RE/MAX Holdings, Inc.

Q1 consolidated revenue was $466 million, up 32% year over year. Gross profit increased 24% to $42.2 million, while gross margin was 9.1% versus 9.6% a year ago. Operating loss improved to $3.4 million from $5.2 million, and adjusted EBITDA rose 80% to $14.9 million from $8.3 million. Cash flow from operating activities was $23.3 million, and unrestricted cash and short-term investments ended at $62.9 million with no debt. For Q2, management said revenue should improve sequentially with normal seasonality, gross margin should follow its usual pattern of declining through the year as more agents cap, and operating expenses will step up due to RE/MAX acquisition-related costs. Longer term, management said it expects to delever to 2x net debt to adjusted EBITDA by the end of the second full fiscal year after close.

Tamir Poleg framed the quarter as proof that Real's model is working: the company is growing transactions, revenue, and EBITDA even in one of the softest housing markets in years. He positioned the RE/MAX acquisition as a way to combine Real's technology and agent-aligned model with RE/MAX's brand, reach, and productive franchise network. His tone was highly confident and aspirational, emphasizing that the company has been building toward an AI- and fintech-enabled homebuying ecosystem for more than a decade.

Ravi Jani focused on operating leverage, margins, and capital discipline. He highlighted Q1 gross profit of $42.2 million, gross margin of 9.1%, operating expenses of $45.6 million, and adjusted EBITDA of $14.9 million, while noting Q2 will include a more material step-up in RE/MAX acquisition-related costs. On the balance sheet, he cited $23.3 million in operating cash flow, $62.9 million in unrestricted cash and short-term investments, no debt, and a plan to reach 2x net debt to adjusted EBITDA by the end of the second full fiscal year after closing.

Analysts pressed on ancillary attach rates, and management said some title JVs are already seeing 40% to 50% attach rates, with a few as high as 80%, while the goal is to keep expanding participation by focusing on top-producing agents first. Questions on gross margin drew a response that year-over-year pressure should be similar in Q2, then ease in the second half as the tough comparison from last year’s post-cap mix rolls off. On RE/MAX integration, management said early feedback from franchisees has shifted from mixed surprise to strong excitement, with interest in reZEN and the broader platform already emerging, and they reiterated that there will be no forced migration of RE/MAX agents onto the Real model.