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

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

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 Trading Up 7.5%

NASDAQ REAX traded up $0.15 during trading hours 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 firm has a fifty day moving average of $1.85 and a 200-day moving average of $2.31. Real Brokerage has a one year low of $1.55 and a one year high of $5.41. The stock has a market cap of $466.39 million, a PE ratio of -30.57 and a beta of 0.78.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on REAX. Weiss Ratings lowered shares of Real Brokerage from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, May 26th. Edward Jones reduced their price objective on shares of Real Brokerage from $5.00 to $4.00 and set a “buy” rating for the company in a report on Thursday. JonesTrading decreased 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. Zelman & Associates raised shares of Real Brokerage to an “outperform” rating in a research note on Friday. Finally, BTIG Research reissued a “buy” rating and issued a $4.25 price target on shares of Real Brokerage in a research report on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $5.15.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in REAX. Ophir Asset Management Pty Ltd grew its holdings in 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 acquiring an additional 787,330 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Real Brokerage by 7.2% during the fourth quarter. Renaissance Technologies LLC now owns 2,128,900 shares of the company’s stock valued at $7,770,000 after purchasing an additional 143,100 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings 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 purchasing an additional 1,608,941 shares in the last quarter. Nuveen LLC raised its position in Real Brokerage by 104.5% in the 4th quarter. Nuveen LLC now owns 2,071,744 shares of the company’s stock worth $7,562,000 after purchasing an additional 1,058,670 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in Real Brokerage by 47.2% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,910,311 shares of the company’s stock worth $6,973,000 after buying an additional 612,291 shares in the last quarter. 53.28% of the stock is owned by institutional investors.

Key Real Brokerage News

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

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.