Real Brokerage (NASDAQ:REAX) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Real Brokerage (NASDAQ:REAX) released its quarterly earnings results on Wednesday. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.01, FiscalAI reports. Real Brokerage had a negative net margin of 0.58% and a negative return on equity of 25.22%. The company had revenue of $505.14 million for the quarter, compared to analyst estimates of $477.98 million.

Here are the key takeaways from Real Brokerage’s conference call:

• Strong growth and cash generation — Q4 closed transactions rose 38% to nearly 49,000, Q4 revenue increased 44% to $505M and full‑year revenue reached nearly $2.0 billion; Adjusted EBITDA grew 57% to $62.9M, operating cash flow was ~$66M, $39M returned via buybacks, and the company finished debt‑free with ~ $50M of liquidity.
• Platform and AI are driving operating leverage — the unified reZEN system and AI tools (e.g., Leo CoPilot with 700k+ engagements and ~46% of support volume handled) reduced repeat manual work, helping gross profit grow 44% while operating expenses grew 25% and Adjusted OpEx per transaction fell 22% year‑over‑year.
• Ancillary businesses are early but expanding — One Real Mortgage generated $6M (50% YoY growth), One Real Title $5M with 13 state JVs (3 more planned), and Real Wallet produced ~$900k in 2025 with 7,000 users and $23M in deposits; management expects these to raise attach rates and margins but they remain nascent.
• Near‑term margin and seasonality headwinds — a higher mix of post‑cap (capped) transactions compressed Q4 gross margin to 7.7% (down from 8.6% prior year), management expects this mix shift to persist into H1 2026, and cautioned Q1 revenue and Adjusted EBITDA will likely decline sequentially after a slow start to the year.

Real Brokerage Trading Up 4.7%

Shares of NASDAQ:REAX traded up $0.13 during mid-day trading on Wednesday, reaching $2.87. The company had a trading volume of 609,459 shares, compared to its average volume of 1,583,202. Real Brokerage has a one year low of $2.44 and a one year high of $5.41. The company’s 50-day moving average price is $3.35 and its 200-day moving average price is $3.93. The firm has a market cap of $607.87 million, a price-to-earnings ratio of -71.75 and a beta of 1.01.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. JonesTrading reissued a “buy” rating and set a $5.00 target price on shares of Real Brokerage in a research report on Wednesday, November 5th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Real Brokerage in a report on Thursday, January 22nd. Finally, Freedom Capital raised Real Brokerage to a “strong-buy” rating in a research report on Friday, January 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $6.50.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in REAX. Lido Advisors LLC purchased a new stake in Real Brokerage in the 3rd quarter worth about $42,000. Xponance LLC purchased a new position in shares of Real Brokerage in the fourth quarter worth about $38,000. Envestnet Asset Management Inc. purchased a new position in shares of Real Brokerage in the second quarter worth about $47,000. Thrivent Financial for Lutherans purchased a new stake in shares of Real Brokerage during the 2nd quarter valued at approximately $50,000. Finally, Quarry LP boosted its holdings in Real Brokerage by 1,615.9% in the 3rd quarter. Quarry LP now owns 11,256 shares of the company’s stock worth $47,000 after buying an additional 10,600 shares during the period. Hedge funds and other institutional investors own 53.28% of the company’s stock.

About Real Brokerage

Real Brokerage Inc is a publicly traded, cloud-based residential real estate brokerage headquartered in Toronto, Canada, with operations across the United States and Canada. The company’s platform offers licensed real estate professionals a fully integrated suite of digital tools designed to streamline every phase of the property transaction process, from lead generation to closing.

Through its proprietary technology, Real Brokerage provides agents with transaction management, customer relationship management, digital marketing automation and real-time analytics in a single, user-friendly interface.