Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Stock Performance - The Real Brokerage Inc. (REAX) has shown a solid price increase of 19.7% over the past 12 weeks, indicating strong investor interest [4]. - In the last four weeks, REAX has maintained a price increase of 12.7%, suggesting that the upward trend is still intact [5]. - REAX is currently trading at 94.9% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - REAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like REAX that have the fundamental strength to maintain their recent uptrend [3]. - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8].

Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased by 84% year-over-year to $341 million, driven by a 73% increase in closed transactions and a 6% increase in average revenue per transaction [6][18] - Gross profit reached a record $31.9 million, up 79% from $17.8 million in Q2 2023, with adjusted EBITDA improving to $14 million from $2.6 million in the prior year [7][22] - Net loss narrowed to $1.2 million in Q2 2024 compared to a net loss of $4.1 million in Q2 2023 [22] Business Line Data and Key Metrics Changes - Ancillary businesses, including mortgage and title services, grew by 68% year-over-year, with One Real Mortgage experiencing a 160% increase [8][18] - The number of agents increased by 70% year-over-year to 19,500, with an additional 1,000 agents added since the start of Q2 2024 [7][24] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $12.6 billion, an 80% year-over-year increase, while the median sales price of properties sold was $384,000, representing a 4% increase [24] - Canada accounted for 12% of commission revenue in Q2 2024, down from 15% in the same quarter of the previous year [24] Company Strategy and Development Direction - The company aims to redefine the role of real estate brokerage by providing agents with financial incentives, a proprietary technology platform, and a collaborative culture [4][5] - The long-term vision includes developing a holistic ecosystem of financial technology products and enhancing the consumer experience through the One Real mobile app [5][6] - The company is focused on agent growth and improving agent experience through innovative programs and training initiatives [11][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, with existing home sales declining year-over-year, but emphasized the company's strong performance in this context [8][9] - The company remains optimistic about growth prospects and is committed to innovation and enhancing agent support [17][30] Other Important Information - The company ended Q2 2024 with approximately $33.6 million in unrestricted cash and investments, maintaining a strong balance sheet with no debt [23] - The company is preparing agents for upcoming NAR rule changes through extensive training programs [16][50] Q&A Session Summary Question: What is the focus on agent churn rate? - Management noted that a significant portion of churn is due to agents doing one or fewer transactions, and they are closely monitoring churn metrics while providing operational support to agents [33][34] Question: What is the strategy to increase attach rates for ancillary services? - Management highlighted the focus on creating joint ventures with large teams and embedding title services into the consumer app to enhance the overall experience [36] Question: Are there opportunities for acquisitions? - Management remains open to acquisitions but believes they currently have the necessary components to build their tech roadmap without significant new investments [40] Question: How does Real Brokerage's value proposition compare to competitors? - Management emphasized their entrepreneurial-centric model, technology platform, and favorable economics as key differentiators that attract agents [52][54] Question: How is the company preparing for the NAR settlement changes? - Management is conducting extensive training to ensure agents are aligned with the new practices required by the settlement [50][51]

Group 1: Earnings Performance - The Real Brokerage Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing a 50% earnings surprise [1] - The company posted revenues of $340.78 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 29.06%, compared to $185.33 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - The Real Brokerage shares have increased approximately 241.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $293.68 million, and for the current fiscal year, it is -$0.17 on revenues of $1.02 billion [7] - The estimate revisions trend for The Real Brokerage is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Technology Services industry, to which The Real Brokerage belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

The Real Brokerage Inc. [REAX] Q1 2024 Earnings Conference Call May 7, 2024 8:00 AM ET Company Participants Tamir Poleg - Chairman and CEO Sharran Srivatsaa - President Michelle Ressler - CFO Ravi Jani - VP, IR, Financial Planning and Analysis Conference Call Participants Darren Aftahi - ROTH MKM Stephen Sheldon - William Blair Matthew Erdner - JonesTrading Operator Good morning, ladies and gentlemen, and welcome to The Real Brokerage first quarter 2024 earnings call. At this time, all participants have bee ...

Traditional Brokerage FRANCHISE / MODEL DESCRIPTION Software-based platform, no need for physical offices, high agent autonomy Established firms, national presence, physical offices, high fixed costs Unified under a larger brand but independently owned | --- | --- | --- | --- | |-------------------------|--------------------------------------------------------------------------------------|-------------------------------------------------------------|--------------------------------------------------------- ...

Revenue share expense was $6.8 million in the fourth quarter of 2023, up from $4 million in the prior year period and improved as a percentage of sales to 3.8%, down 40 basis points from 4.2% in the prior year period. This cost is entirely variable and reflects Real commission shares paid to agents for recruiting new agents to the Brokerage. Revenue shares categorized as a marketing expense as our sponsorship structure aids in attracting and retaining new agents, while also enhancing productivity across our ...

The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2023 Financial Results TORONTO and NEW YORK, March 7, 2024 - (BUSINESS WIRE) - The Real Brokerage Inc. (NASDAQ: REAX) ("Real" or the "Company"), a technology platform reshaping real estate for agents, home buyers, and sellers, announced today financial results for the fourth quarter and year ended December 31, 2023. "Real delivered another record year in 2023, despite a challenging industry backdrop. Our performance both in the quarter and for t ...

The Real Brokerage Inc. (NASDAQ:REAX) Q3 2023 Earnings Conference Call November 9, 2023 11:00 AM ET Company Participants Ravi Jani - Vice President, Investor Relations and Financial Planning & Analysis Tamir Poleg - Co Founder, Chairman & CEO Michelle Ressler - CFO & Corporate Secretary Sharran Srivatsaa - President Conference Call Participants Darren Aftahi - ROTH MKM Matthew Filek - William Blair Matt Erdner - JonesTrading David Marsh - Singular Research Wyatt Swanson - D.A. Davidson Operator Good morning ...

The Real Brokerage Inc. (NASDAQ:REAX) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET Company Participants Jason Lee - Vice President-Capital Markets and Investor Relations Tamir Poleg - Chairman and Chief Executive Officer Michelle Ressler - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH MKM Stephen Sheldon - William Blair David Marsh - Singular Research Thomas White - D.A. Davidson Operator Good day, everyone, and welcome to The Real Brokerage Second Quarter 2023 Ear ...

Exhibit 99.2 Building Your Future, Together The Real Brokerage Inc. (the "Company" or "Real") is a technology-powered real estate brokerage that uses its innovative approach to change the way people buy and sell homes. Real's model focuses on creating value and financial opportunity for agents, enabling them to deliver a better experience to their clients. Real creates financial opportunities for agents in four key ways: 1. Keep more commission Our unique compensation structure favors the agent, allowing th ...