Real Brokerage Inc (REAX) Stock Analysis and Metrics

Real Brokerage

NASDAQ: REAX

$1.68 ▲ +0.01 (+0.60%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap373.56 Mn

P/E-56.95

P/S0.18

Div. Yield0.00

Revenue Growth (1y) (Qtr)31.52

Add ratio to table…

About

The Real Brokerage Inc. is a real estate technology company that operates as a licensed residential real estate brokerage across all 50 U. S. states, the District of Columbia, and 5 Canadian provinces. As of December 31, 2025, the platform had 31,739 affiliated agents and facilitated approximately $20,300,000,000 in total transaction value during the fourth quarter of that year. The company generates most of its revenue from commissions earned on residential real estate transactions completed by those agents, while also offering ancillary services such as mortgage brokerage, title and escrow, and financial technology products under the Real Wallet brand. It employs a fully digital brokerage model supported by proprietary technology and AI powered tools to enhance agent productivity while maintaining a low fixed cost structure.

The company earns revenue primarily through commissions on real estate transactions closed by its affiliated agents, retaining a portion of the gross commission according to its agent compensation structure, which contributed to $505,100,000 of revenue in the fourth quarter of 2025. It also generates income from mortgage brokerage services provided by One Real Mortgage, title and escrow services offered by One Real Title, and financial technology products including Real Wallet banking and lending solutions. Revenue is recognized at the point of transaction closing for commissions, title fees, and mortgage funding, while wallet transaction fees are recognized when the service is performed and interest income accrues over time. In addition, the company earns referral based revenue share payments from agents who bring new brokers to the platform and may issue equity based incentives as part of its compensation package.

The company operates through the following segments.

• Real Estate Brokerage: This segment provides residential real estate brokerage services through a digital platform, connecting affiliated agents with home buyers and sellers in all 50 U. S. states, the District of Columbia, and 5 Canadian provinces, earning commissions on completed transactions and offering agent support tools such as Leo CoPilot and the reZEN transaction management system.

• Mortgage Brokerage: This segment operates One Real Mortgage, a licensed mortgage broker in Washington D. C. and 25 states, originating residential mortgage loans for clients referred by affiliated agents and earning fees upon loan funding, with a growing loan officer base contributing to increased origination volume.

• Title and Escrow Services: This segment operates One Real Title, delivering title insurance and escrow services in 17 states including Arizona, California, Florida, and Texas, facilitating the closing process for real estate transactions and collecting fees at settlement.

• Real Wallet (Financial Technology): This segment offers the Real Wallet suite of financial products, including business checking accounts, lending options, rewards programs, and capital solutions, providing agents with access to banking like services and generating fee based and interest income that grew alongside agent adoption in the United States and Canada.

The Real Brokerage Inc. positions itself as a technology driven alternative to traditional residential brokerages, competing with established firms such as Keller Williams, RE/MAX, and Coldwell Banker as well as digital first players like Zillow, Redfin, and Compass. Its competitive advantages stem from a proprietary technology platform (reZEN) that integrates AI powered tools such as Leo CoPilot and HeyLeo, a agent centric compensation model that offers high commission payouts, and a fully digital operating model that reduces fixed costs associated with physical office networks. The company reported a 44% year over year increase in quarterly revenue to $505,100,000 in the fourth quarter of 2025, reflecting its ability to gain market share despite muted residential real estate conditions. These factors enable the company to attract productive agents, scale across jurisdictions, and expand ancillary revenue streams while maintaining a lean cost base.

The company serves home buyers and sellers who engage its affiliated agents to complete residential real estate transactions, as well as the agents themselves who utilize its platform for transaction management, compliance support, and access to AI driven tools. Additional customers include mortgage borrowers seeking home loans through One Real Mortgage in Washington D. C. and 25 states, parties requiring title and escrow services via One Real Title in 17 states, and agents who adopt Real Wallet financial products for banking, lending, and cash management needs across the United States and Canada.

Investment Thesis

▲ Bull case

Real Brokerage delivered a 32% revenue increase to $466 million in Q1 FY26 while adjusted EBITDA surged 80% to $14.9 million demonstrating operating leverage that outpaced revenue growth by 2.5 times. The company generated $23.3 million of cash from operating activities and ended the quarter with $62.9 million of unrestricted cash and zero debt providing a strong balance sheet to fund integration and growth initiatives. Operating expense ratio improved to 9.8% of revenue from 11.1% a year ago reflecting disciplined cost control even as the business scales. These fundamentals show the core brokerage model is becoming more efficient and cash generative despite a soft housing market.
Ancillary revenue streams are expanding rapidly and already contributing to higher margin profitability. Real Wallet revenue rose nearly 250% to $436 000 with an active agent base of 8 000 representing 23% of the total agent pool and 40% of high producing agents generating over $150 000 in annual gross commissions. Weekly debit card spend exceeded $1 million and deposit balances grew to over $25 million indicating deepening engagement and potential for monetization through financing services. One Real Title revenue increased 22% and the company operates 13 title joint ventures across 19 states with Colorado slated to open in Q2 bringing the total to 20 states. One Real Mortgage revenue grew 20% and a migration to a new loan origination system in Q2 is expected to lower per‑file costs and improve scalability. These ancillary businesses are high margin and provide a diversified revenue base that can buffer cyclicality in transaction volumes.
The definitive agreement to acquire RE/MAX Holdings adds a large recurring franchise fee stream and a highly productive agent network that can drive ancillary attachment. Based on 2025 results RE/MAX generated approximately $94 million of high margin adjusted EBITDA implying a transaction value of roughly 9 times trailing adjusted EBITDA or about 7 times post synergy adjusted EBITDA. The combined company will have access to roughly 700 000 annual U.S. transaction sites creating a substantial addressable market for title and mortgage services. Management estimates that a 1% mortgage attachment rate across that base could yield $25 million of annual high margin revenue while a 1% title attachment could generate over $10 million. The RE/MAX agent productivity average of 10.3 transactions per agent in 2025 is nearly double that of the typical Real agent highlighting the upside from cross selling ancillary products to a high performing agent base.
Management has identified $30 million of cost synergies from eliminable duplicative overhead shared services and vendor contracts which are grounded in visible cost structures rather than aspirational targets. The integration plan is already underway with a dedicated team tasked with achieving run‑rate savings without disrupting agent or franchisee operations. Real’s headcount efficiency ratio improved to 85 agents per full time employee after internalizing 34 contractor roles a move that is expected to be profit and loss neutral while enhancing local expertise and tying a portion of broker compensation to ancillary attachment rates. This structural change aligns employee incentives with the growth of high margin title mortgage and fintech services creating a compounding effect over time. The combination of cost savings and improved service levels should support margin expansion as synergies are realized.
The RE/MAX franchise model is described by management as reducing cyclicality and generating high margins in an asset light nature which adds stability to the combined entity’s earnings profile. Franchise revenue is largely recurring and supported by long term contracts providing visibility into future cash flow that is less sensitive to short term housing market swings. This stability allows the company to invest in technology and ancillary businesses with greater confidence in the predictability of its core cash flows. The asset light character of the franchise model also means that incremental growth does not require heavy capital expenditures preserving financial flexibility. Combined with Real’s technology driven platform the franchise model can serve as a durable foundation for long term value creation.

Real Brokerage delivered a 32% revenue increase to $466 million in Q1 FY26 while adjusted EBITDA surged 80% to $14.9 million demonstrating operating leverage that outpaced revenue growth by 2.5 times. The company generated $23.3 million of cash from operating activities and ended the quarter with $62.9 million of unrestricted cash and zero debt providing a strong balance sheet to fund integration and growth initiatives. Operating expense ratio improved to 9.8% of revenue from 11.1% a year ago reflecting disciplined cost control even as the business scales. These fundamentals show the core brokerage model is becoming more efficient and cash generative despite a soft housing market.
Ancillary revenue streams are expanding rapidly and already contributing to higher margin profitability. Real Wallet revenue rose nearly 250% to $436 000 with an active agent base of 8 000 representing 23% of the total agent pool and 40% of high producing agents generating over $150 000 in annual gross commissions. Weekly debit card spend exceeded $1 million and deposit balances grew to over $25 million indicating deepening engagement and potential for monetization through financing services. One Real Title revenue increased 22% and the company operates 13 title joint ventures across 19 states with Colorado slated to open in Q2 bringing the total to 20 states. One Real Mortgage revenue grew 20% and a migration to a new loan origination system in Q2 is expected to lower per‑file costs and improve scalability. These ancillary businesses are high margin and provide a diversified revenue base that can buffer cyclicality in transaction volumes.
The definitive agreement to acquire RE/MAX Holdings adds a large recurring franchise fee stream and a highly productive agent network that can drive ancillary attachment. Based on 2025 results RE/MAX generated approximately $94 million of high margin adjusted EBITDA implying a transaction value of roughly 9 times trailing adjusted EBITDA or about 7 times post synergy adjusted EBITDA. The combined company will have access to roughly 700 000 annual U.S. transaction sites creating a substantial addressable market for title and mortgage services. Management estimates that a 1% mortgage attachment rate across that base could yield $25 million of annual high margin revenue while a 1% title attachment could generate over $10 million. The RE/MAX agent productivity average of 10.3 transactions per agent in 2025 is nearly double that of the typical Real agent highlighting the upside from cross selling ancillary products to a high performing agent base.
Management has identified $30 million of cost synergies from eliminable duplicative overhead shared services and vendor contracts which are grounded in visible cost structures rather than aspirational targets. The integration plan is already underway with a dedicated team tasked with achieving run‑rate savings without disrupting agent or franchisee operations. Real’s headcount efficiency ratio improved to 85 agents per full time employee after internalizing 34 contractor roles a move that is expected to be profit and loss neutral while enhancing local expertise and tying a portion of broker compensation to ancillary attachment rates. This structural change aligns employee incentives with the growth of high margin title mortgage and fintech services creating a compounding effect over time. The combination of cost savings and improved service levels should support margin expansion as synergies are realized.
The RE/MAX franchise model is described by management as reducing cyclicality and generating high margins in an asset light nature which adds stability to the combined entity’s earnings profile. Franchise revenue is largely recurring and supported by long term contracts providing visibility into future cash flow that is less sensitive to short term housing market swings. This stability allows the company to invest in technology and ancillary businesses with greater confidence in the predictability of its core cash flows. The asset light character of the franchise model also means that incremental growth does not require heavy capital expenditures preserving financial flexibility. Combined with Real’s technology driven platform the franchise model can serve as a durable foundation for long term value creation.

▼ Bear case

Gross margin compression is a persistent headwind that management expects to continue through the year as more agents reach their annual commission caps. Gross margin fell to 9.1% in Q1 FY26 from 9.6% in the prior year period primarily due to a higher proportion of capped agent transactions. The CFO warned that sequential gross margin decline is anticipated as the year progresses because the mix of revenue shifts toward lower margin post cap deals. While management believes the year over year margin decline should dissipate in the second half of the year the sequential pressure remains a near term risk to profitability. Any further shift toward capped transactions could erode the already thin gross margin base and limit the ability to convert revenue growth into earnings expansion.
Operating expenses are set to increase materially in Q2 FY26 due to acquisition related costs which the CFO characterized as a non recurring step‑up but which will nevertheless affect near term earnings. While these costs will be stripped out in disclosures the underlying expense base may still face pressure from integration efforts technology investments and increased headcount as the company brings contractor roles in‑house. The operating expense ratio improved to 9.8% of revenue in Q1 but a step‑up in Q2 could temporarily reverse that trend and weigh on operating leverage. Investors should watch for whether the anticipated synergies materialize quickly enough to offset the higher expense run rate.

Peer Comparison

Companies in the Real Estate Services

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	CIGI	Colliers International Group Inc.	4,798.15 Bn	0.00 Mn	0.00	1.87 Bn
2	IHS	IHS Holding Ltd	60.96 Bn	94.22 Mn	140.69	2.81 Bn
3	BEKE	KE Holdings Inc.	53.48 Bn	0.00 Mn	4.18	0.08 Bn
4	CBRE	Cbre Group, Inc.	39.71 Bn	0.00 Mn	0.94	7.88 Bn
5	JLL	Jones Lang Lasalle Inc	14.96 Bn	0.00 Mn	0.56	0.80 Bn
6	CSGP	Costar Group, Inc.	11.08 Bn	0.00 Mn	3.25	1.00 Bn
7	COMP	Compass, Inc.	7.92 Bn	0.00 Mn	0.95	3.14 Bn
8	FSV	FirstService Corp	6.01 Bn	0.00 Mn	2.10	1.25 Bn

Research Tools

Developers

About

Investment Thesis

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Peer Comparison

Create an account

Sign In

Reset Password