Real Matters Inc (TSE:REAL)
TSX:REAL
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Real Matters Inc
(TSX:REAL)
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Rating:53Neutral
Price Target:
C$5.50
▼(-7.56% Downside)
Action:ReiteratedDate:01/31/26
The score is held back primarily by weak TTM profitability and negative free cash flow despite a strong, low-leverage balance sheet. Technicals also lean bearish with the stock trading below key moving averages. Offsetting these risks, the latest earnings call showed improving operating momentum (positive adjusted EBITDA and strong net revenue growth) and reiterated a scalable operating model, but management also flagged near-term volume and margin uncertainty.
Positive Factors
Balance Sheet Strength
The company’s low leverage and $43.8M cash position provide durable financial flexibility to invest in growth, absorb cyclical mortgage downturns, and fund operational scaling without relying on external debt. This reduces solvency risk and supports multi-quarter recovery plans.
Negative Factors
Weak Profitability
Sustained negative margins indicate the business has yet to translate revenue growth into consistent profitability. Continued losses erode ROE, limit reinvestment capacity, and force management to prioritize margin recovery before realizing durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
The company’s low leverage and $43.8M cash position provide durable financial flexibility to invest in growth, absorb cyclical mortgage downturns, and fund operational scaling without relying on external debt. This reduces solvency risk and supports multi-quarter recovery plans.
Read all positive factors
Real Matters Inc (REAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$456.12M
Dividend YieldN/A
Average Volume (3M)71.78K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth0.25%
EPS Growth-581.50%
CountryCA
Employees338
SectorReal Estate
Sector Strength53
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.01
Shares Outstanding74,287,000
10 Day Avg. Volume45,796
30 Day Avg. Volume71,779
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.27
Price to Sales (P/S)2.29
P/FCF Ratio-47.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$8.00Price Target Upside34.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.07
Revenue Forecast (FY)C$58.75M
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 tra...
How the Company Makes Money
Real Matters primarily makes money by providing transaction-based services that support mortgage and insurance workflows. Its core revenue model is fee-for-service: when a lender, servicer, or insurer uses Real Matters’ platform/network to complet...
Real Matters Inc Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial trajectory: double-digit consolidated revenue growth (14%), a 19% increase in net revenue, improved consolidated adjusted EBITDA turning positive (from a prior-year loss), U.S. Appraisal margin expansion and significant percentage growth in U.S. Title revenue and net revenue. These positives were balanced against ongoing title segment losses in absolute dollars, near-term market seasonality and uncertainty (industry Q2 guidance of ~-10%), margin pressure in appraisal from mix shifts, and increased near-term investments and operating expenses. The balance sheet strength (no debt, $43.8M cash), client wins (8 new clients incl. 2 top-100 lenders) and operational takeaways (UAD readiness, capacity to scale title) underpin a constructive outlook, with caution about short-term volume variability.Positive Updates
Double-digit top-line growth and improved net revenue
Consolidated revenues increased 14% year-over-year and consolidated net revenue increased 19% year-over-year for Q1 FY2026; consolidated adjusted EBITDA turned positive at $0.1 million versus a loss of $1.7 million in Q1 FY2025.
Negative Updates
U.S. Title remains unprofitable on an absolute basis
Despite strong revenue growth, U.S. Title posted an adjusted EBITDA loss of $0.8 million in Q1 (improved from $1.8 million loss prior year). Operating expenses rose 16% YoY, driven by hires to support title client deployments and sales investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Double-digit top-line growth and improved net revenue
Consolidated revenues increased 14% year-over-year and consolidated net revenue increased 19% year-over-year for Q1 FY2026; consolidated adjusted EBITDA turned positive at $0.1 million versus a loss of $1.7 million in Q1 FY2025.
Read all positive updates
Company Guidance
Management guided that Q2 U.S. Title net revenue margins are expected to trend toward the lower end of the company’s target operating‑model range, noting industry forecasts (MBA/Fannie) that Q2 mortgage volumes could be down ~10% QoQ but that full‑year purchases are expected to be up low single digits and refinance volumes roughly +50% — a backdrop that supports their target operating model, under which similar volumes to 2020–2021 could produce adjusted EBITDA near ~$100M. They reiterated that Title can nearly double current volumes on the existing cost base (excluding variable costs), that ~85% of incremental Title net revenue (excluding sales/sales hires) would have flowed to EBITDA in Q1, and that the company finished Q1 with $43.8M cash and no debt. Q1 operating metrics cited to support the outlook included consolidated revenue +14% YoY, net revenue +19% YoY and consolidated adjusted EBITDA of $0.1M (U.S. Appraisal revenue $32.9M, adj. EBITDA $3.3M; U.S. Title revenue $4.4M, net revenue $2.8M and margin 63.9%; Canada revenue $9.2M), alongside market indicators such as ~13 million mortgages >6%, a 30‑year rate decline from ~6.43% to ~6.32% in Q1, and a ~20 bps narrowing of the 30y/10y spread to ~200 bps.Real Matters Inc Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
78
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.30M | 169.75M | 172.72M | 163.91M | 339.64M | 504.11M |
| Gross Profit | 46.77M | 44.66M | 46.36M | 43.02M | 22.66M | 78.50M |
| EBITDA | -6.92M | -1.72M | 2.70M | -4.99M | 5.91M | 51.56M |
| Net Income | -28.45M | -22.66M | 18.00K | -6.17M | -9.27M | 32.99M |
Balance Sheet | ||||||
| Total Assets | 105.19M | 111.56M | 134.28M | 128.74M | 137.00M | 194.34M |
| Cash, Cash Equivalents and Short-Term Investments | 43.72M | 40.19M | 49.14M | 42.34M | 46.14M | 60.21M |
| Total Debt | 2.28M | 1.73M | 2.82M | 4.10M | 5.86M | 8.04M |
| Total Liabilities | 15.92M | 20.70M | 18.58M | 17.16M | 22.00M | 34.79M |
| Stockholders Equity | 89.27M | 90.87M | 115.70M | 111.58M | 114.89M | 159.44M |
Cash Flow | ||||||
| Free Cash Flow | -5.83M | -8.21M | 4.67M | -3.59M | 16.39M | 22.00M |
| Operating Cash Flow | -4.83M | -7.18M | 5.45M | -2.56M | 17.57M | 25.02M |
| Investing Cash Flow | -929.66K | -686.00K | -169.00K | -799.00K | -1.08M | -2.88M |
| Financing Cash Flow | -392.21K | -479.00K | 1.42M | -445.00K | -30.42M | -94.05M |
Real Matters Inc Technical Analysis
Positive
5.95
Price Trends
5.98
Negative
6.18
Negative
6.33
Negative
Market Momentum
-0.03
Negative
54.80
Neutral
58.40
Neutral
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 5.95 is above the 20-day moving average (MA) of 5.70, below the 50-day MA of 5.98, and below the 200-day MA of 6.33, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.40 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$509.35M | 55.29 | 8.57% | 1.07% | 9.33% | 98.43% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | C$323.80M | 18.15 | 19.68% | 2.32% | -1.45% | -31.28% | |
54 Neutral | C$757.39M | -47.83 | -13.41% | ― | 9.38% | -15.17% | |
53 Neutral | C$456.12M | -22.29 | -28.43% | ― | 0.25% | -581.50% | |
52 Neutral | C$151.60M | -12.40 | -38.48% | ― | -38.88% | -320.94% | |
49 Neutral | C$113.11M | -16.83 | -100.85% | ― | -0.90% | -3.31% |
* Real Estate Sector Average
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Real Matters Inc Corporate Events
Executive/Board ChangesShareholder Meetings
Real Matters Shareholders Re-elect Full Slate of Directors
Positive
Feb 5, 2026
Real Matters Inc., a technology-driven network management services provider to the mortgage and insurance sectors, reported that shareholders elected all six management nominees to its board of directors at the company’s Annual and Special M...
Business Operations and StrategyFinancial Disclosures
Real Matters Delivers Double-Digit Growth and Positive EBITDA in First Quarter of Fiscal 2026
Positive
Jan 29, 2026
Real Matters reported a strong start to fiscal 2026, with first-quarter consolidated revenue rising 14% year-over-year to $46.5 million and Net Revenue increasing 19% to $13.0 million, while Adjusted EBITDA swung to a modest positive $0.1 million ...
Financial Disclosures
Real Matters Sets January 29 Date to Release Q1 Fiscal 2026 Results
Neutral
Jan 6, 2026
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 lendi...
Business Operations and StrategyShareholder Meetings
Real Matters Sets Fully Virtual Annual and Special Shareholder Meeting for February 2026
Neutral
Jan 5, 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, cl...
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.