Real REMAX Q3 Revenue Rises as Company Sets 2027 EBITDA Outlook

Real REMAX Group Inc. (Nasdaq: REAX) reported higher third-quarter revenue and adjusted EBITDA following its merger with RE/MAX Holdings, while acquisition and integration expenses contributed to a $67.2 million GAAP net loss. The company also issued an initial 2027 outlook calling for adjusted EBITDA of $175 million to $190 million despite management assumptions for further declines in existing-home sales and average home prices.

Reported revenue for the quarter ended September 30, 2026, rose 28% year over year to $727.9 million. Adjusted EBITDA increased 66% to $33.8 million, representing a 4.6% margin, compared with 3.6% a year earlier.

The reported results include The Real Brokerage for the full quarter and RE/MAX for 37 days following the merger’s August 24 closing. On a pro forma basis, which treats the companies as if they had been combined since January 1, 2025, third-quarter revenue increased 20% to $770.0 million. Pro forma adjusted EBITDA rose 8% to $49.7 million, with a 6.4% margin.

The GAAP net loss widened to $67.2 million from $280,000 a year earlier. Results included $52.3 million of acquisition and integration expenses and $26.4 million of accelerated equity vesting. The company reported an operating loss of $72.0 million, compared with $473,000 in the prior-year quarter.

Brokerage growth offsets productivity pressure

The brokerage segment generated $695.5 million of reported revenue, up 23% year over year, and $26.8 million of adjusted EBITDA. Its adjusted EBITDA margin was 3.8%.

Closed brokerage transactions increased 17% to 62,738, while the number of brokerage agents rose 21% to 36,610. Transactions per average agent declined 5% to 1.74, reflecting softer housing activity, particularly in Canada. The company also said a larger share of transactions was completed by agents who had reached their annual commission cap, creating year-over-year pressure on segment margins.

Management characterized the brokerage results as continued market-share gains despite weak industry transaction volumes. The combined network ended the quarter with 184,698 agents, including 36,610 brokerage agents and 148,088 franchise agents.

The franchise segment recorded $27.1 million of reported revenue for the post-closing period and $11.8 million of adjusted EBITDA, producing a 43.5% margin. On a pro forma basis, franchise revenue declined 3% year over year.

Total global franchise agent count was broadly unchanged at 148,088. U.S. franchise agents declined 5% to 46,611, while Canada increased 2% to 25,507 and other international markets grew 4% to 75,970. The company said international growth offset U.S. attrition, while recurring franchise revenue provided relative stability amid weaker housing activity. Broker-owner retention and renewals remain priorities for the fourth quarter and 2027.

Integration savings and 2027 outlook

Real REMAX said actions taken during the first two months after the merger produced more than $40 million of annualized gross cost savings, including operating-expense and capital-expenditure reductions. Adjusted EBITDA synergies exceeded $28 million relative to operating-cost levels for the 12 months ended June 30, 2026.

The company reduced combined headcount by more than 14%, or over 150 positions, and is consolidating technology, vendor and public-company costs. Wind-downs of Motto Mortgage and wemlo are also underway. Management is targeting more than $30 million of annualized adjusted EBITDA synergies in 2027 and more than $40 million in 2028.

For the fourth quarter of 2026, the company expects revenue of $575 million to $625 million and adjusted EBITDA of $32 million to $38 million. Its initial full-year 2027 outlook calls for revenue of $2.6 billion to $2.8 billion and adjusted EBITDA of $175 million to $190 million.

The 2027 forecast assumes existing-home sales decline by 5% to 10% and average home prices fall by 3% to 4%. Management said housing activity remains near cyclical lows, elevated mortgage rates continue to constrain affordability, and agent attrition remains high while productivity is under pressure.

The company expects approximately $100 million of stock-based compensation, $40 million to $50 million of depreciation and amortization, and about $50 million of interest expense in 2027. It did not provide a GAAP reconciliation for its forecast adjusted EBITDA ranges, citing the difficulty of estimating certain adjustments.

Liquidity and risks

Real REMAX ended September with $109.4 million of unrestricted cash, cash equivalents and short-term investments. Term-loan principal outstanding was $525 million, and its $40 million revolving credit facility was undrawn. During the quarter, the company made a voluntary $25 million debt repayment and repurchased $4.7 million of shares.

Management plans approximately $75 million of debt repayment in 2027, subject to cash generation, and continues to target total net leverage below 2.0 times by the end of 2028. Its stated capital-allocation priorities are organic investment, debt reduction and offsetting dilution within the limits of its credit agreement.

Key uncertainties include a prolonged real-estate slowdown, failure to realize expected merger savings, further agent and franchisee attrition, and the company’s ability to service debt and comply with credit covenants. The presentation also identified integration execution, product development, technology deployment, legal and regulatory matters, and cybersecurity disruptions as material risks.