RE/MAX sees dip in revenue, agents in first quarter
Following a series of leadership changes, the company is focusing on cutting expenses as it navigates the tough real estate market.
RE/MAX continues to post declines in revenue and agent count as the company's new leadership grapples with "an environment of uncertainty."
First-quarter revenue was $78.3 million, down 8.3% compared to a year ago, while agent count declined by more than 1,500 between the end of 2023 and the end of March. Most of the losses were in the U.S. and Canada, but overall agent count dipped as well. The company expects agent count and revenue to remain largely flat in the second quarter.
RE/MAX managed to cut its operating expenses 6% in the past year, according to the earnings report. Part of that decrease came from reduced legal expenses — the company settled with home sellers last year in the commission lawsuits, and a hearing has been scheduled for May 9 to finalize that $55 million agreement.
What RE/MAX had to say
In the earnings release, Carlson highlighted "effective cost management" as a driver of the company's performance in Q1, noting that RE/MAX continues "to operate our business as efficiently as possible amidst an environment of uncertainty."
He also drew attention to RE/MAX's "industry-leading" agent productivity, calling it "a major reason we have succeeded over the past 51 years."
Key numbers
Revenue: $78.3 million for the first quarter, down 8.3% from $85.4 million in the first quarter of 2023. The declines were attributed in part to lower-than-expected-revenue from the annual RE/MAX agent convention and a decrease in U.S. agent count.
Revenue was up compared to the fourth quarter of 2023, when it came in at $76.6 million.
Cash and cash equivalents: RE/MAX ended the first quarter with $82.1 million, a decrease of $0.5 million compared to the end of 2023. The company had $443.6 million in outstanding debt, down from $444.6 million at the end of 2023.
Net income/loss: A loss of $3.4 million for the quarter, not as severe as the $10.9 million loss at the end of 2023, but greater than the $671,000 loss during the same period a year prior.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $19 million, down 4.7% year-over-year.
Agent count: 143,287 at the end of March, down from 144,835 at the end of 2023, but only 0.2% lower than it was a year ago. U.S. and Canada agent count fell 4.3% year-over-year.
Notable moves
Much of the company's cost-cutting work is being done under new senior leadership:
RE/MAX Holdings CEO Erik Carlson is approaching his six-month milestone with the company after joining in November.
Nick Bailey, formerly president and CEO of RE/MAX, left the company in February, with Amy Lessinger taking over as president.
Abby Lee and Susie Winders were promoted to executive vice president roles in February.