RE/MAX Faces Ongoing Challenges Despite Q1 Earnings Beat

RE/MAX Holdings reported first-quarter 2025 results that, while surpassing earnings expectations, continued to reflect ongoing challenges in the U.S. real estate market. The company posted a 4.9% year-over-year revenue decline to $74.5 million, marking its 11th consecutive quarter of falling revenues, largely due to a shrinking U.S. agent count and tough housing market conditions. Despite these headwinds, profitability improved slightly, with adjusted EBITDA and margins rising and operating expenses cut. CEO Erik Carlson expressed optimism, citing the company's professional agents and international agent growth, although U.S. agent count declined 7.5% year over year. Analysts remain cautious, maintaining a "Hold" outlook, as RE/MAX lacks a clear catalyst for significant growth and continues to face industry-wide pressure. The company reaffirmed its full-year revenue and EBITDA guidance, but long-term sales performance and agent numbers remain areas of concern.