Real Matters Inc (REAL) AI Stock Analysis

• Market Cap: C$538.97M
• Dividend Yield: N/A
• Average Volume (3M): 71.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 0.86%
• EPS Growth: N/A
• Country: CA
• Employees: 338
• Sector: Real Estate
• Sector Strength: 53
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 74,238,000
• 10 Day Avg. Volume: 45,796
• 30 Day Avg. Volume: 71,779
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$7.00
• Price Target Upside: -3.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$7.00 ▼(-3.58% Downside)

The overall stock score is primarily impacted by weak financial performance and technical analysis, with poor valuation metrics further weighing down the score. Despite some positive signals from the earnings call, the current financial challenges and bearish technical indicators are significant concerns.

Positive Factors

Strong balance sheet / low leverage

A debt-free position with a cash buffer materially strengthens financial resilience. It provides durable optionality to invest in sales, product development, M&A or to absorb cyclical revenue shocks without relying on external financing, supporting multi-quarter strategic execution.

U.S. Title segment momentum

Sustained double-digit growth and a structurally high net revenue margin in U.S. Title indicate a scalable, higher-margin business line. This diversification reduces reliance on cyclical appraisal volumes and can drive durable profit improvement and cash generation over the next several quarters.

New client and channel expansion

Adding multiple clients and a Tier-1 lender expands recurring revenue opportunities and strengthens distribution. New channels and client wins build long-term relationships, increase cross-sell potential for data/analytics, and support sustainable market share gains over months.

Negative Factors

Weak cash flow conversion

Persistent negative and volatile cash flows limit the firm's ability to internally fund growth, invest in technology, or absorb margin pressure. Over several quarters this can force cost cuts, asset sales or external financing that dilute strategic flexibility and growth execution.

Declining profitability and margins

Ongoing negative net margins and deteriorating operating metrics erode retained earnings and constrain reinvestment. Without sustained margin recovery, the company risks prolonged losses that weaken competitive investment, impair talent retention, and limit long-term value creation.

U.S. Appraisal addressable-market headwinds

A structural contraction in the purchase mortgage market reduces demand for core appraisal services. If purchase origination volumes remain depressed, sustained revenue declines in this segment will pressure utilization, technician networks and margins, challenging recovery timelines.

Real Matters Inc Business Overview & Revenue Model

Company Description

Real Matters Inc. provides technology and network management solutions to mortgage lending and insurance industries in Canada and the United States. It offers residential mortgage appraisals for purchase, refinance, and home equity and default transactions under the Solidifi brand to the mortgage lending industry; and insurance inspection services to property and casualty insurers under the iv3 brand. The company also provides residential and commercial real estate title and closing services for refinance, purchase, short sale, and real estate owned transactions to financial institutions under the Solidifi brand; and offers services required to close a mortgage transaction, including title search, curative, closing and escrow services, and title policy issuance, as well as other title services, such as capital markets services. In addition, it provides access to its software platforms to other title insurance agencies and mortgage lenders for a subscription fee. The company was formerly known as Solidifi Inc. and changed its name to Real Matters Inc. in July 2010. Real Matters Inc. was incorporated in 2004 and is headquartered in Markham, Canada.

How the Company Makes Money

Real Matters generates revenue primarily through service fees from its appraisal and title services, which are provided to lenders and insurers in the mortgage industry. The company earns money by charging for each appraisal conducted and title service rendered. Additionally, Real Matters monetizes its data and analytics offerings by providing insights and tools to clients, which can include subscription-based models or pay-per-use fees. Significant partnerships with major financial institutions and technology firms enhance its service offerings and expand its market reach, contributing to its overall earnings.

Real Matters Inc Financial Statement Overview

Summary

Real Matters Inc is facing significant financial challenges, with declining revenue, profitability, and cash flow performance. The balance sheet remains relatively stable with low leverage, but the company's ability to generate consistent earnings and cash flow is a concern.

Income Statement

Real Matters Inc has faced significant challenges in recent years, with declining revenue and profitability. The gross profit margin has decreased from 19.66% in 2020 to 26.24% in 2023, indicating pressure on cost management. Net profit margins have turned negative, reflecting ongoing losses. Revenue growth has been inconsistent, with a notable decline in 2022. The EBIT and EBITDA margins have also deteriorated, highlighting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has been negative in recent years, reflecting poor profitability. The equity ratio remains stable, suggesting a solid capital structure. Despite these strengths, the declining equity and asset base pose risks to financial stability.

Cash Flow

Cash flow performance has been weak, with negative operating and free cash flows in recent periods. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio has been negative, indicating challenges in converting earnings into cash. The free cash flow to net income ratio has also been inconsistent, reflecting cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	169.75M	169.75M	172.72M	163.91M	339.64M	504.11M
Gross Profit	44.66M	44.66M	46.36M	43.02M	22.66M	78.50M
EBITDA	-1.72M	-1.72M	2.70M	-4.99M	5.91M	51.56M
Net Income	-22.66M	-22.66M	18.00K	-6.17M	-9.27M	32.99M
Balance Sheet
Total Assets	111.56M	111.56M	134.28M	128.74M	137.00M	194.34M
Cash, Cash Equivalents and Short-Term Investments	40.19M	40.19M	49.14M	42.34M	46.14M	60.21M
Total Debt	1.73M	1.73M	2.82M	4.10M	5.86M	8.04M
Total Liabilities	20.70M	20.70M	18.58M	17.16M	22.00M	34.79M
Stockholders Equity	90.87M	90.87M	115.70M	111.58M	114.89M	159.44M
Cash Flow
Free Cash Flow	-8.21M	-8.21M	4.67M	-3.59M	16.39M	22.00M
Operating Cash Flow	-7.18M	-7.18M	5.45M	-2.56M	17.57M	25.02M
Investing Cash Flow	-686.00K	-686.00K	-169.00K	-799.00K	-1.08M	-2.88M
Financing Cash Flow	-479.00K	-479.00K	1.42M	-445.00K	-30.42M	-94.05M

Real Matters Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REAL, the sentiment is Positive. The current price of 7.26 is above the 20-day moving average (MA) of 6.22, above the 50-day MA of 6.23, and above the 200-day MA of 6.20, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 75.31 is Negative, neither overbought nor oversold. The STOCH value of 86.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REAL.

Real Matters Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	69 Neutral	C$423.58M	20.48	25.64%	2.32%	3.19%	-1.07%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
TCS	65 Neutral	C$411.89M	76.48	8.14%	1.07%	7.00%	110.62%
BLN	57 Neutral	C$539.31M	-62.35	-11.83%	―	20.78%	58.71%
XTRA	52 Neutral	C$164.07M	-12.69	-108.12%	―	-12.14%	4.41%
IMP	46 Neutral	C$123.44M	-41.09	-14.10%	―	48.18%	-401.19%
REAL	46 Neutral	C$538.97M	-17.20	-22.15%	―	0.86%	―

Real Matters Inc Corporate Events

Real Matters Sets January 29 Date to Release Q1 Fiscal 2026 Results

Real Matters Inc. said it will release its first quarter fiscal 2026 financial results on January 29, 2026, before markets open, underscoring the company’s ongoing effort to keep investors informed about its performance in the mortgage lending and insurance services markets. Management, including CEO Brian Lang and CFO Rodrigo Pinto, will host a same-day conference call and webcast with supporting presentation materials posted on the company’s website, giving analysts and shareholders an opportunity to assess operating trends and outlook as Real Matters navigates industry conditions.

The most recent analyst rating on (TSE:REAL) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.

Real Matters Sets Fully Virtual Annual and Special Shareholder Meeting for February 2026

Real Matters Inc. has announced that it will hold its Annual and Special Meeting of shareholders virtually on February 5, 2026, via an online audio webcast. The company is detailing the procedures for registered and non-registered shareholders, clarifying who can vote during the live webcast, who may attend and ask questions, and how guests may access the meeting. A replay of the webcast and a transcript will be made available on the company’s website, underscoring Real Matters’ continued emphasis on digital accessibility and shareholder engagement through virtual corporate governance practices.

The most recent analyst rating on (TSE:REAL) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.

Real Matters Inc. Reports Resilient Q4 and Fiscal 2025 Financial Results Amid Market Challenges

Real Matters Inc. reported its financial results for the fourth quarter and fiscal year 2025, highlighting resilience and growth despite challenging market conditions. The company successfully launched new clients and channels, particularly in its U.S. Title segment, which saw significant growth. Consolidated revenues for the fourth quarter increased slightly year-over-year, driven by gains in U.S. refinance origination revenues and Canadian operations, although offset by declines in the U.S. purchase market. The company is poised to capitalize on future growth opportunities, supported by favorable consumer trends and interest rate outlooks, despite reporting a net loss due to accounting derecognition of U.S. deferred tax assets.

The most recent analyst rating on (TSE:REAL) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.