Total Revenue of $74.5 Million, Adjusted EBITDA of $19.3 Million

DENVER, May 1, 2025 /PRNewswire/ --

First Quarter 2025 Highlights

(Compared to first quarter 2024 unless otherwise noted)

Total Revenue decreased 4.9% to $74.5 million
Revenue excluding the Marketing Funds¹ decreased 4.3% to $55.6 million, driven by negative 3.2% organic growth² and 1.1% adverse foreign currency movements
Net loss attributable to RE/MAX Holdings, Inc. of $(2.0) million and loss per diluted share (GAAP EPS) of $(0.10)
Adjusted EBITDA³ increased 1.5% to $19.3 million, Adjusted EBITDA margin³ of 25.9% and Adjusted earnings per diluted share (Adjusted EPS³) of $0.24
Total agent count increased 2.0% to 146,126 agents
U.S. and Canada combined agent count decreased 5.0% to 75,010 agents
Total open Motto Mortgage franchises decreased 7.8% to 224 offices⁴

RE/MAX Holdings, Inc. (the "Company" or "RE/MAX Holdings") (NYSE:RMAX), parent company of REMAX, one of the world's leading franchisors of real estate brokerage services, and Motto Mortgage ("Motto"), the first and only national mortgage brokerage franchise brand in the U.S., today announced operating results for the quarter ended March 31, 2025.

"For the fourth consecutive quarter, our company delivered solid profit and margin performance," said Erik Carlson, RE/MAX Holdings Chief Executive Officer. "We are continually elevating our value proposition, and this quarter we also introduced several new initiatives to help our affiliates win more listings, do so more efficiently, and profitably grow their businesses."

Continued Carlson: "Some of our recently announced strategic programs include refreshed dynamic branding, expanded access to productivity-boosting agent education, a user-friendly social influencer platform, new marketing resources, a comprehensive global referral system, and an innovative onboarding program to attract and develop the next generation of top-producing REMAX agents called Aspire^SM. REMAX has trusted, productive professionals, and we continue to deliver modern, competitive advantages to set our network up to succeed."

First Quarter 2025 Operating Results

Agent Count

The following table compares agent count as of March 31, 2025 and 2024:


	As of March 31,		Change
	2025	2024	#	%
U.S	49,854	53,919	(4,065)	(7.5)
Canada	25,156	25,036	120	0.5
Subtotal	75,010	78,955	(3,945)	(5.0)
Outside the U.S. & Canada	71,116	64,332	6,784	10.5
Total	146,126	143,287	2,839	2.0

Revenue

RE/MAX Holdings generated revenue of $74.5 million in the first quarter of 2025, a decrease of $3.8 million, or 4.9%, compared to $78.3 million in the first quarter of 2024. Revenue excluding the Marketing Funds was $55.6 million in the first quarter of 2025, a decrease of $2.5 million, or 4.3%, versus the same period in 2024. The decrease in Revenue excluding the Marketing Funds was attributable to a decline in organic revenue of 3.2% and adverse foreign currency movements of 1.1%. The reduction in organic revenue was principally driven by a decrease in U.S. agent count, lower mortgage segment revenue, and a decline in revenue from previous acquisitions (excluding Independent Region acquisitions), partially offset by increased Broker Fees revenue.

Recurring revenue streams, which consist of continuing franchise fees and annual dues, decreased $2.2 million, or 5.5%, compared to the first quarter of 2024 and accounted for 66.8% of Revenue excluding the Marketing Funds in the first quarter of 2025 compared to 67.7% of Revenue excluding the Marketing Funds in the prior-year period.

Operating Expenses

Total operating expenses were $69.1 million for the first quarter of 2025, a decrease of $4.7 million, or 6.3%, compared to $73.8 million in the first quarter of 2024. First quarter 2025 total operating expenses decreased primarily due to lower selling, operating and administrative and depreciation and amortization expenses, partially offset by higher settlement and impairment charges.

Selling, operating and administrative expenses were $43.0 million in the first quarter of 2025, a decrease of $2.7 million, or 5.9%, compared to the first quarter of 2024 and represented 77.4% of Revenue excluding the Marketing Funds, compared to 78.7% in the prior-year period. First quarter 2025 selling, operating and administrative expenses decreased primarily due to a decrease in professional fees and certain personnel and events-related expenses, partially offset by higher equity-based compensation expenses and an increase in other technology expenses.

Net Loss and GAAP EPS

Net loss attributable to RE/MAX Holdings was $(2.0) million for the first quarter of 2025 compared to net loss of ($3.4) million for the first quarter of 2024. Reported basic and diluted GAAP loss per share were $(0.10) each for the first quarter of 2025 compared to basic and diluted GAAP loss per share of ($0.18) each in the first quarter of 2024.

Adjusted EBITDA and Adjusted EPS

Adjusted EBITDA was $19.3 million for the first quarter of 2025, an increase of $0.3 million, or 1.5%, compared to the first quarter of 2024. First quarter 2025 Adjusted EBITDA increased primarily due to an increase in revenue from Broker Fees and a decrease in professional fees and certain personnel and events-related expenses, partially offset by decreases in U.S. agent count and revenue from previous acquisitions (excluding Independent Region acquisitions), and an increase in other technology expenses. Adjusted EBITDA margin was 25.9% in the first quarter of 2025, compared to 24.3% in the first quarter of 2024.

Adjusted basic and diluted EPS were $0.24 each for the first quarter of 2025 compared to Adjusted basic and diluted EPS of $0.20 each for the first quarter of 2024. The ownership structure used to calculate Adjusted basic and diluted EPS for the quarter ended March 31, 2025, assumes RE/MAX Holdings owned 100% of RMCO, LLC ("RMCO"). The weighted average ownership RE/MAX Holdings had in RMCO was 60.6% for the quarter ended March 31, 2025.

Balance Sheet

As of March 31, 2025, the Company had cash and cash equivalents of $89.1 million, a decrease of $7.5 million from December 31, 2024. As of March 31, 2025, the Company had $439.9 million of outstanding debt, net of an unamortized debt discount and issuance costs, compared to $440.8 million as of December 31, 2024.

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, 2025, the Company did not repurchase any shares. As of March 31, 2025, $62.5 million remained available under the share repurchase program.

Outlook

The Company's second quarter and full year 2025 Outlook assumes no further currency movements, acquisitions, or divestitures.

For the second quarter of 2025, RE/MAX Holdings expects:

Agent count to increase 1.5% to 2.5% over second quarter 2024;
Revenue in a range of $70.0 million to $75.0 million (including revenue from the Marketing Funds in a range of $17.0 million to $19.0 million); and
Adjusted EBITDA in a range of $22.5 million to $25.5 million.

For the full year 2025, the Company expects:

Agent count to change negative 1.0% to positive 1.0% over full year 2024;
Revenue in a range of $290.0 million to $310.0 million (including revenue from the Marketing Funds in a range of $71.0 million to $75.0 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 2, 2025, 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/Q4I941158632

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:

¹Revenue 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):


	Three Months Ended
	March 31,
	2025		2024
Revenue excluding the Marketing Funds:
Total revenue	$	74,467	$	78,287
Less: Marketing Funds fees		18,864		20,206
Revenue excluding the Marketing Funds	$	55,603	$	58,081

²The 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).

³Adjusted 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.

⁴Total 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 Branchise^SM offices.

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 REMAX^® brand, and mortgage brokerages within the U.S. under the Motto^® Mortgage brand. REMAX 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 145,000 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 REMAX, as measured by total residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX Holdings 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 over 220 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; the Company's outlook for the second quarter and full year 2025; non-GAAP financial measures; housing and mortgage market conditions; operational efficiencies; new initiatives and strategic programs and the expected results thereof; and the Company's value proposition and competitive advantages. 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, including enacted and proposed tariffs and other trade policies which could impact the global economy, (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.

TABLE 1 RE/MAX Holdings, Inc Consolidated Statements of Income (Loss) *(In thousands, except share and per share amounts)* *(Unaudited)*
	Three Months Ended
	March 31,
	2025		2024
Revenue:
Continuing franchise fees	$	29,351	$	31,085
Annual dues		7,789		8,225
Broker fees		11,431		10,716
Marketing Funds fees		18,864		20,206
Franchise sales and other revenue		7,032		8,055
Total revenue		74,467		78,287
Operating expenses:
Selling, operating and administrative expenses		43,028		45,705
Marketing Funds expenses		18,864		20,206
Depreciation and amortization		6,589		7,852
Settlement and impairment charges		619		—
Total operating expenses		69,100		73,763
Operating income (loss)		5,367		4,524
Other expenses, net:
Interest expense		(7,924)		(9,256)
Interest income		908		1,001
Foreign currency transaction gains (losses)		283		(372)
Total other expenses, net		(6,733)		(8,627)
Income (loss) before provision for income taxes		(1,366)		(4,103)
Provision for income taxes		(1,870)		(1,504)
Net income (loss)	$	(3,236)	$	(5,607)
Less: net income (loss) attributable to non-controlling interest		(1,278)		(2,254)
Net income (loss) attributable to RE/MAX Holdings, Inc	$	(1,958)	$	(3,353)

Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock
Basic	$	(0.10)	$	(0.18)
Diluted	$	(0.10)	$	(0.18)
Weighted average shares of Class A common stock outstanding
Basic		19,292,210		18,481,848
Diluted		19,292,210		18,481,848

TABLE 2
RE/MAX Holdings, Inc Consolidated Balance Sheets *(In thousands, except share and per share amounts)* *(Unaudited)*
	As of
	March 31,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	89,107	$	96,619
Restricted cash		77,799		72,668
Accounts and notes receivable, net of allowances		28,748		27,807
Income taxes receivable		7,207		7,592
Other current assets		11,759		13,825
Total current assets		214,620		218,511
Property and equipment, net of accumulated depreciation		7,085		7,578
Operating lease right of use assets		16,371		17,778
Franchise agreements, net		77,452		81,186
Other intangible assets, net		12,587		13,382
Goodwill		237,548		237,239
Income taxes receivable, net of current portion		355		355
Other assets, net of current portion		5,373		5,565
Total assets	$	571,391	$	581,594
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable	$	3,376	$	5,761
Accrued liabilities		106,388		110,859
Income taxes payable		190		541
Deferred revenue		21,022		22,848
Debt		4,600		4,600
Payable pursuant to tax receivable agreements		779		1,537
Operating lease liabilities		8,747		8,556
Total current liabilities		145,102		154,702
Debt, net of current portion		435,305		436,243
Deferred tax liabilities		8,713		8,448
Deferred revenue, net of current portion		14,175		14,778
Operating lease liabilities, net of current portion		20,446		22,669
Other liabilities, net of current portion		3,173		3,148
Total liabilities		626,914		639,988
Commitments and contingencies
Stockholders' equity (deficit):
Class A common stock, par value $.0001 per share, 180,000,000 shares authorized; 19,906,921 and 18,971,435 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		2		2
Class B common stock, par value $.0001 per share, 1,000 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		—		—
Additional paid-in capital		571,141		565,072
Accumulated deficit		(136,008)		(133,727)
Accumulated other comprehensive income (deficit), net of tax		(1,627)		(1,864)
Total stockholders' equity attributable to RE/MAX Holdings, Inc		433,508		429,483
Non-controlling interest		(489,031)		(487,877)
Total stockholders' equity (deficit)		(55,523)		(58,394)
Total liabilities and stockholders' equity (deficit)	$	571,391	$	581,594

TABLE 3 RE/MAX Holdings, Inc Consolidated Statements of Cash Flows *(In thousands)* *(Unaudited)*
	Three Months Ended
	March 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	(3,236)	$	(5,607)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,589		7,852
Equity-based compensation expense		6,346		5,923
Bad debt expense		1,592		1,314
Deferred income tax expense (benefit)		223		(202)
Fair value adjustments to contingent consideration		116		34
Settlement and impairment charges		619		—
Non-cash lease benefit		(768)		(705)
Non-cash debt charges		212		215
Other, net		243		(5)
Changes in operating assets and liabilities		(6,275)		562
Net cash provided by operating activities		5,661		9,381
Cash flows from investing activities:
Purchases of property, equipment, and capitalization of software		(1,691)		(2,619)
Other		—		189
Net cash used in investing activities		(1,691)		(2,430)
Cash flows from financing activities:
Payments on debt		(1,150)		(1,150)
Dividends and dividend equivalents paid to Class A common stockholders		(324)		(585)
Payments related to tax withholding for share-based compensation		(4,237)		(2,498)
Payment of contingent consideration		(791)		(120)
Other financing		(29)		—
Net cash used in financing activities		(6,531)		(4,353)
Effect of exchange rate changes on cash		180		(925)
Net (decrease) increase in cash, cash equivalents and restricted cash		(2,381)		1,673
Cash, cash equivalents and restricted cash, beginning of period		169,287		125,763
Cash, cash equivalents and restricted cash, end of period	$	166,906	$	127,436

TABLE 4

RE/MAX Holdings, Inc

Agent Count

(Unaudited)

As of

March 31,

December 31,

September 30,

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

2025

2024

2023

Agent Count:

U.S

Company-Owned Regions

43,543

44,911

46,283

46,780

47,302

48,401

49,576

50,011

50,340

Independent Regions

6,311

6,375

6,525

6,626

6,617

6,730

6,918

6,976

7,110

U.S. Total

49,854

51,286

52,808

53,406

53,919

55,131

56,494

56,987

57,450

Canada

Company-Owned Regions

20,227

20,311

20,515

20,347

20,151

20,270

20,389

20,354

20,172

Independent Regions

4,929

4,860

4,878

4,846

4,885

4,898

4,899

4,864

4,899

Canada Total

25,156

25,171

25,393

25,193

25,036

25,168

25,288

25,218

25,071

U.S. and Canada Total

75,010

76,457

78,201

78,599

78,955

80,299

81,782

82,205

82,521

Outside U.S. and Canada

Independent Regions

71,116

70,170

67,282

64,943

64,332

64,536

63,527

62,305

61,002

Outside U.S. and Canada Total

71,116

70,170

67,282

64,943

64,332

64,536

63,527

62,305

61,002

Total

146,126

146,627

145,483

143,542

143,287

144,835

145,309

144,510

143,523

TABLE 5 RE/MAX Holdings, Inc Adjusted EBITDA Reconciliation to Net Income (Loss) *(In thousands, except percentages)* *(Unaudited)*
	Three Months Ended
	March 31,
	2025			2024
Net income (loss)	$	(3,236)		$	(5,607)
Depreciation and amortization		6,589			7,852
Interest expense		7,924			9,256
Interest income		(908)			(1,001)
Provision for income taxes		1,870			1,504
EBITDA		12,239			12,004
Settlement and impairment charges ⁽¹⁾		619			—
Equity-based compensation expense		6,346			5,923
Fair value adjustments to contingent consideration⁽²⁾		116			34
Other adjustments ⁽³⁾		(33)			1,032
Adjusted EBITDA⁽⁴⁾	$	19,287		$	18,993
Adjusted EBITDA Margin⁽⁴⁾		25.9	%		24.3	%

(1)	Represents the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada in the first quarter of 2025.
(2)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(3)	Other adjustments are primarily made up of employee retention-related expenses from the Company's CEO transition in the prior year and expenses related to prior period organizational restructuring.
(4)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.


TABLE 6
RE/MAX Holdings, Inc. Adjusted Net Income (Loss) and Adjusted Earnings per Share *(In thousands, except share and per share amounts)* *(Unaudited)*
	Three Months Ended
	March 31,
	2025		2024
Net income (loss)	$	(3,236)	$	(5,607)
Amortization of acquired intangible assets		4,384		5,470
Provision for income taxes		1,870		1,504
Add-backs:
Settlement and impairment charges ⁽¹⁾		619		—
Equity-based compensation expense		6,346		5,923
Fair value adjustments to contingent consideration⁽²⁾		116		34
Other adjustments ⁽³⁾		(33)		1,032
Adjusted pre-tax net income		10,066		8,356
Less: Provision for income taxes at 25% ⁽⁴⁾		(2,517)		(2,089)
Adjusted net income⁽⁵⁾	$	7,549	$	6,267

Total basic pro forma shares outstanding		31,851,810		31,041,448
Total diluted pro forma shares outstanding		31,851,810		31,041,448

Adjusted net income basic earnings per share⁽⁵⁾	$	0.24	$	0.20
Adjusted net income diluted earnings per share⁽⁵⁾	$	0.24	$	0.20

(1)	Represents the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada in the first quarter of 2025.
(2)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities.
(3)	Other adjustments are primarily made up of employee retention-related expenses from the Company's CEO transition in the prior year and expenses related to prior period organizational restructuring.
(4)	The long-term tax rate assumes the exchange of all outstanding non-controlling interest partnership units for Class A Common Stock that (a) removes the impact of unusual, non-recurring tax matters and (b) does not estimate the residual impacts to foreign taxes of additional step-ups in tax basis from an exchange because that is dependent on stock prices at the time of such exchange and the calculation is impracticable.
(5)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP measures.

TABLE 7
RE/MAX Holdings, Inc. Pro Forma Shares Outstanding *(Unaudited)*
	Three Months Ended
	March 31,
	2025	2024
Total basic weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	19,292,210	18,481,848
Remaining equivalent weighted average shares of stock outstanding on a pro forma basis assuming RE/MAX Holdings owned 100% of RMCO	12,559,600	12,559,600
Total basic pro forma weighted average shares outstanding	31,851,810	31,041,448

Total diluted weighted average shares outstanding:
Weighted average shares of Class A common stock outstanding	19,292,210	18,481,848
Remaining equivalent weighted average shares of stock outstanding on a pro forma basis assuming RE/MAX Holdings owned 100% of RMCO	12,559,600	12,559,600
Dilutive effect of unvested restricted stock units⁽¹⁾	—	—
Total diluted pro forma weighted average shares outstanding	31,851,810	31,041,448

(1)	In accordance with the treasury stock method.

TABLE 8
RE/MAX Holdings, Inc. Adjusted Free Cash Flow & Unencumbered Cash *(Unaudited)*
	Three Months Ended
	March 31,
	2025		2024
Cash flow from operations	$	5,661	$	9,381
Less: Purchases of property, equipment, and capitalization of software		(1,691)		(2,619)
(Increases) decreases in restricted cash of the Marketing Funds⁽¹⁾		(5,131)		(2,219)
Adjusted free cash flow⁽²⁾		(1,161)		4,543

Adjusted free cash flow ⁽²⁾		(1,161)		4,543
Less: Tax/Other non-dividend distributions to RIHI		—		—
Adjusted free cash flow after tax/non-dividend distributions to RIHI⁽²⁾		(1,161)		4,543

Adjusted free cash flow after tax/non-dividend distributions to RIHI ⁽²⁾		(1,161)		4,543
Less: Debt principal payments		(1,150)		(1,150)
Unencumbered cash generated⁽²⁾	$	(2,311)	$	3,393

Summary
Cash flow from operations	$	5,661	$	9,381
Adjusted free cash flow⁽²⁾	$	(1,161)	$	4,543
Adjusted free cash flow after tax/non-dividend distributions to RIHI ⁽²⁾	$	(1,161)	$	4,543
Unencumbered cash generated⁽²⁾	$	(2,311)	$	3,393

Adjusted EBITDA ⁽²⁾	$	19,287	$	18,993
Adjusted free cash flow as % of Adjusted EBITDA⁽²⁾		(6.0) %		23.9 %
Adjusted free cash flow less distributions to RIHI as % of Adjusted EBITDA⁽²⁾		(6.0) %		23.9 %
Unencumbered cash generated as % of Adjusted EBITDA⁽²⁾		(12.0) %		17.9 %

(1)	This line reflects any subsequent changes in the restricted cash balance (which under GAAP reflects as either (a) an increase or decrease in cash flow from operations or (b) an incremental amount of purchases of property and equipment and capitalization of developed software) to remove the impact of changes in restricted cash in determining adjusted free cash flow.
(2)	Non-GAAP measure. See the end of this press release for definitions of non-GAAP 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 income (loss), Adjusted basic and diluted earnings per share (Adjusted EPS) and adjusted free cash flow. These measures are derived based on methodologies other than in accordance with U.S. GAAP.

Revenue excluding the Marketing Funds is calculated directly from our consolidated financial statements as Total revenue less Marketing Funds fees.

The Company defines Adjusted EBITDA as EBITDA (consolidated net income before depreciation and amortization, interest expense, interest income and the provision for income taxes, each of which is presented in the unaudited consolidated financial statements included earlier in this press release), adjusted for the impact of the following items that are either non-cash or that the Company does not consider representative of its ongoing operating performance: loss or gain on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gain on reduction in tax receivable agreement liability, expense or income related to changes in the estimated fair value measurement of contingent consideration, restructuring charges and other non-recurring items. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.

Because Adjusted EBITDA and Adjusted EBITDA margin omit certain non-cash items and other non-recurring cash charges or other items, the Company believes that each measure is less susceptible to variances that affect its operating performance resulting from depreciation, amortization and other non-cash and non-recurring cash charges or other items. The Company presents Adjusted EBITDA and the related Adjusted EBITDA margin because the Company believes they are useful as supplemental measures in evaluating the performance of its operating businesses and provides greater transparency into the Company's results of operations. The Company's management uses Adjusted EBITDA and Adjusted EBITDA margin as factors in evaluating the performance of the business.

Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analyzing the Company's results as reported under U.S. GAAP. Some of these limitations are:

these measures do not reflect changes in, or cash requirements for, the Company's working capital needs;
these measures do not reflect the Company's interest expense, or the cash requirements necessary to service interest or principal payments on its debt;
these measures do not reflect the Company's income tax expense or the cash requirements to pay its taxes;
these measures do not reflect the cash requirements to pay dividends to stockholders of the Company's Class A common stock and tax and other cash distributions to its non-controlling unitholders;
these measures do not reflect the cash requirements pursuant to the tax receivable agreements;
these measures do not reflect the cash requirements for share repurchases;
these measures do not reflect the cash requirements for the settlements of certain industry class-action lawsuits and other legal settlements;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures do not reflect any cash requirements for such replacements;
although equity-based compensation is a non-cash charge, the issuance of equity-based awards may have a dilutive impact on earnings per share; and
other companies may calculate these measures differently so similarly named measures may not be comparable.

The Company's Adjusted EBITDA guidance does not include certain charges and costs. The adjustments to EBITDA in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior quarters, such as gain or loss on sale or disposition of assets and sublease, settlement and impairment charges, equity-based compensation expense, acquisition-related expense, gains or losses from changes in the tax receivable agreement liability, expense or income related to changes in the fair value measurement of contingent consideration, restructuring charges and other non-recurring items. The exclusion of these charges and costs in future periods will have a significant impact on the Company's Adjusted EBITDA. The Company is not able to provide a reconciliation of the Company's non-GAAP financial guidance to the corresponding U.S. GAAP measures without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

Adjusted net income (loss) is calculated as Net income (loss) 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 provision for income taxes after such exchange), plus primarily non-cash items and other items that management does not consider to be useful in assessing the Company's operating performance (e.g., amortization of acquired intangible assets, gain on sale or disposition of assets and sub-lease, non-cash impairment charges, acquisition-related expense, restructuring charges and equity-based compensation expense).

Adjusted basic and diluted earnings per share (Adjusted EPS) are calculated as Adjusted net income (loss) (as defined above) divided by pro forma (assuming the full exchange of all outstanding non-controlling interests) basic and diluted weighted average shares, as applicable.

When used in conjunction with GAAP financial measures, Adjusted net income (loss) and Adjusted EPS are supplemental measures of operating performance that management believes are useful measures to evaluate the Company's performance relative to the performance of its competitors as well as performance period over period. By assuming the full exchange of all outstanding non-controlling interests, management believes these measures:

facilitate comparisons with other companies that do not have a low effective tax rate driven by a non-controlling interest on a pass-through entity;
facilitate period over period comparisons because they eliminate the effect of changes in Net income attributable to RE/MAX Holdings, Inc. driven by increases in its ownership of RMCO, LLC, which are unrelated to the Company's operating performance; and
eliminate primarily non-cash and other items that management does not consider to be useful in assessing the Company's operating performance.

Adjusted free cash flow is calculated as cash flows from operations less capital expenditures and any changes in restricted cash of the Marketing Funds, all as reported under GAAP, and quantifies how much cash a company has to pursue opportunities that enhance shareholder value. The restricted cash of the Marketing Funds is limited in use for the benefit of franchisees and any impact to adjusted free cash flow is removed. The Company believes adjusted free cash flow is useful to investors as a supplemental measure as it calculates the cash flow available for working capital needs, re-investment opportunities, potential Independent Region and strategic acquisitions, dividend payments or other strategic uses of cash.

Adjusted free cash flow after tax and non-dividend distributions to RIHI, Inc. ("RIHI"), an entity majority owned and controlled by David Liniger, our Chairman and Co-Founder, and by Gail Liniger, our Vice Chair Emerita and Co-Founder, is calculated as adjusted free cash flow less tax and other non-dividend distributions paid to RIHI (the non-controlling interest holder) to enable RIHI to satisfy its income tax obligations. Similar payments would be made by the Company directly to federal and state taxing authorities as a component of the Company's consolidated provision for income taxes if a full exchange of non-controlling interests occurred in the future. As a result and given the significance of the Company's ongoing tax and non-dividend distribution obligations to its non-controlling interest, adjusted free cash flow after tax and non-dividend distributions, when used in conjunction with GAAP financial measures, provides a meaningful view of cash flow available to the Company to pursue opportunities that enhance shareholder value.

Unencumbered cash generated is calculated as adjusted free cash flow after tax and non-dividend distributions to RIHI less quarterly debt principal payments less annual excess cash flow payment on debt, as applicable. Given the significance of the Company's excess cash flow payment on debt, when applicable, unencumbered cash generated, when used in conjunction with GAAP financial measures, provides a meaningful view of the cash flow available to the Company to pursue opportunities that enhance shareholder value after considering its debt service obligations.

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SOURCE RE/MAX Holdings, Inc.

RE/MAX HOLDINGS, INC. REPORTS FIRST QUARTER 2025 RESULTS