"Real offers the model of the future,†he said. "Traditional brokerages put a ceiling on how far you can grow. Real gives team leaders and agents the ability to think bigger, expand anywhere and build long-term wealth. The financial model, the technology and the culture of productivity create an environment where ambitious agents can thrive.†MIAMI--(BUSINESS WIRE)--The Real Brokerage Inc. (NASDAQ: REAX), a leading real estate technology platform redefining the industry through innovation and culture, today ...

Group 1 - The Real Brokerage Inc. (NASDAQ:REAX) is recognized as a promising long-term penny stock investment, recently enhancing its team with Freeman Wang and his 50-agent group from Harvest Realty [1] - Harvest Realty, established in 2014, contributed over $2.4 billion in sales volume for 2024 and added 550 agents, strengthening the company's service to the Chinese community in Orange and Los Angeles counties [2] - Wang's team achieved a sales volume of $425 million in 2024, closing 430 homes, which expands The Real Brokerage Inc.'s presence in Southern California and underscores the effectiveness of its Private Label program [3] Group 2 - The Real Brokerage Inc. operates in real estate brokerage services, with its operations divided into North American Brokerage and Other segments, generating revenue through commissions from real estate transactions [4] - The Other segment includes revenues from title insurance, closing services for transactions, and premiums from mortgage facilitation [4]

Core Insights - The Real Brokerage is experiencing rapid revenue growth and is gaining market share in the residential real estate sector, positioning itself as a cloud-based brokerage that simplifies transactions for agents and clients [2][4]. Company Overview - The Real Brokerage operates as a cloud brokerage, providing a software layer for individual real estate agents, which eliminates the need for traditional mortgage brokers [3][4]. - The company has a current market capitalization of $1 billion and a share price of $3.88, with a 52-week range of $3.42 to $5.65 [3]. Financial Performance - Revenue for The Real Brokerage grew by 53% year-over-year, reaching $568.5 million, with total sales increasing from virtually nothing in 2021 to $1.8 billion over the last 12 months [4]. - The company has over 30,000 agents using its software, with 2,100 new agents added in the last quarter, indicating significant growth potential in a market with over 1 million agents [5]. Market Potential - The Real Brokerage is expanding its service offerings to include title insurance, mortgage financing, and a financial tool called the One Real Wallet, which could further enhance its market position [6]. - If the current growth trajectory continues, the market cap of The Real Brokerage could significantly increase, potentially elevating its share price substantially in the coming years [6].

Summary of The Real Brokerage Conference Call Company Overview - **Company**: The Real Brokerage (NasdaqCM:REAX) - **Date**: November 18, 2025 - **Speaker**: Tamir Poleg, CEO and Founder Industry Insights - **Current Market Conditions**: The real estate market has been in a trough for the past three years, affecting all participants including NAR, brokerages, and lenders [8][218] - **Consumer Experience**: The current process of buying and selling homes is not optimized, with potential improvements needed to enhance consumer experience [10][13] - **MLS Structure**: There is a concern that moving away from centralized MLSs could lead to a fragmented market, negatively impacting consumer experience [24] Key Points on Buyer Agents - **Value of Buyer Agents**: There is no debate on the value provided by buyer agents, despite ongoing discussions about commission structures [26][28] - **Commission Rates**: Average commissions remain unchanged, with 2.6% per side for sales in the $400,000 price range [37][40] Recruitment and Growth - **Agent Recruitment**: The Real Brokerage added over 7,000 agents in 2025, continuing a trend of rapid growth despite market conditions [49][81] - **Market Dynamics**: Small to medium independent brokerages are seeking to join larger organizations to remain competitive [51][52] - **Team Dynamics**: Teams are becoming the optimized business model in real estate, with more transactions being closed by teams than individual agents [58][61] Technology and AI Integration - **AI Development**: The company is focused on integrating AI to enhance agent efficiency and improve consumer interactions [96][97] - **Leo AI Concierge**: A new AI tool, Leo, is designed to assist agents and consumers throughout the home buying process, providing 24/7 support [106][112] - **Agent Empowerment**: The goal is to transform agents into "super agents" by automating mundane tasks, allowing them to close more transactions [123][125] Market Outlook - **Interest Rates and Affordability**: The current housing market is characterized by low sales (4 million vs. historical 5.2 million) due to affordability issues driven by mortgage rates and home prices [218] - **Potential Benefits of Lower Rates**: If mortgage rates decrease, it could lead to increased transactions for agents, but the company is not relying on this for growth [219] Financial Metrics - **Gross Margins**: The brokerage side has a gross margin of about 9%, while title services have 83% and mortgage services have 50% [222] - **Focus on Ancillary Services**: The company aims to increase margins by attaching more title and mortgage services to transactions [224] Competitive Landscape - **Comparison with Redfin**: The Real Brokerage does not compete directly with Redfin as their agent models differ significantly [213] Conclusion - The Real Brokerage is positioned for growth through a focus on technology, agent support, and adapting to market conditions, while maintaining a strong emphasis on consumer experience and agent empowerment.

Core Insights - The Real Brokerage Inc. (NASDAQ:REAX) is recognized as a fast-growing small-cap stock, with analysts recommending it as a buy without specifying price targets [1] - The company reported a significant revenue increase of 52.64% year-over-year, reaching $568.55 million, exceeding analyst expectations by $34.75 million [2] - The company ended the quarter with 30,100 agents, marking a 39% year-over-year increase, and gross profit grew by 40% to $45 million [4] Financial Performance - Fiscal Q3 2025 results showed revenue growth of 52.64% year-over-year to $568.55 million, surpassing expectations [2] - Earnings per share (EPS) was reported at $0.00, exceeding consensus estimates by $0.01 [2] - Gross profit increased by 40% to $45 million during the same period [4] Operational Highlights - The company experienced a 50% increase in closed transactions, attributed to a record number of agents on its platform [2] - The agent count reached 30,100, reflecting a 39% year-over-year growth [4] - The recent RISE conference showcased an advanced AI solution for agents, which is expected to enhance the company's competitive position [4] Business Model - The Real Brokerage Inc. operates as a software-driven real estate brokerage in the U.S. and parts of Canada, utilizing AI and automation through its proprietary platform, reZEN [5]

Core Points - The Real Brokerage Inc. reached a settlement in principle regarding litigation with former CFO Michelle Ressler, with the court action dismissed [1] - As part of the settlement, Real will not make any payment to Ms. Ressler [1] Company Summary - The Real Brokerage Inc. is a leading real estate technology platform focused on innovation and culture [1] - The settlement indicates a resolution to legal disputes that could have impacted the company's operations and reputation [1]

Core Insights - Real has enhanced its Leo CoPilot with voice-first AI technology, providing deeper insights and real-time support to over 30,000 agents across brokerage and operations [1] Company Developments - The integration of voice-first AI into Leo CoPilot aims to improve operational efficiency and support for agents [1] - The upgrade is expected to facilitate better decision-making and streamline processes within the brokerage [1]

Core Insights - Real has launched "HeyLeo," a voice-first AI-powered search tool designed to assist home buyers and enhance agent productivity through the reZEN platform [1] Company Summary - The introduction of "HeyLeo" signifies Real's commitment to leveraging AI technology in the real estate sector [1] - The tool aims to streamline the home buying process by providing a more efficient search experience for buyers [1] - By integrating this technology, Real seeks to improve the productivity of real estate agents, potentially leading to increased sales and customer satisfaction [1]

Financial Data and Key Metrics Changes - Revenue in Q3 2025 grew 53% to $569 million compared to $372.5 million in Q3 2024 [6][16] - Gross profit increased 40% to $45 million, with gross margin at 7.9% compared to 8.6% in the prior year [6][16] - Net loss was approximately breakeven at negative $0.3 million, with adjusted EBITDA positive at $20.4 million, a 54% improvement from last year [6][19] - Operating expenses totaled $45 million, up 31% from $34.6 million last year, reflecting strong cost discipline [6][18] Business Line Data and Key Metrics Changes - Brokerage revenue grew 53% to $565 million, driven by agent growth and higher productivity, with over 30,100 agents, up 39% year over year [6][16] - One Real Title generated $1.3 million in revenue, while One Real Mortgage revenue was up 47% year over year to $1.8 million [8][9] - Real Wallet achieved an annualized revenue run rate of over $1.2 million, with total deposits exceeding $20 million [10][64] Market Data and Key Metrics Changes - Closed transactions increased nearly 50% year over year, totaling over 53,500 transactions worth over $21 billion [6][16] - Median sale price was $390,000, a 2% year-over-year increase [20] Company Strategy and Development Direction - The company aims to evolve into a holistic financial ecosystem for agents, focusing on long-term value delivery [5] - Plans to roll out a consumer-facing product to enhance client experience and increase attachment of higher-margin ancillary services [4] - The strategy includes leveraging AI and automation to improve operational efficiency and agent support [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued organic growth and the ability to attract agents based on the value proposition [22] - The company anticipates a decline in Q4 revenue compared to Q3, consistent with industry seasonality, but expects to maintain strong operational discipline [21] - Management highlighted the importance of execution and service quality in maintaining low agent churn rates [26] Other Important Information - The company ended the quarter with nearly $56 million in unrestricted cash and short-term investments, with no debt [20] - The annual Rise agent conference is expected to showcase new initiatives aimed at enhancing agent capabilities [15] Q&A Session Summary Question: What factors drove the reduction in agent churn from Q2 to Q3? - Management noted that the platform's increasing value and improved service quality contributed to lower churn rates, with a focus on execution and service delivery [26][27] Question: How has the transition to state-based joint ventures impacted title services? - Management indicated that attach rates improved from 2.4%-3% to 3.7%, with new joint ventures achieving around 35% attach rates [31][32] Question: Are there opportunities to attract agents from firms undergoing M&A? - Management stated that while they are gaining market share, they are not relying on M&A-related churn to fuel growth, focusing instead on organic growth [34] Question: What is the current adoption rate of LEO Copilot among agents? - All support interactions are conducted through LEO Copilot, indicating 100% usage among agents needing support [39] Question: How does the company plan to expand profit margins in the future? - Management expects margin expansion through a combination of gross margin improvement and operational expense leverage, aiming for a few hundred basis points of improvement over the next few years [66]

Company Overview - The Real Brokerage Inc was founded in 2014 and aims to disrupt the traditional real estate brokerage model by offering agents higher value at a lower cost[11] - The company's mission is to empower each agent through innovation, fostering a culture of shared success and wealth creation[22] - Real aims to streamline the home buying process via a consumer-facing product while providing agents with tools to build long-term wealth[24] Agent Growth and Revenue - Real has grown agent count by over 7x since Q4 2021, representing approximately 2% of the US industry[25, 71] - The company's agent count reached 30,183[13] - Last Twelve Months revenue reached $1814 million[13] Financial Performance - Last Twelve Months Adjusted EBITDA reached $578 million[15] - In Q3 2025, the agent-to-full-time brokerage employee ratio was 89:1, reflecting operational efficiency[68] - Q3 2025 revenue was $568549 thousand, compared to $372488 thousand in Q3 2024[193] Agent Incentives and Technology - Real offers a competitive 85%/15% commission split, favoring the agent, with an annual cap of $12000 in the US and CAD $15000 in Canada[40] - The company's proprietary software platform, reZEN, offers a comprehensive range of tools for real estate agents[49] - Real Wallet, launched in Q4 2024, has generated $550K in revenue YTD Q3 2025, with over 4600 agent users and $20M in deposits[76]