Real Matters ((TSE:REAL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Despite facing a challenging year-over-year comparison and a softer spring market, Real Matters showcased a strong sequential growth trajectory during its latest earnings call. The company highlighted significant new client acquisitions and an improved financial position, with positive aspects such as substantial market share gains and a healthy balance sheet outweighing the challenges faced.
Strong Sequential Growth Across All Segments
Real Matters reported double-digit sequential growth across all three of its segments in Q3 2025, with consolidated revenues rising by 22% from the previous quarter. This growth underscores the company’s ability to adapt and thrive despite a challenging market environment.
Significant Client Wins and Market Share Expansion
The company added four new clients and secured several notable wins, including the launch of a second Tier 1 lender in the U.S. Title segment. Additionally, Real Matters expanded its market share with a top 50 lender, demonstrating its competitive edge and strategic market positioning.
U.S. Title Segment Growth
The U.S. Title segment experienced a remarkable 30% year-over-year revenue increase, with refinance origination revenues up by 66%. This growth was driven by net market share gains and higher market volumes, highlighting the segment’s robust performance.
Positive Adjusted EBITDA
Real Matters achieved a positive consolidated adjusted EBITDA of $0.3 million, marking a significant improvement from a loss of $1.9 million in the previous quarter. This turnaround reflects the company’s effective cost management and operational efficiency.
Healthy Balance Sheet
The company ended the quarter with $43.8 million in cash and no debt, maintaining a strong financial position. This healthy balance sheet provides Real Matters with the financial flexibility to pursue strategic growth opportunities.
Year-over-Year Revenue Decline
Despite the positive sequential growth, Real Matters faced an 8% decline in consolidated revenue and a 10% decline in net revenue year-over-year, primarily due to lower revenues in the U.S. Appraisal segment.
U.S. Appraisal Revenue and Margin Decline
The U.S. Appraisal segment saw a 13% year-over-year revenue decline, with net revenue margins decreasing by 140 basis points. This decline reflects the challenges faced in this segment amid a volatile macro environment.
Softer Spring Market
The spring market was softer than expected, influenced by enduring affordability issues, high rates, and a volatile macro environment. These factors contributed to the challenges faced by Real Matters during this period.
Forward-Looking Guidance
Looking ahead, Real Matters is strategically positioned for market dynamics, with plans to achieve long-term growth in adjusted EBITDA across its U.S. Appraisal and Title segments. The company aims to leverage its strong cash position and zero debt to capitalize on growth opportunities, having added four new clients and expanded market share with existing ones.
In conclusion, Real Matters’ latest earnings call highlighted a positive sentiment, driven by strong sequential growth, significant client wins, and a healthy financial position. Despite facing year-over-year revenue declines and a softer spring market, the company remains optimistic about its strategic positioning and future growth prospects.