RE/MAX HOLDINGS, INC. REPORTS THIRD QUARTER 2025 RESULTS

PR Newswire

DENVER, Oct. 30, 2025

	As of September 30,		Change
	2025	2024	#	%
U.S.	49,178	52,808	(3,630)	(6.9)
Canada	25,020	25,393	(373)	(1.5)
Subtotal	74,198	78,201	(4,003)	(5.1)
Outside the U.S. & Canada	73,349	67,282	6,067	9.0
Total	147,547	145,483	2,064	1.4

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenue excluding the Marketing Funds:
Total revenue	$	73,247	$	78,478	$	220,464	$	235,218
Less: Marketing Funds fees		18,142		20,098		55,279		60,331
Revenue excluding the Marketing Funds	$	55,105	$	58,380	$	165,185	$	174,887

TABLE 1
RE/MAX Holdings, Inc. Consolidated Statements of Income (Loss) *(In thousands, except share and per share amounts)* *(Unaudited)*

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenue:
Continuing franchise fees	$	27,445	$	30,798	$	85,788	$	92,223
Annual dues		7,619		7,969		23,101		24,345
Broker fees		14,899		14,915		39,784		40,159
Marketing Funds fees		18,142		20,098		55,279		60,331
Franchise sales and other revenue		5,142		4,698		16,512		18,160
Total revenue		73,247		78,478		220,464		235,218
Operating expenses:
Selling, operating and administrative expenses		32,453		35,932		109,369		116,488
Marketing Funds expenses		18,142		20,098		55,279		60,331
Depreciation and amortization		6,443		7,237		19,633		22,489
Settlement and impairment charges		(2,104)		—		(1,542)		—
Total operating expenses		54,934		63,267		182,739		199,308
Operating income (loss)		18,313		15,211		37,725		35,910
Other expenses, net:
Interest expense		(8,054)		(9,249)		(23,960)		(27,696)
Interest income		898		885		2,647		2,835
Foreign currency transaction gains (losses)		94		74		334		(568)
Total other expenses, net		(7,062)		(8,290)		(20,979)		(25,429)
Income (loss) before provision for income taxes		11,251		6,921		16,746		10,481
Provision for income taxes		(3,789)		(3,507)		(5,822)		(6,484)
Net income (loss)	$	7,462	$	3,414	$	10,924	$	3,997
Less: net income (loss) attributable to non-controlling interest		3,476		2,448		4,211		2,679
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	3,986	$	966	$	6,713	$	1,318

of Class A common stock
Basic	$	0.20	$	0.05	$	0.34	$	0.07
Diluted	$	0.19	$	0.05	$	0.33	$	0.07
Weighted average shares of Class A common stock outstanding
Basic		20,043,339		18,863,793		19,767,686		18,733,190
Diluted		20,682,749		19,483,798		20,262,647		19,063,279

TABLE 2
RE/MAX Holdings, Inc. Consolidated Balance Sheets *(In thousands, except share and per share amounts)* *(Unaudited)*

	As of
	September 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	107,476	$	96,619
Restricted cash		76,240		72,668
Accounts and notes receivable, net of allowances		31,650		27,807
Income taxes receivable		7,659		7,592
Other current assets		12,294		13,825
Total current assets		235,319		218,511
Property and equipment, net of accumulated depreciation		6,438		7,578
Operating lease right of use assets		13,875		17,778
Franchise agreements, net		70,296		81,186
Other intangible assets, net		10,932		13,382
Goodwill		238,691		237,239
Income taxes receivable, net of current portion		355		355
Other assets, net of current portion		6,297		5,565
Total assets	$	582,203	$	581,594
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable	$	3,885	$	5,761
Accrued liabilities		101,500		110,859
Income taxes payable		183		541
Deferred revenue		22,736		22,848
Debt		4,600		4,600
Payable pursuant to tax receivable agreements		779		1,537
Operating lease liabilities		9,065		8,556
Total current liabilities		142,748		154,702
Debt, net of current portion		433,287		436,243
Deferred tax liabilities		8,921		8,448
Deferred revenue, net of current portion		13,189		14,778
Operating lease liabilities, net of current portion		15,858		22,669
Other liabilities, net of current portion		3,048		3,148
Total liabilities		617,051		639,988
Commitments and contingencies
Stockholders' equity (deficit):
December 31, 2024, respectively		2		2
and outstanding as of September 30, 2025 and December 31, 2024, respectively		—		—
Additional paid-in capital		576,213		565,072
Accumulated deficit		(127,354)		(133,727)
Accumulated other comprehensive income (deficit), net of tax		(731)		(1,864)
Total stockholders' equity attributable to RE/MAX Holdings, Inc.		448,130		429,483
Non-controlling interest		(482,978)		(487,877)
Total stockholders' equity (deficit)		(34,848)		(58,394)
Total liabilities and stockholders' equity (deficit)	$	582,203	$	581,594

TABLE 3
RE/MAX Holdings, Inc. Consolidated Statements of Cash Flows *(In thousands)* *(Unaudited)*

	Nine Months Ended
	September 30,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	10,924	$	3,997
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		19,633		22,489
Equity-based compensation expense		12,313		14,443
Bad debt expense		2,118		1,039
Deferred income tax expense (benefit)		407		434
Fair value adjustments to contingent consideration		(84)		(300)
Settlement and impairment charges		(1,542)		—
Non-cash lease benefit		(2,545)		(2,110)
Non-cash debt charges		644		646
Payment of contingent consideration in excess of acquisition date fair value		—		(360)
Other, net		342		213
Changes in operating assets and liabilities		(14,255)		2,376
Net cash provided by operating activities		27,955		42,867
Cash flows from investing activities:
Purchases of property, equipment and capitalization of software		(4,622)		(5,821)
Other		(500)		698
Net cash used in investing activities		(5,122)		(5,123)
Cash flows from financing activities:
Payments on debt		(3,450)		(3,450)
Debt amendment costs		(150)		—
Dividends and dividend equivalents paid to Class A common stockholders		(341)		(591)
Payments related to tax withholding for share-based compensation		(4,429)		(2,548)
Payment of contingent consideration		(791)		—
Other financing		(30)		(21)
Net cash used in financing activities		(9,191)		(6,610)
Effect of exchange rate changes on cash		787		(519)
Net increase in cash, cash equivalents and restricted cash		14,429		30,615
Cash, cash equivalents and restricted cash, beginning of period		169,287		125,763
Cash, cash equivalents and restricted cash, end of period	$	183,716	$	156,378

TABLE 4

RE/MAX Holdings, Inc.

Agent Count

(Unaudited)

As of

September 30,

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

December 31,

September 30,

2025

2024

2023

Agent Count:

U.S.

Company-Owned Regions

42,935

43,363

43,543

44,911

46,283

46,780

47,302

48,401

49,576

Independent Regions

6,243

6,306

6,311

6,375

6,525

6,626

6,617

6,730

6,918

U.S. Total

49,178

49,669

49,854

51,286

52,808

53,406

53,919

55,131

56,494

Canada

Company-Owned Regions

20,045

20,060

20,227

20,311

20,515

20,347

20,151

20,270

20,389

Independent Regions

4,975

4,906

4,929

4,860

4,878

4,846

4,885

4,898

4,899

Canada Total

25,020

24,966

25,156

25,171

25,393

25,193

25,036

25,168

25,288

U.S. and Canada Total

74,198

74,635

75,010

76,457

78,201

78,599

78,955

80,299

81,782

Outside U.S. and Canada

Independent Regions

73,349

72,438

71,116

70,170

67,282

64,943

64,332

64,536

63,527

Outside U.S. and Canada Total

73,349

72,438

71,116

70,170

67,282

64,943

64,332

64,536

63,527

Total

147,547

147,073

146,126

146,627

145,483

143,542

143,287

144,835

145,309

TABLE 5
RE/MAX Holdings, Inc. Adjusted EBITDA Reconciliation to Net Income (Loss) *(In thousands, except percentages)* *(Unaudited)*

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Net income (loss)	$	7,462		$	3,414		$	10,924		$	3,997
Depreciation and amortization		6,443			7,237			19,633			22,489
Interest expense		8,054			9,249			23,960			27,696
Interest income		(898)			(885)			(2,647)			(2,835)
Provision for income taxes		3,789			3,507			5,822			6,484
EBITDA		24,850			22,522			57,692			57,831
Settlement and impairment charges⁽¹⁾		(2,104)			—			(1,542)			—
Equity-based compensation expense		2,999			4,618			12,313			14,443
Fair value adjustments to contingent consideration⁽²⁾		(100)			(437)			(84)			(300)
Restructuring charges⁽³⁾		(1)			(18)			2,736			(59)
Other adjustments⁽⁴⁾		124			605			206			2,444
Adjusted EBITDA⁽⁵⁾	$	25,768		$	27,290		$	71,321		$	74,359
Adjusted EBITDA Margin⁽⁵⁾		35.2	%		34.8	%		32.4	%		31.6	%


(1)	, that was received in the fourth quarter of 2025 from an escrow fund from a prior acquisition. This was partially offset by the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada, during the nine months ended September 30, 2025.ith a previous settlement
(2)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(3)	During the nine months ended September 30, 2025, the Company restructured its support services intended to further enhance the overall customer experience.
(4)	Other adjustments are primarily made up of employee retention-related expenses from the Company's CEO transition in the prior year.
(5)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

TABLE 6
RE/MAX Holdings, Inc. Adjusted Net Income (Loss) and Adjusted Earnings per Share *(In thousands, except share and per share amounts)* *(Unaudited)*

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Net income (loss)	$	7,462	$	3,414	$	10,924	$	3,997
Amortization of acquired intangible assets		4,423		4,672		13,223		15,085
Provision for income taxes		3,789		3,507		5,822		6,484
Add-backs:
Settlement and impairment charges⁽¹⁾		(2,104)		—		(1,542)		—
Equity-based compensation expense		2,999		4,618		12,313		14,443
Fair value adjustments to contingent consideration⁽²⁾		(100)		(437)		(84)		(300)
Restructuring charges⁽³⁾		(1)		(18)		2,736		(59)
Other adjustments⁽⁴⁾		124		605		206		2,444
Adjusted pre-tax net income		16,592		16,361		43,598		42,094
Less: Provision for income taxes at 25%⁽⁵⁾		(4,148)		(4,091)		(10,900)		(10,524)
Adjusted net income⁽⁶⁾	$	12,444	$	12,270	$	32,698	$	31,570

Total basic pro forma shares outstanding		32,602,939		31,423,393		32,327,286		31,292,790
Total diluted pro forma shares outstanding		33,242,349		32,043,398		32,822,247		31,622,879

Adjusted net income basic earnings per share⁽⁶⁾	$	0.38	$	0.39	$	1.01	$	1.01
Adjusted net income diluted earnings per share⁽⁶⁾	$	0.37	$	0.38	$	1.00	$	1.00


(1)	, that was received in the fourth quarter of 2025 from an escrow fund from a prior acquisition. This was partially offset by the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada, during the nine months ended September 30, 2025.ith a previous settlement
(2)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(3)	During the nine months ended September 30,2025, the Company restructured its support services intended to further enhance the overall customer experience.
(4)	Other adjustments are primarily made up of employee retention-related expenses from the Company's CEO transition in the prior year.
(5)	The long-term tax rate assumes the exchange of all outstanding non-controlling interest partnership units for Class A Common Stock that (a) removes the impact of unusual, non-recurring tax matters and (b) does not estimate the residual impacts to foreign taxes of additional step-ups in tax basis from an exchange because that is dependent on stock prices at the time of such exchange and the calculation is impracticable.
(6)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

TABLE 7
RE/MAX Holdings, Inc. Pro Forma Shares Outstanding *(Unaudited)*

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
Total basic weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	20,043,339	18,863,793	19,767,686	18,733,190
100% of RMCO	12,559,600	12,559,600	12,559,600	12,559,600
Total basic pro forma weighted average shares outstanding	32,602,939	31,423,393	32,327,286	31,292,790

Total diluted weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	20,043,339	18,863,793	19,767,686	18,733,190
owned 100% of RMCO	12,559,600	12,559,600	12,559,600	12,559,600
Dilutive effect of unvested restricted stock units⁽¹⁾	639,410	620,005	494,961	330,089
Total diluted pro forma weighted average shares outstanding	33,242,349	32,043,398	32,822,247	31,622,879


(1)	In accordance with the treasury stock method.

TABLE 8
RE/MAX Holdings, Inc. Adjusted Free Cash Flow & Unencumbered Cash *(Unaudited)*

	Nine Months Ended
	September 30,
	2025		2024
Cash flow from operations	$	27,955	$	42,867
Less: Purchases of property, equipment and capitalization of software		(4,622)		(5,821)
(Increases) decreases in restricted cash of the Marketing Funds⁽¹⁾		2,021		(1,959)
Adjusted free cash flow⁽²⁾		25,354		35,087

Adjusted free cash flow⁽²⁾		25,354		35,087
Less: Tax/Other non-dividend distributions to RIHI		—		—
Adjusted free cash flow after tax/non-dividend distributions to RIHI⁽²⁾		25,354		35,087

Adjusted free cash flow after tax/non-dividend distributions to RIHI⁽²⁾		25,354		35,087
Less: Debt principal payments		(3,450)		(3,450)
Unencumbered cash generated⁽²⁾	$	21,904	$	31,637

Summary
Cash flow from operations	$	27,955	$	42,867
Adjusted free cash flow⁽²⁾	$	25,354	$	35,087
Adjusted free cash flow after tax/non-dividend distributions to RIHI⁽²⁾	$	25,354	$	35,087
Unencumbered cash generated⁽²⁾	$	21,904	$	31,637

Adjusted EBITDA⁽²⁾	$	71,321	$	74,359
Adjusted free cash flow as % of Adjusted EBITDA⁽²⁾		35.5 %		47.2 %
Adjusted free cash flow less distributions to RIHI as % of Adjusted EBITDA⁽²⁾		35.5 %		47.2 %
Unencumbered cash generated as % of Adjusted EBITDA⁽²⁾		30.7 %		42.5 %


(1)	This line reflects any subsequent changes in the restricted cash balance (which under GAAP reflects as either (a) an increase or decrease in cash flow from operations or (b) an incremental amount of purchases of property and equipment and capitalization of developed software) to remove the impact of changes in restricted cash in determining adjusted free cash flow.
(2)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

Total Revenue of $73.3 Million, Adjusted EBITDA of $25.8 Million

/PRNewswire/ -- DENVEROct. 30, 2025

Third Quarter 2025 Highlights

(Compared to third quarter 2024 unless otherwise noted)

(the "Company" or "RE/MAX Holdings") (NYSE: RMAX), parent company of REMAX, one of the world's leading franchisors of real estate brokerage services, and Motto Mortgage ("Motto"), the first and only national mortgage brokerage franchise brand in the U.S., today announced operating results for the quarter ended September 30, 2025. RE/MAX Holdings, Inc.

"Our total REMAX agent count reached another all-time high this quarter, fueled by steady global growth and the strongest third-quarter U.S. agent count results we've had in three years. Based on feedback from the membership, we believe our mix of new ideas, new products and new systems is enhancing our value proposition and generating great energy within the network. At the same time, our constant focus on operational excellence is driving profitability and margin performance exceeding expectations," said Erik Carlson, Chief Executive Officer of RE/MAX Holdings.

Continued Carlson: "In both the REMAX and Motto Mortgage networks, we're leaning heavily into innovation to deliver an elevated experience to affiliates and the consumers they serve. Many of our new offerings, like the recently launched AI-powered REMAX Marketing as a Service ("MaaS") platform, leverage the strength of our scale to create new competitive advantages. We also introduced two more optional economic models for REMAX – Appreciate and Ascend – that build on the success of Aspire and give U.S. franchisees even more flexibility in recruiting and retaining productive professionals. Lastly, we've rounded out our executive leadership team with two highly respected industry veterans: Vic Lombardo, President of Mortgage Services, and Tom Flanagan, Chief Digital Information Officer. Both are already contributing fresh strategies to help affiliates win more business, save time and become more profitable."

Third Quarter 2025 Operating Results

Agent Count

The following table compares agent count as of September 30, 2025 and 2024:

Revenue

RE/MAX Holdings generated revenue of $73.3 million in the third quarter of 2025, a decrease of $5.2 million, or 6.7%, compared to $78.5 million in the third quarter of 2024. Revenue excluding the Marketing Funds was $55.1 million in the third quarter of 2025, a decrease of $3.3 million, or 5.6%, versus the same period in 2024. The decrease in Revenue excluding the Marketing Funds was attributable to a decline in organic revenue of 5.4% and adverse foreign currency movements of 0.2%. The decline in organic revenue was driven by a decrease in U.S. agent count, and, to a lesser extent, incentives related to recently introduced modifications to the Company's standard fee models, including the Aspire program, partially offset by an increase in revenue from advertising revenue on the Company's flagship websites.

Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $3.7 million, or 9.6%, compared to the third quarter of 2024 and accounted for 63.6% of Revenue excluding the Marketing Funds in the third quarter of 2025 compared to 66.4% in the prior-year period.

Operating Expenses

Total operating expenses were $54.9 million for the third quarter of 2025, a decrease of $8.3 million, or 13.2%, compared to $63.3 million in the third quarter of 2024. Third quarter 2025 total operating expenses decreased primarily due to lower Selling, operating, and administrative expenses, Settlement and impairment charges, Marketing Funds, and Depreciation and amortization expenses.

Selling, operating and administrative expenses were $32.5 million in the third quarter of 2025, a decrease of $3.5 million, or 9.7%, compared to the third quarter of 2024 and represented 58.9% of Revenue excluding the Marketing Funds, compared to 61.5% in the prior-year period. Third quarter 2025 Selling, operating and administrative expenses decreased primarily due to certain lower personnel expenses and a reduction in other events, partially due to their timing, offset by higher investments in technology and our flagship websites, and an increase in bad debt, legal expenses and the estimated fair value of the contingent consideration liability.

Net Income and GAAP EPS

Net income attributable to RE/MAX Holdings was $4.0 million for the third quarter of 2025 compared to net income of $1.0 million for the third quarter of 2024. Reported basic and diluted GAAP earnings per share were $0.20 and $0.19, respectively for the third quarter of 2025 compared to basic and diluted GAAP earnings per share of $0.05 each in the third quarter of 2024.

Adjusted EBITDA and Adjusted EPS

Adjusted EBITDA was $25.8 million for the third quarter of 2025, a decrease of $1.5 million, or 5.6%, compared to the third quarter of 2024. Third quarter 2025 Adjusted EBITDA decreased primarily due to lower revenue from the declines in U.S. agent count, a decline in revenue as a result of recently implemented changes to the Company's existing fee models, including the Aspire program, increases in expenses related to higher investments in technology and our flagship websites, and an increase in bad debt and legal expenses, offset by certain lower personnel-related expenses and increased advertising revenue on our flagship websites. Adjusted EBITDA margin was 35.2% in the third quarter of 2025, compared to 34.8% in the third quarter of 2024.

Adjusted basic and diluted EPS were $0.38 and $0.37 respectively for the third quarter of 2025 compared to Adjusted basic and diluted EPS of $0.39 and $0.38, respectively for the third quarter of 2024. The ownership structure used to calculate Adjusted basic and diluted EPS for the quarter ended September 30, 2025, assumes RE/MAX Holdings owned 100% of RMCO, LLC ("RMCO"). The weighted average ownership RE/MAX Holdings had in RMCO was 61.5% for the quarter ended September 30, 2025.

Balance Sheet

As of September 30, 2025, the Company had cash and cash equivalents of $107.5 million, an increase of $10.9 million from December 31, 2024. As of September 30, 2025, the Company had $437.9 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $440.8 million as of December 31, 2024.

Share Repurchases and Retirement

As previously disclosed, in January 2022 the Company's Board of Directors authorized a common stock repurchase program of up to $100 million. During the three months ending September 30, 2025, the Company did not repurchase any shares. As of September 30, 2025, $62.5 million remained available under the share repurchase program.

Outlook

The Company's third quarter and full year 2025 Outlook assumes no further currency movements, acquisitions, or divestitures.

For the fourth quarter of 2025, RE/MAX Holdings expects:

For the full year 2025, the Company now expects:

Webcast and Conference Call

The Company will host a conference call for interested parties on Friday, October 31, 2025, beginning at 8:30 a.m. Eastern Time. Interested parties can register in advance for the conference call using the link below:

https://registrations.events/direct/Q4I9411539

Interested parties also can access a live webcast through the Investor Relations section of the Company's website athttp://investors.remaxholdings.com

Basis of Presentation

Unless otherwise noted, the results presented in this press release are consolidated and exclude adjustments attributable to the non-controlling interest.

Footnotes:

Revenue excluding the Marketing Funds is a non-GAAP measure of financial performance that differs from U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and a reconciliation to the most directly comparable U.S. GAAP measure is as follows (in thousands):¹

The Company defines organic revenue growth as revenue growth from continuing operations excluding (i) revenue from Marketing Funds, (ii) revenue from acquisitions, and (iii) the impact of foreign currency movements. The Company defines revenue from acquisitions as the revenue generated from the date of an acquisition to its second anniversary (excluding Marketing Funds revenue related to acquisitions where applicable).²

Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS are non-GAAP measures. These terms are defined at the end of this release. Please see Tables 5 and 6 appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.³

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About RE/MAX Holdings, Inc.

RE/MAX Holdings, Inc. (NYSE: RMAX) is one of the world's leading franchisors in the real estate industry, franchising real estate brokerages globally under the REMAX^®^®

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. Forward-looking statements include statements related to agent count; Motto open offices; franchise sales; revenue; the Company's outlook for the fourth quarter and full year 2025; non-GAAP financial measures; housing and mortgage market conditions; the Company's commitment to innovation and delivering an elevated experience; enhancing our value proposition; our profitability and margin performance exceeding expectations; our new MaaS platform and economic models and the impact thereof; and our strengthened leadership team. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily accurately indicate the times at which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, without limitation, (1) changes in the real estate market or interest rates and availability of financing, (2) changes in business and economic activity in general, including enacted and proposed tariffs and other trade policies which could impact the global economy, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (5) changes in laws and regulations, (6) the Company's ability to enhance, market, and protect its brands, (7) the Company's ability to implement its technology initiatives, (8) risks related to recent changes in the Company's leadership team, (9) fluctuations in foreign currency exchange rates, (10) the nature and amount of the exclusion of charges in future periods when determining Adjusted EBITDA is subject to uncertainty and may not be similar to such charges in prior periods, and (11) those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website atwww.remaxholdings.com www.sec.gov

Non-GAAP Financial Measures

The SEC has adopted rules to regulate the use in filings with the SEC and in public disclosures of financial measures that are not in accordance with U.S. GAAP, such as Revenue excluding the Marketing Funds, Adjusted EBITDA and the ratios related thereto, Adjusted net income (loss), Adjusted basic and diluted earnings per share (Adjusted EPS) and adjusted free cash flow. These measures are derived based on methodologies other than in accordance with U.S. GAAP.

Revenue excluding the Marketing Funds is calculated directly from our consolidated financial statements as Total revenue less Marketing Funds fees.

The Company defines Adjusted EBITDA as EBITDA (consolidated net income before depreciation and amortization, interest expense, interest income and the provision for income taxes, each of which is presented in the unaudited consolidated financial statements included earlier in this press release), adjusted for the impact of the following items that are either non-cash or that the Company does not consider representative of its ongoing operating performance: loss or gain on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gain on reduction in tax receivable agreement liability, expense or income related to changes in the estimated fair value measurement of contingent consideration, restructuring charges and other non-recurring items. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.

Because Adjusted EBITDA and Adjusted EBITDA margin omit certain non-cash items and other non-recurring cash charges or other items, the Company believes that each measure is less susceptible to variances that affect its operating performance resulting from depreciation, amortization and other non-cash and non-recurring cash charges or other items. The Company presents Adjusted EBITDA and the related Adjusted EBITDA margin because the Company believes they are useful as supplemental measures in evaluating the performance of its operating businesses and provides greater transparency into the Company's results of operations. The Company's management uses Adjusted EBITDA and Adjusted EBITDA margin as factors in evaluating the performance of the business.

Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analyzing the Company's results as reported under U.S. GAAP. Some of these limitations are:

The Company's Adjusted EBITDA guidance does not include certain charges and costs. The adjustments to EBITDA in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior quarters, such as gain or loss on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gains or losses from changes in the tax receivable agreement liability, expense or income related to changes in the fair value measurement of contingent consideration, restructuring charges and other non-recurring items. The exclusion of these charges and costs in future periods will have a significant impact on the Company's Adjusted EBITDA. The Company is not able to provide a reconciliation of the Company's non-GAAP financial guidance to the corresponding U.S. GAAP measures without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

Adjusted net income (loss) is calculated as Net income (loss) attributable to RE/MAX Holdings, assuming the full exchange of all outstanding non-controlling interests for shares of Class A common stock as of the beginning of the period (and the related increase to the provision for income taxes after such exchange), plus primarily non-cash items and other items that management does not consider to be useful in assessing the Company's operating performance (e.g., amortization of acquired intangible assets, gain on sale or disposition of assets and sub-lease, non-cash impairment charges, acquisition-related expense, restructuring charges and equity-based compensation expense).

Adjusted basic and diluted earnings per share (Adjusted EPS) are calculated as Adjusted net income (loss) (as defined above) divided by pro forma (assuming the full exchange of all outstanding non-controlling interests) basic and diluted weighted average shares, as applicable.

When used in conjunction with GAAP financial measures, Adjusted net income (loss) and Adjusted EPS are supplemental measures of operating performance that management believes are useful measures to evaluate the Company's performance relative to the performance of its competitors as well as performance period over period. By assuming the full exchange of all outstanding non-controlling interests, management believes these measures:

Adjusted free cash flow is calculated as cash flows from operations less capital expenditures and any changes in restricted cash of the Marketing Funds, all as reported under GAAP, and quantifies how much cash a company has to pursue opportunities that enhance shareholder value. The restricted cash of the Marketing Funds is limited in use for the benefit of franchisees and any impact to adjusted free cash flow is removed. The Company believes adjusted free cash flow is useful to investors as a supplemental measure as it calculates the cash flow available for working capital needs, re-investment opportunities, potential Independent Region and strategic acquisitions, dividend payments or other strategic uses of cash.

Adjusted free cash flow after tax and non-dividend distributions to RIHI, Inc. ("RIHI"), an entity majority owned and controlled by David Liniger, our Chairman and Co-Founder, and by Gail Liniger, our Vice Chair Emerita and Co-Founder, is calculated as adjusted free cash flow less tax and other non-dividend distributions paid to RIHI (the non-controlling interest holder) to enable RIHI to satisfy its income tax obligations. Similar payments would be made by the Company directly to federal and state taxing authorities as a component of the Company's consolidated provision for income taxes if a full exchange of non-controlling interests occurred in the future. As a result and given the significance of the Company's ongoing tax and non-dividend distribution obligations to its non-controlling interest, adjusted free cash flow after tax and non-dividend distributions, when used in conjunction with GAAP financial measures, provides a meaningful view of cash flow available to the Company to pursue opportunities that enhance shareholder value.

Unencumbered cash generated is calculated as adjusted free cash flow after tax and non-dividend distributions to RIHI less quarterly debt principal payments less annual excess cash flow payment on debt, as applicable. Given the significance of the Company's excess cash flow payment on debt, when applicable, unencumbered cash generated, when used in conjunction with GAAP financial measures, provides a meaningful view of the cash flow available to the Company to pursue opportunities that enhance shareholder value after considering its debt service obligations.

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SOURCE RE/MAX Holdings, Inc.

Total Revenue decreased 6.7% to $73.3 million
Revenue excluding the Marketing Funds¹²
Net income attributable to RE/MAX Holdings, Inc. of $4.0 million and income per diluted share (GAAP EPS) of $0.19
Adjusted EBITDA³³³
Total agent count increased 1.4% to 147,547 agents
U.S. and Canada combined agent count decreased 5.1% to 74,198 agents
Total open Motto Mortgage franchises decreased 10.3% to 210 offices⁴

Agent count to increase 0.0% to 1.5% over fourth quarter 2024;
Revenue in a range of $69.5 million to $73.5 million (including revenue from the Marketing Funds in a range of $17.0 million to $19.0 million); and
Adjusted EBITDA in a range of $19.0 million to $23.0 million.

Agent count in a range from 0.0% to positive 1.5% over full year 2024
Revenue in a range of $290.0 million to $294.0 million (including revenue from the Marketing Funds in a range of $72.0 million to $74.0 million), a change from $290.0 million to $296.0 million (including revenue from the Marketing Funds in a range of $72.0 million to $74.0 million); and
Adjusted EBITDA in a range of $90.0 million to $94.0 million, a change from $90.0 million to $95.0 million.

these measures do not reflect changes in, or cash requirements for, the Company's working capital needs;
these measures do not reflect the Company's interest expense, or the cash requirements necessary to service interest or principal payments on its debt;
these measures do not reflect the Company's income tax expense or the cash requirements to pay its taxes;
these measures do not reflect the cash requirements to pay dividends to stockholders of the Company's Class A common stock and tax and other cash distributions to its non-controlling unitholders;
these measures do not reflect the cash requirements pursuant to the tax receivable agreements;
these measures do not reflect the cash requirements for share repurchases;
these measures do not reflect the cash requirements for the settlements of certain industry class-action lawsuits and other legal settlements;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures do not reflect any cash requirements for such replacements;
although equity-based compensation is a non-cash charge, the issuance of equity-based awards may have a dilutive impact on earnings per share; and
other companies may calculate these measures differently so similarly named measures may not be comparable.

facilitate comparisons with other companies that do not have a low effective tax rate driven by a non-controlling interest on a pass-through entity;
facilitate period over period comparisons because they eliminate the effect of changes in Net income attributable to RE/MAX Holdings, Inc. driven by increases in its ownership of RMCO, LLC, which are unrelated to the Company's operating performance; and
eliminate primarily non-cash and other items that management does not consider to be useful in assessing the Company's operating performance.