Real Brokerage (NASDAQ:REAX) Issues Quarterly Earnings Results

Key Points

• Real Brokerage beat earnings expectations for the quarter, reporting EPS of ($0.02) versus the expected ($0.03), while revenue came in at $465.55 million, slightly below analyst estimates.
• The company said Q1 revenue rose 32% year over year to about $466 million and adjusted EBITDA increased 80% to $14.9 million, with record unrestricted cash of $62.9 million and roughly 42,000 transactions closed.
• Real Brokerage announced a definitive agreement to acquire RE/MAX in a deal valued at roughly $880 million, aiming for $30 million in cost synergies and greater scale across its title, mortgage, and AI-enabled services.

Real Brokerage (NASDAQ:REAX - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.01, Zacks reports. Real Brokerage had a negative net margin of 0.32% and a negative return on equity of 12.16%. The firm had revenue of $465.55 million for the quarter, compared to analyst estimates of $474.84 million.

Here are the key takeaways from Real Brokerage's conference call:

• Real reported Q1 revenue of $466 million (▲32%), adjusted EBITDA of $14.9 million (▲80%), a narrower operating loss of $3.4 million, record unrestricted cash of $62.9 million, and closed ~42,000 transactions (▲25%) despite a weak housing market.
• The company announced a definitive agreement to acquire RE/MAX for an implied enterprise value of roughly $880 million, targeting $30 million of cost synergies and creating scale to monetize 700k+ U.S. transaction sides and ~1M annual website leads via title, mortgage, Wallet and AI tools.
• Ancillary businesses are gaining traction—Real Wallet revenue more than tripled to $436k with 8,000 active agents and >$1M weekly debit spend, One Real Title revenue grew 22% with 13 JVs across 19 states (20 expected), and One Real Mortgage revenue rose 20% while moving to a new LOS to reduce per‑file costs.
• Gross margin compressed to 9.1% (from 9.6%) due to a higher mix of post‑cap transactions and management expects margins to trend lower sequentially as more agents reach caps; Q2 will also see a material step‑up in RE/MAX acquisition‑related costs and pro forma leverage will increase before planned deleveraging.

Real Brokerage Trading Down 8.5%

Shares of NASDAQ:REAX traded down $0.19 on Friday, hitting $2.04. The company had a trading volume of 5,726,013 shares, compared to its average volume of 3,686,179. Real Brokerage has a 1-year low of $1.92 and a 1-year high of $5.41. The stock has a market cap of $435.54 million, a price-to-earnings ratio of -68.00 and a beta of 0.81. The stock has a 50 day moving average price of $2.48 and a 200 day moving average price of $3.23.

Wall Street Analyst Weigh In

REAX has been the topic of several analyst reports. JonesTrading reaffirmed a "buy" rating and set a $5.00 price target on shares of Real Brokerage in a research report on Monday, April 27th. BTIG Research reaffirmed a "buy" rating and set a $4.25 price target on shares of Real Brokerage in a research report on Monday, April 27th. Weiss Ratings lowered shares of Real Brokerage from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, April 27th. Benchmark began coverage on shares of Real Brokerage in a report on Thursday, March 26th. They issued a "buy" rating and a $5.50 price objective on the stock. Finally, Freedom Capital upgraded shares of Real Brokerage to a "strong-buy" rating in a report on Friday, January 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $5.69.

Hedge Funds Weigh In On Real Brokerage

Institutional investors and hedge funds have recently modified their holdings of the stock. Xponance LLC acquired a new position in shares of Real Brokerage in the fourth quarter valued at $38,000. Hudson Bay Capital Management LP acquired a new position in shares of Real Brokerage in the fourth quarter valued at $41,000. Lido Advisors LLC bought a new stake in shares of Real Brokerage in the third quarter valued at about $42,000. CIBC Bancorp USA Inc. bought a new stake in shares of Real Brokerage in the third quarter valued at about $47,000. Finally, Ameriprise Financial Inc. bought a new stake in shares of Real Brokerage in the third quarter valued at about $47,000. 53.28% of the stock is currently owned by institutional investors and hedge funds.

About Real Brokerage

Real Brokerage Inc is a publicly traded, cloud-based residential real estate brokerage headquartered in Toronto, Canada, with operations across the United States and Canada. The company’s platform offers licensed real estate professionals a fully integrated suite of digital tools designed to streamline every phase of the property transaction process, from lead generation to closing.

Through its proprietary technology, Real Brokerage provides agents with transaction management, customer relationship management, digital marketing automation and real-time analytics in a single, user-friendly interface.

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