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]

Core Insights - The Pozek Group has rejoined The Real Brokerage, bringing 31 agents and a strong sales record of nearly $1 billion in home sales since 2023, with an expected $400 million in sales volume for the current year [1][2][5] Company Overview - The Real Brokerage Inc. is a leading real estate technology platform that aims to redefine the industry through innovation and culture, supporting over 30,000 agents across the U.S. and Canada [6][7] Team Background - Founded by Ken Pozek in 2016, The Pozek Group has become one of the top-selling real estate teams in the nation, known for its deep market expertise and modern, media-driven approach [2][4] Strategic Decision - Ken Pozek chose to rejoin The Real Brokerage after evaluating various models, citing the platform's agent value proposition, including revenue share, equity awards, and collaboration tools as key factors in his decision [3][4] Market Presence - The Pozek Group has established a strong online presence and local influence, serving as the official real estate partner of the Orlando Magic and receiving multiple accolades, including Team of the Year by Orlando Real Producers [2][5]

Core Insights - Real Brokerage Inc. (NASDAQ:REAX) has launched Real Wallet Capital, an embedded lending solution aimed at providing agents in the US with quick access to working capital [1][3] - This initiative is the first of its kind in the residential brokerage industry, addressing financial challenges faced by independent real estate professionals [2][3] - Real Wallet Capital is integrated into the proprietary software platform reZEN, which continuously underwrites credit based on agents' historical earnings, pending transactions, and projected future income [2][3] Company Overview - Real Brokerage operates as a real estate technology company in the US and Canada, focusing on enhancing agent success through innovative financial solutions [3]

Core Insights - The Real Brokerage is expanding its software platform with the introduction of a new product, Real Wallet Capital, which has positively impacted its stock price, increasing by almost 3% in a single trading session [1][2] Group 1: New Product Launch - The Real Brokerage announced the launch of Real Wallet Capital, which offers property agents a quick way to secure working capital [2] - This product is integrated into the Real Wallet finance ecosystem within the company's reZEN platform [2] - CEO Tamir Poleg emphasized that this offering introduces embedded finance to the real estate industry, providing agents with same-day access to funds without traditional lending complications [3] Group 2: Market Rollout - The initial rollout of Real Wallet Capital will occur in 28 states and the District of Columbia, with plans for national availability within months [3] - Specific states for the initial rollout were not disclosed [3] Group 3: Platform Enhancement - The introduction of Real Wallet Capital enhances the platform's attractiveness and could serve as a significant incentive for clients if it proves effective for capital sourcing [4] - The company did not provide estimates on how this new functionality might impact its financial fundamentals [4]

Core Insights - The Real Brokerage Inc. has surpassed 30,000 agents, reflecting rapid growth and strong demand for its technology-driven, agent-first real estate platform [1][2][7] - The company has advanced in the RealTrends Verified Brokerage Rankings, moving from No. 10 to No. 5 in sales volume and securing the No. 6 position in transaction sides [2][6] Company Growth - The number of agents increased from slightly over 20,000 to over 30,000 within a year, showcasing the company's effective growth strategy [1][2] - Real's proprietary software platform, reZEN, has facilitated rapid and efficient scaling, allowing agents to focus on business growth rather than administrative tasks [3][4] Technology and Services - Real offers a fully integrated real estate ecosystem that combines brokerage, mortgage, title, and fintech services, enhancing the client experience [4][6] - The Real Wallet platform provides eligible U.S. agents with business checking accounts and faster access to earnings, with deposits reaching approximately $16 million and serving over 3,600 agents [5][6] Future Outlook - The company aims to continue building a transformative platform for the next generation of real estate professionals, emphasizing innovation, support, and community [2][6]

Group 1 - The Real Brokerage (NASDAQ: REAX) has a technological advantage over its peers and traditional franchises [1] Group 2 - The author has over 10 years of experience in communications and has worked for various economic institutions [1]

Core Insights - The Real Brokerage has welcomed The Collective Group from Washington State, which is a top-ranked team consisting of 15 agents [1] - The Collective Group has achieved significant sales, totaling $575 million since 2020 [1] Company Overview - The Real Brokerage is expanding its operations by integrating a high-performing team, which indicates a strategic move to enhance its market presence [1] - The Collective Group's performance reflects strong sales capabilities and market competitiveness within the real estate sector [1] Industry Context - The integration of successful teams like The Collective Group suggests a trend in the real estate industry towards consolidation and collaboration among high-performing agents [1] - The reported sales figures highlight the potential for growth and profitability in the real estate market, particularly in regions with strong demand [1]

Summary of The Real Brokerage (REAX) FY Conference Call - August 13, 2025 Company Overview - **Company Name**: The Real Brokerage (REAX) - **Industry**: Real Estate Technology - **Founded**: 2014 - **Headquarters**: United States - **Public Listing**: Initially listed on TSX Venture Exchange in 2020, now only on NASDAQ Key Points and Arguments Industry Context - The U.S. real estate industry has approximately **1.5 million agents**, with around **160,000 in Canada** [6] - The industry generates roughly **$100 billion** in annual revenue from commissions paid to agents [7] - Traditional brokerages dominate the market, relying on physical office spaces and charging high fees for perceived low value [8] Company Growth and Market Position - The Real Brokerage has grown rapidly, capturing less than **2%** of the overall market, indicating significant growth potential [9] - LTM revenue reached **$1.6 billion**, a **6x increase** compared to Q2 2022, despite a **25% decline** in the overall housing market [14] - The company continues to attract agents due to its unique value proposition, including freedom, flexibility, and a strong technology platform [15][19] Unique Selling Propositions 1. **Agent Freedom and Flexibility**: Agents can build their businesses independently while benefiting from Real's resources [15][16] 2. **Compensation Model**: Agents keep **85%** of their commission, with a cap of **$12,000** annually, after which they retain **100%** of their earnings [19] 3. **Technology Platform**: The proprietary software, **Rezent**, enhances productivity, marketing, and community engagement among agents [20][21] 4. **Collaborative Culture**: A culture of collaboration over competition, with approximately **50%** of agents being shareholders [31] Technology and AI Integration - The company has invested **tens of millions** in its technology platform, with **$4 million** spent on R&D in Q2 [44] - The AI-driven platform, **LEO Copilot**, assists agents by managing transactions and improving customer support efficiency [28][29] - The technology allows for significant operational efficiencies, reducing transaction processing time from **hours to minutes** [25][26] Ancillary Services and Future Growth - The Real Brokerage has expanded into title and mortgage services, which have higher gross margins (title margins over **80%**, mortgage margins **40-50%**) [34] - Current attachment rates for these services are low, at **4%** for title and **1%** for mortgage, indicating substantial growth opportunities [35][54] - The company aims to enhance the home buying experience through AI-driven consumer-facing products, such as **LEO for clients** [36] Financial Performance and Projections - The Real Brokerage is on track to generate over **$1 million** in annual revenue from its RealWallet product, which offers agents financial services [40] - The company anticipates continued growth regardless of macroeconomic conditions, supported by its technology and high-margin services [41] Market Outlook - The speaker expressed optimism about the real estate market's recovery, suggesting that existing home sales are at historic lows and likely to rise [75] - The company is well-positioned to capitalize on market recovery due to its innovative business model and technology [76] Additional Important Insights - The company has a **headcount efficiency ratio** of **1 employee for every 87 agents**, significantly better than traditional brokerages [33] - The Real Brokerage's revenue share model incentivizes agents to recruit others, creating a scalable growth mechanism [68] - The company is focused on maintaining a disciplined approach to credit extension through its RealWallet product, ensuring only qualified agents receive loans [70] This summary encapsulates the key points discussed during the conference call, highlighting The Real Brokerage's innovative approach, growth potential, and strategic focus on technology and agent support.