What Happened?
Shares of real estate franchise company RE/MAX (NYSE: RMAX) fell 5.7% in the afternoon session after the company reported third-quarter results that showed a decline in revenue and earnings compared to the previous year.
For the quarter that ended in September 2025, RE/MAX's revenue was $73.25 million, which marked a 6.7% drop from the same period in the prior year. Earnings per share also slipped, coming in at $0.37 compared to $0.38 a year earlier. The negative stock reaction suggested that investors were concerned about the company's weaker financial performance, as both key metrics deteriorated.
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What Is The Market Telling Us
RE/MAX’s shares are quite volatile and have had 18 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 previous big move we wrote about was 7 days ago when the stock gained 2.7% on the news that a cooler-than-expected inflation report fueled optimism for potential Federal Reserve rate cuts. The September Consumer Price Index (CPI) rose 3.0% year-over-year, coming in just below the 3.1% analysts had forecast. While still above the Federal Reserve's 2% target, investors interpreted the slight cooling as a sign that inflationary pressures may be easing, potentially giving the central bank room to consider interest rate cuts in the near future. Sectors that are typically sensitive to interest rates, such as real estate and utilities, saw a notable lift. Lower rates can reduce borrowing costs and increase the appeal of dividend-paying stocks, boosting investor confidence in these areas.
RE/MAX is down 23.7% since the beginning of the year, and at $7.90 per share, it is trading 43.7% below its 52-week high of $14.04 from November 2024. Investors who bought $1,000 worth of RE/MAX’s shares 5 years ago would now be looking at an investment worth $241.58.
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