The franchisor reported lower-than-expected revenue in Q2 as operating costs rose, resulting in a net loss of more than $4 million.
In what could be its last quarterly earnings release as RE/MAX Holdings, the franchise giant delivered a disappointing report.
Revenue declined nearly 6% year-over-year to $68.5 million, falling short of analyst expectations of $72.8 million for the second quarter. Also missing the mark were earnings per share and adjusted EBITDA, both of which came in more than 13% below Wall Street forecasts.
Global agent count ticked up, however, increasing 1.5% to 149,267, but combined U.S. and Canada agent count dipped 2.2% to 72,968. REMAX’s North American agent count has dropped by nearly 10,000 over a three-year period.
What REMAX had to say
Due to its acquisition by The Real Brokerage — which is expected to close later this year pending regulatory approvals and a shareholder vote on Aug. 14 — REMAX did not hold an investor call, but the report offered some insight into the numbers.
New fee models, fewer mortgage offices took a toll: Revenue declines, the earnings report noted, were largely driven by changes to the company’s fee models — specifically its Aspire and Ascend offerings — which CEO Erik Carlson touted last year as offering franchisees more flexibility in pay and fee structures to improve recruiting and retention.
Falling U.S. agent count and a waning mortgage business also accounted for the lower-than-expected numbers, according to the report. A significant number of REMAX’s Motto Mortgage franchises have been shuttered over the past year, with office count down 32% year-over-year to 149.
Losses rise alongside expenses: After ending 2025 with a positive balance sheet, REMAX reported a second consecutive quarter of net losses. Combined losses for the first half of this year totaled more than $14 million, compared to a net income of $2.7 million for the same period last year.
The reversal was due in part to a 14% jump in operating expenses in Q2, resulting primarily from merger-related transaction costs, the report noted.
Key numbers
Revenue: $68.5 million in Q2, down 5.8% year-over-year.
Cash and cash equivalents: $112.4 million at the close of the quarter, down from $118.7 million on Dec. 31.
Net income/loss: A net loss of $4.3 million in Q2, which was an improvement over the net loss of $9.7 million in the first quarter but a reversal from REMAX’s $4.7 million net income reported a year earlier.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $22.9 million in Q1, down 12.6% year-over-year.
Agent count: The company had 149,267 agents globally at the end of June, an increase of 1.5% year-over-year. The combined agent count for the U.S. and Canada fell 2.2% to 72,968.
Motto Mortgage franchises: Office count decreased 32% to 149 at the end of Q2.
Notable moves
Even as it prepares to unite with The Real Brokerage, REMAX is…
Read More: REMAX misses the mark as revenue falls 6%
