Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Summary of Significant Accounting Policies

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)		March 31, 2025
Franchise sales	$	21,282	$	1,116	$	(1,868)	$	20,530
Annual dues		12,261		8,356		(7,789)		12,828
Other		4,083		3,363		(5,607)		1,839
	$	37,626	$	12,835	$	(15,264)	$	35,197

(a) Revenue recognized related to the beginning balance for Franchise sales and Annual dues were $1.9 million and $5.6 million, respectively, for the three months ended March 31, 2025.

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		March 31, 2025
Capitalized contract costs for commissions	$	3,553	$	730	$	(617)	$	3,666

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	$	4,840	$	5,384	$	4,122	$	2,768	$	1,438	$	560	$	1,418	$	20,530
Annual dues		12,213		615		—		—		—		—		—		12,828
Total	$	17,053	$	5,999	$	4,122	$	2,768	$	1,438	$	560	$	1,418	$	33,358

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
	March 31,
	2025		2024
U.S. Company-Owned Regions	$	30,258	$	31,739
U.S. Independent Regions		1,397		1,468
Canada Company-Owned Regions		9,692		9,903
Canada Independent Regions		650		728
Global		4,049		3,468
Fee revenue (a)		46,046		47,306
Franchise sales and other revenue (b)		6,430		7,142
Total Real Estate		52,476		54,448
U.S.		14,247		15,366
Canada		4,373		4,616
Global		244		224
Total Marketing Funds		18,864		20,206
Mortgage (c)		3,127		3,633
Total	$	74,467	$	78,287

(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.

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):

	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	89,107	$	96,619
Restricted cash:
Marketing Funds (a)		22,799		17,668
Settlement Fund (b)		55,000		55,000
Total cash, cash equivalents and restricted cash	$	166,906	$	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.

Schedule of cost charges to intersegment

Costs charged from Real Estate to the Marketing Funds are as follows (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Technology - operating	$	3,591	$	1,050
Marketing staff and administrative services		2,307		1,505
Total	$	5,898	$	2,555