Free cash flow margins have deteriorated to a negative 6.4% in 2026Q1, reflecting a disconnect between accounting earnings and actual cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 33.14M | 40.88M | 59.65M | 28.26M | 71.14M | 42.44M | 70.85M | 78.97M | 76.06M | 63.29M | 64.38M | 74.59M | 63.71M | 50.07M | 51.26M | 43.59M |
| Operating CF Margin % | - | 14.02% | 19.39% | 8.68% | 20.13% | 12.87% | 26.63% | 27.98% | 35.77% | 32.3% | 36.52% | 42.17% | 37.26% | 31.52% | 35.68% | 31.52% |
| Operating CF Growth % | -230.26% | -31.47% | 111.05% | -60.27% | 67.62% | -40.09% | -10.29% | 3.83% | 20.19% | -1.69% | -13.69% | 17.08% | 27.24% | -2.32% | 17.6% | - |
| Net Income | 370K | 13.43M | 8.08M | -69.02M | 9.48M | -24.62M | 20.02M | 46.86M | 50.37M | 35.18M | 47.81M | 51.35M | 43.98M | 28.25M | 33.32M | 24.25M |
| Depreciation & Amortization | 25.13M | 25.85M | 29.56M | 32.41M | 35.77M | 31.33M | 26.69M | 22.32M | 20.68M | 20.51M | 16.09M | 15.12M | 15.32M | 15.17M | 12.09M | 14.47M |
| Stock-Based Compensation | 10.28M | 16.63M | 18.86M | 19.04M | 22.04M | 34.3M | 16.27M | 10.93M | 9.18M | 2.9M | 2.33M | 1.45M | 2M | 3M | 1.09M | 0 |
| Deferred Taxes | -366K | -455K | 0 | 49.39M | 1.09M | -2.53M | 1.84M | 2.31M | 9.55M | 46.49M | 3.47M | 2.53M | 1.86M | 402K | 2.07M | 35K |
| Other Non-Cash Items | 7.83M | 766K | 2.77M | 23.81M | 16.46M | 476K | 8.6M | 2.9M | -10.54M | -39.41M | 1.27M | -2.47M | 122K | 3.89M | 936K | 930K |
| Working Capital Changes | -16.66M | -15.34M | 384K | -27.36M | -13.71M | 3.48M | -2.57M | -6.35M | -3.17M | -2.38M | -6.6M | 6.6M | 425K | -638K | 1.75M | 2.69M |
| Change in Receivables | 0 | -5.01M | 496K | -8.44M | 2.79M | -9.89M | -4.91M | -5.61M | -3.24M | -2.83M | -5.18M | 1.77M | -1.47M | -585K | -1.04M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 4.91M | 5.61M | -2.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 1.42M | -94K | 1.08M | 0 | 150K | 667K | 0 | 0 | -173K | 0 |
| Cash from Investing | -8.51M | -7.78M | -5.88M | -5.64M | -11.5M | -194.92M | -17.53M | -876K | -33.67M | -37.92M | -117.33M | 1.66M | -2.04M | -28.63M | -47.39M | -1.35M |
| Capital Expenditures | -8.1M | -7.37M | 0 | -6.42M | -9.93M | -15.24M | -6.9M | -13.23M | -7.79M | -2.2M | -4.5M | -3.63M | -2.15M | -1.34M | -1.82M | -1.4M |
| CapEx % of Revenue | 2.82% | 2.53% | 2.15% | 1.97% | 2.81% | 4.62% | 2.6% | 4.69% | 3.66% | 1.12% | 2.55% | 2.05% | 1.26% | 0.84% | 1.26% | 1.02% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -408K | -408K | -5.88M | 776K | -1.57M | 319K | 0 | 27.3M | 0 | -37.92M | -96K | -358K | 5K | 18K | -74K | 57K |
| Cash from Financing | -9.81M | -10.75M | -8.27M | -35.82M | -78.36M | 189.35M | -36M | -34.54M | -33.15M | -33.23M | 228K | -72.42M | -42.68M | -1.55M | 25.95M | -48.14M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -106K | 0 | -3.08M | -3.41M | -34.1M | -5.33M | -2.54M | 0 | 0 | 0 | -516K | -327K | -1.78M | 32.33M | 0 | 0 |
| Dividends Paid | -120K | -498K | -599K | -13.55M | -18.19M | -17.83M | -16.35M | -15.07M | -14.31M | -12.79M | -10.58M | -24M | -2.9M | 0 | -9.6M | -15.89M |
| Share Repurchases | -106K | 0 | -3.08M | -3.41M | -34.1M | -5.33M | -2.54M | -1.11M | -895K | -816K | -516K | -327K | -1.78M | -197.62M | 0 | 0 |
| Other Financing | -4.99M | -5.65M | 1K | -14.26M | -21.48M | -18.95M | -14.47M | -16.85M | -15.68M | -18.08M | -19.2M | -40.58M | -20.98M | -28.96M | -697K | -15.37M |
| Net Change in Cash | 15.72M | 23.78M | 43.52M | -12.37M | -20.27M | 37.17M | 17.63M | 43.63M | 9.17M | -6.8M | -52.6M | 3.01M | 18.82M | 19.87M | 29.89M | -5.96M |
| Free Cash Flow | 25.04M | 33.5M | 53.03M | 21.84M | 61.21M | 27.2M | 63.94M | 65.75M | 68.28M | 61.09M | 59.88M | 70.96M | 61.56M | 48.73M | 49.44M | 42.19M |
| FCF Margin % | 8.71% | 11.49% | 17.24% | 6.71% | 17.32% | 8.25% | 24.04% | 23.29% | 32.11% | 31.18% | 33.96% | 40.12% | 36% | 30.67% | 34.41% | 30.5% |
| FCF Growth % | -50.17% | -36.82% | 142.76% | -64.31% | 125.01% | -57.46% | -2.75% | -3.7% | 11.76% | 2.03% | -15.62% | 15.27% | 26.33% | -1.44% | 17.21% | - |
| FCF per Share | 1.22 | 1.64 | 2.75 | 1.21 | 3.25 | 1.46 | 3.49 | 3.68 | 3.84 | 3.45 | 3.39 | 5.53 | 5.03 | 4.20 | 1.69 | 1.44 |
| FCF Conversion (FCF/Net Income) | 67.66x | 5.01x | 8.37x | -0.41x | 11.64x | -2.72x | 6.30x | 3.12x | 2.81x | 4.94x | 2.83x | 4.48x | 4.74x | 33.25x | 1.54x | 1.80x |
| Interest Paid | 0 | 30.77M | 35.55M | 34.73M | 19.83M | 10.79M | 8.66M | 11.69M | 11.53M | 9.97M | 7.8M | 9.32M | 8.88M | 13.77M | 10.69M | 11.24M |
| Taxes Paid | 0 | 7.17M | 6.66M | 7.11M | 6.53M | 14.91M | 4.99M | 8.43M | 5.77M | 10.08M | 11.91M | 5.84M | 8.52M | 2.31M | 2.01M | 2.19M |
Agent count attrition risk
As reported in financial statements, RMAX exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a negative 2.89x in 2025Q1, which suggests that accounting earnings are failing to capture the underlying cash volatility of the franchise model.
The frequent divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are masking the true cash-generating capacity of the business. Investors should monitor whether this gap continues to widen as the company faces structural headwinds in its core real estate segment.
Based on RMAX's reported figures, free cash flow margins have deteriorated significantly, falling from a peak of 22.4% in 2025Q3 to a negative 6.4% in 2026Q1, highlighting the company's inability to maintain positive cash generation amidst a shrinking revenue base and rising operational pressures.
The rapid shift from positive to negative FCF suggests that the company's fixed-cost structure is becoming increasingly burdensome as agent count declines. This trend warrants further investigation into whether the current cost base is sustainable without a meaningful recovery in transaction volumes.
According to recent SEC filings, RMAX has experienced erratic working capital movements, including a significant $7.6M outflow in 2026Q1, which suggests that the company is struggling to manage its cash conversion cycle effectively during periods of declining franchise activity and market uncertainty.
The inconsistency in working capital changes implies that the company may be facing challenges in collecting franchise fees or managing payables in a timely manner. Such volatility often precedes broader operational difficulties and suggests that the cash flow statement is reflecting deeper friction within the franchise network.
Data from financial disclosures indicates that stock-based compensation remains a consistent drag on cash flow, with quarterly figures frequently exceeding $4M, which effectively masks the true economic cost of operations and dilutes the cash-generating potential available to shareholders during this period of contraction.
By relying on equity-based incentives while cash flow is deteriorating, the company may be attempting to preserve liquidity at the expense of shareholder dilution. This practice warrants further investigation into whether these compensation levels are aligned with the company's current performance and long-term strategic goals.
Quick answers to the most common questions about buying RMAX stock.
RE/MAX Holdings, Inc. (RMAX) generated $40.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RE/MAX Holdings, Inc. (RMAX) generated $33.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
RE/MAX Holdings, Inc. (RMAX) spent $7.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, RE/MAX Holdings, Inc. (RMAX) returned $0.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.