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Real Matters Inc (TSE:REAL)
TSX:REAL
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Real Matters Inc (REAL) AI Stock Analysis

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TSE:REAL

Real Matters Inc

(TSX:REAL)

Rating:56Neutral
Price Target:
C$5.50
▲(1.48% Upside)
Real Matters Inc. has a moderate overall stock score of 56, driven primarily by positive earnings call insights and strategic board appointment. However, financial performance and valuation concerns weigh down the score, highlighting the need for improved profitability and cash management. Technical indicators also suggest cautious market sentiment.
Positive Factors
Business Expansion
Real Matters has made continued market share gains with existing clients and launched three new clients this quarter.
Customer Base
Real Matters is ready to scale when volumes recover, with management optimistic about its growing customer base and opportunities with key customer Rocket Mortgage.
Market Share
REAL gained market share with three Tier 1 clients during the quarter despite industry volume decreases.
Negative Factors
Financial Performance
Q4/24 results were below consensus due to softness in US Appraisal volumes.
Interest Rates
There is a risk that mortgage rates could stay higher for longer, affecting the stock's valuation.
Market Challenges
Market challenges are lingering, with seasonality and uncertain timing on rate cuts expected to remain a headwind.

Real Matters Inc (REAL) vs. iShares MSCI Canada ETF (EWC)

Real Matters Inc Business Overview & Revenue Model

Company DescriptionReal Matters Inc. (REAL) is a leading network management services provider, primarily focused on the mortgage lending and insurance industries. The company operates through its proprietary cloud-based platform, which connects a wide range of service providers with lenders and insurers to facilitate processes such as property appraisals, title, and mortgage closing services. Real Matters leverages its scalable technology to enhance efficiency, accuracy, and speed in the real estate sector, serving clients in both the United States and Canada.
How the Company Makes MoneyReal Matters Inc. generates revenue through its network management services by offering a platform that connects lenders and insurers with a network of independent field professionals, including appraisal and title service providers. The company earns fees for facilitating transactions on its platform, which are typically based on the volume and value of services processed. Key revenue streams include appraisal management services, where the company earns a portion of the fees paid by lenders for property appraisals, and title and closing services, where revenue comes from facilitating title searches and insurance, as well as mortgage closing processes. Significant partnerships with financial institutions and real estate service providers also contribute to Real Matters' earnings by expanding its network and transaction volume.

Real Matters Inc Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q3-2025)
|
% Change Since: 5.24%|
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Positive
Despite a challenging year-over-year comparison and a softer spring market, Real Matters showed strong sequential growth, added significant new clients, and improved its financial position. The positive aspects, including substantial market share gains and a healthy balance sheet, outweigh the challenges faced.
Q3-2025 Updates
Positive Updates
Strong Sequential Growth Across All Segments
Real Matters delivered double-digit sequential growth in all 3 segments in Q3 2025, with consolidated revenues up 22% from the previous quarter.
Significant Client Wins and Market Share Expansion
The company added 4 new clients and secured several notable wins, including launching the second Tier 1 lender in U.S. Title and expanding market share with a top 50 lender.
U.S. Title Segment Growth
U.S. Title revenues increased 30% year-over-year, with refinance origination revenues up 66%, driven by net market share gains and higher market volumes.
Positive Adjusted EBITDA
Real Matters posted a positive consolidated adjusted EBITDA of $0.3 million, an improvement from a loss of $1.9 million in the previous quarter.
Healthy Balance Sheet
The company ended the quarter with $43.8 million in cash and no debt, maintaining a strong financial position.
Negative Updates
Year-over-Year Revenue Decline
Consolidated revenue and net revenue were down 8% and 10% year-over-year, primarily due to lower U.S. Appraisal segment revenues.
U.S. Appraisal Revenue and Margin Decline
U.S. Appraisal revenues were down 13% year-over-year, with net revenue margins decreasing by 140 basis points.
Softer Spring Market
The spring market was softer than expected due to enduring affordability issues, high rates, and a volatile macro environment.
Company Guidance
During the Q3 2025 earnings call, Real Matters reported substantial growth across its segments, with consolidated revenues up 22% from the previous quarter. The company achieved a positive consolidated adjusted EBITDA of $0.3 million, a significant improvement from a $1.9 million loss in Q2 2025. U.S. Appraisal revenues rose by 22% sequentially, maintaining a net revenue margin of 26.2%, while U.S. Title revenues increased to $2.8 million, driven by a 52% year-over-year surge in third-quarter origination volumes. The Canadian segment also saw a 19% revenue increase. The company added four new clients, including a second Tier 1 lender in U.S. Title, and expanded market share with existing clients. Real Matters highlighted its strategic positioning for market dynamics, with $43.8 million in cash and zero debt, aiming for long-term growth in adjusted EBITDA across U.S. Appraisal and Title segments.

Real Matters Inc Financial Statement Overview

Summary
Real Matters Inc. faces financial challenges with declining revenue and profit margins, despite strong equity and low leverage. The inconsistent cash flow history indicates a need for better cash management strategies.
Income Statement
45
Neutral
Real Matters Inc. has experienced significant revenue decline over the years, with total revenue shrinking from $504.1 million in 2021 to $173.4 million in the TTM (Trailing-Twelve-Months) period. While gross profit margin has improved, net profit margin remains low, and EBIT margin is negative, indicating profitability challenges. The company has been unable to sustain its previous high revenue and profitability levels, suggesting operational difficulties.
Balance Sheet
65
Positive
The balance sheet of Real Matters Inc. shows a strong equity base, with a low debt-to-equity ratio of 0.02 in the TTM period, indicating low leverage. The equity ratio is also solid, with shareholders' equity making up a large portion of total assets. However, the declining total assets and equity year-over-year signal potential weaknesses in asset management and growth capabilities.
Cash Flow
50
Neutral
Cash flow analysis reveals a volatile free cash flow history, with recent positive free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, suggesting that cash generated from operations supports reported net income. However, the fluctuation in free cash flow growth rates highlights inconsistent cash management practices.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue169.37M172.72M163.91M339.64M504.11M455.94M
Gross Profit44.81M46.36M43.02M22.66M78.50M89.62M
EBITDA-3.74M2.70M-5.06M5.91M56.91M70.35M
Net Income-4.95M18.00K-6.17M-9.27M32.99M41.99M
Balance Sheet
Total Assets127.25M134.28M128.74M137.00M194.34M249.72M
Cash, Cash Equivalents and Short-Term Investments43.82M49.14M42.34M46.14M60.21M129.16M
Total Debt2.01M2.82M4.10M5.86M8.04M7.90M
Total Liabilities16.86M18.58M17.16M22.00M34.79M37.51M
Stockholders Equity110.39M115.70M111.58M114.89M159.44M209.00M
Cash Flow
Free Cash Flow1.14M4.67M-3.59M16.39M22.00M72.86M
Operating Cash Flow2.24M5.45M-2.56M17.57M25.02M74.69M
Investing Cash Flow-690.00K-169.00K-799.00K-1.08M-2.88M-1.83M
Financing Cash Flow910.00K1.42M-445.00K-30.42M-94.05M-15.20M

Real Matters Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.42
Price Trends
50DMA
5.56
Negative
100DMA
5.70
Negative
200DMA
6.20
Negative
Market Momentum
MACD
-0.07
Negative
RSI
54.04
Neutral
STOCH
59.39
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 5.42 is above the 20-day moving average (MA) of 5.42, below the 50-day MA of 5.56, and below the 200-day MA of 6.20, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 59.39 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$5.75B413.392.32%15.14%-31.45%
63
Neutral
$6.73B14.24-1.41%7.30%4.75%-35.88%
58
Neutral
C$2.33B-36.64%18.75%-386.84%
56
Neutral
C$401.89M177.59-4.55%2.85%-385.63%
$8.97B63.0610.66%
$909.81M16.1413.26%4.64%
$892.23M39.3741.12%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:REAL
Real Matters Inc
5.55
-1.29
-18.86%
DSGX
The Descartes Systems Group
107.63
13.84
14.76%
TSE:KXS
Kinaxis Inc
206.76
63.14
43.96%
EGHSF
Enghouse Systems
16.38
-4.22
-20.49%
TSE:LSPD
Lightspeed POS Inc
17.17
0.53
3.19%
DCBO
Docebo
30.76
-5.84
-15.96%

Real Matters Inc Corporate Events

Business Operations and StrategyFinancial Disclosures
Real Matters Inc. Sees Revenue Growth Amid Strategic Expansions
Neutral
Jul 31, 2025

Real Matters Inc. reported a 22% sequential increase in consolidated revenues for the third quarter of 2025, reaching $45.4 million, driven by growth in the U.S. Appraisal and U.S. Title segments. Despite a net loss of $4.9 million, the company launched new clients and expanded its presence with major lenders, positioning itself strategically for future opportunities as interest rates shift.

The most recent analyst rating on (TSE:REAL) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.

Financial Disclosures
Real Matters to Release Q3 Fiscal 2025 Financial Results
Neutral
Jun 26, 2025

Real Matters Inc. has announced that it will release its third quarter fiscal 2025 financial results on July 31, 2025, before the market opens. The announcement will be followed by a conference call and webcast hosted by the CEO and CFO to discuss the results. This event is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:REAL) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Real Matters Strengthens Board with Industry Veteran John Walsh
Positive
Jun 4, 2025

Real Matters Inc. has appointed John Walsh, a veteran with over four decades of experience in the mortgage market, to its Board of Directors. Walsh’s extensive background in financial services, data, and technology is expected to be a significant asset to Real Matters as it continues to pursue its long-term growth strategy and strengthen its position as a leader in mortgage technology. His appointment is anticipated to enhance the company’s governance and strategic direction, benefiting stakeholders and aligning with Real Matters’ goals of innovation and industry leadership.

The most recent analyst rating on (TSE:REAL) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL 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.Date of analysis: Aug 02, 2025