RE/MAX Holdings Inc (RMAX) Reports Q3 2023 Earnings: Net Loss of $59. ...
RE/MAX Holdings Inc (NYSE:RMAX) reported a net loss of $59.5 million for Q3 2023
Total revenue decreased by 8.7% to $81.2 million compared to Q3 2022
Adjusted EBITDA decreased by 15.0% to $26.7 million
Total agent count increased by 0.7% to 145,309 agents
On November 2, 2023, RE/MAX Holdings Inc (NYSE:RMAX), the parent company of RE/MAX, one of the world's leading franchisors of real estate brokerage services, and Motto Mortgage, the first-and-only national mortgage brokerage franchise brand in the U.S., announced its Q3 2023 earnings.
Financial Highlights
RE/MAX Holdings reported a net loss attributable to the company of $59.5 million and a loss per diluted share (GAAP EPS) of $3.28. Total revenue decreased by 8.7% to $81.2 million, while revenue excluding the Marketing Funds decreased by 8.8% to $60.4 million. This decrease was driven by a negative 8.2% organic growth and adverse foreign currency movements of 0.6%. Adjusted EBITDA decreased by 15.0% to $26.7 million, with an Adjusted EBITDA margin of 32.9% and Adjusted earnings per diluted share (Adjusted EPS) of $0.40.
Operational Highlights
The total agent count increased by 0.7% to 145,309 agents, while the U.S. and Canada combined agent count decreased by 3.9% to 81,782 agents. The total open Motto Mortgage franchises increased by 14.7% to 242 offices.
Company's Outlook
For the fourth quarter of 2023, RE/MAX Holdings expects an agent count increase of 0.25% to 1.25% over Q4 2022, revenue in a range of $74.0 million to $79.0 million, and Adjusted EBITDA in a range of $20.5 million to $23.5 million. For the full year 2023, the company slightly increased its agent count guidance and narrowed its Revenue and Adjusted EBITDA guidance ranges.
CEO's Commentary
Steve Joyce, RE/MAX Holdings Chief Executive Officer, commented on the results,
We continue to make progress driving forward our core strategic initiatives amid the toughest real estate market in a decade. We remain focused on aggressively pursuing agent growth opportunities teams and conversions, mergers and acquisitions in the U.S., increasing our Canadian and global agent counts, and growing our mortgage business."
Despite the challenging market conditions, Joyce expressed optimism about the company's future,
Ultimately, we believe we will successfully navigate these challenging times and grow significantly when industry conditions improve a pattern we've seen repeatedly for 50 years. The strength of our brands and networks are unmatched in many ways, and we believe our future is very bright."
Explore the complete 8-K earnings release (here) from RE/MAX Holdings Inc for further details.
This article first appeared on GuruFocus.
