The Real Brokerage Inc. (REAX) Q3 2025 Earnings Call Transcript
Revenue Revenue in the third quarter grew 53% to $569 million. This growth was driven primarily by the North American Brokerage segment, which saw a 49% increase in closed transactions to more than 53,000 in the quarter.
Gross Profit Gross profit increased 40% to $45 million, outpacing a 31% increase in operating expenses. The gross margin was 7.9%, down from 8.6% in the prior year, primarily due to a higher proportion of transactions completed by agents who have reached their annual cap.
Net Loss Net loss was approximately breakeven at negative $0.3 million, an improvement from the prior year.
Adjusted EBITDA Adjusted EBITDA was positive $20.4 million, a 54% improvement from last year, reflecting growth in gross profit outpacing growth in operating expenses.
Operating Cash Flow Operating cash flow from operations was approximately $9 million, supported by improved profitability and disciplined expense management.
Brokerage Revenue Brokerage revenue grew 53% to $565 million, driven by both agent growth and higher productivity. Real agents closed more than 53,500 transactions totaling over $21 billion, up 49% year-over-year.
One Real Title Revenue Revenue was $1.3 million, impacted by a transition from team-based to state-based joint ventures, a shift designed to enhance scalability and long-term profitability.
One Real Mortgage Revenue Revenue increased 47% year-over-year to $1.8 million, driven by the addition of productive loan officers and the launch of an inside sales team earlier this year.
Real Wallet Revenue Real Wallet is currently operating at an annualized revenue run rate of over $1.2 million, with total deposits exceeding $20 million, up from approximately $40 million at the time of the last earnings call.
Operating Expenses Operating expenses, including G&A, marketing, and R&D, totaled $45.3 million, up 31% from $34.6 million last year. This increase was driven by revenue share expense and investments to support growth.
Stock-Based Compensation Total stock-based compensation was $19.9 million, with $12.6 million related to the agent stock purchase program, $3.9 million in agent equity awards, and $3.4 million in employee-related stock compensation.
Median Sale Price The median sale price was $390,000, a 2% year-over-year increase.
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Real Brokerage CEO Tamir Poleg to Present at Needham Growth Conference on January 13
- Conference Presentation: Real Brokerage CEO Tamir Poleg will present at the 28th Annual Needham Growth Conference on January 13, 2026, at 4:30 p.m. ET, showcasing the company's innovations and cultural approach in the real estate technology sector.
- Live Streaming and Replay: The presentation will be broadcast live, with a replay available for 180 days via the provided link, enhancing investor understanding of the company's strategy and market positioning.
- Company Background: Real Brokerage is a fast-growing real estate technology platform simplifying complex transactions, supporting over 31,000 agents across all 50 states in the U.S. and Canada, demonstrating strong market penetration.
- Technology-Driven Services: The company combines essential real estate, mortgage, and closing services with powerful technology to deliver a seamless consumer experience, further solidifying its leading position in the industry.
Real Brokerage Predicts Housing Market Recovery in 2026
- Market Optimism: In the November 2025 survey, 78% of agents expect an increase in home sale transaction volumes in 2026, indicating a gradual recovery in market confidence that could drive future company performance.
- Home Price Increase Expectations: 60% of agents believe home prices will rise next year, with 33% anticipating increases between 0% and 2%, which will exacerbate affordability challenges for buyers and impact market dynamics.
- Improved Agent Optimism Index: Real's Agent Optimism Index rose from 64.6 in October to 66.6 in November, reflecting a positive outlook among agents for the next 12 months, potentially leading to increased transaction activity.
- Subdued Transaction Activity: Despite rising optimism, Real's Transaction Growth Index fell to 45.8 in November, indicating that transaction activity has not yet rebounded significantly, necessitating attention to market recovery timing and strategies.
The Real Brokerage Achieves 100th Place on Deloitte's 2025 Technology Fast 500™ as a Fastest-Growing Company in North America
Company Growth: The Real Brokerage Inc. achieved a remarkable 939% revenue growth from 2021 to 2024, ranking No. 100 on the Deloitte Technology Fast 500 due to its focus on technology and value delivery to over 31,000 agents and clients.
Innovative Platform: Real's proprietary software platform, reZEN, and investments in AI and workflow automation are enhancing operational efficiency, allowing agents to concentrate on business growth rather than administrative tasks.
Comprehensive Services: As the fifth largest brokerage by volume, Real offers an integrated ecosystem that combines brokerage, mortgage, title, and fintech services, aiming to streamline the homebuying process for clients.
Eligibility for Recognition: To qualify for the Deloitte Technology Fast 500, companies must demonstrate significant revenue growth, proprietary technology, and a minimum operational history, ensuring a competitive selection process.
Real Agrees to Preliminary Settlement in Lawsuit with Ex-CFO
Settlement Announcement: The Real Brokerage Inc. has reached a settlement in principle with former CFO Michelle Ressler, resulting in the dismissal of the court action without any payment to her, while she will reimburse the company for personal charges on its corporate credit card.
Company Overview: Real is a real estate technology platform that aims to simplify complex transactions by integrating real estate, mortgage, and closing services with advanced technology, supporting over 30,000 agents across the U.S. and Canada.
Forward-Looking Statements: The press release includes forward-looking statements that are subject to various risks and uncertainties, including potential slowdowns in the real estate market and challenges in attracting and retaining agents.
Contact Information: For investor inquiries, Loren Irwin can be contacted, while media inquiries should be directed to Janice McDill, with both providing their respective email addresses and phone numbers.
Real Enhances Leo CoPilot, the First Generative AI Assistant in the Industry, with Voice-First Features and Enhanced Insights
AI Advancements: Real Brokerage Inc. has enhanced its AI platform, Leo CoPilot, by introducing voice-first capabilities and expanded support for agents, providing real-time, contextual assistance across brokerage, compliance, and operations.
Agent Empowerment: The new features allow agents to interact with Leo through voice or text, offering personalized, context-aware responses that help them make informed decisions quickly, whether they are in meetings or on the go.
Unique Integration: Unlike generic AI tools, Leo CoPilot is fully integrated within Real's transaction platform, enabling tailored experiences based on agent behavior and market context, while also ensuring secure access to proprietary data.
Future Developments: The voice capabilities are being rolled out to all agents, with plans for ongoing enhancements, including expanded workflows and compliance coverage, to further support agents in their real estate transactions.
Real Reinforces Commitment to AI with Introduction of "HeyLeo" – A Revolutionary Conversational Search Tool for Users
Introduction of HeyLeo: Real Brokerage Inc. launched HeyLeo, an AI-powered voice-interactive concierge for home buyers, designed to enhance the home search experience and agent productivity through its reZEN platform.
Personalized Home Search Experience: HeyLeo allows users to ask questions naturally, providing tailored recommendations based on contextual intelligence, and can answer specific property-related inquiries.
Agent Empowerment: The platform keeps agents central to the client relationship by allowing them to personalize HeyLeo's voice, manage client interactions, and initiate next steps in the home buying process.
Company Overview: Real Brokerage aims to simplify real estate transactions by integrating essential services with technology, supporting over 30,000 agents across the U.S. and Canada.
Real Brokerage CEO Tamir Poleg to Present at Needham Growth Conference on January 13
- Conference Presentation: Real Brokerage CEO Tamir Poleg will present at the 28th Annual Needham Growth Conference on January 13, 2026, at 4:30 p.m. ET, showcasing the company's innovations and cultural approach in the real estate technology sector.
- Live Streaming and Replay: The presentation will be broadcast live, with a replay available for 180 days via the provided link, enhancing investor understanding of the company's strategy and market positioning.
- Company Background: Real Brokerage is a fast-growing real estate technology platform simplifying complex transactions, supporting over 31,000 agents across all 50 states in the U.S. and Canada, demonstrating strong market penetration.
- Technology-Driven Services: The company combines essential real estate, mortgage, and closing services with powerful technology to deliver a seamless consumer experience, further solidifying its leading position in the industry.
Real Brokerage Predicts Housing Market Recovery in 2026
- Market Optimism: In the November 2025 survey, 78% of agents expect an increase in home sale transaction volumes in 2026, indicating a gradual recovery in market confidence that could drive future company performance.
- Home Price Increase Expectations: 60% of agents believe home prices will rise next year, with 33% anticipating increases between 0% and 2%, which will exacerbate affordability challenges for buyers and impact market dynamics.
- Improved Agent Optimism Index: Real's Agent Optimism Index rose from 64.6 in October to 66.6 in November, reflecting a positive outlook among agents for the next 12 months, potentially leading to increased transaction activity.
- Subdued Transaction Activity: Despite rising optimism, Real's Transaction Growth Index fell to 45.8 in November, indicating that transaction activity has not yet rebounded significantly, necessitating attention to market recovery timing and strategies.
The Real Brokerage Achieves 100th Place on Deloitte's 2025 Technology Fast 500™ as a Fastest-Growing Company in North America
Company Growth: The Real Brokerage Inc. achieved a remarkable 939% revenue growth from 2021 to 2024, ranking No. 100 on the Deloitte Technology Fast 500 due to its focus on technology and value delivery to over 31,000 agents and clients.
Innovative Platform: Real's proprietary software platform, reZEN, and investments in AI and workflow automation are enhancing operational efficiency, allowing agents to concentrate on business growth rather than administrative tasks.
Comprehensive Services: As the fifth largest brokerage by volume, Real offers an integrated ecosystem that combines brokerage, mortgage, title, and fintech services, aiming to streamline the homebuying process for clients.
Eligibility for Recognition: To qualify for the Deloitte Technology Fast 500, companies must demonstrate significant revenue growth, proprietary technology, and a minimum operational history, ensuring a competitive selection process.
Real Agrees to Preliminary Settlement in Lawsuit with Ex-CFO
Settlement Announcement: The Real Brokerage Inc. has reached a settlement in principle with former CFO Michelle Ressler, resulting in the dismissal of the court action without any payment to her, while she will reimburse the company for personal charges on its corporate credit card.
Company Overview: Real is a real estate technology platform that aims to simplify complex transactions by integrating real estate, mortgage, and closing services with advanced technology, supporting over 30,000 agents across the U.S. and Canada.
Forward-Looking Statements: The press release includes forward-looking statements that are subject to various risks and uncertainties, including potential slowdowns in the real estate market and challenges in attracting and retaining agents.
Contact Information: For investor inquiries, Loren Irwin can be contacted, while media inquiries should be directed to Janice McDill, with both providing their respective email addresses and phone numbers.
Real Enhances Leo CoPilot, the First Generative AI Assistant in the Industry, with Voice-First Features and Enhanced Insights
AI Advancements: Real Brokerage Inc. has enhanced its AI platform, Leo CoPilot, by introducing voice-first capabilities and expanded support for agents, providing real-time, contextual assistance across brokerage, compliance, and operations.
Agent Empowerment: The new features allow agents to interact with Leo through voice or text, offering personalized, context-aware responses that help them make informed decisions quickly, whether they are in meetings or on the go.
Unique Integration: Unlike generic AI tools, Leo CoPilot is fully integrated within Real's transaction platform, enabling tailored experiences based on agent behavior and market context, while also ensuring secure access to proprietary data.
Future Developments: The voice capabilities are being rolled out to all agents, with plans for ongoing enhancements, including expanded workflows and compliance coverage, to further support agents in their real estate transactions.
Real Reinforces Commitment to AI with Introduction of "HeyLeo" – A Revolutionary Conversational Search Tool for Users
Introduction of HeyLeo: Real Brokerage Inc. launched HeyLeo, an AI-powered voice-interactive concierge for home buyers, designed to enhance the home search experience and agent productivity through its reZEN platform.
Personalized Home Search Experience: HeyLeo allows users to ask questions naturally, providing tailored recommendations based on contextual intelligence, and can answer specific property-related inquiries.
Agent Empowerment: The platform keeps agents central to the client relationship by allowing them to personalize HeyLeo's voice, manage client interactions, and initiate next steps in the home buying process.
Company Overview: Real Brokerage aims to simplify real estate transactions by integrating essential services with technology, supporting over 30,000 agents across the U.S. and Canada.
