Segment Information (Tables)

12 Months Ended

Dec. 31, 2024

Segment Information

Schedule of Revenue from External Customers By Segment

The following table presents revenue from external customers by segment (in thousands):

	Year Ended
	December 31,
	2024		2023		2022
Continuing franchise fees	$	111,260	$	116,472	$	123,272
Annual dues		32,188		33,904		35,676
Broker fees		51,816		51,012		62,939
Franchise sales and other revenue		18,829		25,794		27,385
Total Real Estate revenue		214,093		227,182		249,272
Continuing franchise fees		10,751		10,912		10,117
Franchise sales and other revenue		3,858		3,081		2,271
Total Mortgage revenue		14,609		13,993		12,388
Marketing Funds fees		78,983		83,861		90,319
Total reportable segments revenue		307,685		325,036		351,979
Other (a)		—		635		1,407
Total revenue	$	307,685	$	325,671	$	353,386

(a) As of December 31, 2024, Other is not considered a reportable segment. See Note 2, Summary of Significant Accounting Policies, for additional information.

Schedule of Selling, Operating and Administrative Expenses Included in Adjusted EBITDA of the Company's Reportable Segments

The following table presents Selling, operating and administrative expenses by segment and includes a reconciliation of reportable segment expenses in Adjusted EBITDA (in thousands):

	Year Ended
	December 31,
	2024		2023		2022
Personnel	$	79,919	$	81,900	$	88,772
Professional fees		10,850		13,450		16,002
Lease costs		6,317		7,140		7,908
Events, travel and related costs		15,307		19,734		17,200
Other segment items (a)		17,649		25,145		21,920
Total Real Estate selling, operating and administrative expenses		130,042		147,369		151,802
Adjustments to arrive at segment expense in Adjusted EBITDA (b)		(18,853)		(24,492)		(30,831)
Total Real Estate expense in Adjusted EBITDA	$	111,189	$	122,877	$	120,971
Personnel	$	14,240	$	14,134	$	11,865
Professional fees		1,394		1,237		1,179
Lease costs		439		460		408
Events, travel and related costs		2,721		3,118		2,234
Other segment items (a)		3,291		3,495		4,296
Total Mortgage selling, operating and administrative expenses		22,085		22,444		19,982
Adjustments to arrive at segment expense in Adjusted EBITDA (b)		(2,403)		(1,531)		(1,226)
Total Mortgage expense in Adjusted EBITDA	$	19,682	$	20,913	$	18,756
Other (c)	$	131	$	1,735	$	2,196
Marketing Funds fees (d)	$	78,983	$	83,861	$	90,319

(a) Other segment items for each reportable segment include:

Real Estate – other technology expenses, bank fees, corporate administration expenses, commissions, insurance, property and other taxes, bad debt expense, and other miscellaneous expenses.

Mortgage – other technology expenses, commissions, bad debt expense, and other miscellaneous expenses.

(b) This adjustment reconciles segment Selling, operating and administrative expenses to total segment expense included in the measure of segment Adjusted EBITDA. These adjustments contain certain non-cash items and other non-recurring cash charges or other items.

(c) As of December 31, 2024, Other is not considered a reportable segment and is included in total Selling, operating and administrative expenses. See Note 2, Summary of Significant Accounting Policies, for additional information.

(d) Marketing Funds fees comprises the Company’s marketing campaigns designed to build and maintain brand awareness and the development and operation of agent marketing technology. The Marketing Funds segment operates at no profit. See Note 2, Summary of Significant Accounting Policies, for additional information.

Schedule of Revenue and Adjusted EBITDA of the Company's Reportable Segments

The following table presents a reconciliation of Adjusted EBITDA by segment to income (loss) before provision for income taxes (in thousands):

	Year Ended
	December 31,
	2024		2023		2022
Adjusted EBITDA: Real Estate	$	102,904	$	104,305	$	128,301
Adjusted EBITDA: Mortgage		(5,073)		(6,920)		(6,368)
Adjusted EBITDA: Total reportable segments (a)		97,831		97,385		121,933
Adjusted EBITDA: Other (a)		(131)		(1,097)		(301)
Settlement charge (b)		(5,483)		(55,150)		—
Impairment charge - leased assets (c)		—		—		(6,248)
Impairment charge - goodwill (d)		—		(18,633)		(7,100)
Loss on lease termination (e)		—		—		(2,460)
Equity-based compensation expense		(18,855)		(19,536)		(22,044)
Acquisition-related expense (f)		—		(263)		(1,859)
Fair value adjustments to contingent consideration (g)		225		533		133
Restructuring charges (h)		(1,227)		(4,210)		(8,690)
Change in estimated tax receivable agreement liability (i)		(1,219)		25,298		702
Other adjustments (j)		(2,860)		(2,131)		(726)
Interest income		3,738		4,420		1,460
Interest expense		(36,258)		(35,741)		(20,903)
Depreciation and amortization		(29,561)		(32,414)		(35,769)
Income (loss) before provision for income taxes	$	6,200	$	(41,539)	$	18,128

(a) The Marketing Funds segment operates at no profit. In addition, as of December 31, 2024, Other is not considered a reportable segment. See Note 2, Summary of Significant Accounting Policies, for additional information.

(b) Represents the settlements of certain industry class-action lawsuits and other legal settlements. See Note 13, Commitments and Contingencies, for additional information.

(c) Represents the impairment recognized on portions of the Company’s corporate headquarters office building. See Note 3, Leases for additional information.

(d) During the fourth quarter of 2023, in connection with our annual goodwill impairment test, we concluded that the carrying value of the Mortgage reporting unit within the Mortgage segment exceeded its fair value, resulting in an impairment charge to the Mortgage reporting unit goodwill. In addition, during the fourth quarter of 2022, in connection with the restructuring of the business and technology offerings, the Company made the decision to wind down the Gadberry Group, resulting in an impairment charge to the Gadberry Group reporting unit goodwill. See Note 7, Intangible Assets and Goodwill, for additional information.

(e) During the second quarter of 2022, a loss was recognized in connection with the termination of an office lease. See Note 3, Leases, for additional information.

(f) Acquisition-related expense includes personnel, legal, accounting, advisory and consulting fees incurred in connection with acquisition activities and integration of acquired companies.

(g) Fair value adjustments to contingent consideration include amounts recognized for changes in the estimated fair value of the contingent consideration liabilities. See Note 10, Fair Value Measurements, for additional information.

(h) During the fourth quarter of 2024, the Company restructured its support services intended to further enhance the overall customer experience. Additionally, during the third quarter of 2023, the Company announced a reduction in force and reorganization intended to streamline the Company’s operations and yield cost savings over the long term and during the third quarter of 2022, the Company incurred expenses related to a restructuring associated with a shift in its technology offerings strategy. See Note 2, Summary of Significant Accounting Policies, for additional information.

(i) Change in estimated tax receivable agreement liability is the result of a valuation allowance on deferred tax assets. See Note 4, Non-controlling Interest and Note 11, Income Taxes, for additional information.

(j) Other adjustments are primarily made up of employee retention related expenses from the Company’s CEO transition.

Summary of Total Assets by Segment

The following table presents total assets of the Company’s segments (in thousands):

	As of December 31,
	2024		2023
Real Estate (a)	$	508,081	$	473,659
Marketing Funds (a)		29,069		69,710
Mortgage		44,433		33,722
Other		11		59
Total assets	$	581,594	$	577,150

(a) Change in assets primarily due to settlement of intercompany balances between segments.