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.