Franchisor reported its U.S. agent rely fell 6.3 % through the second quarter as income fell 4.8 % in comparison with a 12 months earlier, in response to its earnings report.
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RE/MAX introduced on Thursday that its income has fallen every quarter for the previous two years because the down market continued to chop into the corporate’s earnings and agent rely.
The franchisor reported dropping just below 1,000 brokers within the second quarter of this 12 months, dropping 0.7 % to 143,542 brokers. In North America, the drop was even steeper as RE/MAX reported dropping 4.4 % of its brokers within the U.S. and Canada, the place it had 78,599 brokers to start out the third quarter.
Income fell 4.8 % in comparison with a 12 months earlier, the franchisor reported, and it expects it to maintain falling.
In a press release, RE/MAX Holdings CEO Erik Carlson referred to as the second quarter outcomes “better than expected.”
“We continue to operate our business as efficiently and effectively as possible, which contributed to better-than-expected second-quarter financial results,” Carlson mentioned. “Both during and after the quarter, we were pleased to announce notable brokerage and team conversions to RE/MAX, testament to our brand’s strong reputation and value proposition in the market.”
The corporate reported incomes $3.7 million in revenue for the quarter, in response to its earnings report.
Agent rely fell sharpest within the U.S. through the quarter, dropping by 6.3 % to 53,406, RE/MAX reported. It grew by 4.2 % outdoors the U.S. and Canada, to 64,943. At greatest, the corporate mentioned it expects to lose none of its brokers subsequent quarter. At worst, it mentioned it’s anticipating dropping as much as 1.5 % of its brokers.
General, the corporate generated $78.5 million in income through the second quarter, which was down $4 million from a 12 months earlier.
The corporate has been aggressively shifting to regulate its bills on the similar time it has watched income drop. It reported slicing 10.1 % of bills within the quarter in comparison with a 12 months earlier.
As of June 30, the corporate reported having $66.1 million in money and money equivalents, down $16.6 million from December 2023. RE/MAX has $442.7 million in excellent debt, down barely from the top of final 12 months.
RE/MAX mentioned it expects to drag in between $75 million and $80 million subsequent quarter. That may characterize a drop between 1.5 % to eight.3 % in comparison with the third quarter of 2023.
RE/MAX is ready to carry a name with buyers on Friday morning.
