Real Brokerage (NASDAQ:REAX) Releases Earnings Results, Beats Estimates By $0.01 EPS

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

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

REAX stock traded up $0.14 during midday trading on Wednesday, reaching $2.88. 662,925 shares of the company traded hands, compared to its average volume of 1,584,158. The firm has a market capitalization of $609.98 million, a price-to-earnings ratio of -72.00 and a beta of 1.01. Real Brokerage has a 52-week low of $2.44 and a 52-week high of $5.41. The business has a 50 day moving average of $3.35 and a 200-day moving average of $3.93.

Analyst Ratings Changes

Several research firms have commented on REAX. Weiss Ratings reissued a “sell (d-)” rating on shares of Real Brokerage in a report on Thursday, January 22nd. JonesTrading reiterated a “buy” rating and issued a $5.00 target price on shares of Real Brokerage in a research report on Wednesday, November 5th. Finally, Freedom Capital upgraded Real Brokerage to a “strong-buy” rating in a report on Friday, January 23rd. One 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’s stock. According to MarketBeat.com, Real Brokerage presently has a consensus rating of “Moderate Buy” and a consensus target price of $6.50.

Institutional Trading of Real Brokerage

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Qube Research & Technologies Ltd raised its holdings in shares of Real Brokerage by 567.4% in the second quarter. Qube Research & Technologies Ltd now owns 277,013 shares of the company’s stock worth $1,249,000 after buying an additional 235,507 shares during the period. Jump Financial LLC purchased a new position in Real Brokerage during the 2nd quarter valued at $868,000. Marshall Wace LLP bought a new position in Real Brokerage in the 2nd quarter valued at $127,000. Arrowstreet Capital Limited Partnership increased its stake in Real Brokerage by 12.1% in the second quarter. Arrowstreet Capital Limited Partnership now owns 518,863 shares of the company’s stock worth $2,340,000 after purchasing an additional 55,853 shares during the period. Finally, Russell Investments Group Ltd. increased its stake in Real Brokerage by 4.8% in the second quarter. Russell Investments Group Ltd. now owns 94,409 shares of the company’s stock worth $426,000 after purchasing an additional 4,304 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.