Re/max Holdings, Inc. · NYSE:RMAX
Re/max — Q4 2024 Earnings Presentation
21 slides from Re/max's earnings presentation, Feb 21, 2025
Slide 1: Fourth Quarter and Full-Year 2024 Earnings
RE/MAX Holdings, Inc. Fourth Quarter and Full-Year 2024 Earnings February 21, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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,
Slide 3: Q4 2024 Highlights
Q4 2024 Highlights Total Revenue of $72.5 Million, Adjusted EBITDA1 of $23.3 Million Q4 2024 Operating Highlights Q4 2024 Financial Highlights ▪ Total agent count increased 1.2% YoY to ▪ Revenue was $72.5 million 146,627 agents ▪ Agent count in the U.S. and Canada ▪ Adjusted EBITDA1 of $23.3 million
Slide 4: Revenue
Revenue Total Revenue down 5.4%, negative Organic Revenue growth1 of 3.5% Quarter to Date Year to Date Revenue ($M) Increase/(Decrease) Increase/(Decrease) 2024 2023 2024 2023 $ % $ % Continuing franchise fees $29.8 $31.4 ($1.6) (5.1%) $122.0 $127.4 ($5.4) (4.2%) Annual dues $7.8 $8.2 ($0.4) (4.9%)
Slide 5: Selling, Operating and Administrative Expenses
Selling, Operating and Administrative Expenses Total Selling, Operating and Administrative expenses decreased 8.6% Quarter to Date Year to Date Selling, Operating & Administrative Expenses Increase/(Decrease) Increase/(Decrease) ($M) 2024 2023 2024 2023 $ % $ % Personnel $22.7 $21.2 $1.5 7.1% $94.2
Slide 6: Adjusted EBITDA of $23.3 Million
Adjusted EBITDA1 of $23.3 Million Adjusted EBITDA1 Margin of 32.2%, up 220 basis points Adjusted EBITDA1 ($M) Adjusted EBITDA Margin1 35.8% 34.8% 32.2% 30.0% $23.0 $23.3 24.3% For Q4 2024: ▪ Adjusted EBITDA was $23.3 million for the fourth quarter of 2024, an increase of $0.4 million, or 1.6%, compa
Slide 7: Looking Ahead – Q1 2025 and FY 2025 Outlook
Looking Ahead – Q1 2025 and FY 2025 Outlook Q1 2025 Outlook1 Full-Year 2025 Outlook1 For the first quarter of 2025, RE/MAX For the full year 2025, RE/MAX Holdings Holdings expects: expects: ▪ Agent count to increase 1.0% to 2.0% over ▪ Agent count to change negative 1.0% to first quarter 2024; posit
Slide 8: RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc. A Leading Dual-Brand Franchisor with Compelling Growth Opportunities #1 Name in Highly Most-Trusted Real Estate1 Productive Agents in the (US/Canada) Network of U.S. and and Unmatched More Than Canada3,4 Global 145,000 Footprint2 Agents Large Network First-and-Only Among Top of
Slide 9: Thank You!
RE/MAX HOLDINGS, INC. Thank You! RE/MAX [MOTTO wemlo. f
Slide 10: RE/MAX Agents Thrive In Good & Bad Markets
RE/MAX’® Agents Thrive In Good & Bad Markets U.S. Transactions Per Agent (Large Brokerages Only) 17.8 17.3 17.2 17.0 171 16.6 163 16.5 15.4 || | | = | = =—I ° | 14.5 = 43.6 11.8 4 81 8.4 78 7.9 7.8 71 S c . 25. 71 7.3 7.6 3 [ | L L L L L L | [ L [ [ I l ° 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 11: Total Agent Count
Total Agent Count Year-over-Year Agent Count increased 1.2% Agent Count Change Year-over-Year December 31, 2023 December 31, 2024 +1.2% YoY (+1,792 agents) 144,835 146,627 -4.8% YoY (-3,842 agents) +8.7% YoY (+5,634 agents) 80,299 76,457 70,170 64,536 Record Agent Count as of December 31, 2024 Total
Slide 12: Agent Count Change Year-over-Year
Agent Count Change Year-over-Year December 31, 2024, over December 31, 2023 Agents Outside U.S. & Canada Agents in Canada Agents in the U.S. +8.7% +0.0% -7.0% (+5,634 Agents) (+3 Agents) (-3,845 Agents) Total agent count increased 1,792 agents, or 1.2%, YoY to 146,627 agents 11
Slide 13: Balance Sheet, Capital Allocation & Liquidity
Balance Sheet, Capital Allocation & Liquidity Balance Sheet & Leverage Capital Allocation & Liquidity ▪ Cash balance of $96.6 million on December 31, ▪ The Company has a common stock repurchase 2024, up $14.0 million from December 31, 2023 program of up to $100 million. During the three months ended
Slide 14: Industry Forecasts
Industry Forecasts Monthly Existing Home Sales1 (Thousands) Annual Existing Home Sales2,3 (Millions) Fannie Mae NAR 4.47 4.15 4.09 4.09 4.09 4.06 2023 2024e 2025e Home Price Appreciation3,4 (YoY) Housing Starts - Single Family3,5 (Thousands) Fannie Mae MBA Fannie Mae NAHB 6.4% 5.8% 1010 5.5% 1005 99
Slide 15: Mortgage Finance Forecasts
Mortgage Finance Forecasts Loan Originations1 ($’s in billions) Mortgage & Interest Rates1 Purchase Refinance 30-Year Fixed 10-Year Treasury $1,600 $1,400 7.3% $1,392 $1,200 $1,288 6.7% 6.5% $1,239 $1,000 $800 4.4% 4.4% 4.5% $600 $660 $400 $491 $200 $219 $0 2023 2024e 2025e 2023 2024e 2025e 1Source:
Slide 16: Agent Count and Revenue Excluding Marketing Funds
RE/MAX Holdings, Inc. Agent Count and Revenue Excluding Marketing Funds As of December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 2023 2023 2023 2022 Agent Count: U.S. Company-Owned Regions 44,911 46,283 46,780 47,302 48,4
Slide 17: Adjusted EBITDA Reconciliation to Net Income
RE/MAX Holdings, Inc. Adjusted EBTIDA Reconciliation to Net Income (Reflects RE/MAX Holdings with 100% ownership of RMCO, LLC) Three Months Ended Year Ended December 31, December 31, $ in 000’s 2024 2023 2024 2023 Net income (loss) $ 4,080 $ (18,379) $ 8,077 $ (98,486) Depreciation and amortization
Slide 18: Adjusted Net Income & Adjusted Earnings per Share
RE/MAX Holdings, Inc. Adjusted Net Income & Adjusted Earnings per Share (Reflects RE/MAX Holdings with 100% ownership of RMCO, LLC) Three Months Ended Year Ended December 31, December 31, $ in 000’s 2024 2023 2024 2023 Net income (loss) $ 4,080 $ (18,379) $ 8,077 $ (98,486) Amortization of acquired
Slide 19: Adjusted Free Cash Flow & Unencumbered Cash Generation
RE/MAX Holdings, Inc. Adjusted Free Cash Flow & Unencumbered Cash Generation Year Ended December 31, $ in 000’s 2024 2023 Cash flow from operations $ 59,652 $ 28,264 Less: Purchases of property, equipment and capitalization of software (6,622) (6,419) (Increases) decreases in restricted cash of the
Slide 20: Non-GAAP Financial Measures
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 inc
Slide 21: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Adjusted net income is calculated as Net income 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 provi