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 announced the addition of Sandy MacKay and his team, Found Spaces Realty Group, which has a strong track record of $100 million in annual sales volume over the past eight years, to enhance its presence in the Ontario market [1][5] - MacKay's team has sold over 2,000 homes in the last eight years, and he is recognized for his expertise in real estate investment and coaching [3][2] - Real's innovative model allows agents to expand their businesses without traditional brokerage limitations, promoting long-term wealth building [6][5] Company Overview - Real Brokerage Inc. operates as a real estate technology platform, combining essential real estate services with advanced technology to simplify complex transactions [7][8] - The company has a growing agent count exceeding 31,000 and is expanding its technology ecosystem, including the introduction of AI-powered tools like HeyLeo and enhancements to Leo CoPilot [6][8] Leadership and Team Expansion - Sandy MacKay joins Real with a leadership team that includes Chris Chopite, Martin Kuev, Ana Marin, and Mike Johnson, all of whom bring significant experience and expertise to the company [4][5] - The leadership team is focused on fostering a culture of productivity and innovation, aligning with Real's mission to empower agents [5][6] Market Position and Strategy - Real positions itself as a forward-thinking company in the real estate sector, likening its innovative approach to that of Netflix in the entertainment industry [6] - The company emphasizes a people-first culture and aims to lead in both technology and relationship-building within the real estate market [6][5]

Core Insights - Real has enhanced its Leo CoPilot with voice-first AI technology, providing deeper insights and real-time support to over 30,000 agents across brokerage and operations [1] Company Developments - The integration of voice-first AI into Leo CoPilot aims to improve operational efficiency and support for agents [1] - The upgrade is expected to facilitate better decision-making and streamline processes within the brokerage [1]

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]

Financial Performance - The company's revenue for the three months ended June 30, 2025, was $540747 thousand, compared to $340778 thousand for the same period in 2024[194] - Gross profit for the three months ended June 30, 2025, was $47861 thousand, compared to $31868 thousand for the same period in 2024[194] - Net income attributable to the owners of the company for the three months ended June 30, 2025, was $1512 thousand, compared to a net loss of $1215 thousand for the same period in 2024[194] - Adjusted EBITDA for the Q2 2025 was $20043 thousand[199] Agent Network and Transactions - The company has grown agent count by over 7x since the end of 2021[26, 69] - Total agents reached 28034 by Q2 2025[109] - Closed transaction sides reached 49282 in Q2 2025[208] Operational Efficiency - Agent-to-full time brokerage employee ratio was 87:1 in Q2 2025[65] - Adjusted operating expenses have declined from 74% to 50% over the past two years[65] Agent Incentives and Technology - Agents receive 85% of gross commissions before reaching an annual cap of $12000 in the US and CAD $15000 in Canada[41, 130] - Real Wallet generated $247K in revenue in Q2 2025 and was used by ~3600 Real agents as of July 2025[76] Market Outlook - Real's Agent Optimism Index increased to 595 in June from 570 in May, with 38% of agents feeling more optimistic[164] - In June 2025, 48% of agents indicated their local market favored buyers[169]

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 vision is to redefine the home buying and selling process and enable agents to build long-term wealth[11] Financial Performance - The company's last twelve months revenue as of Q1 2025 was $1418 million[13] - The company's last twelve months Adjusted EBITDA as of Q1 2025 was $446 million[15] - As of Q1 2025, the company had 26870 agents[13] - The company's gross profit for the three months ended March 31, 2025, was $33936 thousand[164] Agent Value Proposition - The company offers a competitive 85%/15% commission split, favoring agents, with agents keeping all gross commission income after reaching a $12000 annual cap[40] - The company provides a revenue sharing model where agents can earn additional income by receiving a percentage of commissions generated by agents they attract to Real[40] Technology and Innovation - The company's proprietary software platform, reZEN, offers a comprehensive range of tools for real estate agents[54] - The company launched Real Wallet in Q4 2024, offering a Real-branded debit card for U S agents and a business line of credit for Canadian agents, generating $126K in revenue in Q1 2025[60,62] Market Position and Growth - Since 2021, Real has grown agent count by over 6x, even as the Existing Home Sales market has declined by over 30% during that time[24] - The company represents less than 2% of the US agent market share[72]