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

Real Brokerage (NASDAQ:REAX) announced its earnings results on Thursday. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.03) by $0.01, Zacks reports. Real Brokerage had a negative return on equity of 12.16% and a negative net margin of 0.32%.The company had revenue of $465.55 million for the quarter, compared to analyst estimates of $474.84 million.

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

• Real reported Q1 revenue of $466 million (▲32%), adjusted EBITDA of $14.9 million (▲80%), a narrower operating loss of $3.4 million, record unrestricted cash of $62.9 million, and closed ~42,000 transactions (▲25%) despite a weak housing market.
• The company announced a definitive agreement to acquire RE/MAX for an implied enterprise value of roughly $880 million, targeting $30 million of cost synergies and creating scale to monetize 700k+ U.S. transaction sides and ~1M annual website leads via title, mortgage, Wallet and AI tools.
• Ancillary businesses are gaining traction—Real Wallet revenue more than tripled to $436k with 8,000 active agents and >$1M weekly debit spend, One Real Title revenue grew 22% with 13 JVs across 19 states (20 expected), and One Real Mortgage revenue rose 20% while moving to a new LOS to reduce per‑file costs.
• Gross margin compressed to 9.1% (from 9.6%) due to a higher mix of post‑cap transactions and management expects margins to trend lower sequentially as more agents reach caps; Q2 will also see a material step‑up in RE/MAX acquisition‑related costs and pro forma leverage will increase before planned deleveraging.

Real Brokerage Stock Down 8.5%

NASDAQ:REAX traded down $0.19 on Friday, hitting $2.04. The stock had a trading volume of 5,726,013 shares, compared to its average volume of 3,686,179. The business’s fifty day moving average is $2.48 and its 200 day moving average is $3.23. Real Brokerage has a 52 week low of $1.92 and a 52 week high of $5.41. The company has a market cap of $435.54 million, a PE ratio of -68.00 and a beta of 0.81.

Analyst Upgrades and Downgrades

Several brokerages recently commented on REAX. BTIG Research restated a “buy” rating and set a $4.25 target price on shares of Real Brokerage in a research report on Monday, April 27th. Freedom Capital upgraded shares of Real Brokerage to a “strong-buy” rating in a report on Friday, January 23rd. William Blair restated an “outperform” rating on shares of Real Brokerage in a report on Wednesday, March 4th. Benchmark assumed coverage on shares of Real Brokerage in a report on Thursday, March 26th. They issued a “buy” rating and a $5.50 price target for the company. Finally, Weiss Ratings cut shares of Real Brokerage from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, April 27th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Real Brokerage presently has a consensus rating of “Moderate Buy” and a consensus price target of $5.69.

Institutional Trading of Real Brokerage

Hedge funds have recently bought and sold shares of the business. Ophir Asset Management Pty Ltd lifted its stake in shares of Real Brokerage by 24.9% in the fourth quarter. Ophir Asset Management Pty Ltd now owns 3,952,949 shares of the company’s stock valued at $14,428,000 after buying an additional 787,330 shares in the last quarter. Renaissance Technologies LLC lifted its stake in shares of Real Brokerage by 7.2% in the fourth quarter. Renaissance Technologies LLC now owns 2,128,900 shares of the company’s stock valued at $7,770,000 after buying an additional 143,100 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Real Brokerage by 310.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,127,804 shares of the company’s stock valued at $8,894,000 after buying an additional 1,608,941 shares in the last quarter. Nuveen LLC lifted its stake in shares of Real Brokerage by 104.5% in the fourth quarter. Nuveen LLC now owns 2,071,744 shares of the company’s stock valued at $7,562,000 after buying an additional 1,058,670 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its stake in shares of Real Brokerage by 47.2% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,910,311 shares of the company’s stock valued at $6,973,000 after buying an additional 612,291 shares in the last quarter. Institutional investors and hedge funds 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.