DENVER, May 2, 2024

First Quarter 2024 Highlights (Compared to first quarter 2023 unless otherwise noted)

• Total Revenue decreased 8.3% to $78.3 million

• Revenue excluding the Marketing Funds[1] decreased 9.3% to $58.1 million, driven by negative 9.3% organic growth[2]

• Net loss attributable to RE/MAX Holdings, Inc. of $3.4 million and loss per diluted share (GAAP EPS) of $0.18

• Adjusted EBITDA[3] decreased 4.7% to $19.0 million, Adjusted EBITDA margin3 of 24.3% and Adjusted earnings per diluted share (Adjusted EPS3) of $0.20

• Total agent count decreased 236 agents, or 0.2%, to 143,287 agents

• U.S. and Canada combined agent count decreased 4.3% to 78,955 agents

• Total open Motto Mortgage franchises increased 4.7% to 243 offices[4]

Operating Statistics as of April 30, 2024 (Compared to April 30, 2023, unless otherwise noted)

• Total agent count decreased 672 agents, or 0.5%, to 143,087 agents

• U.S. and Canada combined agent count decreased 4.4% to 78,741 agents

• Total open Motto Mortgage franchises increased 4.3% to 244 offices[4]

RE/MAX Holdings, Inc. (the “Company” or “RE/MAX Holdings”) (NYSE: RMAX), parent company of RE/MAX one of the world’s leading franchisors of real estate brokerage services, and Motto Mortgage (“Motto”), the first national mortgage brokerage franchise brand in the U.S., today announced operating results for the quarter ended March 31, 2024. 

“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.”

First Quarter 2024 Operating Results

Agent Count The following table compares Agent Count as of March 31, 2024 and 2023:

As of March 31, 2024: U.S. agent count: 53,919 Canada agent count: 25,036 Subtotal: 78,955 Outside the U.S. & Canada: 64,332 Total: 143,287

As of March 31, 2023: U.S. agent count: 57,450 Canada agent count: 25,071 Subtotal: 82,521 Outside the U.S. & Canada: 61,002 Total: 143,523

Revenue

RE/MAX Holdings generated revenue of $78.3 million in the first quarter of 2024, a decrease of $7.1 million, or 8.3%, compared to $85.4 million in the first quarter of 2023. Revenue excluding the Marketing Funds was $58.1 million in the first quarter of 2024, a decrease of $6.0 million, or 9.3%, versus the same period in 2023. The decrease in Revenue excluding the Marketing Funds was attributable to negative organic revenue growth of 9.3%. 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.

Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $1.4 million, or 3.4%, compared to the first quarter of 2023 and accounted for 67.7% of Revenue excluding the Marketing Funds in the first quarter of 2024 compared to 63.5% of Revenue excluding the Marketing Funds in the prior-year period.

Operating Expenses

Total operating expenses were $73.8 million for the first quarter of 2024, a decrease of $4.7 million, or 6.0%, compared to $78.5 million in the first quarter of 2023. First quarter 2024 total operating expenses decreased primarily due to lower selling, operating and administrative expenses and reduced Marketing Funds expenses.

Selling, operating and administrative expenses were $45.7 million in the first quarter of 2024, a decrease of $3.4 million, or 6.9%, compared to the first quarter of 2023 and represented 78.7% of Revenue excluding the Marketing Funds, compared to 76.7% in the prior-year period. First quarter 2024 selling, operating and administrative expenses decreased primarily due to lower expenses from our annual RE/MAX agent convention and reduced legal expenses, partially offset by higher equity-based compensation expense.

Net Income (Loss) and GAAP EPS

Net loss attributable to RE/MAX Holdings was $3.4 million for the first quarter of 2024 compared to net loss of $0.7 million for the first quarter of 2023. Reported basic and diluted GAAP loss per share were each $0.18 for the first quarter of 2024 compared to basic and diluted GAAP loss per share of $0.04 each in the first quarter of 2023.

Adjusted EBITDA and Adjusted EPS

Adjusted EBITDA was $19.0 million for the first quarter of 2024, a decrease of $0.9 million, or 4.7%, compared to the first quarter of 2023. First quarter 2024 Adjusted EBITDA decreased primarily due to a decrease in U.S. agent count and the net impact of our annual RE/MAX agent convention, partially offset by lower compensation expense and lower legal fees. Adjusted EBITDA margin was 24.3% in the first quarter of 2024, compared to 23.3% in the first quarter of 2023.

Adjusted basic and diluted EPS were each $0.20 for the first quarter of 2024 compared to Adjusted basic and diluted EPS of $0.26 each for the first quarter of 2023. The ownership structure used to calculate Adjusted basic and diluted EPS for the quarter ended March 31, 2024, assumes RE/MAX Holdings owned 100% of RMCO, LLC (“RMCO”). The weighted average ownership RE/MAX Holdings had in RMCO was 59.5% for the quarter ended March 31, 2024.

Balance Sheet

As of March 31, 2024, the Company had cash and cash equivalents of $82.1 million, a decrease of $0.5 million from December 31, 2023. As of March 31, 2024, the Company had $443.6 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $444.6 million as of December 31, 2023.

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 ended March 31, 2024, the Company did not repurchase any shares. As of March 31, 2024, $62.5 million remained available under the share repurchase program.

Outlook

The Company’s second quarter and full-year 2024 Outlook assumes no further currency movements, acquisitions, or divestitures.

For the second quarter of 2024, RE/MAX Holdings expects:

• Agent count to change negative 1.5% to 0.0% over second quarter 2023;

• Revenue in a range of $75.0 million to $80.0 million (including revenue from the Marketing Funds in a range of $19.0 million to $21.0 million); and

• Adjusted EBITDA in a range of $24.0 million to $27.0 million.

For the full year 2024, the Company expects:

• Agent count to change negative 0.5% to positive 1.5% over full year 2023;

• Revenue in a range of $300.0 million to $320.0 million (including revenue from the Marketing Funds in a range of $78.0 million to $82.0 million); and

• Adjusted EBITDA in a range of $90.0 million to $100.0 million.

Webcast and Conference Call

The Company will host a conference call for interested parties on Friday, May 3, 2024, 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/Q4I941152

Interested parties also can access a live webcast through the Investor Relations section of the Company’s website at http://investors.remaxholdings.com. Please dial-in or join the webcast 10 minutes before the start of the conference call. An archive of the webcast will be available on the Company’s website for a limited time as well.

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:

[1]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):

Revenue excluding the Marketing Funds: Three Months Ended March 31, 2024: Total Revenue: $78,287 Less: Marketing Funds fees: $20,206 • Revenue excluding the Marketing Funds: $58,081

Three Months Ended March 31, 2023: Total Revenue: $85,401 Less: Marketing Funds fees: $21,342 • Revenue excluding the Marketing Funds: $64,059

[2]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 first anniversary (excluding Marketing Funds revenue related to acquisitions where applicable).

 [3]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.

 [4]Total open Motto Mortgage franchises includes only “bricks and mortar” offices with a unique physical address with rights granted by a full franchise agreement with Motto Franchising, LLC and excludes any “virtual” offices or BranchiseSM offices.

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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 RE/MAX® brand, and mortgage brokerages within the U.S. under the Motto® Mortgage brand. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Now with more than 140,000 agents in nearly 9,000 offices and a presence in more than 110 countries and territories, nobody in the world sells more real estate than RE/MAX, as measured by total residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Franchising, LLC, a ground-breaking mortgage brokerage franchisor, in 2016. Motto Mortgage, the first-and-only national mortgage brokerage franchise brand in the U.S., has grown to over 225 offices across more than 40 states.

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; operating expenses and cost management; the Company’s outlook for the second quarter and full year 2024; non-GAAP financial measures; housing and mortgage market conditions; RE/MAX agent productivity; and our confidence as to our ability to successfully navigate today’s housing market and evolving real estate industry. 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, (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 the Company’s leadership transition, (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 at www.remaxholdings.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no obligation, to update this information to reflect future events or circumstances.

Investor Contact: Andy Schulz (303) 796-3287 aschulz@remax.com

Media Contact: Kimberly Golladay (303) 224-4258 kgolladay@remax.com

To access appendix tables and Non-GAAP Financial Measures, download a PDF of the press release via the Media Tray.