Overview

* RE/MAX ( RMAX ) Q2 revenue falls 7.3% to $72.8 mln, missing analysts' expectations, per LSEG data

* However, adjusted EPS beats analyst estimates

* Total agent count rises 2.5%, driven by growth outside North America

Outlook

* Company expects Q3 revenue between $71 mln and $76 mln

* RE/MAX ( RMAX ) sees full-year revenue between $290 mln and $296 mln

* Company forecasts Q3 adjusted EBITDA of $23.5 mln to $26.5 mln

* RE/MAX ( RMAX ) anticipates full-year adjusted EBITDA of $90 mln to $95 mln

Result Drivers

* ORGANIC REVENUE DECLINE - Revenue excluding Marketing Funds decreased 6.8% due to a 5.7% drop in organic revenue and 1.1% adverse foreign currency movements

* AGENT COUNT - U.S. and Canada agent count fell by 5.0%, impacting revenue, while total agent count grew 2.5% due to international expansion

* NEW INITIATIVES - Introduction of AI-powered global referral system and new pricing engine aimed at improving agent efficiency and customer service

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $72.80 $74.20

Revenue mln mln (4

Analysts

)

Q2 Beat $0.39 $0.35 (4

Adjusted Analysts

EPS )

Q2 EPS $0.23

Q2 Net $4.70

Income mln

Q2 Beat $26.30 $25.60

Adjusted mln mln (4

EBITDA Analysts

)

Q2 36.1%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the real estate services peer group is "buy."

* Wall Street's median 12-month price target for Re/Max Holdings Inc ( RMAX ) is $9.00, about 9% above its July 28 closing price of $8.19

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)