Summary of REAX Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance::

Closed transactions increased by 38% to nearly 49,000.

Revenue rose 44% to $505 million.

Gross profit increased by 30% to $39 million.

Net loss narrowed to $4.2 million; adjusted EBITDA was positive at $14.2 million, up 56% year-over-year.

Full Year 2025 Performance::

Revenue grew 56% to nearly $2 billion.

Gross profit increased 44% to $166 million.

GAAP net loss improved to $8.1 million from $26.5 million in 2024.

Adjusted EBITDA reached $62.9 million, a 57% increase.

Positive cash flow from operations of approximately $66 million, with $39 million returned to shareholders via buybacks.

2Strategic Updates and Business Highlights

The company ended 2025 with 31,739 agents, a 31% increase year-over-year, and has since grown to over 33,000.

Continued expansion into ancillary services:

OneReal Mortgage:: Generated $6 million in revenue, up 50% year-over-year.

OneReal Title:: Revenue of $5 million, up 5%, with plans to open three additional joint ventures in 2026.

RealWallet:: Generated nearly $900,000 in its first full year, with a current run rate of approximately $1.5 million.

Emphasis on technology integration, particularly through the proprietary transaction management platform, Reason, and AI tools like LEO, which enhance agent productivity and operational efficiency.

3Forward Guidance and Outlook

No formal guidance provided for Q1 2026, but a sequential decline in revenue, operating loss, and adjusted EBITDA is expected due to a slow start in January and February.

Anticipated continued organic growth outpacing the broader industry, with expectations for improved profitability metrics in full-year 2026.

Focus on maintaining agent retention and enhancing the attach rates of ancillary services.

4Bad News, Challenges, or Points of Concern

The company faces headwinds from a broader housing market that remains below long-term averages, with existing home sales constrained.

A shift in transaction mix towards capped agents has negatively impacted gross margins, with Q4 gross margin at 7.7%, down from 8.6% year-over-year.

Transition from team-based to state-based joint ventures in the title segment has created temporary performance challenges, with revenue drag estimated in the hundreds of thousands of dollars.

5Notable Q&A Insights

Agent Recruitment:: The company remains optimistic about attracting agents despite industry changes, with plans to announce new initiatives to enhance agent attraction.

Title Segment Performance:: Management acknowledged the transition year for title services and expects improvements in attach rates and overall performance in 2026.

Mortgage Initiatives:: New leadership in OneReal Mortgage is expected to drive growth, with a strong pipeline of agents becoming loan officers.

AI Integration:: Management views AI developments as opportunities to enhance agent productivity and retention, with ongoing experiments to improve lead conversion. Overall, The Real Brokerage Inc. demonstrated strong growth in 2025, with a focus on technology and ancillary services, while navigating challenges in the housing market and operational transitions.