Tamir Poleg, CEO at Real Remax Group, addresses the crow at Real’s RISE conference in October 2026 (supplied)

With the housing market operating “near trough levels” in the United States, Real Remax Group CEO Tamir Poleg is preparing for another difficult year as the newly combined company cuts costs, contends with agent attrition and works to bring new technology to its network.

The challenges come as the company begins integrating two major real estate businesses following The Real Brokerage Inc.’s US$880-million acquisition of Re/Max Holdings Inc. on Aug. 24.

“The recent increase in mortgage rates has further delayed the recovery that many, myself included, had anticipated,” Poleg said during the third-quarter earnings call on Thursday.

Management’s 2027 outlook assumes U.S. existing-home sales will decline another five to 10 per cent and home prices will fall three to four per cent, leading to what CFO Ravi Jani projected will be the weakest market in 30 years.

The forecast adds pressure to an integration already marked by job cuts and agents leaving the industry en masse, even as management looks to technology and lower costs to strengthen the combined business.

 

Revenue rises as company absorbs acquisition expenses

 

Real Remax Group reported revenue of $727.9 million, up 28 per cent from $568.5 million a year earlier. The third-quarter results include five weeks of Remax operations, while year-earlier figures reflect Real alone.

The company posted a net loss of $67.2 million, or $2.25 per diluted share, compared with $300,000, or two cents per share, a year earlier. Its operating loss widened to $72 million from $500,000, reflecting $52.3 million in acquisition-related expenses and $26.4 million in accelerated stock-based compensation tied to employee terminations following the deal.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), rose 66 per cent to $33.8 million. Its adjusted EBITDA margin increased to 4.6 per cent from 3.6 per cent.

 

Agent departures accelerate

 

The prolonged housing slowdown is also affecting agent numbers, particularly in the U.S.

“Beginning in September, we saw an uptick in the number of agents leaving the industry altogether. Real Remax Group was not immune. Over the past two months, we’ve proactively offboarded more than 1,000 agents, many of whom allowed their real estate licences to expire, or left the industry,” Poleg said.

Real Brokerage had 36,610 agents as of Sept. 30, up 21 per cent from a year earlier. However, that figure had fallen to approximately 36,200 by Nov. 3.

“Importantly, these departures were concentrated among agents contributing very little revenue to the business,” Poleg said.

He added that the company was reviewing another 300 to 400 agents for potential offboarding, while maintaining that it was retaining its productive agents, and that its recruitment of new agents was on par or better than the prior year. 

“While agents are churning, we are keeping the production. In that sense, I think we’re taking the right steps.”

Meanwhile, Remax’s franchise network showed a different picture across its markets. Its U.S. agent count declined five per cent year over year to 46,611, while its Canadian network grew two per cent to 25,507 agents.

Globally, Remax finished the quarter with 148,088 agents, up 0.4 per cent year over year.

 

Job cuts and mortgage franchise closures

 

Within two months of closing the acquisition, the company had implemented more than $40 million in annualized cost savings, including workforce reductions of more than 14 per cent, or over 150 positions.

Jenna Rozenblat, president and chief integration officer, said the company has simplified management structures, consolidated overlapping functions and begun eliminating duplicate technology and vendor expenses.

It is also winding down underperforming operations, including winding down underperforming businesses, like Motto Mortgage, a U.S.-based mortgage brokerage franchise brand.

Of 151 Motto offices operating at the end of August, 104, or about 69 per cent, had closed within two months, with more than 90 per cent of the network slated for closure.

“We understand these are difficult decisions, but given legacy Remax mortgages businesses generated a combined $5 million adjusted EBITDA loss in 2025, these actions are necessary to build a more focused, efficient and profitable organization,” Rozenblat said.

 

Technology takes centre stage

 

Poleg said Alex Vidal, named Remax president in September, has been travelling to meet with brokerage owners, with much of the discussion centred on technology.

He referenced past “disappointment” with Remax’s technology offerings but said Real’s established platform could help franchisees operate more efficiently and reduce overhead costs.

The company also introduced Leo Pro on Oct. 20, an AI platform intended to automate marketing, lead generation, customer relationship management and transaction tasks. Poleg said 3,000 agents are now paying for the service, which uses subscription and usage-based pricing. He said that technology will be available to Remax agents soon.