The company said Thursday it was enough to offset the decline in revenue from franchise fees and annual membership fees, which account for around 70% of RE/MAX revenue.
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Re/Max has earned its 10th consecutive quarter of revenue as revenue fell 5.4% in the last three months of last year, losing agents in the US and trimming office space.
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The company lost around 3,800 agents in the country and added overseas, seeing the number of US agents continuing to slide. Re/Max said that numbers continue to decline this year as the US and Canada’s general representatives have dropped to 75,411.
The company said it remained focused on becoming more efficient and reported profits in the quarter.
“Our continued focus on operational efficiency contributed to the performance of our existing four quarters of profit and margins, a trend we saw for three-quarters in a row.” “Exciting new initiatives and revenues With our reinforced leadership team overseeing opportunities, we gain momentum and enter 2025 and continue to focus on delivering the best possible customer experience.”
RE/MAX pulled in $72.5 million in the fourth quarter, a decline of $4.1 million over a year ago.
The company cut operating expenses by 21% during the quarter, cutting costs by $18.1 million.
The reduced costs were sufficient to make a profit of $5.8 million this quarter.
The reduced costs were sufficient to offset the company’s important revenue streams of franchise fees and annual membership fee slides. The company said the decline was driven primarily by losses from US agents and lower revenues from previous acquisitions.
A reduction in agent counts could potentially spell out RE/MAX troubles, with approximately 70% of that revenue coming from franchise fees and annual membership fees.
Still, the total number of agents in Re/Max has increased significantly over the past decade. The company reported a total of 146,627 agents. This is an increase of 67% compared to 2011.
Re/Max reported a continuous decline in the total number of motto mortgage franchises. This was down 8.5% in the quarter to 225.
Re/Max reported that it had held $96.6 million in cash at the end of the year, an increase of $14 million from the previous year. It holds $440.8 million outstanding debt.
The company said it expects to make between $71 million and $76 million in the first quarter of this year. This represents another decline of 3% to 9% compared to the first quarter of 2024.
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