Declines were driven by lower U.S. agent count, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams including RE/MAX Media Network and lead concierge initiatives.
Revenue excluding marketing funds was $54.5 million, down 6.8% year-over-year due to negative organic growth of 5.7% and adverse foreign currency movements of 1.1%.
Selling, operating, and administrative expenses decreased by $1 million or 2.8% to $33.9 million, primarily due to lower personnel expenses partially offset by severance and investments in flagship websites.
Total leverage ratio was 3.58:1 as of June 30, consistent with March 31, with expectations to decrease in the second half of the year.
Total revenue for Q2 2025 was $72.8 million, with adjusted EBITDA of $26.3 million and an adjusted EBITDA margin of 36.1%, up 30 basis points from Q2 2024.
UMH refinanced 10 communities for gross proceeds of $101.4 million, with appraised values totaling $164 million, indicating a significant increase in property value.
The company's total investment in these communities is only $67 million, resulting in a $97 million or 146% increase in value for these assets.
Management emphasizes that, beyond FFO metrics, the value added through refinancing and appreciation is a key driver of shareholder value, with an appreciation of $2 per share from these activities.
Impact of Lower Interest Rates on Business Strategy
Management discussed how a lower interest rate environment affects premium calculations, with premiums likely decreasing as rates fall.
Despite lower premiums, a lower interest rate could lead to increased market issuance as issuers take advantage of cheap borrowing costs.
The secondary market is expected to remain resilient, with spreads potentially widening, which could offset some of the impact of lower interest rates on premium income.
Gain on sale margin increased to 113 basis points, up 19 basis points from Q1 2025.
MSR portfolio stood at $211.2 billion UPB with a weighted average coupon of 5.51%.
Net income was $314.5 million, including a $111 million decline in fair value of MSRs.
Purchase originations totaled $27.3 billion, marking the third-best purchase quarter ever and tracking to over $100 billion for the year.
Refinance volume doubled year-over-year to $12.4 billion, representing about 11% of the industry volume despite owning only 2% of the servicing market.
Total equity increased to $1.7 billion and cash position was $490 million with total available liquidity of $2.2 billion.
UWM reported $39.7 billion in production volume for Q2 2025, the best quarter since 2021 and nearly 20% higher than Q2 2024.
Dafinchi