Core Insights - Legends Real Estate Group has joined The Real Brokerage, bringing 55 agents and $250 million in home sales from 2025, enhancing Real's presence in Georgia [1][4][5] Group 1: Company Overview - The Real Brokerage Inc. (NASDAQ: REAX) is a real estate technology platform focused on innovation and culture [1][6] - Legends Real Estate Group was formed from RE/MAX Legends, established in 2011 by Larissa Benson and Sarah Morra [2] Group 2: Agent and Sales Performance - In 2025, agents and teams from Legends collectively closed approximately $250 million in home sales, showcasing their productivity [5] - The addition of Legends strengthens Real's footprint in Northeast Georgia and the Atlanta metro area [1][4] Group 3: Strategic Benefits - Legends will leverage shared resources, community, and a tech-first national platform at Real [2][4] - The new structure allows agents to maintain their brands and client relationships while benefiting from collaboration and technology [3][5]

Core Insights - The Real Brokerage Inc. has appointed Jason Cassity as Chief Growth Officer to enhance its growth strategy and strengthen the agent community [1] - Cassity's role is aimed at architecting and leading initiatives for agent acquisition, activation, and engagement, contributing to sustainable market expansion [1] - The appointment aligns with the company's mission to improve agents' experiences and follows other leadership changes within the organization [1] Company Overview - The Real Brokerage Inc. is a real estate technology platform that integrates essential real estate, mortgage, and closing services with advanced technology to provide a seamless consumer experience [1] - The company operates across all 50 states in the U.S. and Canada, supporting over 33,000 agents through its digital brokerage platform [1] - The firm is focused on redefining the real estate industry through innovation and a collaborative agent community [1]

Core Insights - The Real Brokerage Inc. experienced significant growth in 2025, with revenue increasing by 56% to nearly $2 billion and gross profit rising by 44% to $166 million, despite a challenging housing market [2][15][22] - The company achieved a GAAP net loss of $8.1 million for the year, a substantial improvement from a loss of $26.5 million in the previous year, while adjusted EBITDA reached $62.9 million, up 57% year-over-year [22][24] - The brokerage's agent count grew by 31% year-over-year, reaching over 33,000 agents, contributing to a 38% increase in closed transactions in the fourth quarter [2][22] Financial Performance - Fourth quarter revenue rose 44% to $505 million, with gross profit increasing by 30% to $39 million [2][15] - Operating expenses grew by 22% to $44 million in the fourth quarter, while the full-year operating expenses were limited to a 25% increase [20][22] - The company generated approximately $66 million in cash flow from operations and returned $39 million to shareholders through buybacks [22] Operational Highlights - The Real Brokerage Inc. is expanding its ancillary services, with OneReal Mortgage generating $6 million in revenue, up 50% year-over-year, and OneReal Title generating $5 million, a 5% increase [5][6] - RealWallet, which completed its first full year, generated nearly $900,000 in revenue with a current run rate of approximately $1.5 million, and over 7,000 agents are actively using the service [6][55] - The company is focused on integrating AI into its operations, enhancing agent productivity and compliance through tools like LEO Copilot and LEO Voice Broker [10][11] Market Position and Strategy - The Real Brokerage Inc. is positioned to capitalize on structural factors driving its growth, including agent attraction and productivity, despite broader market constraints [5][15] - The company aims to maintain a best-in-class retention profile, with revenue churn improving to 1.6% in the fourth quarter [18][19] - The strategic focus is on building a unified platform that enhances agent engagement and expands revenue opportunities through integrated services [7][28]

The Real Brokerage Inc. (REAX) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced break-even earnings, delivering a surprise of +100%.Over the last four quarters, the compan ...

Core Viewpoint - The company reported strong growth in revenue and transaction volume, with expectations for margin normalization and continued improvements in operating efficiency and ancillary business contributions in the coming years [1][2][6]. Financial Performance - For the full year, revenue grew 56% to nearly $2.0 billion, and gross profit rose 44% to $166 million [4] - Fourth-quarter revenue increased 44% to $505 million, with gross profit rising 30% to $39 million [5] - Full-year net loss improved to $8.1 million from a $26.5 million loss in 2024, and Adjusted EBITDA increased 57% to $62.9 million [4] Margin and Operating Metrics - Fourth-quarter gross margin was 7.7%, down from 8.6% a year earlier, attributed to a shift in transaction mix [3] - Operating expenses increased 22% year-over-year in the fourth quarter to $44 million, but as a percentage of revenue, operating expenses improved to 8.8% [7][8] - Adjusted operating expense as a percentage of revenue improved to 4.3% from 5.7% in the prior-year period [8] Agent Growth and Technology - The company ended 2025 with 31,739 agents, a 31% year-over-year increase, and has since grown to over 33,000 agents [12] - The proprietary transaction management platform, reZEN, enables standardized workflows and integrates AI into transaction processes [13] - The consumer-facing AI portal, HeyLeo, is in beta and aims to enhance agent productivity and customer engagement [14] Ancillary Business Development - One Real Mortgage generated $6 million in revenue in 2025, up 50% year-over-year, while One Real Title generated $5 million, up 5% [16][17] - Real Wallet generated nearly $900,000 in revenue with a current run rate of approximately $1.5 million, with over 7,000 agents actively using the service [18] Outlook and Market Conditions - The company expects first-quarter revenue and operating metrics to decline sequentially due to an "unseasonably slow" start to the year, but maintains confidence in organic growth outpacing the broader industry [20]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a 44% increase in revenue to $505 million and a 30% increase in gross profit to $39 million, with a net loss narrowing to $4.2 million [4][5] - For the full year, revenue grew 56% to nearly $2 billion, while gross profit increased by 44%, significantly outpacing a 25% rise in operating expenses [5][15] - Adjusted EBITDA reached $62.9 million for the full year, up 57% year-over-year, with positive cash flow from operations of approximately $66 million [5][21] Business Line Data and Key Metrics Changes - The North American Brokerage segment saw closed transactions increase by 38% in Q4, significantly outpacing the broader existing home sales market, which only saw a 1% increase [15] - Ancillary revenue rose 24% year-over-year to $3.2 million in Q4, totaling $11.9 million for the full year [16] - One Real Mortgage generated $6 million in revenue, up 50% year-over-year, while One Real Title generated $5 million, a 5% increase from 2024 [6][7] Market Data and Key Metrics Changes - The existing home sales market remains below long-term averages, with transaction volumes constrained, impacting many market participants [5] - The company ended 2025 with 31,739 agents on its platform, a 31% increase year-over-year, and this number has since grown to over 33,000 [5] Company Strategy and Development Direction - The company is focused on expanding beyond brokerage into ancillary products and services tied to the housing ecosystem, enhancing agent engagement and retention [6][8] - The strategy includes building an integrated platform that aligns agent economics and invests in proprietary technology, aiming for a unified system across North America [8][10] - The company aims to leverage AI to improve agent productivity and streamline operations, enhancing the overall transaction lifecycle [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a transformational year, with strong growth despite a challenging housing market [4][5] - The company expects Q1 2026 to see a decline in revenue and operating metrics due to a slow start to the year, but remains confident in long-term growth trends [22][23] - Management emphasized the importance of maintaining a best-in-class retention profile and anticipates margins will normalize as market activity improves [17][23] Other Important Information - The company maintained a debt-free balance sheet with $50 million in liquidity and returned $39 million to shareholders through buybacks [5][22] - The Real Wallet generated nearly $900,000 in revenue with a current run rate of approximately $1.5 million, indicating a growing engagement with agents [7][64] Q&A Session Summary Question: Agent recruiting environment and pipeline - Management indicated a strong pipeline for agent recruitment and plans to enhance technology to attract agents more effectively [29][30] Question: Title business trajectory in 2026 - Management acknowledged 2025 as a transition year and expects to see significant growth in the title business as new state-based joint ventures ramp up [31][32] Question: Transition impact on title business - The transition to state-level joint ventures resulted in a revenue drag of approximately $200,000, but growth is expected to re-accelerate as the year progresses [41] Question: Early results from mortgage initiatives - Management reported a strong pipeline of productive agents becoming loan officers and positive early results from AI initiatives to nurture leads [38][39] Question: Churn improvement attribution - Management attributed improved agent retention to the value added by ancillary products and better agent quality [52][53] Question: AI tools and competitive advantage - Management views AI developments as an opportunity, emphasizing the importance of an integrated platform for agents [56][57]

Financial Data and Key Metrics Changes - In Q4 2025, the company grew closed transactions by 38% to nearly 49,000, leading to a revenue increase of 44% to $505 million and a gross profit increase of 30% to $39 million [4][15] - For the full year, revenue grew 56% to nearly $2 billion, with gross profit increasing by 44% [5][15] - The net loss narrowed to $4.2 million in Q4 and $8.1 million for the full year, compared to losses of $6.7 million and $26.5 million in the prior year [20][22] - Adjusted EBITDA rose 56% to $14.2 million in Q4 and reached $62.9 million for the full year, a 57% year-over-year increase [21][22] Business Line Data and Key Metrics Changes - The North American Brokerage segment led performance with closed transactions increasing 38% in Q4, significantly outpacing the broader existing home sales market, which only saw a 1% increase [15] - Ancillary revenue in Q4 rose 24% year-over-year to $3.2 million, totaling $11.9 million for the full year [16] - One Real Mortgage generated $6 million in revenue in 2025, up 50% year-over-year, while One Real Title generated $5 million, up 5% from 2024 [6][7] Market Data and Key Metrics Changes - The existing home sales market remains well below long-term averages, with transaction volumes constrained [5] - The company ended 2025 with 31,739 agents on its platform, a 31% year-over-year increase, and this number has since grown to over 33,000 [5][6] Company Strategy and Development Direction - The company is focused on expanding beyond brokerage into ancillary products and services tied to the housing ecosystem, viewing these as the next layer of value creation [6][7] - The strategy includes building an integrated platform that aligns agent economics and invests in proprietary technology [8][24] - The company aims to enhance agent productivity and retention through technology, including AI tools like Leo CoPilot and HeyLeo [11][13] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a transformational year, with strong growth despite a challenging housing market [4][5] - The company expects Q1 2026 revenue, operating loss, and Adjusted EBITDA to decline sequentially from Q4 2025 levels due to a slow start to the year [22][23] - Long-term trends of organic growth significantly outpacing the broader industry are expected to persist, with confidence in driving revenue and gross profit growth faster than operating expenses [23] Other Important Information - The company generated $66 million in cash flow from operating activities for the full year and returned $39 million to shareholders through buybacks [22] - The company maintains a debt-free balance sheet with $50 million in liquidity [5][22] Q&A Session Summary Question: Agent recruiting environment and pipeline - Management indicated a strong pipeline for agent recruitment and plans to enhance technology to attract agents [29][30] Question: Title side trajectory and transition impact - Management acknowledged 2025 as a transition year and expects significant growth in title services as the new model matures [31][32] Question: Mortgage initiatives and early results - Management reported a strong pipeline of productive agents becoming loan officers and positive early results from AI initiatives [38][39] Question: Churn improvement and its drivers - Management attributed improved agent retention to the value added by ancillary products and technology [52][53] Question: AI tools and competitive advantage - Management views AI developments as an opportunity and believes their integrated platform provides a significant advantage over independent tools [56][57]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a revenue growth of 44% to $505 million, with a full-year revenue increase of 56% to nearly $2 billion [4][17] - Gross profit for Q4 rose 30% to $39 million, while full-year gross profit increased 44% to $166 million [4][18] - The net loss narrowed to $4.2 million in Q4 and $8.1 million for the full year, compared to losses of $6.7 million and $26.5 million in the prior year [5][22] - Adjusted EBITDA was positive at $14.2 million for Q4, a 56% year-over-year increase, and reached $62.9 million for the full year, up 57% from 2024 [4][22] Business Line Data and Key Metrics Changes - The North American Brokerage segment saw closed transactions increase by 38% in Q4, significantly outpacing the broader existing home sales market, which only increased by 1% [17] - Ancillary revenue in Q4 rose 24% year-over-year to $3.2 million, totaling $11.9 million for the full year [18] - One Real Mortgage generated $6 million in revenue in 2025, up 50% year-over-year, while One Real Title generated $5 million, a 5% increase from 2024 [6][8] Market Data and Key Metrics Changes - The existing home sales market remains well below long-term averages, with transaction volumes constrained [5] - The company ended 2025 with 31,739 agents on its platform, a 31% year-over-year increase, and this number has since grown to over 33,000 [5][6] Company Strategy and Development Direction - The company is focused on expanding beyond brokerage into ancillary products and services tied to the housing ecosystem, viewing these as the next layer of value creation [6][8] - The strategy includes building a unified platform that integrates various services, enhancing agent productivity and retention [9][27] - The company aims to leverage AI technology to improve operational efficiency and agent engagement [11][58] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a transformational year, with strong growth despite a challenging housing market [4][26] - The company expects Q1 2026 revenue, operating loss, and Adjusted EBITDA to decline sequentially from Q4 2025 levels due to a slow start to the year [23][24] - Long-term trends of organic growth are expected to persist, with confidence in driving revenue and gross profit growth faster than operating expenses [25] Other Important Information - The company generated approximately $66 million in cash flow from operations for the full year and returned $39 million to shareholders through buybacks [5][23] - The company maintains a debt-free balance sheet with $50 million in liquidity [5] Q&A Session Summary Question: What is the current agent recruiting environment? - Management indicated a strong pipeline for agent recruitment and plans to announce new initiatives to attract agents [30][31] Question: How is the transition to state-based joint ventures affecting title services? - Management acknowledged 2025 as a transition year but expects significant growth in title services as the new model matures [32][33] Question: What is the impact of the transition on revenue from title services? - The drag from transitioning to state-level JVs was approximately $200,000 in revenue, but growth is expected to re-accelerate [38][43] Question: How is the mortgage segment performing with the new leadership? - Management expressed optimism about the mortgage segment's growth, citing a strong pipeline of productive agents [40][41] Question: What is the outlook for agent churn and its relation to ancillary products? - Management noted that improved agent retention is linked to the value provided by ancillary products like Real Wallet [53][54] Question: How does the company view the competitive landscape regarding AI tools? - Management sees AI as an opportunity to enhance the platform's value and believes that agents cannot replicate the integrated solutions offered [56][58]

The Real Brokerage Inc. Investor Presentation March 2026 investors.onereal.comNasdaq: REAX investors.onereal.com Disclaimer Certain statements herein relating to The Real Brokerage Inc. ("Real" or the "Company") constitute "forward-looking statements", within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance ...

Core Insights - The Real Brokerage Inc. has expanded its presence in the Seattle area by welcoming the McConnell Group, which consists of 34 agents [1][2] - The McConnell Group has a strong track record, averaging over $230 million in home sales annually, totaling approximately $1.4 billion over eight years [2][4] - The move to Real allows the McConnell Group to maintain its brand and culture while leveraging Real's technology and infrastructure for growth [3][4] Company Overview - Real Brokerage Inc. is a real estate technology platform that aims to simplify complex transactions by combining real estate, mortgage, and closing services with advanced technology [5] - The company operates in all 50 states across the U.S. and Canada, supporting over 32,000 agents through its digital brokerage platform [5]