Re/Max Holdings Inc. reported a second-quarter loss Thursday as revenue declined, attributing the drop to evolving fee structures and a shrinking U.S. agent workforce. The results arrive less than two weeks before shareholders decide on its acquisition by The Real Brokerage Inc.
The company recorded a net loss of $4.3 million, a reversal from the $4.7 million profit in the same period last year. Revenue decreased 5.8% to $68.5 million, while a figure excluding marketing funds fell 5.1% to $51.7 million.
Recurring revenue declines more sharply
Franchise fees and annual dues, which form the bulk of recurring revenue, dropped 9.9%. These now account for 63.9% of revenue outside marketing funds, down from 67.3% a year earlier. Adjusted EBITDA decreased 12.6% to $22.9 million, with margins tightening to 33.5% from 36.1%.
Operating expenses climbed 14.1% to $67 million, largely due to costs tied to the pending acquisition. Re/Max did not host a conference call or offer additional commentary on the results, continuing its practice since announcing the deal.
Agent numbers rise in Canada, drop in the U.S.
Total agent count increased 1.5% to 149,267, though growth varied by region. Canada saw a 3.3% increase, reaching 25,798 agents. The U.S. experienced a 5% decline, falling to 47,170. Outside North America, agent numbers grew 5.3% to 76,299.
The company closed the quarter with $112.4 million in cash and equivalents, a decrease of $6.3 million since the end of 2025. Debt remained at $435 million.
Shareholders vote August 14
Under the April agreement, Re/Max shareholders can opt for 5.154 shares of the newly formed Real Remax Group Inc. or $13.80 in cash per share. The cash component is limited to between $60 million and $80 million, with proration if demand exceeds the cap. Real shareholders will receive one share of the new entity for each share held.
The deal is expected to finalize in the second half of 2026, pending shareholder approval and other standard conditions. Both companies have set special meetings for August 14.
The Real Brokerage, which also released second-quarter results Thursday, reported 30% revenue growth to $700.6 million. It confirmed plans to complete the acquisition as scheduled, noting that market strategy questions remain a priority for agents during the transition.
