Re/Max Holdings Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Paolone - JPMorgan Securities LLC - Analyst : Thanks. Good morning. I mean, first question is on the franchise sales line. I know it's a smaller revenue line, but down a decent amount year over year. I was wondering, how much of that is maybe just the conference versus, whether that line item is going to be pressured from some of these other initiatives to, combine franchises and and you know help grow teams and other things that might take away from the actual franchise sales.

Question: Anthony Paolone - JPMorgan Securities LLC - Analyst : Yeah, no, that's a great color. And then just my other question is just more on the [opex] side. You all have done a good job of containing that even in the, even with the backdrop of of inflation. So just wondering like how much you think is left potentially to go there before you've just kind of squeezed everything out that you can.

Question: Anthony Paolone - JPMorgan Securities LLC - Analyst : Okay, thanks and best wishes, Ward.

Question: Nick McAndrew - Zelman Partners LLC - Analyst : Hey guys, thanks for taking my questions. I just have a couple on the new Aspire program, and I think it seems like a really encouraging step towards narrowing the GAAP with some of the more flexible cap-based models in the industry. And I'm just wondering kind of how are you thinking about the competitive positioning of Aspire maybe versus some of your peers and does it now give you a seat at the table with agent cohorts that might not have considered rema before and they they just start there? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, RMAX.N - Q1 2025 Re/Max Holdings Inc Earnings Call

Question: Nick McAndrew - Zelman Partners LLC - Analyst : Yeah, thank you, Erik. That's really helpful and I guess one going off of that is, I guess how do you see aspire coexisting with maybe your more traditional high performing agents and teams? Like, is this something that could eventually evolve into a suite of flexible models that allow brokers to compete or is it just, I'm curious kind of how both models coexist.

Question: Nick McAndrew - Zelman Partners LLC - Analyst : Great thank you guys and congratulations. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, RMAX.N - Q1 2025 Re/Max Holdings Inc Earnings Call

Question: Stephen Sheldon - William Blair - Analyst : Hey, thanks for taking my questions and just kind of following up on some of the new initiatives, great to hear about all those. Can you just give more detail on how the early feedback has been across the system with I guess Aspire and others and do you think these initiatives could be enough to stabilize US agent count and an eventual return to growth, just any thoughts there?

Question: Stephen Sheldon - William Blair - Analyst : Got it. That's helpful and really good to hear. Maybe following up on motto and first there congrats toward on the retirement and the great run, but just on the revenue trends, I think Karri, you gave some commentary. We saw a bigger decline there than than I think we were expecting was that more about the market backdrop? I know it's it's a very challenging backdrop, but was that more about the backdrop or is there anything on the execution side and then just any updates on leadership plans there going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, RMAX.N - Q1 2025 Re/Max Holdings Inc Earnings Call

Question: John Campbell - Stephen's Inc - Analyst : Yeah, thanks. Good morning guys, and I'd like to extend the sentiment award as well. It's been a pleasure working with you all these years and wish you the best. So piggybacking off of Tony's question earlier about the ability to grow margins and profits, I think that's been four straight quarters for you guys despite the top line pressures. It sounds like from Karri's comments maybe a little bit of a culture or corporate shift around a greater focus on cost controls, so. Karri, my question for you is once you guys get back to revenue growth, are there areas of the business where you feel like you'll need to revisit, from a reinvestment standpoint and then bigger picture where you feel like you can take margins over maybe the medium term, just assuming better revenue growth?

Question: John Campbell - Stephen's Inc - Analyst : Okay, appreciate that. And then on the acceleration in international Asian growth, that's that's been great to see. Just two questions related to this bigger picture on international, I guess first just kind of what's driving that momentum and then secondly, I think you're getting to roughly, I think it was 220 per agent per year. Last year that was about 9% of the US agent, revenue per agent. What stops you guys from just being a little bit more aggressive on the international pricing front? is there a little bit of low hanging fruit so I can get to over time?

Question: John Campbell - Stephen's Inc - Analyst : Okay, thanks for the color. I appreciate that.

Question: Tommy McJoynt - Bruyette & Woods, Inc - Analyst : Hey, good morning, guys. Do you have a real-time view of how rematch's agent market share in the US is trending? Just want to get a sense of some of the declines that you've seen are as much a function of, the industry at large or somebody still kind of rematch some specific things. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, RMAX.N - Q1 2025 Re/Max Holdings Inc Earnings Call

Question: Tommy McJoynt - Bruyette & Woods, Inc - Analyst : Okay, got it, thanks, and then switching gears, with regard to our's update to the clear cooperation policy. Does [rea], corporate have a house view, that it kind of provides to its franchisees around the revised rule changes? I know you some players in the industry have been anchoring themselves to one extreme or the other, or is your view just to kind of let the franchisees, maintain compliance with their local MLS, which is, where the new our rule seated some of the decision making to.

Question: Tommy McJoynt - Bruyette & Woods, Inc - Analyst : Great thank you.

Question: John Campbell - Stephen's Inc - Analyst : Thank you, operator. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, RMAX.N - Q1 2025 Re/Max Holdings Inc Earnings Call