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 ...

Financial Performance - Revenues for the year ended December 31, 2023, were $689.2 million, compared to $381.8 million in 2022, representing an increase of 80.5%[20] - Gross profit for the year ended December 31, 2023, was $62.9 million, up from $31.9 million in 2022, reflecting a 97% increase[20] - The net loss for the year ended December 31, 2023, was $27.2 million, compared to a net loss of $20.3 million in 2022[20] - Loss per share was $0.15 for the full year 2023, compared to a loss of $0.12 per share in 2022[11] - Net loss for Q4 2023 was $11.99 million, compared to a loss of $6.76 million in Q4 2022, representing a 77% increase in losses year-over-year[22] - Total revenue for Q4 2023 reached $181.34 million, a 85% increase from $97.82 million in Q4 2022[27] - Commissions accounted for $180.42 million in Q4 2023, up from $97.33 million in Q4 2022, indicating a 85% growth[27] - Adjusted EBITDA for Q4 2023 was $8.51 million, compared to a loss of $0.12 million in Q4 2022, marking a significant turnaround[25] Operating Expenses - Operating expenses increased by 72% to $88.9 million for the full year 2023, up from $51.7 million in 2022[11] - Adjusted operating expenses were $42.8 million for the full year 2023, a 55% increase from $27.7 million in 2022[11] - Adjusted operating expenses for Q4 2023 were $26.80 million, compared to $15.18 million in Q4 2022, representing a 77% increase[30] - Operating expenses excluding revenue share increased from $11,164,000 in Q4 2022 to $19,956,000 in Q4 2023, an increase of 78.5%[32] - Adjusted operating expense per transaction decreased from $870 in Q4 2022 to $632 in Q4 2023, a reduction of 27.4%[32] Cash and Investments - As of December 31, 2023, the company held unrestricted cash and investments of $28.9 million, a $10.2 million increase from the prior year[11] - Total cash balance at the end of Q4 2023 was $27.66 million, up from $18.33 million at the end of Q4 2022, showing a 51% increase[22] - Cash provided by operating activities for the year was $19.87 million, compared to $5.99 million in the previous year, reflecting a 232% increase[22] Assets and Liabilities - The total assets as of December 31, 2023, were $64.5 million, an increase from $43.8 million in 2022[18] - The total liabilities as of December 31, 2023, were $27.5 million, compared to $21.3 million in 2022[18] - The company reported a goodwill impairment of $723,000 for the year 2023, which was not present in 2022[22] Agent Metrics - Closed transaction sides increased from 9,745 in Q4 2022 to 17,749 in Q4 2023, representing an increase of 82.5% year-over-year[32] - Total value of home side transactions rose from $3.5 billion in Q4 2022 to $6.8 billion in Q4 2023, a growth of 94.3%[32] - Total agents increased from 8,200 in Q4 2022 to 13,650 in Q4 2023, marking a growth of 66.5%[32] - Agent churn rate improved from 10.8% in Q3 2023 to 6.2% in Q4 2023, indicating better retention[32] - Revenue per full-time employee increased from $1,144,000 in Q4 2022 to $1,537,000 in Q4 2023, a rise of 34.4%[32] Company Strategy - The company anticipates continued growth in agent recruitment and retention, with a focus on expanding its digital brokerage platform[34] - Real operates in all 50 states in the U.S. and Canada, supporting 16,000 agents through its technology-driven services[36]

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $215 million, a 92% increase year-over-year, driven by an 82% increase in closed transactions, totaling over 20,000, and a 5% increase in average commission revenue per transaction [8][25] - Adjusted EBITDA was positive $3.5 million, a $3 million improvement from Q3 2022, marking the second consecutive quarter of positive adjusted EBITDA [16][30] - Gross profit increased to $18.8 million, a 119% increase year-over-year, with a gross margin of 8.7%, up approximately 100 basis points from the prior year [26][27] Business Line Data and Key Metrics Changes - Fee income and other revenue totaled $3.1 million, a 245% increase year-over-year, reflecting increased agent and transaction counts [26] - Title and mortgage revenue was $1.3 million, a 173% increase year-over-year, with organic growth for these services at approximately 100% excluding contributions from One Real Mortgage [26] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $8.1 billion, a 91% year-over-year increase [31] - The median sale price of properties sold was approximately $370,000, a 2.8% increase compared to the same quarter in 2022 [31] 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 [14][15] - The launch of the One Real mobile app is a significant step towards creating a seamless home buying and selling experience [17] - The company is focusing on expanding its Title and Mortgage businesses, which typically command higher gross margins than traditional brokerage [11][18] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging housing market, with existing home sales down significantly and mortgage rates at multi-decade highs [34] - Despite the challenges, the company believes its unique business model and technology platform position it well to thrive [16][38] - The management expects continued growth in agent count and productivity, with optimism for the spring market despite anticipated seasonal declines in Q4 [59] Other Important Information - The company is now operational in all 50 states and 4 Canadian provinces, representing less than 1% of the total real estate agent population in North America, indicating significant growth potential [19] - The introduction of the Real Wallet and Real Retirement programs aims to enhance agents' financial stability and long-term wealth generation [21][22] Q&A Session Summary Question: Was the agent churn in the quarter all involuntary? - The churn was predominantly from agents who decided to leave the industry, with most being nonproductive agents [40] Question: How does Leo 2.0 impact productivity? - It is early to attribute productivity increases solely to Leo 2.0, but it is expected to help agents close deals faster and improve overall efficiency [41] Question: What adjustments are being made to the Mortgage and Title business? - The company is focusing on fewer markets to create a scalable model and is seeing traction in California for its Title business [43][61] Question: What functionalities will the One Real app have in the future? - The app will evolve to include features for home discovery, mortgage applications, transaction tracking, and more, aiming for a holistic home buying experience [46] Question: How does the company plan to capture smaller independent brokerages? - The company is building tailored products and systems to facilitate smoother transitions for smaller brokerages and is focused on creating conversations to attract them [66]

Financial Data and Key Metrics Changes - Revenue for Q2 2023 reached $185 million, representing a 65% year-over-year increase and a 72% sequential increase from the prior quarter [9][17] - Gross profit increased by 91% year-over-year to $17.8 million, with gross margin expanding to 9.6% from 8.3% in Q2 2022 [17] - Adjusted EBITDA for the quarter was positive at $2.6 million, compared to $583,000 in Q2 2022, marking a significant milestone for the company [35] Business Line Data and Key Metrics Changes - The total number of transactions on the platform increased to 17,537, a 72% year-over-year increase [24] - The revenue generated by Title and Mortgage businesses is ramping up, with Title revenue close to $1 million and Mortgage revenue over $350,000, both showing significant year-over-year growth [55][59] - Agent churn improved to 6.5% from 8.3% in the previous quarter and 7.2% in Q2 2022 [11] Market Data and Key Metrics Changes - U.S. existing home sales were down 21% year-over-year and 2% quarter-over-quarter, yet the company achieved record transaction volumes [8] - The median sales price of properties sold was $369,000, reflecting a 1.6% decline compared to the same quarter in 2022, consistent with broader market trends [17] - 56% of commission revenue was generated by agents representing the buy side, with 40% from the sell side, remaining stable over the past year [20] Company Strategy and Development Direction - The company aims to expand its geographic footprint, expecting to operate in all 50 states by the end of the year [11] - A focus on technology-driven solutions is evident with the rollout of Leo, an AI-powered virtual concierge, aimed at enhancing agent efficiency [14] - The company is exploring monetization opportunities for the significant portion of revenue that is currently pass-through, indicating potential for future margin expansion [76] Management's Comments on Operating Environment and Future Outlook - Management noted that elevated mortgage rates are impacting residential housing activity, but they anticipate a rebound in market volume [6][8] - There is optimism about remaining adjusted EBITDA positive for the second half of the year, supported by strong agent growth and productivity improvements [7] - The company is seeing a spike in new listings on its platform, indicating potential recovery in the market [67] Other Important Information - The company announced plans to voluntarily delist from the Toronto Stock Exchange to streamline operations and reduce costs, while continuing to grow its Canadian business [37] - The unrestricted cash and investments balance increased to $28.1 million as of June 30, 2023, up from $19.5 million at the end of Q1 2023 [36] Q&A Session Summary Question: What is driving the agent growth compared to other brokerages? - Management believes their model is more attractive during market downturns, providing agents with cost-effective solutions [40] Question: What is the pipeline for larger agencies joining? - There is a strong pipeline of both individual agents and high-performing teams, with larger teams indicating intentions to join soon [42] Question: Can the company maintain the EBITDA yield going forward? - Management indicated that the current EBITDA yield is a good indicator, but seasonality should be considered [44] Question: Are home prices increasing due to agent focus on higher-end homes? - Average home prices have seen a slight decline year-over-year, but there is potential for steady increases as luxury agents join [48][50] Question: What is the status of the Title and Mortgage businesses? - The Title business is now operating in 11 states with significant revenue growth, while the Mortgage business has also seen over 100% growth compared to the previous quarter [55][59] Question: What is the overall state of the real estate market? - The market remains tight on both supply and demand sides, with recent spikes in new listings and solid demand observed [66][69] Question: How does the company plan to stay ahead of competitors? - Management feels confident in their competitive advantages, particularly in technology, and does not see immediate pressure to change their offerings [73]

Company Growth and Performance - The Real Brokerage Inc. reported a year-over-year increase of 105% in the number of agents on its platform in 2023, reaching just under 11,500 agents[33]. - Total revenues for the three months ended June 30, 2023, were $185,332,000, a 65% increase from $112,356,000 in the same period of 2022[67]. - Total revenues for the six-month period ended June 30, 2023, reached $293.2 million, a 68.3% increase from $174.0 million in the same period of 2022[71]. - Revenue for Q2 2023 was $185,332 thousand, a significant increase from $112,356 thousand in Q2 2022, representing a year-over-year growth of approximately 65%[107]. - The company experienced momentum in several markets, attributed to influential agents joining and attracting their colleagues[49]. Financial Results - Adjusted EBITDA for the three months ended June 30, 2023, was $2,618,000, compared to a loss of $583,000 in the same period of 2022[67]. - The company reported a loss from continuing operations of $3,972,000 for the three months ended June 30, 2023, slightly improved from a loss of $4,155,000 in the same period of 2022[67]. - The total comprehensive loss attributable to owners of the parent for the six months ended June 30, 2023, was $11,316,000, compared to $8,520,000 for the same period in 2022[67]. - The company reported an EBITDA of $(3,501,000) for the three months ended June 30, 2023, compared to $(3,622,000) in the same period of 2022[70]. - Operating loss for Q2 2023 was $(3,700) thousand, an improvement from $(3,947) thousand in Q2 2022[107]. Revenue Streams - Commissions, the main revenue stream, amounted to $287.0 million for the six months ended June 30, 2023, up from $171.5 million in 2022, reflecting a 67.5% growth[76]. - Commissions for Q2 2023 reached $181.437 million, reflecting a 63% year-over-year growth[127]. - Title revenue for Q2 2023 was $948 thousand, an 87% increase compared to Q2 2022[127]. - Fee income/other revenue for Q2 2023 was $2.585 million, a 204% increase year-over-year[127]. Operational Efficiency and Strategy - The company aims to improve operational efficiency through technology, which is expected to lead to margin expansion and differentiation from other brokerages[34]. - Real acquired a title company in January 2022 and a tech-enabled home loan platform in December 2022, focusing on building a one-stop shop strategy for ancillary services[31]. - The company plans to enhance the home buying experience through a technology-driven platform aimed at improving predictability, organization, and transparency[55]. - The company plans to enhance margins by growing title and mortgage services, alongside additional ancillary services integrated into a consumer-facing platform[78]. Market Conditions and Risks - The company experienced a decline in existing home sales in the U.S. by 21% compared to Q2 2022, but only a 2% decline on a seasonally adjusted basis compared to Q1 2023[23]. - The Federal Reserve increased the federal funds rate by 425 basis points in 2022 and an additional 75 basis points in the first half of 2023, reaching a range of 500 to 525 basis points[23]. - The company faces risks related to its dependence on the North American real estate market, which is cyclical and influenced by macroeconomic conditions[165]. - Real's growth strategy may be hindered by challenges in managing operations and attracting qualified personnel[184][176]. Capital Management and Financial Position - Cash flows generated from operations for the six-month period ended June 30, 2023, were $32,900 thousand, up from $9,400 thousand in the same period of 2022, reflecting a substantial increase in customer deposits[111]. - Total assets as of June 30, 2023, were $75,646 thousand, compared to $43,762 thousand as of December 31, 2022, showing a growth of approximately 73%[110]. - Current liabilities increased to $53,360 thousand as of June 30, 2023, from $21,105 thousand at the end of 2022, indicating a rise in short-term obligations[110]. - The company expects to meet all obligations and commitments as they become due, supported by cash flows from operations and financing sources[109]. - Future capital requirements may necessitate additional funding through equity or debt financing to support growth and market expansion[113]. Shareholder Information - As of August 9, 2023, the Company had 180 million Common Shares issued and outstanding[195]. - The Company announced a voluntary delisting of its common shares from the Toronto Stock Exchange, effective August 11, 2023, while continuing to trade on the Nasdaq under the symbol "REAX"[197]. - The Board has the authority to issue additional Common Shares without shareholder consent, which may lead to dilution of existing shareholders' ownership[191]. Management Compensation - Key management personnel compensation increased from $1,651,000 in June 30, 2022 to $2,777,000 in June 30, 2023, representing a 68% increase[158]. - Salaries and benefits for key management personnel rose from $1,009,000 in June 30, 2022 to $1,046,000 in June 30, 2023, a 4% increase[158]. - Stock-based compensation for key management personnel surged from $642,000 in June 30, 2022 to $1,731,000 in June 30, 2023, marking a 169% increase[158]. Cybersecurity and Internal Controls - The Company has implemented processes to mitigate cyber security risks, including firewalls and antivirus programs[194]. - The company’s internal control over financial reporting was evaluated as effective as of June 30, 2023[153].

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $108 million, representing a 75% year-over-year increase and a 12% sequential growth from the prior quarter [4][45] - The total value of homes transacted over the platform reached $4 billion, a 66% increase compared to Q1 2022 [16] - Adjusted EBITDA loss for the quarter was $792,000, compared to a $577,000 loss in Q1 2022 [26] - The company had $11 million in unrestricted cash and $8.5 million in short-term investments, totaling $19.5 million in liquidity as of March 31, 2023 [27] Business Line Data and Key Metrics Changes - The total number of transactions on the platform increased to 10,963, a 75% year-over-year increase [16] - The median sale price of properties sold was $350,000, reflecting a 1.4% increase compared to Q1 2022 [16] - Commission revenue per productive agent moderated to $26,000 in Q1 from $27,200 in Q4 2022 [20] - The number of agents grew to over 10,000, a 120% year-over-year increase, with a net addition of nearly 1,800 agents [37] Market Data and Key Metrics Changes - U.S. existing home sales were down 26% year-over-year and 16% quarter-over-quarter, indicating a challenging market environment [8] - Canadian residential sales activity in Q1 was 38% lower year-over-year, with average sale prices down 17% [18] - Canada represented 9% of the agent base and 11% of commission revenue in Q1, a decline from 14% in Q4 2022 [47] Company Strategy and Development Direction - The company is focused on becoming a tech-powered brokerage, enhancing agent attraction and retention through innovative tools and services [5][12] - Plans to launch a consumer-facing app and a program called Fast14 to streamline the mortgage application process [40] - The company aims to reach adjusted EBITDA profitability in Q2 2023, earlier than previously expected [43][78] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has stabilized, with expectations for a strong Spring season in real estate [81] - The company is optimistic about its growth trajectory, citing strong demand in many markets despite broader industry challenges [81] - Management emphasized the importance of operational efficiencies and the impact of new fee structures on financial performance [43][78] Other Important Information - The company launched Real Signature, an electronic signature tool, to enhance transaction efficiency for agents [41] - The headcount efficiency ratio improved to around 1 to 114, indicating better operational efficiency [24] - Revenue churn increased to 4.3%, attributed to fee increases and seasonal factors [51] Q&A Session Summary Question: How does the company view productivity per agent as it scales from 10,000 to 50,000 agents? - Management believes that productivity metrics are sustainable and will continue to improve as the agent base grows [29] Question: Has the banking sector pulled back on lending? - Management indicated that there has been no significant pullback from major lenders, and the mortgage side remains stable [68] Question: Were there any nonrecurring items in SG&A for the quarter? - Management confirmed that there were no nonrecurring items reported in SG&A [66] Question: What is the expectation for capital expenditures for the remainder of the year? - Management expects capital expenditures to remain low, primarily reflecting capitalized R&D expenses [69] Question: How does the company plan to attract struggling independent brokerages? - Management is engaged in conversations with small and medium-sized brokerages, emphasizing the value proposition of joining Real [75]

Financial Performance - Total revenues for the period ended March 31, 2023, were $107,845 thousand, representing a 74.9% increase from $61,649 thousand in the same period of 2022[6] - Gross profit for the same period was $10,808 thousand, up from $5,862 thousand, indicating an increase of 84.5%[6] - Net loss attributable to owners of the company for Q1 2023 was $7,395 thousand, compared to a net loss of $4,313 thousand in Q1 2022, reflecting a 71.9% increase in losses[6] - Total revenue for the period ended March 31, 2023, was $107.845 million, a 74.9% increase from $61.649 million in the same period of 2022[32] - Commissions accounted for $105.606 million of total revenue, up from $60.506 million year-over-year, reflecting a significant growth in sales activity[32] - Total expenses for the period were $114.883 million, compared to $65.916 million in the prior year, indicating a 74.3% increase[34] - The Company reported a basic and diluted loss per share of $(0.04) for the period ended March 31, 2023, compared to $(0.03) for the same period in 2022[38] Assets and Liabilities - Total assets as of March 31, 2023, were $52,248 thousand, an increase of 19.4% from $43,762 thousand as of December 31, 2022[5] - Current liabilities increased to $31,482 thousand as of March 31, 2023, compared to $21,105 thousand at the end of 2022, marking a 49% rise[5] - Cash, cash equivalents, and restricted cash balance at the end of Q1 2023 was $26,411 thousand, down from $28,988 thousand at the end of Q1 2022[10] - Cash balance as of March 31, 2023 was $10,975 thousand, slightly up from $10,846 thousand at December 31, 2022[70] - Total financial assets not measured at fair value increased to $27,885 thousand as of March 31, 2023, compared to $19,948 thousand at December 31, 2022[76] - Total other payables decreased from $1,188 thousand at December 31, 2022 to $713 thousand at March 31, 2023, with bonus payables increasing from $203 thousand to $548 thousand[73] Cash Flow and Investments - Operating activities generated net cash of $9,278 thousand for the period, compared to $10,625 thousand in the same period last year, a decrease of 12.7%[10] - The estimated fair value of short-term investments increased to $8.49 million as of March 31, 2023, from $7.89 million at the end of 2022[58] - The Company’s investment securities portfolio consists mainly of cash investments and debt securities, with maturity dates ranging from less than one year to over 20 years[59] - The total cash and cash equivalents held by the Company are primarily for meeting short-term cash commitments[54] Stock-Based Compensation and Equity - The company reported a significant increase in stock-based compensation expenses, totaling $5,761 thousand for Q1 2023, compared to $937 thousand in Q1 2022[10] - The Company recognized stock-based compensation expense of $2.56 million for the quarter ended March 31, 2023, compared to $1.79 million for the same period in 2022[51] - The balance of Restricted Share Units (RSUs) increased to 19,636 units as of March 31, 2023, from 16,908 units at the end of 2022[50] - The Company has a maximum of 70 million RSUs authorized under the amended Omnibus Incentive Plan[41] - The Company established an Omnibus Incentive Plan allowing for up to 20% of issued Common Shares (35.6 million shares) to be issued as RSUs or Options[40] - The Company’s stock option plan allows key management personnel and employees to purchase shares at a predetermined exercise price[39] - As of March 31, 2023, the total number of Options outstanding was 23,037, with a weighted average exercise price of $0.89[44] Acquisitions - The acquisition of Expetitle was completed for a total consideration of $8.2 million, including $7.4 million in cash and $800 thousand in contingent consideration[21] - The Company acquired LemonBrew Lending for a total purchase price of $1.25 million, consisting of $800 thousand in cash and $450 thousand in equity-settled share-based payment[27] - The Company recognized $3.4 million as the fair value of developed technology and $8.4 million as goodwill from the Expetitle acquisition[23] - The Company has entered into performance-based milestone payments of $2.5 million related to the LemonBrew acquisition, contingent on achieving specific EBITDA targets[28] - The contingent consideration related to the Expetitle transaction was released on January 23, 2023, upon meeting specific conditions[72] Risk Management - The Company actively manages market risk exposures within acceptable parameters while optimizing returns[87] - The Company utilizes forward foreign exchange contracts to manage exchange rate fluctuations[90] - The Company aims to manage its capital structure to diversify funding sources while minimizing costs and risks[68] - The company has retained adequate liquidity to ensure cash flows meet operational, investing, and financing requirements[69] - The company has no changes to its capital management policies during the periods ended March 31, 2023, and December 31, 2022[69] Credit and Currency Exposure - The Company's exposure to credit risk for trade receivables in the US was $1,245,000 as of March 31, 2023, up from $1,105,000 at the end of 2022[85] - The Company does not require collateral for trade and other receivables, indicating a reliance on the creditworthiness of customers[83] - The total foreign currency liabilities as of March 31, 2023, amounted to $(13,908,000), compared to $(7,140,000) as of December 31, 2022[91] - The Company reported a total exposure of $16,930,000 in foreign currency denominated monetary assets as of March 31, 2023[91] - The average loss rates for trade receivables are calculated using a 'roll rate' method based on delinquency stages[84]

Exhibit 99.1 The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2022 Financial Results TORONTO and NEW YORK – (BUSINESS WIRE) – The Real Brokerage Inc. (TSX: REAX) (NASDAQ: REAX), the fastest- growing publicly traded real estate brokerage, announced results for its fourth quarter and full year ended December 31, 2022. "2022 was another momentous year of growth for Real that saw us significantly increase our agent base, capture additional market share and expand our geographic presence despite a ...

(Expressed in thousands of U.S. dollars) UNAUDITED | | Unaudited | | Audited | | | --- | --- | --- | --- | --- | | | September 30, 2022 | | December 31, 2021 | | | ASSETS | | | | | | CURRENT ASSETS | | | | | | Cash and cash equivalents | $ | 21,943 | $ | 29,082 | | Restricted cash | | - | | 47 | | Investments in available-for-sale securities at fair value | | 9,786 | | 8,811 | | Trade receivables | | 783 | | 254 | | Other receivables | | 74 | | 23 | | Prepaid expenses and deposits | | 782 | | 448 | | TOTAL ...

| Interim Condensed Consolidated Financial Statements (Unaudited): | | | --- | --- | | Interim Condensed Consolidated Statements of Financial Positions | 2 | | Interim Condensed Consolidated Statements of Loss and Other Comprehensive Loss | 3 | | Interim Condensed Consolidated Statements of Changes in Equity | 4 | | Interim Condensed Consolidated Statement of Cash Flows | 5 | | Notes to the Interim Condensed Consolidated Financial Statements | 6-25 | | 1 | | THE REAL BROKERAGE, INC. INTERIM CONDENSED CONSOL ...