15. Segment Information

The Company operates under the following three reportable segments: Real Estate, Mortgage, and Marketing Funds. Mortgage does not meet the quantitative significance test; however, management has chosen to report results for the segment as it believes it will be a key driver of the Company’s future success. The Company presents all other business activities and operating segments that do not meet the quantitative significance tests for reportable segments under Other.

The Company’s operating segments are assessed by the Company’s Chief Executive Officer, its chief operating decision maker (the “CODM”). The Company’s CODM evaluates operating results of its segments based upon forecast or budget operating results against actual operating results, including revenue, operating expenses and adjusted earnings before interest, the provision for income taxes, depreciation and amortization and other non-cash and non-recurring cash charges or other items (“Adjusted EBITDA”). Adjusted EBITDA is a non-GAAP measure of financial performance that differs from U.S. GAAP and the Company’s presentation and evaluation of Adjusted EBITDA may not be a comparable measure to similar measures used by other companies. The CODM utilizes these key metrics to make economic decisions of the Company, including as a factor in determining capital allocation among the segments. Except for the adjustments identified below in arriving at Adjusted EBITDA, the accounting policies of the reportable segments are the same as those described in Note 2, Summary of Significant Accounting Policies.

The following table presents revenue from external customers by segment (in thousands):


	Year Ended December 31,
	2025		2024		2023
Continuing franchise fees	$	102,866	$	111,260	$	116,472
Annual dues		30,462		32,188		33,904
Broker fees		53,691		51,816		51,012
Franchise sales and other revenue		18,073		18,829		25,794
Total Real Estate revenue		205,092		214,093		227,182
Continuing franchise fees		9,999		10,751		10,912
Franchise sales and other revenue		3,675		3,858		3,081
Total Mortgage revenue		13,674		14,609		13,993
Marketing Funds fees		72,835		78,983		83,861
Total reportable segments revenue		291,601		307,685		325,036
Other ^(a)		—		—		635
Total revenue	$	291,601	$	307,685	$	325,671

(a)	As of December 31, 2025, Other is not considered a reportable segment. See Note 2, Summary of Significant Accounting Policies, for additional information.

The following table presents Selling, operating and administrative expenses by segment and includes a reconciliation of reportable segment expenses in Adjusted EBITDA (in thousands):


	Year Ended December 31,
	2025		2024		2023
Personnel	$	73,513	$	79,919	$	81,900
Professional fees		13,445		10,850		13,450
Lease costs		5,807		6,317		7,140
Events, travel and related costs		13,026		15,307		19,734
Other segment items ^(a)		20,057		17,649		25,148
Total Real Estate selling, operating and administrative expenses		125,848		130,042		147,372
Adjustments to arrive at segment expense in Adjusted EBITDA ^(b)		(19,910)		(18,853)		(24,495)
Total Real Estate expense in Adjusted EBITDA	$	105,938	$	111,189	$	122,877

Personnel	$	13,321	$	14,240	$	14,134
Professional fees		820		1,394		1,237
Lease costs		454		439		460
Events, travel and related costs		2,535		2,721		3,118
Other segment items ^(a)		3,689		3,291		3,495
Total Mortgage selling, operating and administrative expenses		20,819		22,085		22,444
Adjustments to arrive at segment expense in Adjusted EBITDA ^(b)		(1,747)		(2,403)		(1,531)
Total Mortgage expense in Adjusted EBITDA	$	19,072	$	19,682	$	20,913

Marketing Funds fees ^(c)	$	72,835	$	78,983	$	83,861
Other ^(d)	$	35	$	131	$	1,732

(a)	Other segment items for each reportable segment include:

Real Estate – other technology expenses, bank fees, corporate administration expenses, commissions, insurance, property and other taxes, bad debt expense, and other miscellaneous expenses.

Mortgage – other technology expenses, commissions, bad debt expense, and other miscellaneous expenses.

(b)	This adjustment reconciles segment Selling, operating and administrative expenses to total segment expense included in the measure of segment Adjusted EBITDA. These adjustments contain certain non-cash items and other non-recurring cash charges or other items.

(c)

Marketing Funds fees comprise the Company’s marketing campaigns designed to build and maintain brand awareness and the development and operation of agent marketing technology. The Marketing Funds segment operates at no profit. See Note 2, Summary of Significant Accounting Policies, for additional information.

(d)	As of December 31, 2025, Other is not considered a reportable segment and is included in total Selling, operating and administrative expenses. See Note 2, Summary of Significant Accounting Policies, for additional information.

The following table presents a reconciliation of Adjusted EBITDA by segment to income (loss) before provision for income taxes (in thousands):


	Year Ended December 31,
	2025		2024		2023
Adjusted EBITDA: Real Estate	$	99,154	$	102,904	$	104,305
Adjusted EBITDA: Mortgage		(5,398)		(5,073)		(6,920)
Adjusted EBITDA: Total reportable segments ^(a)		93,756		97,831		97,385
Adjusted EBITDA: Other^(a)		(35)		(131)		(1,097)
Settlement and impairment charges ^(b)		1,542		(5,483)		(73,783)
Equity-based compensation expense		(16,627)		(18,855)		(19,536)
Fair value adjustments to contingent consideration ^(c)		109		225		533
Restructuring charges ^(d)		(2,536)		(1,227)		(4,210)
Change in estimated tax receivable agreement liability^(e)		(715)		(1,219)		25,298
Other adjustments ^(f)		(1,898)		(2,860)		(2,394)
Interest income		3,580		3,738		4,420
Interest expense		(31,700)		(36,258)		(35,741)
Depreciation and amortization		(25,848)		(29,561)		(32,414)
Income (loss) before provision for income taxes	$	19,628	$	6,200	$	(41,539)

(a)	The Marketing Funds segment operates at no profit. In addition, as of December 31, 2025, Other is not considered a reportable segment. See Note 2, Summary of Significant Accounting Policies, for additional information.

(b)

During 2025, the Company recorded a cost recovery in connection with a previous settlement, that was received in the fourth quarter of 2025 from an escrow fund from a prior acquisition. This was partially offset by the settlement of an immaterial legal matter and an impairment recognized on an office lease in Canada, see Note 3, Leases, for additional information on our leases. During 2024 and 2023, represents the settlements of certain industry class-action lawsuits and other legal settlements, see Note 13, Commitments and Contingencies, for additional information. During 2023, in connection with the Company’s annual goodwill impairment test, it concluded that the carrying value of the Mortgage reporting unit within the Mortgage segment exceeded its fair value, resulting in an impairment charge to the Mortgage reporting unit goodwill. See Note 7, Intangible Assets and Goodwill, for additional information.

(c)	Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities. See Note 10, Fair Value Measurements, for additional information.

(d)

During 2025 and 2024, the Company restructured its support services to further enhance the overall customer experience. Additionally, during 2023, the Company announced a reduction in force and reorganization intended to streamline the Company’s operations and yield cost savings over the long term. See Note 2, Summary of Significant Accounting Policies, for additional information.

(e)	Change in estimated tax receivable agreement liability is the result of a valuation allowance on deferred tax assets. See Note 4, Non-controlling Interest and Note 11, Income Taxes, for additional information.

(f)	Other adjustments are primarily made up of losses on disposal of assets in 2025 and employee retention related expenses from the Company’s CEO transition in 2024 and 2023.

The following table presents total assets of the Company’s segments (in thousands):


	As of December 31,
	2025		2024
Real Estate	$	504,451	$	508,081
Marketing Funds		28,192		29,069
Mortgage		49,832		44,433
Other ^(a)		—		11
Total assets	$	582,475	$	581,594

(a)	Other is not considered a reportable segment.

Virtually all long-lived assets are within the United States.

Historical Timeline

Fiscal Year	Filed
2025	Feb 19, 2026	Showing above
2024	Feb 20, 2025

2023	Feb 22, 2024

2022	Feb 28, 2023

2021	Feb 23, 2022

2020	Feb 25, 2021

2019	Feb 21, 2020

2018	Feb 22, 2019

2015	Feb 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

RE/MAX Holdings, Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures