Summary of Significant Accounting Policies (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Summary of Significant Accounting Policies |
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| Schedule of deferred revenue for franchise sales and annual dues |
The activity consists of the following (in thousands): | | | | | | | | | | | | | | | Balance at | | | | Revenue | | Balance at | | | January 1, 2025 | | New billings | | recognized (a) | | June 30, 2025 | Franchise sales | | $ | 21,282 | | $ | 2,046 | | $ | (3,532) | | $ | 19,796 | Annual dues | | | 12,261 | | | 15,801 | | | (15,482) | | | 12,580 | Other | | | 4,083 | | | 8,420 | | | (8,627) | | | 3,876 | | | $ | 37,626 | | $ | 26,267 | | $ | (27,641) | | $ | 36,252 |
(a) | Revenue recognized related to the beginning balance for Franchise sales and Annual dues were $3.7 million and $9.4 million, respectively, for the six months ended June 30, 2025. |
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| Schedule of commissions related to franchise sales |
The activity in the Company’s capitalized contract costs for commissions (which are included in “other current assets” and “other assets, net of current portion” on the Condensed Consolidated Balance Sheets) consist of the following (in thousands): | | | | | | | | | | | | | | | | | | Additions to | | | | | | | | | Balance at | | contract cost | | Expense | | Balance at | | | January 1, 2025 | | for new activity | | recognized | | June 30, 2025 | Capitalized contract costs for commissions | | $ | 3,553 | | $ | 978 | | $ | (1,185) | | $ | 3,346 |
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| Schedule of transaction price allocated to the remaining performance obligations |
The following table includes estimated revenue by year, excluding certain other immaterial items, expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | Remainder of 2025 | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | | Total | Franchise sales | | $ | 3,223 | | $ | 5,555 | | $ | 4,309 | | $ | 2,970 | | $ | 1,653 | | $ | 644 | | $ | 1,442 | | $ | 19,796 | Annual dues | | | 9,774 | | | 2,806 | | | — | | | — | | | — | | | — | | | — | | | 12,580 | Total | | $ | 12,997 | | $ | 8,361 | | $ | 4,309 | | $ | 2,970 | | $ | 1,653 | | $ | 644 | | $ | 1,442 | | $ | 32,376 |
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| Schedule of disaggregated revenue |
In the following table, segment revenue is disaggregated by Company-Owned or Independent Regions, where applicable, by segment and by geographical area (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | U.S. Company-Owned Regions | | $ | 31,701 | | $ | 33,977 | | $ | 61,959 | | $ | 65,716 | U.S. Independent Regions | | | 1,499 | | | 1,574 | | | 2,896 | | | 3,042 | Canada Company-Owned Regions | | | 9,949 | | | 10,603 | | | 19,641 | | | 20,506 | Canada Independent Regions | | | 689 | | | 659 | | | 1,339 | | | 1,387 | Global | | | 3,793 | | | 3,509 | | | 7,842 | | | 6,977 | Fee revenue (a) | | | 47,631 | | | 50,322 | | | 93,677 | | | 97,628 | Franchise sales and other revenue (b) | | | 3,205 | | | 4,427 | | | 9,635 | | | 11,569 | Total Real Estate | | | 50,836 | | | 54,749 | | | 103,312 | | | 109,197 | U.S. | | | 13,664 | | | 14,964 | | | 27,911 | | | 30,330 | Canada | | | 4,314 | | | 4,804 | | | 8,687 | | | 9,420 | Global | | | 295 | | | 259 | | | 539 | | | 483 | Total Marketing Funds | | | 18,273 | | | 20,027 | | | 37,137 | | | 40,233 | Mortgage (c) | | | 3,641 | | | 3,677 | | | 6,768 | | | 7,310 | Total | | $ | 72,750 | | $ | 78,453 | | $ | 147,217 | | $ | 156,740 |
| (a) | Fee revenue includes Continuing franchise fees, Annual dues and Broker fees. |
| (b) | Franchise sales and other revenue is mostly derived within the U.S. |
| (c) | Revenue from Mortgage is derived exclusively within the U.S. |
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| Schedule of reconciliation of cash, both unrestricted and restricted |
The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Condensed Consolidated Balance Sheets to the amounts presented in the Condensed Consolidated Statements of Cash Flows (in thousands): | | | | | | | | | June 30, 2025 | | December 31, 2024 | Cash and cash equivalents | | $ | 94,313 | | $ | 96,619 | Restricted cash: | | | | | | | Marketing Funds (a) | | | 14,779 | | | 17,668 | Settlement Fund (b) | | | 60,700 | | | 55,000 | Total cash, cash equivalents and restricted cash | | $ | 169,792 | | $ | 169,287 |
| (a) | All cash held by the Marketing Funds is contractually restricted, pursuant to the applicable franchise agreements. |
| (b) | Represents the amounts held in the Settlement Fund as part of the settlements of certain industry class-action lawsuits. See Note 11, Commitments and Contingencies, for additional information. |
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| Schedule of cost charges to intersegment |
Costs charged from Real Estate to the Marketing Funds are as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Technology - operating | | $ | 4,364 | | $ | 1,050 | | $ | 7,955 | | $ | 2,100 | Marketing staff and administrative services | | | 2,256 | | | 1,492 | | | 4,563 | | | 2,997 | Total | | $ | 6,620 | | $ | 2,542 | | $ | 12,518 | | $ | 5,097 |
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