Real Brokerage Inc. (REAX)
NASDAQ:REAX
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Real Brokerage
(NASDAQ:REAX)
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Rating:65Neutral
Price Target:
$2.00
▼(-27.01% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by strong cash flow and a low-risk balance sheet, reinforced by positive earnings-call momentum and strategic upside. It is held back by a weak technical downtrend and ongoing lack of GAAP profitability (reflected in a negative P/E), plus near-term margin and integration-cost pressures tied to the RE/MAX transaction.
Positive Factors
Cash generation
Consistent positive operating and free cash flow provides durable internal funding for growth, product investment and M&A without immediate reliance on debt or equity raises. Strong cash conversion reduces dilution risk and supports execution of multi-quarter initiatives and capital allocation plans.
Negative Factors
Thin gross margins
Low single-digit gross margins leave limited buffer for cost inflation, pricing pressure or transaction mix shifts. Structural dependence on agent commission caps and mix means margin volatility can persist over quarters and materially compress operating leverage if transaction volumes sag.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow provides durable internal funding for growth, product investment and M&A without immediate reliance on debt or equity raises. Strong cash conversion reduces dilution risk and supports execution of multi-quarter initiatives and capital allocation plans.
Read all positive factors
Real Brokerage (REAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$365.08M
Dividend YieldN/A
Average Volume (3M)3.61M
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth46.70%
EPS Growth61.90%
CountryUS
Employees410
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding213,498,200
10 Day Avg. Volume5,175,593
30 Day Avg. Volume3,614,096
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 Cap0.77
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit1.62
Enterprise Value/Ebitda-67.19
Forecast
1Y Price Target
$4.92Price Target Upside79.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$2.36B
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 primarily makes money from its role as the broker on residential real estate transactions closed by the agents who affiliate with its platform. Revenue is largely generated through a share of the gross commission income (GCI) earned...
Real Brokerage Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
Overall the call conveyed strong top-line growth, sizable margin improvement on an adjusted basis, robust cash generation and clear strategic upside from the announced RE/MAX acquisition (large addressable scale and targeted synergies). There are manageable near-term execution and margin pressures — including gross margin headwinds from transaction mix, acquisition-related costs expected in Q2, early-stage ancillary revenue, and integration risks tied to the RE/MAX deal — but management articulated specific plans to scale ancillaries, deploy technology (reZEN/HeyLeo/Leo AI), realize $30M of synergies and de-lever post-closing. On balance, the positive operational and strategic momentum materially outweighs the short-term challenges discussed.Positive Updates
Strong Revenue Growth
Consolidated revenue of $466 million, up 32% year-over-year, driven by North American Brokerage and a 25% increase in closed transactions (~42,000).
Negative Updates
Gross Margin Pressure and Transaction Mix
Gross profit increased 24% to $42.2M, but gross margin declined to 9.1% from 9.6% YoY (down ~50 bps). About 40% of closed transaction size came from capped agents (up ~200 bps YoY), which reduces blended margins and is expected to pressure gross margin through the year as more agents hit caps.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated revenue of $466 million, up 32% year-over-year, driven by North American Brokerage and a 25% increase in closed transactions (~42,000).
Read all positive updates
Company Guidance
Real offered no formal full-year guidance but said to expect sequential revenue growth in Q2 (seasonal), a near-term decline in gross margin as more agents hit annual commission caps (Q2 year‑over‑year margin pressure similar to Q1’s drop, then a more flattish YoY trajectory in the second half), and a material step‑up in Q2 operating expenses tied to RE/MAX acquisition activity that will be reported as non‑recurring; underlying cost discipline should continue to drive year‑over‑year improvement in adjusted EBITDA (Q1 adjusted EBITDA was $14.9M, +80% YoY) while ancillaries (ancillary revenue ~$3M, Real Wallet $0.436M, One Real Title +22%, One Real Mortgage +20%) provide a modest gross‑margin tailwind, the company expects the RE/MAX close in H2 and plans to de‑leverage to ~2.0x net debt/adjusted EBITDA by the end of the second full fiscal year following close.Real Brokerage Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.08B | 1.97B | 1.26B | 689.16M | 381.76M | 121.68M |
| Gross Profit | 173.33M | 163.76M | 114.74M | 62.87M | 31.95M | 11.09M |
| EBITDA | -4.17M | -6.57M | -24.68M | -25.49M | -19.55M | -11.05M |
| Net Income | -6.56M | -8.11M | -26.54M | -27.50M | -20.58M | -12.34M |
Balance Sheet | ||||||
| Total Assets | 156.91M | 126.86M | 86.59M | 64.55M | 43.76M | 40.00M |
| Cash, Cash Equivalents and Short-Term Investments | 99.72M | 76.28M | 32.83M | 28.93M | 18.74M | 34.63M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 96.00K | 131.00K |
| Total Liabilities | 91.33M | 75.28M | 54.45M | 27.46M | 21.35M | 12.99M |
| Stockholders Equity | 65.69M | 51.67M | 32.15M | 36.88M | 22.15M | 27.00M |
Cash Flow | ||||||
| Free Cash Flow | 81.81M | 64.83M | 47.69M | 19.24M | 4.59M | 3.77M |
| Operating Cash Flow | 82.80M | 65.93M | 48.73M | 19.87M | 6.00M | 3.94M |
| Investing Cash Flow | -14.58M | -13.59M | 3.81M | -6.63M | -9.05M | -10.21M |
| Financing Cash Flow | -30.52M | -40.25M | -33.14M | -3.96M | -7.85M | 13.95M |
Real Brokerage Technical Analysis
Negative
2.74
Price Trends
2.34
Negative
2.82
Negative
3.53
Negative
Market Momentum
-0.20
Positive
33.13
Neutral
11.00
Positive
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 2.74 is above the 20-day moving average (MA) of 2.12, above the 50-day MA of 2.34, and below the 200-day MA of 3.53, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 33.13 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, 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% | |
65 Neutral | $365.08M | -40.87 | -11.92% | ― | 46.70% | 61.90% | |
62 Neutral | $303.12M | -3.03 | 0.08% | ― | -5.43% | -93.40% | |
56 Neutral | $21.09B | 347.41 | 4.29% | 2.26% | 1.28% | -25.40% | |
44 Neutral | $143.63M | -2.16 | 3.26% | ― | -5.23% | ― |
* Real Estate Sector Average
REAX
Real Brokerage
1.70
-2.60
-60.47%
RMAX
Re/Max Holdings
9.05
1.51
20.03%
BEKE
KE Holdings Inc. Sponsored ADR Class A
18.72
0.39
2.11%
DOUG
Douglas Elliman Inc.
1.64
-0.62
-27.43%
Real Brokerage Corporate Events
Real Brokerage Files Q1 2026 MD&A and Financials on Form 6-K
May 7, 2026
The Real Brokerage Inc., a technology-driven residential real estate brokerage headquartered in Miami, provides a cloud-based platform for agents and is developing ancillary businesses in title, mortgage and wallet services. The company positions ...
Real Brokerage to Merge With RE/MAX Holdings in New Nasdaq-Listed Real REMAX Group
Apr 28, 2026
On April 26, 2026, The Real Brokerage Inc. agreed an Arrangement Agreement and Plan of Merger with RE/MAX Holdings to create a new Nasdaq-listed holding company, Real REMAX Group, through a share-for-share and cash transaction involving multiple m...
Real Brokerage to Acquire RE/MAX and Form Global Tech-Driven Real Estate Giant
Apr 27, 2026
On April 27, 2026, Real Brokerage agreed to acquire RE/MAX Holdings in a deal valuing the target at about $880 million to form Real REMAX Group, a technology-enabled global real estate platform. The combined business, uniting Real’s AI-power...
The Real Brokerage Files Form 6-K to Furnish 2025 Annual Report
Apr 24, 2026
On April 24, 2026, The Real Brokerage Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission, signed by Chief Legal Officer Alexandra Lumpkin. The submission formally furnishes the company’s 2025 Annual Report to U.S. investo...
Real Brokerage Sets May 29 Virtual AGM and Files 2026 Meeting Materials on Form 6-K
Apr 24, 2026
The Real Brokerage Inc., a tech-focused residential real estate brokerage, has circulated its 2026 management information circular and related proxy materials to shareholders of record as of April 2, 2026, ahead of its virtual annual general meeti...
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.