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Re/Max Holdings
(NYSE:RMAX)
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Rating:60Neutral
Price Target:
$11.50
▲(18.68% Upside)
Action:Reiterated
Date:08/07/26
RMAX scores around the middle due to a mixed financial base: a substantially de-risked balance sheet and positive cash flow are supportive, but net losses and soft multi-year revenue trends weigh on financial performance. The latest earnings call was a clear positive (strong growth, expanding adjusted EBITDA, and quantified RE/MAX synergy potential), while technicals are only moderately supportive and valuation is a notable headwind given the extremely high P/E.
Positive Factors
De‑risked balance sheet
Very low leverage and sizable equity materially reduce financial risk and increase strategic flexibility. This durability supports M&A funding, cushion for cyclical housing headwinds, and gives management runway to execute integration or invest in platform improvements over the next several quarters.
Negative Factors
Multi‑year revenue drift & net losses
A multi‑year pattern of declining revenue and a return to net losses erode scale economics that support franchise fees and margins. Sustained top‑line weakness makes durable profitability reliant on either market recovery or successful cross‑sell and execution of strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked balance sheet
Very low leverage and sizable equity materially reduce financial risk and increase strategic flexibility. This durability supports M&A funding, cushion for cyclical housing headwinds, and gives management runway to execute integration or invest in platform improvements over the next several quarters.
Read all positive factors
Re/Max Holdings (RMAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$421.10M
Dividend YieldN/A
Average Volume (3M)165.48K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-5.04%
EPS Growth-182.78%
CountryUS
Employees519
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.41
Shares Outstanding21,317,741
10 Day Avg. Volume123,877
30 Day Avg. Volume165,478
Financial Highlights & Ratios
PEG Ratio2.34
Price to Book (P/B)0.33
Price to Sales (P/S)0.52
P/FCF Ratio4.50
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.23
Revenue Forecast (FY)$288.64M
Re/Max Holdings Business Overview & Revenue Model
Company Description
RE/MAX Holdings, Inc. operates as a franchisor of real estate brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. The Real Estate segment co...
How the Company Makes Money
Re/Max Holdings primarily makes money by franchising its brands rather than by directly brokering real estate transactions. Its key revenue streams generally include: (1) Ongoing franchise fees and dues from RE/MAX real estate brokerage offices an...
Re/Max Holdings Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents a majority of positive operational and financial developments — strong revenue growth (+32% YoY), significant adjusted EBITDA expansion (+80% YoY), transaction and agent growth (+25% transactions) and tangible progress across ancillary products (Real Wallet, Title, Mortgage). Management also announced a strategic acquisition of RE/MAX with quantified synergies and cross‑sell opportunities. Offsetting risks include an ongoing operating loss (albeit improved), gross margin pressure from capped agent mix, a near‑term step‑up in acquisition costs and the need to execute a complex integration while carrying acquisition-related leverage. On balance, highlights materially outweigh the identified lowlights given the growth, profitability trajectory and clear strategic rationale for scale.Positive Updates
Strong Revenue Growth
Q1 revenue of $466.0M, up 32% year-over-year.
Negative Updates
Operating Loss Remains Negative
Operating loss of -$3.4M in Q1 (improved vs prior year but still in the red).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 revenue of $466.0M, up 32% year-over-year.
Read all positive updates
Company Guidance
Management gave directional (not formal) guidance: they expect Q2 revenue to rise sequentially with normal seasonality, but gross margin to trend lower through the year as more agents hit commission caps (Q1 gross margin 9.1% vs 9.6% a year ago), with Q2 YoY margin pressure similar to Q1 and a flatter YoY trend expected in H2. They warned Q2 operating expenses will reflect a material step‑up in RE/MAX acquisition‑related costs (to be reported as non‑recurring) but reiterated the plan to grow OpEx slower than revenue to drive continued YoY improvement in adjusted EBITDA (Q1 adjusted EBITDA $14.9M, +80% YoY) and improved operating loss (Q1 operating loss $3.4M). On the transaction and capital plan they target closing in H2, modeled RE/MAX at roughly $880M enterprise value (~9x trailing adj. EBITDA of ~$94M, ~7x post‑synergies), underwrote $30M of run‑rate cost synergies, will take on debt but expect to delever to ~2x net debt/adjusted EBITDA by the end of the second full fiscal year post‑close, and noted ancillary tailwinds (ancillary revenue $3M, +34%; Real Wallet revenue $436k, ~+250%; weekly debit card spend >$1M; deposits >$25M) that should help margins over time.Re/Max Holdings Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 283.12M | 291.60M | 307.69M | 325.67M | 353.39M | 329.70M |
| Gross Profit | 177.85M | 168.07M | 228.70M | 241.81M | 263.07M | 247.31M |
| EBITDA | 49.36M | 77.18M | 72.02M | 26.62M | 74.80M | 20.52M |
| Net Income | -8.61M | 8.15M | 7.12M | -69.02M | 6.11M | -15.62M |
Balance Sheet | ||||||
| Total Assets | 567.43M | 582.48M | 581.59M | 577.15M | 693.96M | 776.13M |
| Cash, Cash Equivalents and Short-Term Investments | 112.40M | 118.74M | 96.62M | 82.62M | 108.66M | 126.27M |
| Total Debt | 453.91M | 459.48M | 472.07M | 483.98M | 493.38M | 504.33M |
| Total Liabilities | 614.31M | 611.46M | 639.99M | 653.21M | 663.53M | 707.07M |
| Stockholders Equity | 443.93M | 452.41M | 429.48M | 411.06M | 479.90M | 508.27M |
Cash Flow | ||||||
| Free Cash Flow | 25.84M | 33.50M | 53.03M | 21.84M | 61.21M | 27.20M |
| Operating Cash Flow | 34.99M | 40.88M | 59.65M | 28.26M | 71.14M | 42.44M |
| Investing Cash Flow | -9.56M | -7.78M | -5.88M | -5.64M | -11.50M | -194.92M |
| Financing Cash Flow | -9.72M | -10.75M | -8.27M | -35.82M | -78.36M | 189.35M |
Re/Max Holdings Technical Analysis
Positive
9.69
Price Trends
10.25
Positive
9.19
Positive
8.30
Positive
Market Momentum
0.55
Negative
72.74
Negative
90.09
Negative
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 9.69 is below the 20-day moving average (MA) of 10.44, below the 50-day MA of 10.25, and above the 200-day MA of 8.30, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 72.74 is Negative, neither overbought nor oversold. The STOCH value of 90.09 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.77B | 18.40 | 9.92% | 0.97% | 23.06% | 88.89% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $526.11M | -36.20 | -25.78% | ― | 38.44% | -12.30% | |
60 Neutral | $421.10M | -30.74 | -1.92% | ― | -5.04% | -182.78% | |
51 Neutral | $182.69M | 7.81 | 15.69% | ― | -2.75% | ― |
* Real Estate Sector Average
RMAX
Re/Max Holdings
12.55
3.65
41.01%
NMRK
Newmark Group
15.25
-1.84
-10.76%
REAX
Real Brokerage
2.40
-2.09
-46.55%
DOUG
Douglas Elliman Inc.
2.03
-0.43
-17.48%
Re/Max Holdings Corporate Events
Executive/Board ChangesLegal ProceedingsM&A TransactionsRegulatory Filings and Compliance
Real REMAX Group Details Governance Structure Post-Merger
Positive
Aug 6, 2026
Real REMAX Group, the combined entity proposed in the merger between Real and RE/MAX Holdings, outlined the slate of directors and governance structure expected to take effect after the transaction closes, as detailed in disclosures dated as of Au...
M&A TransactionsShareholder MeetingsStock Split
RE/MAX sets election deadline for Real acquisition consideration
Neutral
Aug 4, 2026
On August 4, 2026, RE/MAX Holdings and The Real Brokerage announced that holders of RE/MAX Class A common stock face an August 18, 2026, 5:00 p.m. New York time deadline to elect the form of consideration they will receive in Real’s pending ...
M&A TransactionsRegulatory Filings and Compliance
RE/MAX gains antitrust clearance for Real Brokerage merger
Positive
Jul 15, 2026
On April 26, 2026, RE/MAX Holdings entered into an Arrangement Agreement and Plan of Merger with The Real Brokerage Inc. and several affiliated entities to pursue a structured combination of their operations. The contemplated transaction progresse...
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.