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Re/Max Holdings Inc (RMAX)
:RMAX
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Re/Max Holdings
(NYSE:RMAX)
Select Model
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Rating:64Neutral
Price Target:
$8.50
▲(2.41% Upside)
Re/Max Holdings' overall score reflects stable financial performance with strong profitability margins but challenges in revenue and cash flow growth. Technical analysis indicates bearish momentum, while valuation suggests fair pricing. The earnings call provided positive insights into strategic initiatives, though financial guidance was tightened due to market conditions.
Positive Factors
Agent Recruitment
Record agent recruitment enhances the company's market presence and network strength, supporting long-term growth and competitive positioning.
Innovative Marketing Initiatives
The introduction of innovative marketing platforms can drive agent productivity and client engagement, fostering sustainable growth in competitive markets.
Leadership Changes
New leadership with innovative strategies can enhance operational efficiency and drive digital transformation, strengthening the company's strategic direction.
Negative Factors
Revenue Decline
A decline in core revenue indicates challenges in maintaining sales momentum, which could impact profitability and market competitiveness if not addressed.
Cash Flow Challenges
Declining cash flow generation may constrain the company's ability to invest in growth initiatives and manage financial obligations, affecting long-term stability.
Tightened Financial Guidance
Tightened financial guidance reflects uncertainties in the housing and macroeconomic environment, potentially limiting growth expectations and investor confidence.
Re/Max Holdings (RMAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$251.14M
Dividend YieldN/A
Average Volume (3M)165.72K
Price to Earnings (P/E)12.5
Beta (1Y)1.40
Revenue Growth-6.06%
EPS GrowthN/A
CountryUS
Employees536
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.37
Shares Outstanding20,056,356
10 Day Avg. Volume124,284
30 Day Avg. Volume165,717
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.47
Price to Sales (P/S)0.65
P/FCF Ratio3.78
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong momentum in agent recruitment and innovative marketing initiatives, alongside challenges such as core revenue decline and a tightened financial outlook due to market conditions.Q3-2025 Updates
Positive Updates
Record Agent Count
RE/MAX achieved an all-time high in total agent count, surpassing 147,500 agents worldwide. The U.S. agent count had its best third quarter performance in three years.
Innovative Marketing Platform
The newly launched AI-powered Marketing as a Service platform is seeing promising engagement, with a 7-figure annual run rate and plans to expand internationally.
New Leadership Appointments
Vic Lombardo joined as President of Mortgage Services, and Tom Flanagan as Chief Digital Information Officer, both bringing innovative strategies to their respective divisions.
Improved Financial Metrics
Adjusted EBITDA margin increased by 40 basis points to 35.2%, with total leverage ratio decreasing to 3.41x, offering more capital allocation flexibility.
Positive Franchise Sales Momentum
Robust franchise sales and conversion pipeline, with significant market share gains, such as in Hawaii where RE/MAX is now #2.
Negative Updates
Revenue Decline
Core revenue excluding marketing funds was $55.1 million, a decrease of 5.6% compared to the previous year, primarily due to lower U.S. agent count and adverse currency movements.
Canadian Agent Count Decline
Canadian agent count declined slightly year-over-year, reflecting continued challenges in the housing market.
Challenges in Housing Market
Existing home sales have yet to show sustained recovery, with affordability challenges persisting at lower price points.
Tightened Financial Guidance
RE/MAX tightened the top end of its full-year revenue and adjusted EBITDA guidance ranges due to uncertainties in the housing and macroeconomic environment.
Company Guidance
During the RE/MAX Holdings Third Quarter 2025 Earnings Conference Call, the company provided detailed guidance and reported several key metrics. The total revenue for the third quarter was $73.3 million, with an adjusted EBITDA of $25.8 million and an adjusted EBITDA margin of 35.2%, marking a 40 basis point increase over the previous year. The adjusted diluted EPS stood at $0.37. Despite a challenging housing market, RE/MAX saw its worldwide agent count reach a record high of over 147,500, with significant growth in the U.S. market. The company introduced new programs, Aspire, Ascend, and Appreciate, to enhance agent recruitment and retention. For the fourth quarter, RE/MAX projected revenue between $69.5 million and $73.5 million and adjusted EBITDA between $19 million and $23 million. For the full year 2025, the forecast was tightened to a revenue range of $290 million to $294 million and adjusted EBITDA of $90 million to $94 million, reflecting a slight adjustment from previous estimates. The company also emphasized its commitment to strategic investments, returning capital to shareholders, and expanding its innovative platforms like the Marketing as a Service and RE/MAX Media Network to drive long-term growth.Re/Max Holdings Financial Statement Overview
Summary
Re/Max Holdings shows stable profitability margins and low leverage, but faces challenges with declining revenue and free cash flow growth. The balance sheet is robust, yet improving return on equity and reversing negative growth trends are essential for enhancing financial performance.Income Statement
Re/Max Holdings shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth at -1.88%, which is a concern. However, the company maintains a strong gross profit margin of 72.33% and a stable EBIT margin of 15.70%. The net profit margin is modest at 3.19%, reflecting some profitability challenges. Overall, while profitability metrics are relatively stable, the negative revenue growth trend needs attention.65
Positive
Balance Sheet
The balance sheet of Re/Max Holdings reflects a solid financial position with a low debt-to-equity ratio of 0.06 in the TTM period, indicating low leverage. The return on equity (ROE) is modest at 2.20%, suggesting limited returns on shareholder investments. The equity ratio is healthy, showing a strong equity base relative to total assets. Overall, the balance sheet is stable with low financial risk, but the company could improve its ROE.70
Positive
Cash Flow
The cash flow statement reveals some challenges for Re/Max Holdings. The TTM free cash flow growth rate is negative at -22.01%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.32, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is relatively strong at 0.88, showing good cash flow relative to net income. While cash flow generation has declined, the company maintains reasonable cash flow efficiency.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 292.93M | 307.69M | 325.67M | 353.39M | 329.70M | 266.00M |
| Gross Profit | 163.90M | 228.70M | 241.81M | 263.07M | 247.31M | 201.60M |
| EBITDA | 54.73M | 75.22M | 26.62M | 87.33M | 67.44M | 72.60M |
| Net Income | 23.57M | 7.12M | -69.02M | 6.11M | -15.62M | 11.25M |
Balance Sheet | ||||||
| Total Assets | 582.20M | 581.59M | 577.15M | 693.96M | 776.13M | 557.39M |
| Cash, Cash Equivalents and Short-Term Investments | 107.48M | 96.62M | 82.62M | 108.66M | 126.27M | 101.36M |
| Total Debt | 24.92M | 472.07M | 483.98M | 493.38M | 504.33M | 279.53M |
| Total Liabilities | 617.05M | 639.99M | 653.21M | 663.53M | 707.07M | 444.71M |
| Stockholders Equity | 448.13M | 429.48M | 411.06M | 479.90M | 508.27M | 517.17M |
Cash Flow | ||||||
| Free Cash Flow | 22.89M | 53.03M | 21.84M | 61.21M | 27.20M | 63.94M |
| Operating Cash Flow | 27.00M | 59.65M | 28.26M | 71.14M | 42.44M | 70.85M |
| Investing Cash Flow | -4.06M | -5.88M | -5.64M | -11.50M | -194.92M | -17.53M |
| Financing Cash Flow | -9.46M | -8.27M | -35.82M | -78.36M | 189.35M | -36.00M |
Re/Max Holdings Technical Analysis
Negative
8.30
Price Trends
9.04
Negative
8.68
Negative
8.60
Negative
Market Momentum
-0.27
Positive
30.57
Neutral
24.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMAX, the sentiment is Negative. The current price of 8.3 is below the 20-day moving average (MA) of 8.35, below the 50-day MA of 9.04, and below the 200-day MA of 8.60, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $774.13M | ― | -25.27% | ― | 65.60% | 69.72% | |
67 Neutral | $1.56B | ― | -12.78% | 2.02% | 3.55% | -36.05% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $251.14M | 12.54 | 2.87% | ― | -6.06% | ― | |
59 Neutral | $3.11B | 30.68 | 7.36% | 0.66% | 22.17% | 94.52% | |
58 Neutral | $1.23B | -11.25 | -6.89% | ― | 2.74% | -118.94% | |
51 Neutral | $213.79M | ― | ― | ― | 8.64% | 1.81% |
* Real Estate Sector Average
RMAX
Re/Max Holdings
7.70
-4.60
-37.40%
HOUS
Anywhere Real Estate ate
10.98
6.98
174.50%
EXPI
eXp World Holdings
9.89
-4.21
-29.86%
NMRK
Newmark Group
17.61
2.98
20.37%
REAX
Real Brokerage
3.72
-1.92
-34.04%
DOUG
Douglas Elliman Inc.
2.41
0.48
24.87%
Re/Max Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Re/Max Holdings Extends Credit Agreement with JPMorgan
Positive
Oct 1, 2025
On September 30, 2025, RE/MAX, LLC and RMCO, LLC amended their credit agreement with JPMorgan Chase to extend the maturity date of their revolving facility from June 21, 2026, to April 21, 2028. This extension provides the company with additional financial flexibility, potentially impacting its operations and market positioning positively.
The most recent analyst rating on (RMAX) stock is a Buy with a $10.00 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.