RE/MAX Q2 revenue misses estimates, but adjusted EPS beats

Overview

• RE/MAX Q2 revenue falls 7.3% to $72.8 mln, missing analysts' expectations, per LSEG data

• However, adjusted EPS beats analyst estimates

• Total agent count rises 2.5%, driven by growth outside North America

Outlook

• Company expects Q3 revenue between $71 mln and $76 mln

• RE/MAX sees full-year revenue between $290 mln and $296 mln

• Company forecasts Q3 adjusted EBITDA of $23.5 mln to $26.5 mln

• RE/MAX anticipates full-year adjusted EBITDA of $90 mln to $95 mln

Result Drivers

• ORGANIC REVENUE DECLINE - Revenue excluding Marketing Funds decreased 6.8% due to a 5.7% drop in organic revenue and 1.1% adverse foreign currency movements

• AGENT COUNT - U.S. and Canada agent count fell by 5.0%, impacting revenue, while total agent count grew 2.5% due to international expansion

• NEW INITIATIVES - Introduction of AI-powered global referral system and new pricing engine aimed at improving agent efficiency and customer service

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the real estate services peer group is "buy."

• Wall Street's median 12-month price target for Re/Max Holdings Inc is $9.00, about 9% above its July 28 closing price of $8.19

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn9mB6n3a