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Re/Max Holdings (RMAX)
NYSE:RMAX
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Re/Max Holdings (RMAX) AI Stock Analysis

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RMAX

Re/Max Holdings

(NYSE:RMAX)

Rating:71Outperform
Price Target:
$10.00
▲(3.09% Upside)
Re/Max Holdings shows a stable financial position with strong profitability and low leverage, but faces challenges with declining revenue and cash flow growth. Positive technical indicators and strategic initiatives provide a bullish outlook, though market conditions and valuation concerns temper enthusiasm.
Positive Factors
Agent Growth
RE/MAX's agent count increased by 2.8% year-over-year, with growth driven by international markets.
Financial Performance
Adjusted EBITDA was above estimates, showing a 9% year-over-year increase.
Negative Factors
Agent Decline
U.S. agents declined by 1,432 sequentially, to 49,854 (down 8% year-over-year), which is now roughly 21% below peak levels in 2019.
Revenue Decline
Excluding marketing funds, RE/MAX's revenue declined by 7% year-over-year and was slightly below estimates.

Re/Max Holdings (RMAX) vs. SPDR S&P 500 ETF (SPY)

Re/Max Holdings Business Overview & Revenue Model

Company DescriptionRe/Max Holdings, Inc. (RMAX) is a global real estate network that operates through a franchise model, primarily engaging in residential and commercial real estate services. The company is known for its innovative marketing strategies and a wide range of services, including property listing, buying, and selling, as well as mortgage and title services. Re/Max operates in various sectors, including residential real estate, commercial real estate, and real estate technology, providing comprehensive solutions to both agents and clients.
How the Company Makes MoneyRe/Max Holdings generates revenue primarily through its franchise model, where it earns income from franchise fees paid by its independent agents and brokers. These fees typically consist of initial franchise sales, ongoing royalties based on a percentage of sales, and additional services provided to franchisees. Additionally, the company earns revenue from its affiliated businesses, such as mortgage services and title insurance, which complement its core real estate offerings. Strategic partnerships with technology platforms and marketing services also enhance its revenue streams, allowing Re/Max to provide valuable tools and resources to its agents, thereby increasing overall transaction volumes and profitability.

Re/Max Holdings Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted RE/MAX's strong agent growth, successful adoption of new programs, and solid financial performance. However, challenges in the housing market, revenue decline, and slower-than-expected ramp-up of media initiatives presented notable concerns.
Q2-2025 Updates
Positive Updates
Record Agent Count
RE/MAX ended Q2 2025 with over 147,000 agents in its global network, an all-time high, showing signs of stabilization in the U.S. agent count.
Financial Performance Exceeds Expectations
Profit and margin performance exceeded expectations for the fifth consecutive quarter, with adjusted EBITDA margin increasing by 30 basis points to 36.1%.
Successful Adoption of Aspire Program
Aspire, an onboarding program, saw a significant adoption with nearly 60% of brokerages in the U.S. and Canada signing up, contributing to higher recruitment rates in Q2 2025.
Introduction of New Tools and Technology
RE/MAX launched an AI-powered global referral system and other tools like lead concierge and Marketing as a Service in beta, enhancing agent productivity and consumer experience.
Strategic Expansion in Hawaii
The acquisition of RE/MAX Hawaii added over 170 productive agents to the network, strengthening market share and operational capabilities.
Negative Updates
Revenue Decline
Total revenue was $72.8 million, with a 6.8% decrease excluding marketing funds, driven by negative organic growth of 5.7% and adverse foreign currency movements of 1.1%.
Challenging Housing and Mortgage Environment
The sluggish housing market and persistently high mortgage rates impacted revenue expectations and posed challenges for the mortgage business.
Slower-than-Expected Ramp-Up of RE/MAX Media Network
The launch of the RE/MAX Media Network has been slower than anticipated due to a challenging macro environment affecting advertising spend.
Lowered Full-Year Revenue Guidance
The revenue guidance for full-year 2025 was tightened, decreasing the expected range due to various factors including slower ramp-up of initiatives.
Company Guidance
During the RE/MAX Holdings Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance for the upcoming periods. They reported a total revenue of $72.8 million for Q2, with an adjusted EBITDA of $26.3 million, achieving a margin of 36.1%, which is an increase of 30 basis points compared to the previous year. Adjusted diluted EPS stood at $0.39. The company's global agent count hit over 147,000, an all-time high, with U.S. agent count showing signs of stabilization. Despite a decrease in revenue, excluding marketing funds, to $54.5 million, the company saw positive contributions from new revenue streams like its RE/MAX Media Network and lead concierge initiatives. Looking ahead, RE/MAX Holdings expects Q3 2025 revenue in the range of $71 million to $76 million and adjusted EBITDA between $23.5 million and $26.5 million. For the full year 2025, they anticipate agent count growth from 0% to 1.5% over 2024, with revenue between $290 million and $296 million, and adjusted EBITDA ranging from $90 million to $95 million. The company acknowledged challenges such as high mortgage rates and a sluggish housing market but remains optimistic about strategic initiatives like the Aspire program, which has positively impacted agent recruitment.

Re/Max Holdings Financial Statement Overview

Summary
Re/Max Holdings shows strong gross profitability and cash generation but faces challenges with declining revenue and high leverage. The balance sheet reflects significant debt, which could impact financial stability. Operational efficiency has improved, but the low net profit margin and modest ROE suggest areas for improvement.
Income Statement
65
Positive
Re/Max Holdings has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 72.0%, indicating strong profitability in core operations. However, the net profit margin is relatively low at 2.8%, suggesting high expenses or other financial pressures. Revenue has declined over the past year, with a negative growth rate of -13.0% from 2023 to 2024, indicating challenges in maintaining sales momentum. The EBIT margin improved to 13.5% in TTM, showing better operational efficiency compared to previous losses. Overall, while there are strengths in profitability, the declining revenue and low net margins are concerning.
Balance Sheet
60
Neutral
The balance sheet of Re/Max Holdings reveals a high debt-to-equity ratio of 1.08, indicating significant leverage which could pose financial risks. The return on equity (ROE) is modest at 2.0% in TTM, reflecting limited returns for shareholders. The equity ratio is 75.9%, which suggests a solid equity base relative to total assets. While the company maintains a stable equity position, the high leverage and modest ROE highlight potential financial vulnerabilities.
Cash Flow
70
Positive
Re/Max Holdings demonstrates a strong cash flow position with a TTM free cash flow of $50.2 million. The operating cash flow to net income ratio is robust at 6.57, indicating efficient cash generation from operations. However, the free cash flow growth rate has declined by 5.3% from 2023 to 2024, suggesting challenges in sustaining cash flow growth. The free cash flow to net income ratio is high at 5.90, highlighting effective cash conversion. Overall, the cash flow statement shows strength in cash generation, but the decline in growth rate warrants attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue298.16M307.69M325.67M353.39M329.70M266.00M
Gross Profit215.67M228.70M241.81M263.07M247.31M201.60M
EBITDA67.54M75.22M26.62M87.33M67.44M72.60M
Net Income9.50M7.12M-69.02M6.11M-15.62M11.25M
Balance Sheet
Total Assets574.80M581.59M577.15M693.96M776.13M557.39M
Cash, Cash Equivalents and Short-Term Investments94.31M96.62M82.62M108.66M126.27M101.36M
Total Debt27.13M472.07M483.98M493.38M504.33M279.53M
Total Liabilities618.36M639.99M653.21M663.53M707.07M444.71M
Stockholders Equity442.43M429.48M411.06M479.90M508.27M517.17M
Cash Flow
Free Cash Flow39.18M53.03M21.84M61.21M27.20M63.94M
Operating Cash Flow44.60M59.65M28.26M71.14M42.44M70.85M
Investing Cash Flow-5.09M-5.88M-5.64M-11.50M-194.92M-17.53M
Financing Cash Flow-10.68M-8.27M-35.82M-78.36M189.35M-36.00M

Re/Max Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.70
Price Trends
50DMA
8.50
Positive
100DMA
8.11
Positive
200DMA
9.12
Positive
Market Momentum
MACD
0.31
Negative
RSI
65.67
Neutral
STOCH
72.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMAX, the sentiment is Positive. The current price of 9.7 is above the 20-day moving average (MA) of 8.99, above the 50-day MA of 8.50, and above the 200-day MA of 9.12, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 72.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMAX.

Re/Max Holdings Risk Analysis

Re/Max Holdings disclosed 31 risk factors in its most recent earnings report. Re/Max Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Re/Max Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$306.34M20.602.21%-5.21%
70
Outperform
$1.09B-31.81%72.57%65.15%
67
Neutral
$1.72B-12.78%1.78%3.55%-36.05%
57
Neutral
$695.67M-6.89%2.74%-118.94%
56
Neutral
$235.08M-36.97%8.64%1.81%
53
Neutral
$4.39B-41.33%14.07%27.59%
53
Neutral
$1.21B3.22-6.08%5.78%-8.30%-81.83%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RMAX
Re/Max Holdings
9.70
-1.26
-11.50%
HOUS
Anywhere Real Estate ate
6.46
1.50
30.24%
EXPI
eXp World Holdings
11.22
-1.23
-9.88%
OPEN
Opendoor Technologies
6.65
4.68
237.56%
REAX
Real Brokerage
5.25
-0.26
-4.72%
DOUG
Douglas Elliman Inc.
2.90
1.25
75.76%

Re/Max Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Re/Max Holdings Stockholders Approve Key Proposals
Neutral
May 20, 2025

On May 14, 2025, Re/Max Holdings held its Annual Meeting where stockholders voted on several key proposals. The stockholders elected Class III directors, approved executive compensation, amended the 2023 Omnibus Incentive Plan, and ratified Ernst & Young LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (RMAX) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Re/Max Holdings stock, see the RMAX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025