RE/MAX Holdings (RMAX) One-Off $6.7M Loss Casts Doubt on Turnaround Narratives

RE/MAX Holdings (RMAX) posted a substantial one-off loss of $6.7 million, which affected the company’s trailing 12-month results through September 30, 2025. While RMAX turned profitable this past year, EPS has declined by 29.6% per year over the last five years, and revenue is projected to rise just 2.8% annually, well behind the US market’s anticipated 10.3%. Margins have improved with the recent return to profitability, but the one-time loss makes it difficult to get a clear view of underlying performance.

See our full analysis for RE/MAX Holdings.

Next up, we’ll see how these numbers compare with the widely watched narratives among market watchers. Some storylines might hold up, while others could be affected by the details in the latest earnings.

See what the community is saying about RE/MAX Holdings

DCF Fair Value Shows Major Discount

• At $7.93 per share, RE/MAX Holdings trades well below its DCF fair value of $27.53. This creates a gap of nearly 71% that could attract value-focused investors.
• Consensus narrative highlights that the stock’s price-to-earnings ratio of 16.7x is lower than the industry average of 25.3x, and the current share price is right in line with analyst targets, but the following points remain:
  • The wide gap between DCF fair value and market price raises the question of whether operational risks are overshadowing attractive valuation metrics.
  • Analysts see the stock as fairly priced in the market, even with slow forecasted revenue growth (2.8% per year) and persistent concerns about low-quality earnings and a weak balance sheet.
• While the valuation appears cheap on paper, real risks to growth and financial resilience may explain why shares have failed to close the discount.

Recent results make it essential to see whether the consensus narrative holds up given these valuation signals. Are risks being overestimated by the market, or does the low price fairly reflect operational headwinds? 📊 Read the full RE/MAX Holdings Consensus Narrative.

Profit Margin Outlook: 3.2% Today, Doubling by 2028

• Analysts expect profit margins to more than double from 3.2% now to 6.6% over the next three years, suggesting some belief in a structural turnaround over time.
• According to the consensus narrative, tech investments and global agent expansion should strengthen earnings resilience and drive these margin gains, but several factors remain:
  • Actual earnings have fallen steeply, declining by 29.6% per year for the past five years, and a recent one-off $6.7 million loss undermines near-term profitability metrics.
  • The slow projected revenue growth rate (2.8% annually) may limit how much margin expansion can be achieved, especially if ongoing U.S. sales weakness persists.

Balance Sheet Risks: Negative Equity Flagged

• RMAX’s financial position is currently flagged as not strong, with negative equity reported and no signs of rapid earnings or revenue acceleration to offset this risk.
• Consensus narrative calls out long-term headwinds for the traditional brokerage business, such as intensifying market disruption, regulatory risk on commissions, and slow progress diversifying revenue. Additional points include:
  • Sustained pressures in core markets, combined with only modest diversification, add to the significance of the negative equity warning and call into question the sustainability of projected margin or earnings improvements.
  • With core earnings stagnating and no major shift in analyst expectations, it remains tough to see how the company could weather a downturn without deeper strategic changes.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for RE/MAX Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Is your read on these results unique? Bring your perspective to life and build your own narrative in just a few minutes. Do it your way

A great starting point for your RE/MAX Holdings research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.

Find Stronger Opportunities

RE/MAX Holdings is struggling with negative equity, sluggish revenue growth, and ongoing concerns over balance sheet strength. These issues cloud its turnaround prospects.

If you’re seeking companies with healthier finances and resilience, check out solid balance sheet and fundamentals stocks screener (1984 results) that are built to withstand economic bumps and balance sheet volatility.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com