Real Brokerage (NASDAQ:REAX) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

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

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 Performance

REAX traded up $0.15 during trading on Friday, reaching $2.14. 7,416,039 shares of the company’s stock were exchanged, compared to its average volume of 4,346,008. The company’s fifty day moving average price is $1.85 and its 200-day moving average price is $2.31. Real Brokerage has a fifty-two week low of $1.55 and a fifty-two week high of $5.41. The firm has a market capitalization of $466.39 million, a PE ratio of -30.57 and a beta of 0.78.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. grew its stake in shares of Real Brokerage by 88.3% during the fourth quarter. Invesco Ltd. now owns 86,661 shares of the company’s stock worth $316,000 after purchasing an additional 40,635 shares during the period. NewEdge Advisors LLC acquired a new position in Real Brokerage in the fourth quarter valued at about $128,000. XTX Topco Ltd boosted its holdings in Real Brokerage by 45.2% during the fourth quarter. XTX Topco Ltd now owns 478,972 shares of the company’s stock worth $1,748,000 after buying an additional 149,128 shares during the last quarter. VARCOV Co. bought a new position in Real Brokerage during the fourth quarter worth about $299,000. Finally, Ophir Asset Management Pty Ltd grew its position in shares of Real Brokerage by 24.9% during the 4th quarter. Ophir Asset Management Pty Ltd now owns 3,952,949 shares of the company’s stock worth $14,428,000 after buying an additional 787,330 shares during the period. 53.28% of the stock is currently owned by institutional investors.

Key Stories Impacting 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

Analysts Set New Price Targets

A number of brokerages have recently issued reports on REAX. Edward Jones reduced their target price on shares of Real Brokerage from $5.00 to $4.00 and set a “buy” rating on the stock in a research report on Thursday. Weiss Ratings cut shares of Real Brokerage from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, May 26th. BTIG Research reaffirmed a “buy” rating and set a $4.25 price objective on shares of Real Brokerage in a report on Monday, April 27th. B. Riley Financial reaffirmed a “buy” rating on shares of Real Brokerage in a report on Friday, May 8th. Finally, JonesTrading decreased their price objective on Real Brokerage from $5.00 to $4.00 and set a “buy” rating on the stock in a research report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $5.15.

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.