RE/MAX Holdings, Inc. (RMAX) Market Cap
RE/MAX Holdings, Inc. has a market capitalization of $129.1M.
Financials based on reported quarter end 2025-12-31
Price: $6.41
▲ 0.41 (6.83%)
Market Cap: 129.11M
NYSE · time unavailable
CEO: W. Erik Carlson
Sector: Real Estate
Industry: Real Estate - Services
IPO Date: 2013-10-02
Website: https://www.remaxholdings.com
RE/MAX Holdings, Inc. (RMAX) - Company Information
Market Cap: 129.11M · Sector: Real Estate
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.
Analyst Sentiment
Based on 4 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 3 sources)
Consensus Price Target
Low
$7
Median
$9
High
$34
Average
$17
Potential Upside: 160.1%
Price & Moving Averages
Related Companies in Real Estate
SEVEN HILLS REALTY TRUST (SEVN)
Real Estate
$0.13B
Mkt Cap
ACRES COMMERCIAL REALTY CORP (ACR)
Real Estate
$0.15B
Mkt Cap
RITHM PROPERTY INC TRUST (RPT)
Real Estate
$0.11B
Mkt Cap
SUNRISE REALTY TRUST INC (SUNS)
Real Estate
$0.11B
Mkt Cap
DOUGLAS ELLIMAN INC (DOUG)
Real Estate
$0.16B
Mkt Cap
MODIV INDUSTRIAL INC CLASS C (MDV)
Real Estate
$0.16B
Mkt Cap
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"RMAX reported revenue of $71.14M and a net income of $1.44M. The company has been facing challenges, with a significant 1-year stock price decline of 31.10%. Its balance sheet shows total assets of $582.48M against total liabilities of $611.46M, resulting in negative equity of $28.99M. RMAX does not generate free cash flow, nor does it have operating cash flow, indicating cash flow issues. Despite a consistent dividend payout of $0.23 per share quarterly, the absence of revenue growth is concerning. Balancing high debt of $340.75M exacerbates the financial instability amid reduced market performance. The price target ranges from $7 to $34, with a consensus target of $16.67. RMAX's current market price is $6.27, suggesting undervaluation but also reflecting investor caution given its financial metrics and recent performance."
Revenue Growth
Revenue of $71.14M shows potential but lacks significant growth.
Profitability
Net income of $1.44M is low relative to revenue, indicating profitability challenges.
Cash Flow Quality
No operating or free cash flow reported raises liquidity concerns.
Leverage & Balance Sheet
Negative equity and high debt levels indicate significant financial risk.
Shareholder Returns
Consistent dividend payments despite losses show commitment to shareholders.
Analyst Sentiment & Valuation
Price targets suggest potential upside, but sentiment reflects investor caution.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management sounded upbeat on operational momentum (Q4 profit/margins at the high end; leverage down to 3.12x; agent count >148,500) and leaned on brand/product execution (Aspire adoption >2,000; Marketing as a Service engagement multiples; large Ontario conversion with ~1,200 agents). However, the Q&A revealed the near-term revenue headwind is still structural: organic revenue ex marketing funds fell 0.4% YoY, driven by reduced U.S. agent count and Aspire-related incentives (though management quantified Aspire’s broker-fee impact as “not that significant,” roughly a couple hundred thousand dollars to ~$0.5M in Q4). Analysts probed upside/downside mechanics: management’s “push to the high end” is dependent on macro tailwinds, stabilization in U.S. agent count, and additional conversion/M&A pipeline plus monetization outperformance (marketing as a service and digital channels). Capital allocation was cautious—more flexibility exists due to leverage headroom, but repurchases are not guaranteed in the near term given macro.
Growth Catalysts
- Largest brokerage conversion in RE/MAX history (Ontario family: Risi; nearly 1,200 agents joined RE/MAX Canada, announced in mid-January)
Business Development
- Risi family / 17-office Toronto-based operation (Vivian Risi and children Michelle and Justin); nearly 1,200 agents (RE/MAX Canada)
- MAX referral program cited as seeing improvements and additional transactions
- Promotion of Chris Lim to President & Chief Growth Officer (RE/MAX) with stated role in major conversions (Hawaii and Ontario)
Financial Highlights
- Total revenue: $71.1M
- Adjusted EBITDA: $22.4M; Adjusted EBITDA margin: 31.5%
- Adjusted diluted EPS: $0.30
- Revenue ex marketing funds: $53.6M, down 0.4% YoY (organic revenue down 0.4%; FX flat)
- Organic revenue decline attributed to: reduced U.S. agent count and incentives impact, including Aspire (partially offset by higher broker fees and contributions from Marketing as a Service + digital monetization)
- Q4 S,G&A increased $1.6M (+4.4%) to $37.3M driven by losses on sale/disposal of assets and timing of other events; partially offset by lower personnel-related expenses
- Leverage: total leverage ratio decreased to 3.12x at Dec 31; expected to remain below 3.5x throughout 2026
Capital Funding
- No buyback amount disclosed in transcript; share repurchase discussion only qualitative (cap allocation “more back on the table” given leverage headroom)
- Leverage headroom: below 3.5x now; explicitly expected below 3.5x throughout the year
Strategy & Ops
- Aspire program: adoption over 2,000 agents; early cohort shows reduced churn and early upticks in productivity/retention; also spurring broker recruiting activity via optionality
- Marketing as a Service performance: listings promoted delivered 3x views, 6x active users, 5x actions vs non-promoted listings on remax.com
- Digital/AI: launched redesigned remax.com (and redesigned remax.ca in Canada); AI-generated agent listing videos (click of a button); consumer AI can redesign home exteriors/interiors in property photos
- Motto mortgage business: rolled out new franchise royalty fee model across Motto network earlier in 2025; new model reduces fixed cost (lower flat fee) and adds transaction-based component
- Motto brand quality action: terminated a number of franchisees in Q4 to maintain high-quality system/borrower experience
- Agent count: worldwide agent count over 148,500 as of Dec 31; stabilization stated; Canadian agent count finished relatively flat to 2024
Market Outlook
- Q1 2026 guidance: agent count up 1.5% to 2.5% vs Q1 2025; revenue $69M-$74M; marketing funds revenue $16M-$18M; adjusted EBITDA $14M-$17M
- FY 2026 guidance: agent count up 1.5% to 3.5% vs FY 2025; revenue $285M-$305M; marketing funds revenue $66M-$70M; adjusted EBITDA $90M-$100M
- Guidance assumptions: no further currency movements, acquisitions, or divestitures
Risks & Headwinds
- Housing market: “third consecutive year of a historically slow housing market” referenced as ongoing headwind into 2025 and in Q4 context
- U.S. agent count reduction and incentives impact (Aspire) drove the 0.4% YoY decline in organic revenue ex marketing funds
- Broker fee line: Aspire impact described as smoothing over time; timing and volume differences could affect seasonality (no explicit downside guide adjustment provided)
- Macro/mortgage rate sensitivity: mortgage rates remaining near ~6% discussed by analyst; management responded with prudent capital allocation and leveraged capacity constraints
Sentiment: MIXED
Note: This summary was synthesized by AI from the RMAX Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.