RE/MAX Holdings, Inc. (NYSE: RMAX), a franchises real estate brokerages company, for the fourth quarter of 2025, reported declines in top-line revenue and adjusted earnings, and its stock traded down $0.49, or 7.21%, to $6.43 on the day of the results.
Quarterly Results
Fourth-quarter 2025 total revenue was $71.1 million, a 1.8% decrease compared to $72.5 million in the fourth quarter of 2024. Net income dropped to $1.4 million from $5.8 million, yielding GAAP earnings per diluted share of $0.07. Adjusted EBITDA was $22.4 million, a 4.0% year-over-year decline. The adjusted EBITDA margin compressed to 31.5% from 32.2%, while adjusted earnings per diluted share stood at $0.30.
Annual Performance Context
For the full year 2025, total revenue declined 5.2% to $291.6 million. Annual net income increased to $8.2 million compared to $7.1 million the previous year. Full-year adjusted EBITDA fell 4.1% to $93.7 million, with the adjusted EBITDA margin reaching 32.1%.
Business and Operations Update
Total agent count expanded 1.4% year-over-year to 148,660. Agents in the United States and Canada decreased 4.6% to 72,977, while the base outside these regions grew 7.9% to 75,683. Total operating expenses dropped 9.4% to $61.8 million, though selling, operating, and administrative expenses rose 4.4% to $37.3 million. The balance sheet reflected $118.7 million in cash and cash equivalents and $436.8 million in outstanding debt.
Erik Carlson, Chief Executive Officer, stated, “Our strategy is working and is beginning to yield results even though 2025 marked the third consecutive year of a historically tough housing market in the United States and Canada. We exited 2025 with strong momentum across both of our networks, driven by record global agent count growth, our best fourth quarter U.S. agent performance since 2021, and a renewed excitement for the REMAX brand given enhancements to our overall value proposition”.
Forward Outlook
For the first quarter of 2026, RE/MAX Holdings expects: Agent count to increase 1.50% to 2.50% over first quarter 2025; Revenue in a range of $69.0 million to $74.0 million (including revenue from the Marketing Funds in a range of $16.0 million to $18.0 million); and Adjusted EBITDA in a range of $14.0 million to $17.0 million. For the full year 2026, the Company now expects: Agent count in a range from 1.50% to positive 3.50% over full year 2025; Revenue in a range of $285.0 million to $305.0 million (including revenue from the Marketing Funds in a range of $66.0 million to $70.0 million), and Adjusted EBITDA in a range of $90.0 million to $100.0 million.
Performance Summary
The franchisor managed a global footprint expansion alongside a contraction in its North American base. Expense reductions contributed to annual net income growth, contrasting with the decreases in quarterly revenue and adjusted operational metrics.
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