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

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

Shares of REAX stock opened at $2.76 on Thursday. The firm’s 50 day moving average price is $3.33 and its 200-day moving average price is $3.92. Real Brokerage has a one year low of $2.44 and a one year high of $5.41. The firm has a market cap of $584.57 million, a P/E ratio of -69.00 and a beta of 1.01.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Real Brokerage by 6.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,673 shares of the company’s stock valued at $246,000 after buying an additional 3,746 shares during the period. NewEdge Advisors LLC increased its stake in Real Brokerage by 628.0% during the first quarter. NewEdge Advisors LLC now owns 75,089 shares of the company’s stock worth $305,000 after purchasing an additional 64,775 shares during the period. Jane Street Group LLC lifted its position in shares of Real Brokerage by 568.3% during the first quarter. Jane Street Group LLC now owns 129,153 shares of the company’s stock worth $524,000 after purchasing an additional 109,826 shares in the last quarter. Strs Ohio purchased a new position in shares of Real Brokerage in the first quarter valued at approximately $72,000. Finally, Envestnet Asset Management Inc. acquired a new position in shares of Real Brokerage in the second quarter valued at approximately $47,000. 53.28% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have issued reports on REAX. William Blair restated an “outperform” rating on shares of Real Brokerage in a report on Wednesday. BTIG Research reduced their target price on shares of Real Brokerage from $6.00 to $4.50 and set a “buy” rating on the stock in a research note on Wednesday. JonesTrading reiterated a “buy” rating and issued a $5.00 target price on shares of Real Brokerage in a report on Wednesday. Freedom Capital upgraded shares of Real Brokerage to a “strong-buy” rating in a report on Friday, January 23rd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Real Brokerage in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.83.

Trending Headlines about Real Brokerage

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

• Positive Sentiment: Q4 results beat expectations — Real reported ($0.02) EPS versus consensus ($0.03) and revenue of ~$505.1M (above estimates). Management described the quarter as “upbeat,” which is providing the immediate catalyst for buying interest. The Real Brokerage (NASDAQ:REAX) Reports Upbeat Q4 CY2025
• Positive Sentiment: Analyst support — JonesTrading reaffirmed a “buy” and set a $5.00 price target, implying meaningful upside from current levels and likely encouraging momentum buying. Benzinga
• Positive Sentiment: Strong top-line growth — The company reported ~44% YoY revenue growth and gains in closed transactions for FY2025, reinforcing the narrative of accelerating scale in its real-estate platform. The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Earnings call & transcript available — Management hosted a call and released a transcript/slide deck that investors can use to judge forward commentary and margin guidance; these materials may clarify sustainability of growth. Earnings Call Transcript
• Negative Sentiment: Still loss-making with weak profitability metrics — Despite the beat, REAX posted a small quarterly loss, a negative net margin (~-0.58%) and negative ROE (~-25%), and analysts expect continued negative EPS for the year; this caps valuation and raises execution risk. MarketBeat: Q4 Results & Materials

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.