Q2 2025 RE/MAX Holdings Inc Earnings Call
Karri Callahan: Good morning and welcome to the RE/MAX Holdings' second quarter 2025 earnings conference call and webcast. My name is Tiffany, and I will be facilitating the audio portion of today's call. At this time, I would like to turn the call over to Joe Schwartz, Senior Vice President of Finance. Mr. Schwartz.
Good morning and welcome to the RE/MAX Holdings Second Quarter 2025 Earnings Conference Call and Webcast. My name is Tiffany, and I will be facilitating the audio portion of today's call. At this time, I would like to turn the call over to Joe Schwarz, Senior Vice President of Finance.
Joe Schwartz: Thank you, operator. Good morning, everyone, and welcome to RE/MAX Holdings' Q2 2025 earnings conference call. Please visit the Investor Relations section of www.remaxholdings.com for all earnings-related materials, including our standard earnings presentation, and to access the live webcast and the replay of the call today. Our prepared remarks and answers to your questions on today's call may contain forward-looking statements. Forward-looking statements include those related to agent count, franchise sales and open offices, financial measures and outlook, brand expansion, competition, technology, housing and mortgage market conditions, capital allocation, credit facility, dividends, share repurchases, litigation settlements, strategic and operational plans, and business models. Forward-looking statements represent management's current estimates. RE/MAX Holdings assumes no obligation to update any forward-looking statements in the future. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those projected in forward-looking statements.
Thank you, operator. Good morning, everyone and welcome to ReMax Holdings. Second quarter 2025 earnings conference call. Please visit the investor relations section of www.reaxys.com.
Future.
Joe Schwartz: These are discussed in our Q2 2025 financial results press release and other SEC filings. Also, we will refer to certain non-GAAP measures on today's call. Please see the definitions and reconciliations of non-GAAP measures contained in our most recent quarterly financial results press release, which is available on our website. Joining me on our call today are Erik Carlson, our Chief Executive Officer, and Karri Callahan, our Chief Financial Officer. With that, I'd like to turn the call over to them. Erik?
Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those projected in forward-looking statements. These are discussed in our Q2 2025 financial results press release and other SEC filings. Additionally, we will refer to certain non-GAAP measures on today's call; please see the definitions and reconciliations of non-GAAP measures contained in our most recent quarterly financial results press release, which is available on our website.
Erik Carlson: Thank you, Joe, and thanks to everyone for joining us this morning. We are entering the second half of 2025 with solid momentum. We ended Q2 with over 147,000 agents in our global network, an all-time high. We saw signs of stabilization in our U.S. agent count, and our profit and margin performance exceeded expectations once again. Our entire team remains focused on the customer experience and operational excellence. Despite the sluggish housing and macro backdrop, our business model continues to support solid top-line performance. While U.S. existing home sales have been slow to recover, we have seen some green shoots in the form of rising inventory levels and new listings. The June RE/MAX National Housing Report showed inventory levels up 30% versus June of 2024, while new listings grew year over year for the 16th straight month.
Joining me on our call today are Eric Carlson, our Chief Executive Officer, and Karri Callahan, our Chief Financial Officer. With that, I’d like to turn the call over to them. Eric.
Thank you, Joe and thanks to everyone for joining us this morning.
We're entering the second half of 2025 with solid momentum. We ended Q2 with over 147,000 agents in our Global Network, an all-time high. We saw signs of stabilization in our us agent count and our profit and margin performance, exceeded expectations. Once again,
our entire team remains focused on the customer experience and operational excellence.
Despite the sluggish housing and macro backdrop, our business model continues to support solid Topline performance.
While U.S. existing home sales have been slow to recover, we've seen some green shoots in the form of rising inventory levels and new listings.
Erik Carlson: However, uncertainty around tariffs, inflation, and consumer confidence, coupled with affordability challenges, including persistently high mortgage rates, have caused us to temper our expectations around a potential housing rebound in the latter half of the year. For now, we remain laser-focused on the things we can control, and our Q2 results are a testament to our efforts and to the resilience of our network and team. Within the industry, the National Association of Realtors' clear cooperation policy continues to be a topic of debate, and our stance remains unchanged. We are focused on driving positive outcomes for consumers, and we continue to believe that promoting listings to the broadest audience serves the best interest of buyers and sellers.
The June, Remax, National Housing report, showed inventory levels up 30% versus June of 2024. While new listings grew year-over-year for the 16th straight month. However, uncertainty around tariffs, inflation and consumer confidence, coupled with affordability challenges, including persistently, High mortgage rates have caused us to temper, our expectations around a potential housing Rebound in the latter half of the year.
Within the industry. The National Association of Realtors clear, cooperation policy continues to be a topic of debate.
Erik Carlson: Our ongoing pursuit to deliver the best experience to consumers, as well as to RE/MAX agents and franchisees, has fueled countless competitive advantages. It is why we have the most trusted real estate agents in the U.S. and Canada. We also have the most productive network in the world, as evidenced by the results in the 2025 Real Trends Verified Rankings, one of the industry's top independent surveys. For the 17th straight year, RE/MAX agents at large brokerages outperformed their competitors by a margin of more than two to one. This significant advantage in the U.S. per agent productivity represents a clear differentiator benefiting all RE/MAX affiliates in multiple ways. Another major advantage is the scale of our unmatched global footprint. Our worldwide agent count hit a record high as of June 30th, and the second quarter marked our best U.S. agent count performance since Q2 of 2022.
And our stance remains unchanged. We're focused on driving positive outcomes for consumers and we continue to believe that promoting listings to the broadest audience serves the best interest of buyers and sellers.
Our ongoing pursuit to deliver, the best experience to Consumers, as well as to ReMax agents and franchises. Has fueled countless competitive advantages. It's why we have the most trusted real estate agents in the US and Canada.
We also have the most productive Network in the world as evidenced by the results. In the 2025 real Trends, verified rankings 1 of the industry's top independent surveys.
For the 17th straight year Remax agents at large brokerages, outperformed their competitors by a margin of more than 2 to 1.
This significant advantage in the U.S. per agent productivity represents a clear differentiator benefiting all RE/MAX Affiliates in multiple ways.
Another major advantage is the scale of our unmatched Global footprint.
Erik Carlson: As we shared on our last earnings call, April was our strongest month for U.S. agent count in three years, and that momentum continued in May and June. Our continued focus on enhancing our value proposition is driving strong demand for the RE/MAX brand, and we are seeing early signs of U.S. agent count stabilization. This demand is showing up in our CM&A efforts as well, and we have closed several deals this year and are increasingly excited about the pipeline our new leaders are building. As we just announced this morning, I would like to welcome RE/MAX Hawaii to our team. We are thrilled about this conversion that will soon add over 170 highly productive and professional agents to our network.
Our worldwide agent count, had a record high as of June 30th and the second quarter marked our best us agent count performance since Q2 of 2022.
As we shared on our last earnings. Call, April was our strongest month for us agent count in 3 years and that momentum continued in May and June
Our continued focus on enhancing our value proposition is driving strong demand for the RE/MAX brand, and we're seeing early signs of agent count stabilization.
Now this demand is showing up in our CMA efforts as well and we've closed several deals this year and are increasingly excited about the pipeline. Our new leaders are building
Erik Carlson: This strategic move strengthens our market share in Hawaii as a strong and well-regarded operator to our system and reinforces that influential brokers continue to see real value in what we are building at RE/MAX. We are leaning in, investing in tools, technology, new programs, products, and talent to empower our agents to win more listings, save time, and build more profitable businesses for themselves, which in turn fuels brokerage profitability. As I mentioned earlier, we are making many bold moves to elevate and to expand our value proposition. Last quarter, for instance, we introduced Aspire, our innovative onboarding program designed to attract and develop the next generation of RE/MAX agents. As a reminder, Aspire combines world-class education, our advanced technology platform, and a unique financial model that gives newer agents time to build a book of business. We are excited by the network's reception to Aspire.
And as we just announced this morning, I would like to welcome Remax Hawaii to our team. We are thrilled about this conversion. That will soon add over 170, highly productive, and professional agents to our Network. This strategic move strengthens our market share in Hawaii, as a strong and well, regarded operator to our system and reinforces that influential Brokers continue to see real value in what we're building at Remax.
We're leaning in.
Investing in tools, technology, new programs products and talent to empower, our agents to win more listings. Save time and build more profitable businesses for themselves which in turn fuels brokerage profitability.
As I mentioned earlier, we're making many bold moves to elevate and expand our value proposition. Last quarter, for instance, we introduced Aspire, our innovative onboarding program designed to attract and develop the next generation of RE/MAX agents.
As a reminder Aspire combines world-class education, our advanced technology platform and a unique financial model that gives newer agents. Time to build a book of business.
Erik Carlson: Nearly 60% of our brokerages in the U.S. and Canada have already signed up, and hundreds of agents are enjoying the benefits. Aspire launched in April, and May and June were the first two months of 2025 with a higher U.S. recruitment rate than the same period in 2024. This trend should continue as Aspire becomes even more integrated into the DNA of our network. Several other benefits of affiliation are also adding to our momentum. Our Lead Concierge program is continuing to build and contribute to the top line by connecting consumers with agents and converting curated leads into sales. We recently launched our new AI-powered global marketing platform, a powerful real-time data platform that simplifies and scales the exchange of referrals across our unmatched global footprint of over 110 countries and territories. These new innovations are strategically tapping into the power of the RE/MAX community.
We're excited about the Network's reception to Aspire. Nearly 60% of our brokerages in the US and Canada have already signed up and hundreds of agents. Are enjoying the benefits.
Aspire launched in April and May and June were the first 2 months of 2025 with a higher us recruitment rate than the same period in 2024.
This trend should continue as Aspire becomes even more integrated into the DNA of our Network.
Several other benefits of affiliation are also adding to our momentum. Our lead consear program is continuing to build and contribute to the Top Line by connecting consumers with agents and converting period leads into sales.
And we recently launched our new AI-powered global referral system—a powerful real-time data platform that simplifies and scales the exchange of referrals across our unmatched global footprint of over 110 countries and territories.
Erik Carlson: After all, the network effect works best at scale, and no one does scale like RE/MAX. In addition, our RE/MAX Media Network is also beginning to contribute to the top line. While we remain confident in its long-term monetization opportunity, the launch has been slower than anticipated, in part due to a challenging macro environment that also has impacted advertising spend. Nonetheless, infrastructure is in place, with partners starting to come on board who are seeing the power of our brand and the value of our digital assets. On the mortgage side, the environment remains challenging, but our resilient operators continue to navigate it successfully. We're supporting them with new tools, including a recently launched pricing engine within our loan brokerage system. It's designed to boost productivity and help originators find the best loan options for consumers.
These new Innovations are strategically tapping into the power of the Remax Community after all the network effect works best at scale. And no, 1 does scale like Remax.
In addition, our RE/MAX media network is also beginning to contribute to the top line. While we remain confident in its long-term monetization opportunity, the launch has been slower than anticipated, in part due to the challenging macro environment that has also impacted advertising spend. Nonetheless, infrastructures are in place with partners who are starting to come on board, seeing the power of our brand and the value of our digital assets.
Now on the mortgage side, the environment remains challenging but our resilient operators continue to navigate it successfully.
Erik Carlson: We've made great progress in the search for the next leader of our mortgage business, and we'll make an announcement in the coming weeks. Mortgage continues to be an important component of our growth story, and we expect our next leader will help us continue to grow Motto Mortgage and wemlo while exploring additional avenues to grow our mortgage opportunity. As we look ahead, our focus remains clear: continue to grow the global RE/MAX agent network, especially in the U.S. and Canada, further enhance our value proposition, and execute with the excellence across our brands. With the right people, platforms, and programs in place, we're on the right path, and we're very optimistic about our future. I'll turn it over to Karri Callahan.
Signed a boost productivity and help Originators find the best loan options for consumers.
We've made great progress in the search for the next leader of our mortgage business and will make an announcement in the coming weeks, mortgage continues to be an important component of our growth story. And we expect our next leader will help us continue to grow motto and weelo, while exploring additional Avenues to grow our mortgage opportunity.
As we look ahead, our Focus remains clear continue to grow the global. Remax agent Network especially in the US and Canada further. Enhance our value proposition and execute with the Excellence across our brands. With the right, people platforms and programs in place. We're on the right path and we're very optimistic about our future.
Karri Callahan: Thank you, Erik. Good morning, everyone. We are excited about the second quarter operational trends Erik discussed and are pleased with our financial performance. Our second quarter results were a continuation of a consistent trend driven by better-than-expected expense management that resulted in solid profit and improved margin performance for the fifth consecutive quarter. Our top-line results were right in line with our expectations this quarter, despite a sluggish spring housing market, highlighting the resilience of our financial model. Some of our notable quarterly financial highlights included total revenue of $72.8 million, adjusted EBITDA of $26.3 million, adjusted EBITDA margin of 36.1%, an increase of 30 basis points over the second quarter of 2024, and adjusted diluted EPS of $0.39.
Thank you Eric. Good morning everyone. We are excited about the second quarter operational Trends, Eric discussed and are pleased with our financial performance.
Our second quarter results are a continuation of a consistent trend driven by better-than-expected expense management, which resulted in solid profits and improved margin performance for the fifth consecutive quarter.
Some of our notable quarterly financial highlights included, total revenue of 72.8, million adjusted ibida of 26.3 million.
Karri Callahan: Looking closer at revenue, excluding the marketing funds, revenue was $54.5 million, a decrease of 6.8% compared to the same period last year, driven by negative organic growth of 5.7% and adverse foreign currency movements of 1.1%. The decline in organic growth was principally due to lower U.S. agent count, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams, including contributions from our RE/MAX Media Network and Lead Concierge initiatives. As mentioned, margin performance improved thanks to our focus on ongoing operational efficiencies. Second quarter selling, operating, and administrative expenses decreased $1 million, or 2.8%, to $33.9 million. This reduction was primarily due to certain lower personnel expenses, partially offset by severance expenses from a restructuring in the current year and some investments in our flagship website. We continue to strategically evaluate every aspect of our business and leave no stone unturned.
Adjusted ibida margin of 36.1% and increase of 30 basis points. Over the second quarter of 2024 and adjusted diluted EPS of 39 cents.
Looking closer at Revenue, excluding the marketing funds.
Revenue was 54.5 million, a decrease of 6.8% compared to the same period last year, driven by negative organic growth, of 5.7%, and adverse foreign currency movements of 1.1%.
The decline in organic growth was principally due to lower U.S. agent counts, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams, including contributions from our RE/MAX Media Network and Lead Concierge initiatives.
as mentioned margin performance, improved thanks to our focus on ongoing operational efficiencies
Second quarter selling, operating, and administrative expenses decreased by $1 million, or 2.8%, to $33.9 million.
This reduction was primarily due to certain lower Personnel expenses partially offset by Severance expenses from a restructuring in the current year and some investments in our Flagship websites.
We continue to strategically evaluate every aspect of our business.
Karri Callahan: However, the broader macro and housing environment continues to be challenging, impacting our total leverage ratio, which was 3.58 to 1 as of June 30th, roughly consistent with March 31st. That said, we still expect our TLR to decrease as we get into the back half of the year. From a capital allocation perspective, our priorities remain unchanged. We are strategically reinvesting in the business and building our cash reserves as we work to lower our TLR below 3.5 to 1. Now, onto our guidance. We are excited about all of our ongoing initiatives and the momentum we are building. However, the existing uncertainty in the current macro environment has made forecasting future results increasingly difficult. It has also caused some of our initiatives, like our RE/MAX Media Network in particular, to take longer to ramp up.
And leave no Stones unturned. However the broader macro and housing environment continues to be challenging impacting, our total leverage ratio which was 3.58 to 1 as of June 30th roughly consistent with March 31st.
That said, we still expect our tlr to decrease as we get into the back half of the year.
From a capital allocation perspective, our priorities remain unchanged.
We are strategically reinvesting in the business and building our cash reserves as we work to lower our tlr below, 3 and a half to 1.
now, on to our guidance,
We are excited about all of our ongoing initiatives and the momentum. We are building.
However, the existing uncertainty in the current macro environment has made forecasting future results, increasingly difficult.
It is also caused some of our initiatives.
Karri Callahan: As a result, we are tightening our revenue and profit range expectations for the rest of the year, but also increasing our agent count expectations, primarily due to the strength of our international agent count growth in the first half of the year. Our third quarter and full year 2025 outlook assumes no further currency movements, acquisitions, or divestitures. For the third quarter of 2025, we expect agent count to increase 1% to 2% over third quarter 2024, revenue in a range of $71 to $76 billion, including revenue from the marketing funds in a range of $17 to $19 million, and adjusted EBITDA in a range of $23.5 to $26.5 million.
Like our Remax media Network, in particular to take longer to ramp up.
As a result, we are tightening our revenue and profit range expectations for the rest of the year. We are also increasing our agent count expectations, primarily due to the strength of our international agent count growth in the first half of the year.
Our third quarter and full year 2025 Outlook assumes. No further currency movements Acquisitions or divestitures
for the third quarter of 2025, we expect
Agent, count to increase 1, to 2% over third quarter 2024.
Revenue in a range of 71 to 76 billion including revenue from the marketing funds. In a range of 17 to 19 million and adjusted ibida in a range of 23 and a half.
Karri Callahan: For the full year 2025, we now expect agent count in a range from 0% to positive 1.5% over full year 2024, a change from -1% to positive 1%, revenue in a range of $290 to $296 million, including revenue from the marketing funds in a range of $72 to $74 million, a change from $290 to $310 million, including revenue from the marketing funds in a range of $71 to $75 million, and adjusted EBITDA in a range of $90 to $95 million, a change from $90 to $100 million. With that, operator, let's open it up for questions.
And for the full year 2025, we now expect.
agent count and arranged from 0 to positive 1 and a half percent over a full year. 2024 a change from negative 1% to positive 1%.
Revenue in a range of 290 to 296 million including revenue from the marketing funds in a range of 72 to 74 million.
A change from 290 to 310 million including revenue from the marketing funds, and a range of 71 to 75 million and adjusted Ava in a range of 90 to 95 million, a change from 90 to 100 million with that operator. Let's open it up for questions.
Speaker 5: At this time, if you would like to ask a question, press star then the number one on your telephone keypad. To withdraw your question, simply press star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from Tommy McJoynt with KBW. Please go ahead.
At this time, if you would like to ask a question, press star, then the number 1 on your telephone keypad to withdraw your question simply press star 1. Again we will pause for just a moment to compile the Q&A roster.
Your first question comes from Tommy MC joint with KBW. Please go ahead.
Tommy McJoynt: Hey, good morning, guys. Thanks for taking our questions. The first one, Karri, I just want to zoom in a little bit on the reduced guidance range. I just want to be clear, how much of that is driven by lower, what I'll call variable sort of brokerage fee-driven volumes versus just lower, more recurring fees driven by the agent count?
Karri Callahan: Yeah, good morning, Tommy. So, great question. I think I would highlight a couple of things just with respect to our second quarter. I think we saw some good momentum in the second quarter with respect to the agent count performance and some of the revenue contributions from the differentiated revenue streams, some from some of our new revenue streams. The reduced guidance, as we think about that in the back half of the year, I would really kind of point to three things that is impacting the top line that is then flowing through to the profit to the profit line. The first is just a little bit of a delay in the ramp-up of our RE/MAX Media Network. So, we did see some contribution in the first half of the year, but that ramp-up is just a little bit slower than we expected.
Hey, good morning guys, thanks for taking our questions. Um, the first 1 uh, Carrie just want to uh, zoom in a little bit on the, the reduced guidance range. Just just want to be clear, how much of that is driven by, uh, lower would all call variable, um, sort of brokerage, uh, fee, uh, driven volumes versus just lower. Um, more recurring fees driven by the the agent count
Karri Callahan: So, that is the first thing, really kind of coming in that franchise sales and other franchise revenue line items. The second thing, the second component is a little bit more of a tempered outlook on broker fees. So, again, a little bit more on the variable side. Then I think the third component, as we think about it, that is really more of a near-term impact, kind of in the back half of this year, is something that is impacting us related to Aspire. So, Aspire has really been a fantastic, we have seen fantastic results from a business perspective and from an adoption standpoint as it has really accelerated recruiting. As Erik Carlson said, April and when we launched it in April, May and June were the best months of recruiting we have seen in the U.S.
Yeah, good morning, Tommy so. Great question. I think, you know, I've highlighted a couple of things just with respect to our second quarter. You know, I think we saw some good momentum in the second quarter with respect to the agent count performance and some of the revenue contributions from the differentiated revenue streams, some from some from some of our new revenue streams, the reduced guidance. Um as we think about that in the back half of the year, I would really kind of point to 3 things that impacting the top line that then slowing through to to the profit uh to the profit line. You know, the first is just uh a kind of a little bit of a delay in the ramp up of our remedi. Uh, Remax media Network. Um, so we did see some contribution in the first half of the year but that ramp up is just a little bit slower, uh, than we expected. Uh, so that's the first thing, uh, really kind of coming in that franchise sales and other franchise Revenue line items. The second thing. The second component is a little bit more of a tempered outlook on, on broker fees.
Um, and so again a little bit more on the variable side, and then I think the third component, as we think about it, um, is really more of a near-term impact. Kind of in the back half of this year is something that's impacting us related to Aspire. So Aspire has really been fantastic.
Karri Callahan: But from a revenue perspective, near term, it is going to take a little while for us to see the revenue contributions. At scale, we think that the revenue per agent is on par or even a little bit better than what we see today. But on a near-term basis, in the back half of the year, there is a little bit of pressure as those things ramp up. So, it is really all three of those things. It is just causing a little bit of pressure on the top line, and that is what is rolling through to the bottom line that has contributed to that change.
You know, we've seen fantastic results from a business perspective and from an adoption standpoint, as it's really accelerated recruiting, uh, you know, as as Eric said, April and uh, when we launched it in April, May and June were the best months of recruiting we've seen in the US. But from a revenue perspective, uh, near-term. It's going to take a little while for us to see the revenue contribution, uh, at scale. We think that the revenue per agent is on par or, uh, even a little bit better than what we see today. But on a near-term basis in the back, half of the year. There's a little bit of pressure as those things ramped up. So it's really all 3 of those things. Um, it's just causing a little bit of pressure on the top line and that's what's rolling through to the bottom line, that's contributed to that change.
Tommy McJoynt: Got it. Thanks for walking through those pieces. On the guidance front, it was good to see the agent count guide for the full year get raised, that range. When you break apart what has changed directionally since we got the guidance about three months ago between the different geographies of U.S., Canada, and the international side, which could you rank order which of those geographies was most incremental toward that change in the agent count?
Um and then also on on the guidance front it it was good to see the agent count um guide for the full year. Get get raised that that range. Um when you break apart sort of what's changed uh directionally um since we got the guidance about 3 months ago um between the different geographies of us, you know, Canada and and then the international side um what which sort of could you run?
Bank order which of those geographies was most incremental toward that that change in the Aging account.
Karri Callahan: I think, we continue to see the global footprint and the international expansion as a key competitive advantage. We pointed not only to the agent count expansion, but what we are doing from a value delivery perspective with respect to our Max/Refer program and really leveraging the power of the global footprint. The strength that we have seen in our international agent count is really probably the biggest driver to the guidance range on agent count. However, I really do want to stress the importance and the momentum of what we are seeing in the U.S. As Erik Carlson mentioned in the scripted remark, exciting announcement this morning with respect to a large-scale conversion in Hawaii, bringing us some very high-quality, productive agents and a really strong operator into the network. The pipeline that we have new leaders both in the U.S. and Canada are building, is exciting as well.
In the scripted remarks, you know, exciting announcement this morning uh with respect to you know a large a large scale conversion in Hawaii. Um you know bringing us some some very high quality productive agents and in a really strong operator into the network and the pipeline you know that we have new leaders both in the US and Canada are building. Um you know is is exciting as well.
Tommy McJoynt: Thank you.
Thank you.
Speaker 5: Your next question comes from Nick McAndrew with Zelman. Please go ahead.
Your next question comes from Nick. Mcandrew with zelman, please. Go ahead.
Tommy McJoynt: Hey, guys, thanks for taking my questions. Maybe just to start, it is really encouraging to see all the progress with Aspire. Now that it has been live for about a full quarter, I am just wondering, has your perspective evolved on which types of agents the program is resonating with? Are you able to share any just updated feedback from franchisees on how they are utilizing the program? Is it something that they are actively embracing as a core part of their recruiting strategy, or is it still kind of more of a complementary tool at this point? Just curious. Thanks.
Hey guys, thanks for taking my questions. Uh, maybe just to start. It's really encouraging to see all the progress with the spire and now that it's been live for about a full quarter. I'm just wondering because your prospective evolved on which types of Agents the program is resonating with and are you able to share any just updated feedback from franchisees on how they're utilizing the program? Um, is it something that they're actively embracing as a core part of the recruiting strategy? Or is it still kind of more of a complimentary tool at this point? Just curious, thanks.
Erik Carlson: Yeah, thanks, Nick. This is Erik. I think the comments and our thoughts on Aspire continue to hold true. We are seeing really positive adoption. Almost two-thirds of the brokerage that are eligible are participating in the program. Folks that are participating in the program are seeing higher recruitment rates over those that are not year over year, which is encouraging. I think the agent mix, although Aspire comes with a technology component to help folks understand how to use a CRM and start to nurture leads and get invested in the platform that we deploy, it also comes with a large educational component to make sure that we can help them to be productive sooner rather than later. That helps with onboarding from a brokerage perspective also. We are seeing agents that are younger in tenure entering the program.
Yeah, thanks Nick. This is, uh, this is Eric, um, I think the, uh, the comments and our, uh, our thoughts on Aspire, uh, continue to hold true. Right? So we're we're seeing really positive adoption. Uh, you know almost 2/3 of the uh, The Brokerage that uh, that are eligible are participating in the program. Um, folks that are participating in the program are seeing higher recruitment rates.
Over those that are not year-over-year, which is, I think, the agent mix.
You know, although, uh, you know, Aspire comes with a technology component to help folks, understand how to use the CRM and uh, start to nurture leads and get invested, uh, in the platform that we deploy. Uh, it ALS comes with a large educational component to make sure that we can uh, you know, help them to be productive uh as sooner rather than later. And that helps with, on boarding from a uh, a broker a brokerage perspective also.
Erik Carlson: We are also seeing some agents that are using it to transfer a book of business. So, it is another tool in the tool belt that a broker can use in order to attract new unlicensed agents, new lower tenured licensed agents that need an additional boost from a great brand and a great onboarding program. It also can help with obviously transferring a book of business with more mature, more productive agents that also want to be a part of our great brand. So, we are seeing kind of all those components, Nick, and as you can imagine, the middle one is probably the biggest driver, and it is really helping us to bring kind of the next generation of agents to RE/MAX.
So, we are seeing, uh, agents that are younger and tenure, uh, you know, entering the program. We're also seeing some agents that are using a transfer of a book of business. So it's another tool, um, you know, kind of in the tool belt that a broker can use, uh, in order to attract, um, you know, new unlicensed, agents new lower tenure license agents that, uh, you know, need an additional boost uh, from a great brand and a great onboarding program. And then also, it can help with, uh, obviously transferring, a book of business with more mature, more productive agents that also want to, uh, be a part of our great brand. So we're seeing kind of all those components, uh, Nick. And, as you can imagine, you know, the middle 1 is probably, uh, the biggest driver and it's really helping us to, uh, bring kind of the next generation of agents to ReMax.
Tommy McJoynt: That makes a lot of sense. Thanks, Erik. I guess following up off of that, you have launched several agent-facing tools over the last few quarters, whether it is obviously Aspire, Lead Concierge, Max/Refer. I am just curious, do you have any visibility into how many agents are actively using maybe just one, two, three, or more tools? I am trying to wonder if you are seeing a higher level of stickiness when agents are fully integrated with all of the tools in the toolkit at your disposal versus an agent that maybe is not fully ingrained yet?
Yeah, that makes a lot of sense. Thanks Eric. And I guess following up off of that you've launched several agents facing tools over the last few quarters whether it's obviously Aspire lead, concierge Max refer, I'm just curious. Do you have any visibility into how many agents are actively using? Maybe just 1 2 3 or more tools because I'm trying to wonder if you're seeing a higher level of stickiness when agents are fully integrated with all of the tools in the toolkit at your disposal versus an agent that maybe isn't fully ingrained yet.
Erik Carlson: Yeah, I think that that's a great question regarding kind of retention and engagement. I think it's a little too early to tell to quite answer the tool on like the multiple tool engagement versus kind of single tool. Obviously, it's something we're laser-focused on, based on especially on my prior experience. However, we are seeing good adoption on the tools that we have deployed. So, folks are excited about our global marketing platform and MAX/Engage. We're seeing referrals flow through there. We're seeing closed deals flow through there. Lead Concierge, we're seeing great conversion from an upper funnel to mid-funnel to a lower funnel. We've got really nice adoption from a lot of agents who have to opt into the program.
Erik Carlson: And if you recall on Lead Concierge, it was not only about delivering kind of an agent, a curated warmed lead, so to speak, but also really improving that consumer experience for either a buyer or a seller. So, we're continuing to make improvements in that program. And we've got a variety of other things that we've launched since R4. Our marketing as a service is in beta right now, and will go live here in the next couple of weeks. And we're seeing good adoption and good performance from a marketing perspective for agents. So, we're really excited about some of the new things on how we've leaned into the network to help agents by improving the value proposition. We're all about just helping them win listings, do it in less time, and make a little more money. And then obviously that transfers to improved brokerage profitability.
Yeah, I think that that's a great question. Uh, regarding kind of retention and engagement. I think it's a little too early to tell, um, to quite answer the tool unlike the multiple tool engagement, uh, versus kind of single Tool. Uh, obviously it's something, uh, we're laser focused on, um, you know, based on, especially on my prior experience. However, we are seeing good adoption on the tools that we have deployed. So, you know, folks are excited about our Global referral platform and Max engage. We're seeing referrals flow through there. We're seeing closed deals flow through there. Uh, lead consear we're seeing, uh, you know, great, uh, conversion from a, uh, you know, an upper funnel to mid-funnel to lower funnel. We've got uh, we've got really nice adoption from a lot of agents who have to opt into the program and if you recall on lead concierge kind of an agent, a uh, you know, a curated warmed lead, uh, so to speak but also really
Erik Carlson: So, the building blocks are in place. We're seeing good adoption. Now it's time to move into the execution phase.
Of the network to help agents by improving the value proposition. Um, you know, we're all about just helping them win listings, do it in less time and make a little more money and then, obviously, that transfers to improved, uh, brokerage profitability. So, you know, the, uh, the building blocks are in place, we're seeing good adoption. Uh, now it's time to move into the execution phase.
Tommy McJoynt: Great. That's helpful. Thanks, guys.
Great, that's helpful. Thanks guys.
Speaker 5: That concludes our question and answer session. I will now turn the call back over to Joe Schwartz for closing remarks.
That concludes our question-and-answer session, and I will now turn the call back over to Joe Schwarz for closing remarks.
Joe Schwartz: Thank you, operator, and thank you all for joining the call today.
Thank you, operator, and thank you all for joining the call today.
Speaker 5: Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.
Ladies and gentlemen, this concludes today's call thank you all for joining. You may now disconnect
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