Real Brokerage (NASDAQ:REAX) Releases Quarterly Earnings Results

Real Brokerage (NASDAQ:REAX) posted its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.04), FiscalAI reports. The company had revenue of $700.58 million during the quarter, compared to the consensus estimate of $652.47 million. Real Brokerage had a negative net margin of 0.72% and a negative return on equity of 27.73%.

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

• Strong quarterly growth: Revenue rose 30% year over year to $700.6 million, closed transactions increased 27% to a record 62,380, and adjusted EBITDA grew 38% to $27.6 million.
• Real ended the quarter with a record $86.6 million in cash and short-term investments and expects to prioritize debt repayment and deleveraging after the RE/MAX transaction closes.
• Agent momentum remains strong, with approximately 35,350 agents at quarter-end and more than 36,000 by the call, while early feedback on the AI-powered HeyLeo 2.0 suggests it is helping agents reactivate dormant leads and generate appointments.
• Management remains confident in achieving approximately $30 million of cost synergies within three years of completing the pending RE/MAX acquisition, with combined 2025 adjusted EBITDA projected at roughly $190 million after synergies.
• Gross margin declined to 8.3% from 8.9% because a greater share of transactions came from capped agents, and management expects third-quarter revenue and adjusted EBITDA to decline sequentially due to normal seasonality, with gross margin also lower year over year.

Real Brokerage Stock Up 7.5%

Shares of REAX traded up $0.15 during mid-day trading on Friday, reaching $2.14. The company’s stock had a trading volume of 7,416,039 shares, compared to its average volume of 4,346,008. The company has a market cap of $466.39 million, a price-to-earnings ratio of -30.57 and a beta of 0.78. The business has a fifty day moving average of $1.85 and a 200 day moving average of $2.31. Real Brokerage has a 1 year low of $1.55 and a 1 year high of $5.41.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. CIBC Bancorp USA Inc. acquired a new position in Real Brokerage in the 3rd quarter valued at approximately $47,000. Merit Financial Group LLC acquired a new stake in shares of Real Brokerage during the 3rd quarter valued at $67,000. Thrivent Financial for Lutherans acquired a new stake in shares of Real Brokerage during the 2nd quarter valued at $50,000. Tower Research Capital LLC TRC grew its holdings in shares of Real Brokerage by 143.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 14,006 shares of the company’s stock valued at $63,000 after acquiring an additional 8,257 shares in the last quarter. Finally, Engineers Gate Manager LP purchased a new position in shares of Real Brokerage during the 2nd quarter valued at $52,000. 53.28% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. JonesTrading decreased their price target on Real Brokerage from $5.00 to $4.00 and set a “buy” rating for the company in a research report on Thursday. Zelman & Associates upgraded Real Brokerage to an “outperform” rating in a report on Friday. B. Riley Financial reaffirmed a “buy” rating on shares of Real Brokerage in a research note on Friday, May 8th. BTIG Research reiterated a “buy” rating and issued a $4.25 target price on shares of Real Brokerage in a report on Monday, April 27th. Finally, Weiss Ratings downgraded shares of Real Brokerage from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, May 26th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $5.15.

Trending Headlines about Real Brokerage

Here are the key news stories impacting Real Brokerage this week:

• Positive Sentiment: Real reported second-quarter revenue of $700.58 million, exceeding analysts’ $652.47 million estimate. Management also highlighted double-digit organic revenue growth and expansion in the Adjusted EBITDA margin, signaling continued operating progress. The Real Brokerage Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The planned RE/MAX combination remains an important potential catalyst. Real Brokerage announced the proposed board lineup for the transaction, indicating continued progress toward creating the Nasdaq-listed Real REMAX Group. Real Brokerage Sets Board Lineup for Planned RE/MAX Merger
• Positive Sentiment: JonesTrading and Edward Jones maintained “buy” ratings despite reducing their price targets to $4.00 from $5.00. The revised targets remain significantly above the recent trading level, suggesting analysts still see substantial upside. JonesTrading Lowers Real Brokerage Price Target
• Neutral Sentiment: Brokerage estimates continue to indicate a materially higher valuation, with a reported consensus price target of $5.69. However, the wide gap between targets and the stock price reflects execution and profitability risks. Real Brokerage Receives Consensus Price Target
• Negative Sentiment: Second-quarter adjusted earnings missed expectations: REAX reported a loss of $0.03 per share versus the consensus estimate for earnings of $0.01. The company remains unprofitable, which could limit the stock’s upside until profitability improves. Real Brokerage Reports Second-Quarter Loss

Real Brokerage Company Profile

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.