RE/MAX’s second quarter was marked by a negative market reaction as revenues came in below Wall Street’s expectations, reflecting a slowdown in the U.S. housing market and challenges in ramping up new business initiatives. Management cited ongoing headwinds from affordability constraints and high mortgage rates, along with delayed contributions from its media and technology investments, as the primary factors behind the results. CEO W. Erik Carlson acknowledged, “uncertainty around tariffs, inflation and consumer confidence, coupled with affordability challenges, including persistently high mortgage rates have caused us to temper our expectations.”
Is now the time to buy RMAX? Find out in our full research report (it’s free).
RE/MAX (RMAX) Q2 CY2025 Highlights:
- Revenue: $72.75 million vs analyst estimates of $73.57 million (7.3% year-on-year decline, 1.1% miss)
- Adjusted EPS: $0.39 vs analyst estimates of $0.35 (11% beat)
- Adjusted EBITDA: $26.27 million vs analyst estimates of $24.9 million (36.1% margin, 5.5% beat)
- The company dropped its revenue guidance for the full year to $293 million at the midpoint from $300 million, a 2.3% decrease
- EBITDA guidance for the full year is $92.5 million at the midpoint, below analyst estimates of $94.62 million
- Operating Margin: 19.3%, down from 20.6% in the same quarter last year
- Agents: 147,073, up 3,531 year on year
- Market Capitalization: $172.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From RE/MAX’s Q2 Earnings Call
- Thomas Patrick McJoynt-Griffith (KBW) asked for clarity on what drove the reduced guidance. CFO Karri R. Callahan pointed to slower ramp-up of the RE/MAX Media Network, softer broker fee volumes, and near-term revenue delays from Aspire as the main drivers.
- Thomas Patrick McJoynt-Griffith (KBW) followed up on the agent count outlook, inquiring about geographic contributions. Callahan explained that international growth was the largest incremental driver, but emphasized recent progress in U.S. recruitment, including the Hawaii conversion.
- Nick McAndrew (Zelman) questioned how Aspire is resonating with agents and franchisees. CEO W. Erik Carlson reported high adoption, especially among newer and transferring agents, with nearly two-thirds of eligible brokerages participating.
- Nick McAndrew (Zelman) also asked about engagement with multiple agent-facing tools. Carlson said it is too early for detailed retention data but noted positive adoption rates and improvements in lead conversion and agent onboarding.
- No other analyst questions were asked on the call.
Catalysts in Upcoming Quarters
The StockStory team will be closely watching (1) further signs of stabilization or growth in the U.S. agent count, particularly as Aspire becomes more embedded, (2) the pace at which the RE/MAX Media Network and lead concierge programs begin to contribute to top-line revenue, and (3) any shift in housing market activity tied to changes in mortgage rates or consumer affordability. Additional updates on international agent growth and progress in the mortgage segment will also be important indicators.
RE/MAX currently trades at $8.61, in line with $8.58 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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