Real Brokerage (REAX)
NASDAQ:REAX
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Real Brokerage
(NASDAQ:REAX)
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Rating:62Neutral
Price Target:
$3.00
▲(23.46% Upside)
Action:ReiteratedDate:03/06/26
The score is supported most by improving fundamentals and liquidity (strong operating cash flow, no debt, narrowing losses) and a constructive earnings-call outlook for continued operating leverage despite near-term softness. Offsetting this, technicals are notably weak with the stock trading below major moving averages and negative momentum, and valuation is constrained by ongoing GAAP losses and no stated dividend yield.
Positive Factors
Strong cash generation & debt-free balance sheet
Consistent, rising operating and free cash flow plus essentially no debt provide durable liquidity and financial flexibility. This supports continued investment in the platform, buybacks, and weathering cyclical housing softness over the next several quarters without refinancing risk.
Negative Factors
Thin gross margins
Gross margins near 8–9% offer limited cushion against mix shifts, pricing pressure, or rising costs. With commissions as the core revenue driver, even modest adverse changes in transaction mix or volumes can materially compress profit dollars and slow progress to sustainable GAAP profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & debt-free balance sheet
Consistent, rising operating and free cash flow plus essentially no debt provide durable liquidity and financial flexibility. This supports continued investment in the platform, buybacks, and weathering cyclical housing softness over the next several quarters without refinancing risk.
Read all positive factors
Real Brokerage (REAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$507.46M
Dividend YieldN/A
Average Volume (3M)1.73M
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth65.60%
EPS Growth69.72%
CountryUS
Employees410
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding212,326,080
10 Day Avg. Volume1,346,247
30 Day Avg. Volume1,729,775
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)15.53
Price to Sales (P/S)0.41
P/FCF Ratio12.38
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda-74.17
Forecast
1Y Price Target
$5.83Price Target Upside139.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.01
Revenue Forecast (FY)$2.38B
Real Brokerage Business Overview & Revenue Model
Company Description
The Real Brokerage Inc., together with its subsidiaries, operates as a technology-powered real estate brokerage company. It provides brokerage services for the real estate market through a network of agents. The company offers agents a mobile-focu...
How the Company Makes Money
Real Brokerage generates revenue primarily through commissions earned on real estate transactions facilitated by its network of licensed real estate agents. The company provides its agents with a technology-driven platform that enhances their abil...
Real Brokerage Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call highlights strong top-line growth (revenue +56% Y/Y), meaningful operating leverage, improving profitability metrics (adjusted EBITDA +57% Y/Y) and positive operating cash flow with a debt-free balance sheet and share repurchases. Growth in agent count (+31% Y/Y), rapid adoption of AI tools (LEO) and early traction in ancillary products (mortgage, title, Wallet) are notable positives. Near-term headwinds include margin compression from a higher share of post-cap transactions, a slow start to 2026 due to seasonality/weather, transitional drag in the title JV rollout, and continued but shrinking GAAP losses. Overall, the progress and scale demonstrated across core brokerage operations and the company’s liquidity position outweigh the near-term mix and seasonal pressures.Positive Updates
Strong Revenue and Transaction Growth
Fourth-quarter revenue grew 44% year-over-year to $505M; full-year revenue grew 56% to nearly $2.0B (from $1.3B in 2024). Closed transactions in Q4 increased 38% to nearly 49,000 and the company completed over 185,000 transactions for the year.
Negative Updates
Gross Margin Compression Due to Mix Shift
Fourth-quarter gross margin declined to 7.7% from 8.6% year-over-year and full-year margin was 8.4%. Management attributed the decline to a ~400 basis-point increase in the proportion of post-cap (lower-margin) transactions.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue and Transaction Growth
Fourth-quarter revenue grew 44% year-over-year to $505M; full-year revenue grew 56% to nearly $2.0B (from $1.3B in 2024). Closed transactions in Q4 increased 38% to nearly 49,000 and the company completed over 185,000 transactions for the year.
Read all positive updates
Company Guidance
Management said it will not provide formal guidance but expects Q1 2026 revenue, operating loss and adjusted EBITDA to decline sequentially from Q4 2025 (Q4 revenue $505M; Q4 adjusted EBITDA $14.2M) due to a slow January–February, while maintaining that full‑year 2026 should see organic growth meaningfully outpace the industry and for revenue and gross profit to grow faster than operating expenses, driving year‑over‑year improvements in GAAP and non‑GAAP profitability. Key context: 2025 finished with nearly $2.0B revenue (+56% YoY), $166M gross profit (+44%), full‑year adjusted EBITDA $62.9M (+57%), net loss narrowed to $8.1M, operating loss improved to $9.2M, operating cash flow was $66M, $39M returned via buybacks, unrestricted cash ~$50M and no debt; platform scale included ~49,000 closed transactions in Q4 (≈185,000+ full year), 31,739 agents at year‑end (now >33,000), Q4 gross margin 7.7% (FY 8.4%), a 400‑bp increase in post‑cap transactions in Q4, revenue churn 1.6%, ancillary revenue Q4 $3.2M ($11.9M FY), RealWallet 2025 revenue ~$0.9M (run‑rate ~$1.5M) with $23M deposits and $8M in lines, OneReal Mortgage $6M (+50%) and OneReal Title $5M (+5%), adjusted OpEx per transaction declined to $440 (‑22% YoY from $565), and management expects the capped‑agent mix pressure to persist through H1 but normalize in H2 as fee changes, ancillary reacceleration and improving market activity restore margins.Real Brokerage Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.97B | 1.26B | 689.16M | 381.76M | 121.68M |
| Gross Profit | 163.76M | 114.74M | 62.87M | 31.95M | 11.09M |
| EBITDA | -6.57M | -24.68M | -25.49M | -19.55M | -11.05M |
| Net Income | -8.11M | -26.54M | -27.50M | -20.58M | -12.34M |
Balance Sheet | |||||
| Total Assets | 126.86M | 86.59M | 64.55M | 43.76M | 40.00M |
| Cash, Cash Equivalents and Short-Term Investments | 76.28M | 32.83M | 28.93M | 18.74M | 34.63M |
| Total Debt | 0.00 | 0.00 | 0.00 | 96.00K | 131.00K |
| Total Liabilities | 75.28M | 54.45M | 27.46M | 21.35M | 12.99M |
| Stockholders Equity | 51.67M | 32.15M | 36.88M | 22.15M | 27.00M |
Cash Flow | |||||
| Free Cash Flow | 64.83M | 47.69M | 19.24M | 4.59M | 3.77M |
| Operating Cash Flow | 65.93M | 48.73M | 19.87M | 6.00M | 3.94M |
| Investing Cash Flow | -13.59M | 3.81M | -6.63M | -9.05M | -10.21M |
| Financing Cash Flow | -40.25M | -33.14M | -3.96M | -7.85M | 13.95M |
Real Brokerage Technical Analysis
Negative
2.43
Price Trends
2.95
Negative
3.39
Negative
3.87
Negative
Market Momentum
-0.15
Negative
37.93
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REAX, the sentiment is Negative. The current price of 2.43 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.95, and below the 200-day MA of 3.87, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 37.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REAX.
Real Brokerage Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $507.46M | -48.05 | -17.31% | ― | 65.60% | 69.72% | |
62 Neutral | $18.41B | 347.41 | 4.29% | 2.26% | 25.33% | -15.12% | |
60 Neutral | $197.85M | 18.48 | 1.84% | ― | -6.06% | ― | |
56 Neutral | $968.35M | -63.56 | -10.00% | 2.09% | 5.08% | 41.21% | |
50 Neutral | $155.26M | 13.94 | 10.23% | ― | 6.62% | 30.94% |
* Real Estate Sector Average
REAX
Real Brokerage
2.39
-1.93
-44.68%
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BEKE
KE Holdings Inc. Sponsored ADR Class A
15.72
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-22.65%
DOUG
Douglas Elliman Inc.
1.76
-0.07
-3.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.