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As the market continued to present challenges to agents during the third quarter of 2024, RE/MAX‘s revenue declined for the ninth consecutive quarter, according to financial results posted after the market closed on Thursday.
Total revenue declined 3.4 percent on an annual basis to $78.5 million, down from $81.2 million the year before.
The news was a tough hit, as RE/MAX had noted during the previous quarter’s earnings that the company’s revenue had fallen during each quarter of the last two years. This quarter was no different.
However, there was good news, as the real estate franchisor vastly improved its income from the previous year to a net income of $1 million and earnings per diluted share of $0.05. By contrast, during the third quarter of 2023, RE/MAX saw a net loss of $59.5 million.
“We continue to drive operational efficiency across the enterprise, which helped generate better-than-forecasted third-quarter financial results,” RE/MAX Holdings CEO Erik Carlson said in a statement. “Our team is developing new revenue opportunities while working to run our core business better each day. That effort has contributed to our strong margin performance the past two quarters, which is an encouraging trend.”
The company was also able to increase its overall agent count slightly, improving by 174 agents or 0.1 percent. Still, agent count in the U.S. suffered, as 3,686 or 6.5 percent of U.S.-based agents left the franchisor between the third quarter of 2023 and the third quarter of 2024. During the second quarter of 2024, RE/MAX reported that 4.4 percent of its agents in the U.S. and Canada had left the company.
The number of Motto Mortgage franchises also declined 3.3 percent year over year to 234 offices.
“Business optimization, having a growth mindset, and delivering the absolute best customer experience possible are the cornerstones of our playbook,” Carlson continued. “We are making measurable progress on each of these. With increasing optimism about the trajectory of future interest rates, our growing global agent count, and our bold new initiatives — including providing innovative and enhanced technology products to our RE/MAX affiliates, improving the agent-customer experience by cultivating leads, and starting to monetize our digital assets — we are well-positioned to finish the year with positive momentum.”
RE/MAX will hold a call with investors on Friday morning to discuss the third-quarter financial results.
