Real Matters (TSE:REAL) Issues Quarterly Earnings Results

Real Matters (TSE:REAL) released its earnings results on Thursday. The company reported C$0.01 EPS for the quarter, FiscalAI reports. Real Matters had a negative return on equity of 26.40% and a negative net margin of 13.58%.The business had revenue of C$73.12 million for the quarter.

Here are the key takeaways from Real Matters’ conference call:

• Q3 revenue rose 13% to CAD 51.5 million, while net revenue increased 15% to CAD 13.7 million and adjusted EBITDA more than doubled to CAD 0.7 million, marking the fifth consecutive quarter of positive EBITDA.
• The company launched 10 clients in Q3 and 25 year-to-date, a record since going public. U.S. Title revenue grew 70%, refinance origination volume increased 138%, and its adjusted EBITDA loss narrowed to CAD 1.3 million.
• Management highlighted continued market-share opportunities from strong lender scorecards, cross-selling its appraisal client base into title, and leadership in the upcoming UAD 3.6 appraisal-form transition, which could support additional client wins.
• U.S. Appraisal revenue increased 14% to CAD 37.3 million, but net revenue margin fell 160 basis points to 24.6% because of geographic, client, and product-mix effects; adjusted EBITDA was essentially flat at CAD 4.2 million.
• Management expects corporate operating expenses to rise by approximately 10%–20% over the next few quarters as it invests in AI, platform enhancements, and appraisal-form modernization, creating near-term pressure on EBITDA despite anticipated long-term efficiency and growth benefits.

Real Matters Stock Down 2.0%

Shares of TSE:REAL opened at C$4.83 on Friday. The stock’s 50-day moving average price is C$5.20 and its 200-day moving average price is C$5.78. Real Matters has a 12-month low of C$4.79 and a 12-month high of C$8.00. The stock has a market capitalization of C$358.81 million, a P/E ratio of -14.21, a price-to-earnings-growth ratio of -59.18 and a beta of 1.62. The company has a current ratio of 111.56, a quick ratio of 3.75 and a debt-to-equity ratio of 1.41.

Wall Street Analyst Weigh In

REAL has been the topic of several recent research reports. National Bank Financial reduced their price objective on Real Matters from C$7.50 to C$6.50 and set a “sector perform” rating on the stock in a research report on Wednesday, May 27th. BMO Capital Markets dropped their target price on Real Matters from C$7.00 to C$6.00 and set a “market perform” rating for the company in a research report on Monday, May 4th. Finally, Raymond James Financial reduced their price target on shares of Real Matters from C$9.00 to C$8.25 and set an “outperform” rating on the stock in a research report on Monday, May 4th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Real Matters has an average rating of “Moderate Buy” and an average price target of C$8.38.

Real Matters Company Profile

Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada.