RE/MAX, a global power brokerage that has been voted to have the U.S. and Canada’s most trusted agents, posted another quarter of decline in revenue and agent count. This comes after four consecutive quarters of decline in 2023, and a commission settlement of $55 million in the third quarter of 2023, aimed to resolve sweeping class-action claims ahead of the landmark Burnett vs NAR decision. The latest financials were announced Thursday in the company’s Q1 earnings call.
Despite data-proven struggles, Chief Holdings Officer Erik Carlson believes that the firm had a “solid” Q1 performance through sharp productivity in agents—especially in a time of extreme uncertainty across the industry.
“Effective cost management led to solid first-quarter margin performance, as we continue to operate our business as efficiently as possible amidst an environment of uncertainty,” said Erik Carlson, RE/MAX Holdings chief executive officer. “This, coupled with our growth mindset and a focus on delivering the absolute best customer experience, are the cornerstones of our playbook, supported by RE/MAX agents who are among the highest quality and most trusted in the profession.
Carlson continued: “A widely respected industry survey recently confirmed RE/MAX agents are the most productive in the U.S., outperforming competitors at participating large brokerages 2-to-1, for the 16th year in a row. Our industry-leading productivity—a hallmark of our brand—continues to differentiate us from the competition and is a major reason we have succeeded over the past 51 years. It is also why we are confident we will successfully navigate today’s housing market and evolving real estate industry.”
From Q1 of 2023, revenue decreased 7.1 million, or 8.3%, to 78.3 million. And, revenue excluding marketing funds dropped to $58.1 million, a decrease of $6 million, or 9.3%, from a year ago. Regarding total agent count, that figure decreased by 0.2%, or 236 agents, totaling 143,287, and U.S. and Canada combined agent count decreased to 78,955, a 4.3% drop.
“The decrease in revenue excluding the marketing funds was attributable to negative organic revenue growth of 9.3%,” the earnings report explained. “Negative organic revenue growth was principally driven by a reduction in revenue from our annual RE/MAX agent convention, due to the 50th anniversary celebration in the prior year, and a decrease in U.S. agent count, partially offset by higher mortgage segment revenue.”
Additionally, total operating expenses in the first quarter decreased to $73.8 million, a drop of $4.7 million, or 6%, compared to a year ago. According to the earnings report, operating expenses decreased as a result of lower selling, operating and administrative expenses, as well as reduced marketing funds expenses.
