Real Brokerage Q4 Earnings Call Highlights

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]