,630 Agents)[8] Expenses - Selling, operating, and administrative expenses decreased by $3.5 million, or 9.7%, to $32.5 million in Q3 2025, representing 58.9% of Revenue excluding Marketing Funds[23, 24] Outlook - For Q4 2025, the company expects revenue between $69.5 million and $73.5 million and Adjusted EBITDA between $19.0 million and $23.0 million[28] - For full year 2025, the company expects revenue between $290.0 million and $294.0 million and Adjusted EBITDA between $90.0 million and $94.0 million[28]

Core Insights - RE/MAX reported a revenue of $73.25 million for the quarter ended September 2025, reflecting a decrease of 6.7% year-over-year, while EPS was $0.37, down from $0.38 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $73.14 million by 0.15%, and the EPS surpassed the consensus estimate of $0.36 by 2.78% [1] Revenue Breakdown - Marketing Funds fees amounted to $18.14 million, slightly above the average estimate of $18.05 million, but down 9.7% year-over-year [4] - Continuing franchise fees were reported at $27.45 million, below the estimated $29.2 million, representing a decline of 10.9% compared to the previous year [4] - Franchise sales and other revenue reached $5.14 million, exceeding the average estimate of $4.25 million, with a year-over-year increase of 9.5% [4] - Broker fees totaled $14.9 million, surpassing the estimated $13.89 million, with a minimal decline of 0.1% year-over-year [4] - Annual dues were reported at $7.62 million, slightly below the average estimate of $7.81 million, reflecting a year-over-year decrease of 4.4% [4] Stock Performance - Over the past month, RE/MAX shares have returned -11.3%, contrasting with a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - RE/MAX reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.38 per share a year ago, representing an earnings surprise of +2.78% [1] - The company posted revenues of $73.25 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.15%, but down from $78.48 million year-over-year [2] - RE/MAX has outperformed consensus EPS estimates in all four of the last quarters, while it has only topped revenue estimates once in the same period [2] Earnings Outlook - The future performance of RE/MAX shares will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $72.05 million, and for the current fiscal year, it is $1.29 on revenues of $293.09 million [7] Industry Context - The Real Estate - Operations industry, to which RE/MAX belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact RE/MAX's stock performance [5]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $73.3 million, a decrease of 6.7% from the prior year[117]. - Revenue excluding Marketing Funds decreased 5.6% to $55.1 million, driven by negative organic revenue growth of 5.4% and adverse foreign currency movements of 0.2%[117]. - Net income attributable to RE/MAX Holdings, Inc. was $4.0 million, compared to $1.0 million in the prior year[117]. - Total revenue for the three months ended September 30, 2025, was $73,247,000, a decrease of $5,231,000 or 6.7% compared to $78,478,000 in 2024[139]. - Revenue from Continuing franchise fees decreased by $3,353,000 or 10.9% to $27,445,000, primarily due to a reduction in U.S. agent count[133]. - Revenue excluding Marketing Funds fees was $55,105,000, down $3,275,000 or 5.6% from $58,380,000, driven by a decline in organic revenue of 5.4%[139]. - Total revenue for the nine months ended September 30, 2025, was $220,464,000, a decrease of $14,754,000 or 6.3% compared to $235,218,000 in 2024[149]. - Revenue from Franchise sales and other revenue decreased by $1,648,000 or 9.1% to $16,512,000, primarily due to a reduction in Franchise sales revenue[153]. - Revenue excluding Marketing Funds for the nine months ended September 30, 2025, was $165,185,000, down $9,702,000 or 5.5% from $174,887,000[154]. Operating Expenses - Total operating expenses increased by $8,333,000 or 13.2% to $54,934,000, representing 75.0% of total revenue[140]. - Personnel expenses within selling, operating, and administrative expenses decreased by $4,905,000 or 21.0% to $18,491,000[141]. - Total operating expenses for the nine months ended September 30, 2025, were $182,739,000, a decrease of $16,569,000 or 8.3% compared to $199,308,000 in 2024[157]. - Selling, operating, and administrative expenses decreased to $109,369,000, down $7,119,000 or 6.1% from $116,488,000 in the prior year[158]. - Personnel expenses decreased by $6,394,000 or 9.0% to $65,031,000, primarily due to increased costs charged to Marketing Funds and lower employee compensation[158]. - Total other expenses, net, decreased to $20,979,000, down $4,450,000 or 17.5% from $25,429,000 in 2024[162]. EBITDA and Income - Adjusted EBITDA decreased 5.6% to $25.8 million, with an Adjusted EBITDA margin of 35.2%, an increase of 40 basis points from the prior year[123]. - Adjusted EBITDA for the three months ended September 30, 2025, was $25.8 million, a decrease of $1.5 million from the prior year period[148]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $71,321,000, a decrease of $3,038,000 or 4.1% from $74,359,000 in 2024[167]. Cash Flow and Liquidity - Cash provided by operating activities decreased to $27.96 million for the nine months ended September 30, 2025, compared to $42.87 million for the same period in 2024[190]. - The company’s liquidity position is affected by changes in its agent and franchise base and conditions in the real estate and mortgage markets[177]. - The company’s cash flows are primarily related to the timing of cash receipts of revenues and payments of selling, operating, and administrative expenses[179]. - As of September 30, 2025, the company had $440.5 million in term loans outstanding and no revolving loans under its Senior Secured Credit Facility[189]. - The Senior Secured Credit Facility includes a $460 million term loan maturing on July 21, 2028, and a $50 million revolving loan facility[181]. - The interest rate on the Senior Secured Credit Facility was 6.8% as of September 30, 2025, with a potential additional annual interest expense of $1.1 million for each hypothetical 0.25% increase[210]. Programs and Initiatives - The Aspire program was launched to help brokerages attract new agents, with a fee structure that caps payments at $5,000 annually[119]. - The Ascend program introduced a 45% reduction in monthly fixed fees, allowing for greater cash flow flexibility for franchisees[121]. - The Appreciate program replaces the existing retirement plan for eligible agents, featuring a $100 transaction fee and reduced annual dues[124]. - The company announced the launch of Marketing as a Service (MaaS), a data-driven platform to enhance marketing efforts for affiliates[126]. Shareholder Returns and Dividends - The company suspended its quarterly dividend in Q4 2023 and did not approve any dividends in the first three quarters of 2025 and 2024[198]. - The company has a share repurchase program authorized for up to $100 million, with $62.5 million remaining available as of September 30, 2025[199]. Other Financial Metrics - Bad debt expense for the nine months ended September 30, 2025, was 1.0% of revenue, compared to 0.4% for the same period in 2024[208]. - A hypothetical 5% strengthening of the U.S. dollar against the Canadian dollar would have resulted in a decrease of approximately $1.3 million in operating income for the nine months ended September 30, 2025[212]. - The effective income tax rate for the nine months ended September 30, 2025, was impacted by foreign taxes on overseas income and valuation allowances related to U.S. foreign tax credits[164]. - The company recorded a cost recovery of $2.1 million related to a previous settlement during the three months ended September 30, 2025[161]. - For the twelve-month period ending September 30, 2025, the company's consolidated EBITDA was $97.6 million, resulting in a Total Leverage Ratio (TLR) of 3.41:1[185].