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]

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 ...

Summary of The Real Brokerage FY Conference Call Company Overview - **Company Name**: The Real Brokerage (NasdaqCM:REAX) - **Industry**: Real Estate Technology - **Founded**: 2014 - **Current Revenue**: Expected to exceed $2 billion in 2023, up from approximately $300 million in 2022, representing a growth of about 7x in two to three years [4][5] Core Business Model - **Agent Monetization**: Revenue is generated through commission splits with agents and additional fees. The company has diversified its revenue streams by entering mortgage, title, and fintech products [4][5]. - **Agent Acquisition**: 100% organic growth, with 85% of new agents coming from referrals and 15% from inbound inquiries. The company does not spend on upfront marketing costs [10][11]. - **Agent Churn**: The company experiences a 7% quarterly churn rate among agents, but revenue churn from productive agents is significantly lower at 1.4% [16][17]. Competitive Advantages - **Value Proposition**: Offers agents more freedom, flexibility, and lower costs compared to traditional brokerages. Agents pay about half of what they would at traditional firms [6][7]. - **Technology Suite**: Provides a comprehensive operating system for agents, including marketing and productivity tools [7][8]. - **Collaborative Culture**: Focuses on collaboration rather than competition among agents, fostering a unique company culture [8]. Recent Developments - **AI Integration**: Launched "Leo," an AI assistant that handles support tickets and will soon engage with clients directly, enhancing agent productivity and client interaction [20][25]. - **New Features**: Leo will assist agents in nurturing leads and pre-qualifying clients for mortgages, potentially increasing transaction volumes [25][26]. - **Attach Rates**: The company is working on increasing attach rates for its mortgage and title services, currently at 1% and 4% respectively, with joint ventures showing over 30% attach rates [82][88]. Market Outlook - **Housing Market Predictions**: Anticipates around 4.3 million homes sold in 2026, with a gradual recovery expected as affordability improves and demand is unlocked [54][61]. - **Interest Rates**: Low mortgage rates in the low fives are seen as a potential catalyst for market recovery [62][64]. Strategic Focus for 2026 - **Growth Goals**: Aims to continue adding agents and increasing transaction counts while focusing on high-margin services such as title and mortgage [119]. - **Operational Efficiency**: Plans to reduce operating expenses per transaction through technology and scale, which will enhance profitability [115][116]. Additional Insights - **Private Label Program**: Allows small independent brokerages to operate under Real's umbrella while maintaining their branding, contributing to 15% of growth [12][13]. - **Agent Engagement**: The company is focused on keeping agents engaged through various monetization opportunities, including a share purchase program and referral incentives [17][96]. This summary encapsulates the key points discussed during the conference call, highlighting the company's growth trajectory, competitive advantages, and strategic initiatives moving forward.

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 Brokerage settled a lawsuit with its former CFO, Michelle Ressler, who accused the company of discrimination and wrongful termination after her maternity leave [1][2] Financial Performance - In Q3, Real Brokerage reported a net loss of $280,000, an improvement from a loss of $2.5 million in the previous year [4] - The company experienced a 49% increase in transaction count in Q3 and added approximately 2,100 agents to its platform [4] - Gross margin decreased to 7.9% from 8.6% year-over-year, attributed to high-performing agents opting for a per-transaction fee structure [5] Legal and Operational Issues - Ressler's lawsuit highlighted operational challenges, including issues with the Real Wallet agent banking option, which allegedly caused duplicate commission payments and access issues for agents [6] - As part of the settlement, Ressler will reimburse Real for personal charges made on her corporate card, but the company will not make any payment to her [2]

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]