RE/MAX Holdings, Inc. (NYSE: RMAX) is a leading franchisor in the real estate industry, headquartered in Denver, Colorado. Founded in 1973 by Dave and Gail Liniger, the company has grown to operate in over 120 countries and territories, with more than 145,000 agents in over 8,500 offices. The company went ...RE/MAX Holdings, Inc. (NYSE: RMAX) is a leading franchisor in the real estate industry, headquartered in Denver, Colorado. Founded in 1973 by Dave and Gail Liniger, the company has grown to operate in over 120 countries and territories, with more than 145,000 agents in over 8,500 offices. The company went public in October 2013 and has since been listed on the New York Stock Exchange.
Business Segments: RE/MAX Holdings operates through three primary segments:
1. **Real Estate**: This segment provides real estate brokerage franchising services under the RE/MAX brand name, along with corporate-wide shared services. It generates revenue through initial franchise fees, ongoing royalties, and marketing contributions.
2. **Mortgage**: This segment offers mortgage brokerage franchising under the Motto Mortgage brand, as well as mortgage loan processing software and services under the wemlo brand. It allows real estate professionals and mortgage brokers to expand their services.
3. **Marketing Funds**: This segment manages marketing campaigns and provides agent marketing technology, funded by marketing fees from franchisees.
Products and Services: The company offers a suite of digital tools through the BoldTrail platform, which integrates client relationship management, lead generation, and other tools to help agents, brokers, and teams manage their businesses efficiently. RE/MAX University is another platform providing training and professional development for agents.
Financials and Business Model: RE/MAX is a 100% franchised business, meaning it does not operate its own brokerages but instead franchises to independent owners. This model provides primarily recurring revenue streams from royalties and marketing funds, leading to high margins and low fixed costs. The company has strong cash flow generation and a high-margin, asset-light structure. As of the latest data, RE/MAX had a market capitalization of approximately $229.7 million, with a price-to-sales ratio of 0.81 and a price-to-free-cash-flow ratio of 8.89. The company pays dividends, with a last dividend of $0.92 per share.
Leadership: Erik Carlson serves as CEO, having taken the role in November 2023 after a 28-year career at the company. The company was co-founded by Dave Liniger and Gail Liniger, who have been instrumental in its growth.
Recent Developments: In March 2026, The Real Brokerage announced a deal to acquire RE/MAX Holdings for roughly $880 million, including debt. This acquisition aims to create one of the largest real estate companies, combining RE/MAX's franchise network with Real Brokerage's technology-driven platform.
Overall, RE/MAX Holdings is a well-established player in the real estate franchising industry, known for its strong brand, global reach, and recurring revenue model. With its focus on technology and support for agents, the company continues to adapt to the changing real estate landscape.
Tamir Poleg: Thank you, Alex, and good morning, everyone. I will cover our Q1 results and the RE/MAX transaction. Jenna will provide an update on key brokerage initiatives. Ravi will walk through our financials in greater detail, and then I'll come back to close. I'll start with a quick overview of our results. Real delivered another impressive first quarter, and I think the numbers speak for themselves. Revenue of $466 million, up 32%. Operating loss of $3.4 million improved by $1.8 million year-over-year. Adjusted EBITDA of $14.9 million increased 80%, and our unrestricted cash and investments balance increased by $30 million in the quarter to a record $62.9 million. All of this occurred in one of the softest markets we've seen in years. U.S. existing home sales were essentially flat at trough levels, and Canadian home sales activity declined mid- to high-single digits. Despite this, our agents closed nearly 42,000 transactions, up 25% year-over-year. Gross profit grew faster than operating expenses, and adjusted EBITDA grew 2.5x faster than revenue. That is the model working exactly as we designed. We ended the first quarter with approximately 33,500 agents. And as of May 6, that number has grown to over 33,900. This is happening while agents across the industry are struggling, transaction volumes are down and productivity is under pressure. The fact that we are both growing rapidly and improving retention in that environment demonstrates the value the platform delivers for agents. On our ancillary businesses, the progress we're making is starting to become very tangible. On Real Wallet, revenue more than tripled year-over-year to $436,000. We now have 8,000 active agents on the platform, which represents 23% of our total agent base, including 40% of those agents who generate over $150,000 in annual gross commissions. Weekly debit card spend has now exceeded $1 million a week, while deposit balances have grown to over $25 million. We ended the quarter with approximately $9 million of credit extended to agents across Canada and the U.S. and we are now seeing early data showing a direct link between wallet adoption and lower agent churn. We're still in the early stages of what Real Wallet can become, but I'm very excited to bring it to even more agents and following the RE/MAX closing franchisees across the country. On One Real Title, revenue increased 22% in the quarter. That is the strongest quarterly growth we have seen since Q1 of last year. We now operate 13 title joint ventures across 19 states, and we expect to open Colorado in the second quarter, bringing the total to 20 states. The state-based JV model is the right model to efficiently scale, and I am pleased that we are starting to see that play out in the numbers. On One Real Mortgage, revenue increased 20% year-over-year. Kate Gurevich, who joined as CEO in January, is focused on realigning the loan officer base with our current agent footprint while improving the cost …
