RE/MAX Q4 Earnings Call Highlights

23 Feb 2026, 20:20 by Tristan Rich · The Markets Daily

RE/MAX (NYSE:RMAX) executives said the company entered 2026 with “strong momentum” after closing out 2025 with operating results that landed at the high end of management’s expectations, even as the housing market remained sluggish for a third consecutive year.

On the company’s fourth-quarter 2025 earnings call, CEO Erik Carlson highlighted record agent-count milestones across the global network and pointed to an early-2026 brokerage conversion in Canada as evidence that RE/MAX’s updated value proposition is resonating with brokers and agents.

Management points to record global agent count and major Canadian conversion

Carlson said worldwide agent count reached an all-time high of more than 148,500 as of Dec. 31, with agent growth outside the U.S. and Canada driving the gains. He noted that the agent base outside those two markets now exceeds 75,000.

The company also began 2026 with what Carlson described as the largest brokerage conversion in RE/MAX history: a Toronto-based, 17-office operation led by Vivian Risi and her children, Michelle and Justin, which brought nearly 1,200 agents into RE/MAX Canada. Carlson said the group selected RE/MAX for a combination of factors including the company’s global footprint, referral network, and marketing and technology platforms. He added that RE/MAX is seeing “very high retention rates” among those agents early on.

Looking ahead, Carlson said the company is encouraged by a pipeline of “conversion, merger, and acquisition candidates” across the U.S. and Canada, with “a strong slate of sizable opportunities” it aims to close and announce in coming months.

Housing-market commentary: signs of normalization and demand

While noting that January is typically slow seasonally, Carlson said RE/MAX is seeing signs of a housing market that is “normalizing,” citing inventory and new listings that remain higher than a year ago and conditions that suggest a more balanced market. He referenced more common seller concessions, “more thoughtful” negotiations, and interest rates that are “trending downward,” which he said helps support buyer activity.

Carlson also pointed to a recently published consumer survey that found 88% of prospective buyers said they are likely to purchase a home in 2026, despite affordability pressures and economic uncertainty. He characterized the market as one where timelines have slowed but underlying demand remains intact.

Products and initiatives: new fee models, marketing platform traction, and AI tools

Carlson said RE/MAX’s newer economic model options for affiliates—Aspire, Ascend, and Appreciate—are designed to provide greater flexibility for recruiting and retention. He said fourth-quarter recruitment outpaced the prior year’s seasonal performance, building on trends that began in late second and third quarters.

On the Aspire program, management said adoption has exceeded 2,000 agents. In response to an analyst question, the company said it is early but it is seeing improved productivity and retention among Aspire cohorts as agents progress through training and become more engaged with tools.

RE/MAX also discussed several growth initiatives tied to digital marketing and monetization:

Marketing as a Service: Carlson said the six-month-old platform is gaining traction and cited early internal comparisons showing promoted listings delivering three times more views, six times more active users, and five times more actions versus similar listings not promoted on remax.com.
Website updates and AI features: RE/MAX launched a newly designed remax.com and is preparing a redesigned remax.ca. Carlson said both incorporate personalized content and AI capabilities, including agents’ ability to generate AI-produced listing videos and consumers’ ability to redesign interior and exterior property photos to improve engagement.
RE/MAX Media Network: Carlson said advertising revenue is pacing ahead of forecast, supported by a mix of programmatic and direct demand, and he expects it to “increase significantly” this year.
Lead Concierge Curation: Carlson said conversion rates and related revenue contributions are exceeding initial expectations.
Golf Lifestyles designation: RE/MAX plans to introduce a program with training, certification, and real estate leads targeted to golf properties.

On the role of AI more broadly, Carlson said “AI for the sake of AI is a mistake,” describing RE/MAX’s approach as purposeful and focused on helping agents win more business, save time, and make more money. He cited tools such as MAX/AI on the company’s consumer sites to help nurture leads and match consumers with RE/MAX agents, as well as partner tools intended to automate workflows.

In mortgage, Carlson said Motto Mortgage rolled out a new franchise royalty fee model intended to reduce fixed costs through a lower flat fee and add a transaction-based component that scales with performance. He emphasized the change is optional for existing offices but applies to new franchisees going forward. Carlson also said the company “deliberately chose to terminate a number of franchisees” during the fourth quarter to maintain system standards and a consistent borrower experience.

Quarterly results: revenue, margins, and expense items

CFO Karri Callahan reported fourth-quarter total revenue of $71.1 million, Adjusted EBITDA of $22.4 million, an Adjusted EBITDA margin of 31.5%, and Adjusted diluted EPS of $0.30.

Excluding the marketing fund, revenue was $53.6 million, down 0.4% year over year. Callahan said the decline in organic revenue was driven mainly by lower U.S. agent count and the impact of incentives, including Aspire, partly offset by higher broker fees and revenue contributions from new initiatives such as Marketing as a Service and monetization strategies tied to the company’s flagship website.

Fourth-quarter selling, operating, and administrative (SO&A) expenses rose $1.6 million, or 4.4%, to $37.3 million. Callahan attributed the increase primarily to losses on sale and disposal of assets and timing of other events, partially offset by lower personnel-related expenses. On the Q&A, she said about $1 million of the quarter’s expense was related to a sale and disposal of assets and “won’t continue into the future.”

Discussing the Aspire program’s effect on broker fee revenue, Callahan said the impact in the quarter was “not that significant,” estimating roughly $200,000 to $500,000, and said the accounting treatment should smooth seasonality over time as participation grows.

Balance sheet, capital allocation priorities, and 2026 guidance

Callahan said the company continued to delever, with a total leverage ratio of 3.12x as of Dec. 31. She said management expects to remain below a 3.5x level throughout the year, which she said provides greater flexibility on capital allocation.

She said capital allocation priorities are unchanged, with continued reinvestment in the business and building cash reserves. In response to a question about share repurchases, Callahan said the company is taking a prudent approach given macro conditions, but added that capital allocation is “more back on the table than it’s been” due to improved leverage flexibility, alongside the need to fund growth investments.

For guidance, Callahan said the outlook assumes no further currency movements, acquisitions, or divestitures. RE/MAX expects:

First-quarter 2026: agent count up 1.5% to 2.5% year over year; revenue of $69 million to $74 million (including marketing fund revenue of $16 million to $18 million); Adjusted EBITDA of $14 million to $17 million.
Full-year 2026: agent count up 1.5% to 3.5% year over year; revenue of $285 million to $305 million (including marketing fund revenue of $66 million to $70 million); Adjusted EBITDA of $90 million to $100 million.

Separately, Carlson addressed industry debate around private listings, reiterating RE/MAX’s preference for transparency and broad listing distribution to deliver the best outcomes for buyers and sellers, while noting the company’s large network would allow it to participate in broader private listing networks if needed.

About RE/MAX (NYSE:RMAX)

RE/MAX Holdings, Inc (NYSE:RMAX) is a global franchisor of real estate brokerage services, offering residential and commercial property transaction support through a network of independently owned and operated offices. The company provides marketing, training, technology platforms and brand recognition for its affiliated agents, facilitating property buying, selling and leasing activities. In addition to core brokerage services, RE/MAX offers ancillary solutions such as mortgage referral, title and escrow coordination, relocation assistance and luxury market specialization.

Established in 1973 by David and Gail Liniger in Denver, Colorado, RE/MAX pioneered a high-commission, agent-driven model designed to attract experienced real estate professionals.