RE/MAX Holdings, Inc. earnings

Management highlights

• 2025 built strong strategic foundation, 2026 seen as year of opportunity. Entered 2026 with strong momentum, largest brokerage conversion in RE/MAX history in January. • Innovations like Aspire, Ascend, Appreciate new economic models, Aspire adoption over 2,000 agents. • Digital marketing assets like marketing-as-a-service platform gaining traction, remax.com and remax.ca redesigned with AI. • RE/MAX Media Network revenue pacing ahead of forecast. • New golf lifestyles designation program for agents. • Rolled out new franchise royalty fee model for Motto network, terminated some franchisees. • Chris Lim promoted to President and Chief Growth Officer.

Guidance

• First quarter 2026: Expect agent count increase 1.5% - 2.5% over first quarter 2025, revenue $69M - $74M (including marketing fund $16M - $18M), adjusted EBITDA $14M - $17M. • Full year 2026: Expect agent count increase 1.5% - 3.5% over full year 2025, revenue $285M - $305M (including marketing funds $66M - $70M), adjusted EBITDA $90M - $100M. Assumes no further currency movements, acquisitions, or divestitures.

Segment performance

Total revenue was $71.1 million, adjusted EBITDA was $22.4 million with an adjusted EBITDA margin of 31.5% and adjusted diluted EPS of $0.30. Excluding marketing funds, revenue was $53.6 million, a 0.4% decrease compared to the same period last year due to a reduction in U.S. agent count and impact of incentives, partially offset by increase in broker fees and new initiatives. Fourth quarter selling, operating, and administrative expenses increased $1.6 million to $37.3 million. Total leverage ratio decreased to 3.12 times as of December 31.

Risks & headwinds

• Forward-looking statements subject to risks and uncertainties that may cause actual results to differ from projections. • Housing market conditions and macroeconomic factors can impact results. • Adoption of new models and initiatives may not proceed as expected. • Competition in real estate industry can affect performance.

Analyst Q&A

• Q: As earlier Aspire cohorts move beyond onboarding phase, what's seen with agent development or productivity?

  A: Significant reduction in agent churn as they move up productivity cohort, some upticks in productivity, improvement in retention, and program spurring recruiting activity.

• Q: On 1,200 agent Canadian addition, what's resonating with agent base?

  A: Combination of brand modernization, global footprint, tools, education, community; Rieses respected, agents see value in RE/MAX brand.

• Q: On AI-driven automation, what's franchises' and agents' response?

  A: Purposeful deployment of automation technology like MaxAI, Boldtrail tools; agents curious, we aim to help agents win business, save time, make money with AI.

• Q: Key swing factors in 2026 revenue guide high vs low end?

  A: Macro factors, U.S. agent count stabilization/growth, pipeline of conversions/mergers/acquisitions, new monetization initiatives growth.

• Q: Impact of Aspire program on broker fee revenue line?

  A: Q4 impact not significant (couple hundred thousand to half a million), program offers optionality, will smooth broker fee line over time as participation grows.

• Q: Ongoing vs one-time cost pressures in selling, operating, and admin expenses?

  A: About $1M charge for sale and disposal of assets, year-end Q4 run rate of SO&A looks consistent into future once normalized, Q1 has increased investment for agent convention but consistent with prior years.

• Q: Share repurchases vs Q4 given stock and mortgage rates?

  A: Prudent approach to capital allocation, leverage below 3.5 times, capital allocation more back on table, balancing reinvestment and return of capital.