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Real Brokerage (REAX)
NASDAQ:REAX
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Real Brokerage
(NASDAQ:REAX)
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Rating:58Neutral
Price Target:
$4.00
▲(9.29% Upside)
Score is primarily supported by improving financial quality (strong cash generation, very low leverage, and rapid revenue growth) and a constructive earnings update with positive adjusted EBITDA. Offsetting factors are persistent GAAP losses and thin margins, while technicals remain bearish with the price below major moving averages and negative momentum.
Positive Factors
Strong cash generation
Sustained, sizeable operating and free cash flow provides durable financial flexibility to fund technology, agent incentives and ancillary product development without relying on external financing. This cash generation also cushions the business through housing-cycle variability and supports reinvestment.
Low leverage / strong balance sheet
Minimal debt materially reduces interest burden and financial risk, giving management optionality to invest in platform expansion and M&A, and to withstand transaction-volume swings in real estate. A clean balance sheet strengthens long-term resilience versus leveraged peers.
Rapid agent growth and network scale
A growing agent base increases transaction flow and recurring commission capture, creating durable network effects as platform tools and admin services become more valuable. Higher agent productivity and scale support sustained revenue growth and improve long-term take-rate potential.
Negative Factors
Persistent GAAP losses
Continued GAAP losses indicate the firm has not yet converted top-line scale into consistent accounting profitability. This limits retained earnings, may constrain long-term return on equity, and keeps investor reliance on cash metrics and execution rather than stable net income.
Thin gross margins
Low gross margins leave limited room to absorb fixed operating costs and investment spend, making profitability sensitive to mix shifts, agent caps, or commission pressure. Sustaining margin improvement is essential for durable operating leverage as the company scales.
Title business transition risk
A significant revenue hit from reorganizing title operations reveals execution and integration risk in ancillary services. Volatility or underperformance in these adjacencies can slow margin expansion and reduce diversification benefits the platform seeks to deliver long-term.
Real Brokerage (REAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$782.44M
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth65.60%
EPS Growth69.72%
CountryUS
Employees410
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.00
Shares Outstanding210,900,000
10 Day Avg. Volume1,036,281
30 Day Avg. Volume1,410,324
Financial Highlights & Ratios
PEG Ratio4.97
Price to Book (P/B)27.36
Price to Sales (P/S)0.70
P/FCF Ratio18.44
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda-85.58
Forecast
1Y Price Target
$8.00Price Target Upside118.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Real Brokerage Business Overview & Revenue Model
Company DescriptionThe 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-focused tech platform to run its business, as well as business terms and wealth-building opportunities. It operates in 42 states in the United States, the District of Columbia, and Canada. The Real Brokerage Inc. is headquartered in Toronto, Canada.
How the Company Makes MoneyReal 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 ability to close deals efficiently. Real Brokerage typically takes a percentage of the commission earned on each transaction as its fee. The company also benefits from partnerships with various service providers in the real estate ecosystem, which may include mortgage lenders, insurance companies, and home service vendors. These partnerships can lead to referral fees or co-marketing opportunities that contribute to its overall revenue.
Real Brokerage Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant organic growth, expansion of the agent base, and positive adjusted EBITDA, indicating strong operational performance. However, there were challenges such as gross margin pressure and an operating loss. The transition in the Title business also presented headwinds. Overall, the positive aspects slightly outweigh the negative challenges.Q3-2025 Updates
Positive Updates
Exceptional Organic Growth
Closed transactions increased nearly 50% year-over-year, surpassing 30,000 agents on the platform for the first time.
Revenue and Gross Profit Increase
Revenue grew 53% to $569 million and gross profit increased 40% to $45 million, outpacing operating expenses.
Positive Adjusted EBITDA
Adjusted EBITDA was positive $20.4 million, a 54% improvement from last year, contributing to operating cash flow from operations of $9 million.
Agent Base Expansion
Ended the quarter with over 30,100 agents, up 39% from a year ago, with current agent count at approximately 30,700.
Real Wallet Adoption
More than 4,600 agents now use Real Wallet business checking accounts, with total deposits exceeding $20 million, up from approximately $14 million at the time of the last earnings call.
AI and Automation Advancements
Launched a dedicated AI automation team, saving the business over 10,000 hours annually, and expanded AI tools to handle 47% of agent interactions.
Negative Updates
Gross Margin Pressure
Gross margin decreased to 7.9% from 8.6% in the prior year period, primarily due to a higher proportion of transactions completed by agents who have reached their annual cap.
Operating Loss
Reported an operating loss of negative $0.5 million compared with a $2.5 million loss in the third quarter of 2024.
Title Business Transition Impact
One Real Title revenue was impacted by the shift from team-based to state-based joint ventures, creating headwinds of about minus 50%.
Company Guidance
In the third quarter of 2025, Real Brokerage demonstrated exceptional growth metrics and financial performance. The company achieved a 53% year-over-year revenue increase, totaling $569 million, and a gross profit rise of 40% to $45 million, despite operating expenses also reaching $45 million. The agent base grew by 39%, surpassing 30,000 agents for the first time, contributing to a 49% increase in closed transactions, totaling over $21 billion. Adjusted EBITDA was positive at $20.4 million, marking a 54% improvement from the previous year, while operating cash flow was approximately $9 million. The company's brokerage revenue alone grew 53% to $565 million, driven by agent growth and higher productivity. Real's ancillary services, though still early in development, showed promising growth with One Real Mortgage's revenue up 47% and Real Wallet operating at an annualized revenue run rate of over $1.2 million. Notably, Real maintained a strong balance sheet with nearly $56 million in unrestricted cash and no debt. The company refrained from providing formal guidance but indicated seasonal expectations for Q4. Overall, Real Brokerage's strategic focus on technology integration, AI adoption, and ancillary services is poised to drive sustained growth and margin expansion in the coming years.Real Brokerage Financial Statement Overview
Summary
Strong mix of rapid revenue scaling and improving fundamentals, supported by essentially no debt and solid, growing operating/free cash flow. The key drag remains profitability: net income is still negative and gross margins are thin (~8–9%), limiting cushion against operating costs.Income Statement
REAX is delivering strong top-line expansion, with revenue scaling from $0.38B (2022) to $1.26B (2024) and reaching $1.81B in TTM (Trailing-Twelve-Months), alongside an improved growth rate versus 2024. However, profitability remains the key drag: net results are still negative in every period provided, and while losses have narrowed materially in TTM (Trailing-Twelve-Months) versus 2024, gross margin remains thin (~8–9%), leaving limited buffer to absorb operating costs.42
Neutral
Balance Sheet
The balance sheet is a relative strength, highlighted by essentially no debt (debt-to-equity at or near 0 across recent periods), which reduces financial risk and interest burden. Equity has also improved versus 2024, supporting balance sheet resilience as the business scales. The main weakness is continued negative returns on equity, reflecting ongoing net losses and indicating that shareholder capital is not yet generating positive earnings.72
Positive
Cash Flow
Cash generation is solid and improving: operating cash flow and free cash flow are strongly positive in recent years, rising to roughly $80M of operating cash flow and $79M of free cash flow in TTM (Trailing-Twelve-Months), with healthy free cash flow growth. This cash-flow profile meaningfully offsets income statement losses and suggests good working-capital dynamics and cash discipline. The key watch item is that accounting profitability is still negative, so sustaining strong cash generation through different housing-cycle conditions will matter.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.81B | 1.26B | 689.16M | 381.76M | 121.68M | 16.56M |
| Gross Profit | 156.64M | 114.74M | 62.87M | 31.95M | 11.09M | 2.15M |
| EBITDA | -8.21M | -24.68M | -25.49M | -19.55M | -11.05M | -3.39M |
| Net Income | -10.54M | -26.54M | -27.50M | -20.58M | -12.34M | -4.46M |
Balance Sheet | ||||||
| Total Assets | 145.22M | 86.59M | 64.55M | 43.76M | 40.00M | 21.91M |
| Cash, Cash Equivalents and Short-Term Investments | 91.72M | 32.83M | 28.93M | 18.74M | 34.63M | 21.23M |
| Total Debt | 0.00 | 0.00 | 0.00 | 96.00K | 131.00K | 215.00K |
| Total Liabilities | 91.62M | 54.45M | 27.46M | 21.35M | 12.99M | 1.11M |
| Stockholders Equity | 53.64M | 32.15M | 36.88M | 22.15M | 27.00M | 5.98M |
Cash Flow | ||||||
| Free Cash Flow | 79.32M | 47.69M | 19.24M | 4.59M | 3.77M | -1.62M |
| Operating Cash Flow | 80.28M | 48.73M | 19.87M | 6.00M | 3.94M | -1.60M |
| Investing Cash Flow | -17.36M | 3.81M | -6.63M | -9.05M | -10.21M | -16.00K |
| Financing Cash Flow | -29.30M | -33.14M | -3.96M | -7.85M | 13.95M | 22.93M |
Real Brokerage Technical Analysis
Negative
3.66
Price Trends
3.83
Negative
4.04
Negative
4.19
Negative
Market Momentum
-0.05
Positive
44.98
Neutral
27.12
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 3.66 is below the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.83, and below the 200-day MA of 4.19, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $254.73M | 12.74 | 2.87% | ― | -6.06% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $21.00B | 43.54 | 4.91% | 2.26% | 25.33% | -15.12% | |
58 Neutral | $782.44M | -69.19 | -25.27% | ― | 65.60% | 69.72% | |
54 Neutral | $1.44B | -72.90 | -8.09% | 2.09% | 5.08% | 41.21% | |
54 Neutral | $239.81M | -3.86 | -41.11% | ― | 6.62% | 30.94% |
* Real Estate Sector Average
REAX
Real Brokerage
3.66
-1.32
-26.51%
RMAX
Re/Max Holdings
7.82
-2.38
-23.33%
EXPI
eXp World Holdings
9.20
-1.98
-17.69%
BEKE
KE Holdings Inc. Sponsored ADR Class A
18.70
1.65
9.66%
DOUG
Douglas Elliman Inc.
2.70
1.00
58.82%
Real Brokerage Corporate Events
The Real Brokerage Inc. Reports Q3 2025 Financial Results
Oct 30, 2025
On October 30, 2025, The Real Brokerage Inc. announced its financial results for the third quarter of 2025. The company highlighted its strategic initiatives and operational trends, emphasizing the expansion of its agent network and technology platform. The announcement provides insights into the company’s performance and outlines key developments that may impact future performance, reflecting its positioning in the evolving real estate technology landscape.
The most recent analyst rating on (REAX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Real Brokerage stock, see the REAX Stock Forecast page.
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.