Real Brokerage (NASDAQ:REAX) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

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

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 Up 4.7%

REAX traded up $0.13 during trading on Wednesday, hitting $2.87. 609,459 shares of the company’s stock were exchanged, compared to its average volume of 1,583,202. Real Brokerage has a fifty-two week low of $2.44 and a fifty-two week high of $5.41. The stock has a market cap of $607.87 million, a P/E ratio of -71.75 and a beta of 1.01. The business’s 50 day moving average is $3.35 and its two-hundred day moving average is $3.93.

Hedge Funds Weigh In On Real Brokerage

Several large investors have recently added to or reduced their stakes in REAX. Invesco Ltd. increased its holdings in Real Brokerage by 88.3% during the 4th quarter. Invesco Ltd. now owns 86,661 shares of the company’s stock worth $316,000 after purchasing an additional 40,635 shares in the last quarter. NewEdge Advisors LLC purchased a new position in shares of Real Brokerage during the fourth quarter valued at approximately $128,000. XTX Topco Ltd grew its holdings in Real Brokerage by 45.2% during the fourth quarter. XTX Topco Ltd now owns 478,972 shares of the company’s stock worth $1,748,000 after buying an additional 149,128 shares in the last quarter. VARCOV Co. purchased a new stake in Real Brokerage in the 4th quarter valued at $299,000. Finally, Ophir Asset Management Pty Ltd raised its position in Real Brokerage by 24.9% in the 4th quarter. Ophir Asset Management Pty Ltd now owns 3,952,949 shares of the company’s stock valued at $14,428,000 after buying an additional 787,330 shares during the last quarter. Institutional investors own 53.28% of the company’s stock.

Analyst Upgrades and Downgrades

REAX has been the subject of several research analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Real Brokerage in a research note on Thursday, January 22nd. JonesTrading reaffirmed a “buy” rating and issued a $5.00 price target on shares of Real Brokerage in a research note on Wednesday, November 5th. Finally, Freedom Capital raised shares of Real Brokerage to a “strong-buy” rating in a research report on Friday, January 23rd. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $6.50.

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.