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Real Brokerage
(NASDAQ:REAX)
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Rating:71Outperform
Price Target:
$2.50
▼(-8.76% Downside)
Action:Upgraded
Date:07/03/26
The score is driven primarily by strong cash flow generation and a low-risk balance sheet (no debt), plus constructive earnings-call momentum around growth and improving adjusted EBITDA. These positives are moderated by the lack of sustained profitability (thin gross margin and still-negative operating results), a mixed technical setup (short-term strength but weaker long-term trend and stretched momentum), and limited valuation support due to a negative P/E and no dividend yield data.
Positive Factors
Conservative balance sheet & strong cash generation
Real carries essentially no debt and has rising operating and free cash flow (unrestricted cash rose to $62.9M; Q1 operating cash flow $23.3M; FCF +~9.9% TTM). Durable liquidity lowers financing risk, funds investment/M&A, and provides a buffer during housing cycles.
Negative Factors
Thin gross margins and slight ongoing unprofitability
Gross margins near 8–9% leave limited cushion for cost inflation or adverse transaction mix shifts. Though losses narrowed to roughly -0.3% TTM, the business remains slightly unprofitable, so sustained margin expansion is required to lock in shareholder-level profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & strong cash generation
Real carries essentially no debt and has rising operating and free cash flow (unrestricted cash rose to $62.9M; Q1 operating cash flow $23.3M; FCF +~9.9% TTM). Durable liquidity lowers financing risk, funds investment/M&A, and provides a buffer during housing cycles.
Read all positive factors
Real Brokerage (REAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$439.95M
Dividend YieldN/A
Average Volume (3M)3.83M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth46.70%
EPS Growth61.90%
CountryUS
Employees410
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding214,610,720
10 Day Avg. Volume4,310,183
30 Day Avg. Volume3,829,787
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 Cap0.65
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit1.63
Enterprise Value/Ebitda-65.04
Forecast
1Y Price Target
$4.25Price Target Upside55.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$2.36B
Real Brokerage Business Overview & Revenue Model
Company Description
Operating with its various subsidiaries, The Real Brokerage Inc. functions as a technology-driven real estate brokerage enterprise. The company delivers comprehensive real estate agency solutions through an expansive network of agents. It equips i...
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 06, 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 | 173.91M | 163.76M | 114.74M | 62.87M | 31.95M | 11.09M |
| EBITDA | -4.37M | -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 | 82.67M | 64.83M | 47.69M | 19.24M | 4.59M | 3.77M |
| Operating Cash Flow | 83.67M | 65.93M | 48.73M | 19.87M | 6.00M | 3.94M |
| Investing Cash Flow | -14.80M | -13.59M | 3.81M | -6.63M | -9.05M | -10.21M |
| Financing Cash Flow | -30.81M | -40.25M | -33.14M | -3.96M | -7.85M | 13.95M |
Real Brokerage Technical Analysis
Neutral
2.74
Price Trends
1.85
Positive
2.19
Negative
2.99
Negative
Market Momentum
0.09
Negative
58.12
Neutral
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REAX, the sentiment is Neutral. The current price of 2.74 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.85, and below the 200-day MA of 2.99, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $439.95M | -70.65 | -11.92% | ― | 46.70% | 61.90% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $17.17B | 35.19 | 4.95% | 2.26% | -8.90% | -21.42% | |
58 Neutral | $358.42M | 488.48 | 0.08% | ― | -5.43% | -93.40% | |
43 Neutral | $173.63M | 91.50 | 3.26% | ― | -5.23% | ― |
* Real Estate Sector Average
REAX
Real Brokerage
2.07
-1.99
-49.01%
RMAX
Re/Max Holdings
10.60
2.31
27.86%
BEKE
KE Holdings Inc. Sponsored ADR Class A
16.07
-2.68
-14.28%
DOUG
Douglas Elliman Inc.
1.83
-0.64
-25.91%
Real Brokerage Corporate Events
Real Brokerage Shareholders Back Board Slate and Auditor at May 29 AGM
May 29, 2026
The Real Brokerage Inc., a tech-focused real estate brokerage based in Miami, operates as a foreign private issuer in U.S. markets and reports to shareholders under Canadian continuous disclosure rules. The firm’s governance structure is ove...
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.