RE/MAX Holdings Q4 and Full-Year 2024 Operating Results: A Closer Look
RE/MAX Holdings, Inc., the parent company of RE/MAX and Motto Mortgage, recently released their operating results for the fourth quarter and full year ended December 31, 2024. Let’s delve deeper into these figures and explore their implications.
Fourth Quarter 2024 Results
Total revenue for the quarter decreased by 5.4% to $72.5 million, with revenue excluding marketing funds dropping by 3.9% to $53.8 million. The negative organic growth rate of 3.5% and adverse foreign currency movements accounted for the revenue decline.
Despite the revenue decrease, net income attributable to RE/MAX Holdings, Inc., and earnings per diluted share (GAAP EPS) showed improvement, with $5.8 million and $0.29, respectively. Adjusted EBITDA increased by 1.6% to $23.3 million, with an adjusted EBITDA margin of 32.2% and adjusted earnings per diluted share of $0.30.
Full-Year 2024 Results
Total revenue for the year decreased by 5.5% to $307.7 million, with revenue excluding marketing funds falling by 5.4% to $228.7 million. Negative organic growth of 5.2% and adverse foreign currency movements were the primary drivers of the revenue decline.
Net income attributable to RE/MAX Holdings, Inc., and earnings per diluted share (GAAP EPS) showed a decline, with $7.1 million and $0.37, respectively. Adjusted EBITDA, however, showed growth, increasing by 1.5% to $97.7 million, with an adjusted EBITDA margin of 31.8% and adjusted earnings per diluted share of $1.30.
Operating Statistics as of January 31, 2025
As of January 31, 2025, the total agent count increased by 1.5% to 145,626 agents. The combined agent count for the U.S. and Canada decreased by 5.0% to 75,411 agents, while the number of open Motto Mortgage franchises decreased by 8.6% to 223 offices.
Impact on Individuals
The declining revenue and agent count for RE/MAX and Motto Mortgage may lead to potential job losses for real estate agents and mortgage brokers associated with these franchises. However, the focus on operational efficiencies and higher-than-forecasted profit and margin performance could lead to cost savings and improved profitability for the company.
Impact on the World
RE/MAX Holdings’ financial performance may impact the real estate and mortgage industries as a whole. A decline in revenue and agent count could lead to a decrease in market share and potential consolidation within the industry. However, the focus on operational efficiencies and profitability could set a trend for other companies to follow, leading to improved profitability and competitiveness in the market.
Conclusion
RE/MAX Holdings’ Q4 and full-year 2024 operating results showed a decline in revenue and agent count, but also highlighted the company’s focus on operational efficiencies and improved profitability. The impact on individuals and the world remains to be seen, with potential job losses and potential industry consolidation on one hand, and improved profitability and competitiveness on the other.
- Total revenue decreased by 5.4% to $72.5 million in Q4 2024
- Revenue excluding marketing funds dropped by 3.9% to $53.8 million
- Net income attributable to RE/MAX Holdings, Inc., and earnings per diluted share (GAAP EPS) showed improvement
- Adjusted EBITDA increased by 1.6% to $23.3 million
- Total revenue for the year decreased by 5.5% to $307.7 million
- Revenue excluding marketing funds fell by 5.4% to $228.7 million
- Net income attributable to RE/MAX Holdings, Inc., and earnings per diluted share (GAAP EPS) showed a decline
- Adjusted EBITDA showed growth, increasing by 1.5% to $97.7 million
- Total agent count increased by 1.5% to 145,626 agents as of January 31, 2025
- Combined agent count for the U.S. and Canada decreased by 5.0% to 75,411 agents
- Number of open Motto Mortgage franchises decreased by 8.6% to 223 offices
The future of the real estate and mortgage industries remains uncertain, but RE/MAX Holdings’ focus on operational efficiencies and profitability could set a trend for the industry as a whole. Stay tuned for further developments.
