What Happened?
Shares of real estate franchise company RE/MAX (NYSE: RMAX) fell 5.9% in the morning session after the company reported mixed fourth-quarter 2025 results and issued a disappointing forecast for the upcoming quarter.
While its adjusted earnings of $0.30 per share beat analysts' expectations, its revenue of $71.14 million was only in line with estimates and marked a 1.8% decline from the previous year. The main driver of the negative sentiment was the company's guidance for the first quarter of 2026. RE/MAX projected revenue of approximately $71.5 million, which was about 3% below what Wall Street analysts had anticipated, signaling potential ongoing struggles for the real estate franchisor.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy RE/MAX? Access our full analysis report here, it’s free.
What Is The Market Telling Us
RE/MAX’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 11.9% on the news that the company delivered disappointing fourth-quarter 2024 results: its full-year revenue guidance missed significantly and its EBITDA guidance for next quarter fell short of Wall Street's estimates.
Revenue declined 5.4% year on year as the company saw a 4.8% drop in U.S. and Canadian agent count. On the other hand, RE/MAX beat analysts' EPS expectations this quarter and its EBITDA outperformed Wall Street's estimates. Overall, this quarter could have been better.
RE/MAX is down 8.4% since the beginning of the year, and at $6.78 per share, it is trading 33.8% below its 52-week high of $10.23 from September 2025. Investors who bought $1,000 worth of RE/MAX’s shares 5 years ago would now be looking at an investment worth $165.97.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
