Real Matters (TSE:REAL) reported higher third-quarter revenue and adjusted EBITDA as new client launches, market-share gains and improved mortgage activity supported growth in its U.S. Appraisal and U.S. Title businesses.
For the quarter ended June 30, 2026, consolidated revenue increased 13% year over year to C$51.5 million, while consolidated net revenue rose 15% to C$13.7 million. Adjusted EBITDA more than doubled to C$0.7 million from C$0.3 million a year earlier, marking the company’s fifth consecutive quarter of positive consolidated adjusted EBITDA.
U.S. Title growth accelerates
U.S. Title was the company’s fastest-growing segment during the quarter. Revenue increased 70% year over year to C$4.7 million, driven primarily by a 127% rise in refinance origination revenue. Home-equity revenue increased 56%.
U.S. Title net revenue rose 83% to C$2.7 million, while net revenue margin expanded to 56.9% from 52.6% in the prior-year quarter. Chief Financial Officer Rodrigo Pinto said the margin improvement reflected a higher proportion of refinance revenue and higher transaction volumes.
The segment’s adjusted EBITDA loss narrowed to C$1.3 million from C$1.7 million a year earlier. Operating expenses increased 24%, largely reflecting new hires intended to accelerate deployments for title clients, along with higher salary, benefit and courier costs.
Lang said the company onboarded five new title clients in the quarter, including two channels with its third Tier 1 lender. Real Matters is now live with three Tier 1 lenders, a large U.S. mortgage servicer and holder of mortgage servicing rights, and a major U.S. digital financial-services platform.
Year to date, U.S. Title origination volumes increased 170% from a year earlier, primarily due to 11 new clients. Lang said one mortgage servicer brought onto the platform in the prior quarter had become the largest contributor to the company’s title business and had ramped quickly.
Management said the company continues to see a healthy sales pipeline in Title, supported by both new customer opportunities and cross-selling from its existing U.S. Appraisal client base. The company added another title sales account leader during the quarter.
Appraisal revenue rises while margins shift
U.S. Appraisal revenue increased 14% to C$37.3 million. Purchase-mortgage origination revenue rose 7%, refinance origination revenue increased 8%, and home-equity revenue grew 18%. Home equity represented 26% of segment revenue, while other revenue climbed 153% because of market-share gains with existing clients.
Net revenue in the U.S. Appraisal segment increased 7% to C$9.2 million. However, net revenue margin declined 160 basis points to 24.6%, which Pinto attributed to the geographic, client and product mix of transaction volumes.
Adjusted EBITDA for U.S. Appraisal was C$4.2 million, up 1% from the prior-year period, with an adjusted EBITDA margin of 45%. Segment operating expenses increased 13% to C$5 million, primarily because of higher salaries and benefit costs.
Lang said Real Matters remained at or near the top of lender scorecards for performance. He added that some lenders have begun consolidating vendors in the lower-volume mortgage environment, which he said could create market-share opportunities for the company.
The company also discussed the industry’s transition to new appraisal forms, known as UAD 3.6. Lang said Real Matters was first to market with the new format and has begun conducting transactions under the new process with its largest Tier 1 customers. He said the company has its top appraisers compliant with the new requirements and sees potential to gain market share as the industry approaches a November transition date.
Canada remains profitable amid softer market
In Canada, third-quarter revenue declined 5% to C$9.5 million, mainly because of a lower addressable mortgage-origination market. Net revenue decreased 3%, though net revenue margin increased 50 basis points to 19.2%.
Canadian adjusted EBITDA was C$1.2 million, compared with C$1.3 million in the third quarter of fiscal 2025.
Pinto said the average U.S. 30-year conventional fixed mortgage rate was 6.4% during the quarter, about 40 basis points below the average in the comparable prior-year quarter. Purchase origination volumes grew modestly year over year, while refinance activity continued to improve from a low base.
Investment priorities and balance sheet
For the first nine months of the fiscal year, Real Matters said revenue increased 17% and adjusted EBITDA rose 150%. The company launched 25 new clients across its U.S. segments during that period, its highest fiscal year-to-date total since becoming a public company.
Management said it plans to continue investing in technology, including artificial intelligence capabilities intended to improve workflows, customer performance and operational efficiency. Pinto said AI-related investments are expected to raise corporate operating expenses by approximately 10% to 20% over the next several quarters, though he described the increase as not substantial. The company expects to capitalize part of the investments under its existing conservative approach.
Real Matters ended the quarter with C$40 million in cash and no debt. Pinto said the modest sequential decline in cash was primarily related to collection timing and working-capital changes. Management said both U.S. Appraisal and U.S. Title currently retain some available capacity, although capacity has varied with market conditions.
About Real Matters (TSE:REAL)
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.
