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1. Company Snapshot

1.a. Company Description

RE/MAX Holdings, Inc.operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally.The company operates through three segments: Real Estate, Mortgage, and Marketing Funds.


It offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand.In addition, the company provides First mobile app, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; RE/MAX University platform, a learning hub designed to help each agent in their professional expertise; and Booj platform.The company was founded in 1973 and is headquartered in Denver, Colorado.

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1.b. Last Insights on RMAX

RE/MAX Holdings, Inc.'s recent performance was negatively impacted by a 6.7% decrease in total revenue to $73.3 million, primarily due to a 5.4% organic revenue growth decline and 0.2% adverse foreign currency movements. The company's U.S. and Canada combined agent count decreased 5.1% to 74,198 agents, while total open Motto Mortgage franchises decreased 10.3% to 210 offices. Despite beating earnings estimates with an adjusted EPS of $0.37, the company's revenue decline and agent count decrease in key markets are concerns.

1.c. Company Highlights

2. RE/MAX Holdings' Q3 2025 Earnings: A Strong Performance Amidst a Slower Housing Market

RE/MAX Holdings reported a robust third quarter, with total revenue reaching $73.3 million, adjusted EBITDA of $25.8 million, and an adjusted EBITDA margin of 35.2%, a 40 basis point increase over the third quarter of 2024. Earnings per share (EPS) came in at $0.37, beating estimates of $0.36. The company's financial performance was driven by a record-high agent count of 147,500, fueled by steady global growth and a strong U.S. agent count performance.

Publication Date: Nov -23

📋 Highlights
  • Agent Count Growth:: Total agent count reached 147,500 (all-time high), with U.S. agent count showing best 3Q performance in 3 years and international agents exceeding 73,000.
  • Program Impact:: Aspire program benefits 1,500 agents; Marketing as a Service platform projected to generate 7-digit revenues in 2025 with high single-digit to low double-digit margins.
  • Financial Performance:: Q3 revenue hit $73.3M, adjusted EBITDA rose to $25.8M (35.2% margin, +40 bps YoY), with full-year guidance narrowed to $290–294M revenue and $90–94M EBITDA.
  • Strategic Adjustments:: Standard fee model changes impact ~1,500 agents short-term, while Ascend/Appreciate programs offer flexible payment options to franchisees.
  • Capital Flexibility:: Deleveraged to <3.5x net debt/EBITDA, enabling potential share buybacks alongside reinvestment and capital allocation for growth initiatives.

Agent Count and Recruitment

The company's agent count continues to be a bright spot, with international agents surpassing 73,000. The Aspire program, designed for newer agents, has been successful, with approximately 1,500 agents benefiting from it. As CEO Erik Carlson noted, "We're seeing higher retention rates and incremental recruitment" through the Aspire program, which is a positive sign for the company's long-term growth prospects.

New Initiatives and Growth Opportunities

RE/MAX Holdings has introduced several new initiatives, including the RE/MAX Marketing as a Service platform, which has shown great engagement and returns. The company expects this platform to contribute 7-digit revenue in 2025 and continue to grow in 2026 and beyond. The RE/MAX Media Network has also shown good engagement with advertisers and consumers, and the company is working to build out its capabilities.

Valuation and Outlook

With a P/E Ratio of 6.69 and an EV/EBITDA ratio of 1.38, the company's valuation appears reasonable. Analysts estimate revenue growth of 1.4% next year, which is a modest expectation. Given the company's strong financial performance and growth initiatives, it is well-positioned for long-term growth. The company's return on invested capital (ROIC) of 17.21% and return on equity (ROE) of 5.38% are also positive indicators of its financial health.

Capital Allocation

RE/MAX Holdings has deleveraged below 3.5x and has more flexibility to allocate capital to areas with the highest returns. The company is considering returning capital to shareholders through buybacks, which is a positive sign for investors. With a Free Cash Flow Yield of 14.5%, the company has a strong ability to generate cash and return value to shareholders.

3. NewsRoom

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REMAX Survey Reveals Strong Demand: 88% of Prospective Buyers Plan to Purchase a Home in 2026

Dec -04

Source: prnewswire.com

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REMAX NATIONAL HOUSING REPORT FOR OCTOBER 2025

Nov -18

Source: prnewswire.com

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REMAX Canada Strengthens Commercial Division with Appointment of Damon Conrad as Vice President

Nov -10

Source: prnewswire.com

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Global REMAX Network Supports Communities Worldwide in Annual Week of Giving

Nov -03

Source: prnewswire.com

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RE/MAX Holdings, Inc. (RMAX) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Compared to Estimates, RE/MAX (RMAX) Q3 Earnings: A Look at Key Metrics

Oct -31

Source: zacks.com

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RE/MAX (RMAX) Q3 Earnings and Revenues Surpass Estimates

Oct -30

Source: zacks.com

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RE/MAX HOLDINGS, INC. REPORTS THIRD QUARTER 2025 RESULTS

Oct -30

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.11%)

6. Segments

Real Estate

Expected Growth: 1.2%

RE/MAX Holdings, Inc.'s 1.2% growth in Real Estate is driven by increasing demand for housing, low interest rates, and a strong economy. Additionally, the company's expansion into new markets, technology investments, and agent recruitment efforts have contributed to its growth. Furthermore, the company's diversified business model, which includes franchising, mortgage, and title services, has helped to mitigate risks and drive revenue growth.

Marketing Funds

Expected Growth: 0.8%

Marketing Funds from RE/MAX Holdings, Inc. growth of 0.8 driven by increasing agent count, rising real estate transactions, and expanding global footprint. Additionally, strategic investments in digital marketing, lead generation, and brand awareness campaigns contribute to growth. Furthermore, RE/MAX's strong brand reputation and competitive commission structure attract and retain top agents, fueling marketing fund growth.

Mortgage

Expected Growth: 1.5%

The 1.5% growth in Mortgage from RE/MAX Holdings, Inc. is driven by increasing demand for housing, low interest rates, and government-backed mortgage programs. Additionally, RE/MAX's strong brand recognition, extensive agent network, and technology investments have enabled the company to capitalize on market trends, resulting in sustained growth.

Other

Expected Growth: 0.5%

RE/MAX Holdings, Inc.'s 0.5% growth in 'Other' segment is driven by increasing demand for mortgage services, expansion of mortgage processing capabilities, and strategic partnerships. Additionally, growth in title insurance and settlement services, as well as increased adoption of digital mortgage solutions, contribute to this modest growth.

7. Detailed Products

Residential Real Estate Brokerage Services

RE/MAX Holdings, Inc. provides residential real estate brokerage services through its franchise network, connecting buyers and sellers of residential properties.

Commercial Real Estate Brokerage Services

RE/MAX Holdings, Inc. offers commercial real estate brokerage services, providing expertise in leasing, sales, and investment opportunities for commercial properties.

Mortgage Services

RE/MAX Holdings, Inc. provides mortgage services through its mortgage partners, offering a range of loan options and competitive rates.

Title and Settlement Services

RE/MAX Holdings, Inc. offers title and settlement services, ensuring a smooth and secure transaction process for buyers and sellers.

Franchise Opportunities

RE/MAX Holdings, Inc. offers franchise opportunities for entrepreneurs and real estate professionals, providing training, support, and brand recognition.

Real Estate Technology and Data Analytics

RE/MAX Holdings, Inc. provides real estate technology and data analytics solutions, empowering agents and brokers with insights and tools to succeed.

8. RE/MAX Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for RE/MAX Holdings, Inc. is medium due to the presence of alternative real estate companies and online platforms that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers for RE/MAX Holdings, Inc. is low due to the fragmented nature of the real estate market and the lack of concentration of buyers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for RE/MAX Holdings, Inc. is medium due to the presence of multiple suppliers of real estate services and the moderate level of concentration among suppliers.

Threat Of New Entrants

The threat of new entrants for RE/MAX Holdings, Inc. is high due to the relatively low barriers to entry in the real estate industry and the increasing trend of online platforms and new business models.

Intensity Of Rivalry

The intensity of rivalry for RE/MAX Holdings, Inc. is high due to the highly competitive nature of the real estate industry, with many established players and new entrants competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.40%
Debt Cost 3.95%
Equity Weight 47.60%
Equity Cost 11.05%
WACC 7.33%
Leverage 110.08%

11. Quality Control: RE/MAX Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Newmark

A-Score: 4.9/10

Value: 5.0

Growth: 4.0

Quality: 5.4

Yield: 2.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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RE/MAX

A-Score: 4.3/10

Value: 8.5

Growth: 3.2

Quality: 6.8

Yield: 2.0

Momentum: 2.0

Volatility: 3.7

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eXp World Holdings

A-Score: 4.1/10

Value: 5.1

Growth: 5.2

Quality: 4.5

Yield: 3.0

Momentum: 3.0

Volatility: 3.7

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Doma

A-Score: 4.0/10

Value: 9.6

Growth: 3.3

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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J.W. Mays

A-Score: 4.0/10

Value: 3.8

Growth: 4.4

Quality: 2.7

Yield: 0.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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FRP Holdings

A-Score: 3.9/10

Value: 2.5

Growth: 4.0

Quality: 6.5

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.09$

Current Price

8.09$

Potential

-0.00%

Expected Cash-Flows