MIAMI--(BUSINESS WIRE)--The Real Brokerage Inc. (NASDAQ: REAX) (“Real” or the “Company”), a leading real estate technology platform redefining the industry through innovation and culture, announced today financial results for the second quarter ended June 30, 2026.
“Real delivered another quarter of significant double-digit organic revenue growth and Adjusted EBITDA margin expansion, despite an overall housing market that remains near trough levels,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer. “We enter the second half of the year with a robust pipeline and continue to make meaningful progress toward closing our acquisition of RE/MAX Holdings Inc. ("REMAX"), with our securityholder meeting to approve the transaction scheduled for August 14, 2026. We look forward to bringing together REMAX's iconic global brand and network of over 140,000 agents with Real's technology platform as the Real REMAX Group, and to building the technology-enabled real estate platform of the future together.”
“Real’s agent count grew 26% year-over-year to 35,348 in the second quarter, and we continue to make progress rolling out AI enhancements across our technology platform to improve the agent experience, while driving growth across our higher-margin ancillary services. With integration planning under way we have high confidence in our ability to achieve $30 million of cost synergies within three years post-closing,” said Jenna Rozenblat, Chief Operating Officer and Chief Integration Officer.
“Real delivered another quarter of strong financial performance,” said Ravi Jani, Chief Financial Officer. “Revenue grew 30% to $700.6 million, and GAAP net loss was $8.0 million, including approximately $11.6 million of acquisition costs related to the pending REMAX acquisition. On a non-GAAP basis, Adjusted EBITDA1 grew 38% to $27.6 million. We ended the quarter with $86.6 million in cash and no debt, providing us with significant financial flexibility as we work toward closing the REMAX acquisition.”
Q2 2026 Financial Highlights2
- Revenue rose to $700.6 million in the second quarter of 2026, an increase of 30% from $540.7 million in the second quarter of 2025.
- Gross profit reached $58.3 million in the second quarter of 2026, an increase of 22% from $47.9 million in the second quarter of 2025.
- Operating expenses, consisting of general and administrative, marketing, research and development expenses, and acquisition costs totaled $65.3 million in the second quarter of 2026, a 41% increase from $46.2 million in the second quarter of 2025. Costs related to the Company's pending acquisition of RE/MAX Holdings, Inc. (“Acquisition Costs”) for the three months ended June 30, 2026, were $11.6 million.
- Net loss was $(8.0) million for the three months ended June 30, 2026, compared to net income of $1.6 million for the three months ended June 30, 2025.
- Basic and diluted loss per share was $(0.03) in the second quarter of 2026, compared to basic and diluted earnings per share of $0.01 in the second quarter of 2025.
- Adjusted EBITDA was $27.6 million in the second quarter of 2026, compared to $20.0 million in the second quarter of 2025.
- Revenue share expense, which is included in Marketing expenses, totaled $22.2 million in the second quarter of 2026, a 26% increase compared to $17.6 million in the second quarter of 2025.
- Adjusted Operating Expense, which reflects operating expenses less revenue share expense, stock-based compensation, depreciation, and other unique or non-cash expenses, was $23.1 million in the second quarter of 2026, compared to $22.6 million in the second quarter of 2025.
- Adjusted Operating Expense Per Transaction was $371 in the second quarter of 2026, a decline of 19% from $459 in the second quarter of 2025.
- Cash provided by operating activities totaled $47.2 million during the second quarter of 2026.
- The Company ended the second quarter of 2026 with $86.6 million of unrestricted cash and equivalents and short-term investments on its balance sheet and no debt.
1There are references to “Adjusted EBITDA” and “Adjusted Operating Expense” in this press release, which are non-GAAP measures. Real’s method for calculating non-GAAP measures may differ from other reporting issuers’ methods and accordingly may not be comparable. See accompanying note under the heading “Non-GAAP Measures and Ratios” for an explanation of the composition of these non-GAAP measures. |
| 2All dollar references are in U.S. dollars. |
Q2 2026 Business and Operational Highlights
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North American Brokerage
- North American Brokerage revenue rose to $696.4 million in the second quarter of 2026, an increase of 30% from $537.4 million in the second quarter of 2025.
- The total number of agents increased to 35,348 at the end of the second quarter of 2026, a 26% increase from the second quarter of 2025.
- The total number of transactions closed was 62,380 in the second quarter of 2026, an increase of 27% from 49,282 in the second quarter of 2025.
- The total value of completed real estate transactions reached $26.3 billion in the second quarter of 2026, an increase of 31% from $20.1 billion in the second quarter of 2025.
- As of August 5, 2026, over 36,000 agents are now on the Real platform.
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One Real Title
- One Real Title revenue was $1.7 million in the second quarter of 2026, a 29% increase compared to $1.3 million in the second quarter of 2025.
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One Real Mortgage
- One Real Mortgage revenue reached $1.9 million in the second quarter of 2026, a 10% increase compared to $1.7 million in the second quarter of 2025.
- As of August 2026, One Real Mortgage had 169 mortgage loan officers, including 137 affiliated with the Real Originate program.
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Real Wallet
- Real Wallet revenue totaled $592 thousand in the second quarter of 2026, a 140% increase compared to $247 thousand in the second quarter of 2025.
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As of August 2026:
- More than 10,200 Real agents were utilizing Real Wallet Business Checking Accounts, including over 1,750 Real Wallet Tax Planning Business Checking Accounts.
- The total deposit balance held in all Real Wallet Business Checking Accounts, including Tax Planning Business Checking Accounts, was approximately $38.4 million.
- The total balance of credit outstanding under Real Wallet lines of credit and business loans was $10.8 million.
- Real Wallet is a financial technology platform that centralizes an agent’s access to certain Company-branded financial products. Real Wallet currently includes: (i) Business Checking Accounts for eligible U.S. agents through Thread Bank, Member FDIC, including Company-branded debit cards; (ii) Real Wallet Rewards, under which agents may earn points based on account balances and transaction activity that may be applied to reduce brokerage fees, subject to program terms and conditions; and (iii) business loans for eligible agents in certain U.S. states and Canadian provinces, based on their earnings history with Real.
Corporate Update
- On April 26, 2026, the Company entered into a definitive agreement to acquire REMAX. Under the terms of the agreement, which has been approved by the boards of directors of both companies, Real formed a new holding company, expected to be renamed Real REMAX Group Inc., which is expected to trade on the Nasdaq Global Select Market under the symbol “REAX” following closing. The transaction is expected to close in the second half of 2026, subject to approval by the Company's securityholders and REMAX's shareholders, and satisfaction of specified closing conditions. The Company’s Special Meeting of Securityholders to approve the transaction will be held on August 14, 2026. As previously announced, the Company has already received HSR antitrust clearance for the transaction.
- On June 2, 2026, the Company announced it had expanded into New Brunswick, marking the Company’s sixth Canadian province.
The Company will discuss the second quarter results on a conference call and live webcast today at 8:00 a.m. ET.
Conference Call Details: | ||
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Date: |
| Thursday, August 6, 2026 |
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Time: |
| 8:00 am ET |
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Dial-in Number: |
| North American Toll Free: 888-506-0062 International: 973-528-0011 |
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Access Code: |
| 191114 |
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Webcast: |
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Replay Information: | ||
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Replay Number: |
| North American Toll Free: 877-481-4010 International: 919-882-2331 |
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Access Code: |
| 54149 |
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Replay Link: |
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Non-GAAP Measures and Ratios
This news release includes references to “Adjusted EBITDA”, “Adjusted Operating Expense”, and “Operating Expense Excluding Revenue Share and Acquisition Costs”, which are non-U.S. generally accepted accounting principles (“GAAP”) financial measures. Non-GAAP measures, including non-GAAP ratios, are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP, and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is a supplemental non-GAAP financial measure that management uses to evaluate operating performance. Adjusted EBITDA is calculated as net income/(loss) before finance expenses, income tax expense, depreciation and amortization, intangible asset impairment expense, stock-based compensation, restructuring expenses, acquisition costs and expenses related to litigation settlements.
Operating Expense Excluding Revenue Share and Acquisition Costs is used as an alternative to operating expenses by removing variable cash expenses associated with revenue share expenses, which is a component of marketing expenses, and acquisition costs related to the Company's pending acquisition of REMAX.
Adjusted Operating Expense is used as an alternative to operating expenses by removing major non-cash items such as stock-based compensation, depreciation, and other unique or non-cash expenses, while retaining ongoing fixed operating expenses and excluding variable cash expenses associated with revenue share.
Adjusted EBITDA, Adjusted Operating Expense, and Operating Expense Excluding Revenue Share and Acquisition Costs have no direct comparable GAAP financial measures. The Company has used or included these non-GAAP measures solely to provide investors with added insight into Real’s financial performance. Readers are cautioned that such non-GAAP measures may not be appropriate for any other purpose. Non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our Adjusted EBITDA is reconciled to the most comparable GAAP measure for the three and six months ended June 30, 2026, and 2025 and is presented in the table below labeled Reconciliation of Net Income (Loss) to Adjusted EBITDA. Our Adjusted Operating Expense and Operating Expense Excluding Revenue Share and Acquisition Costs reconciled to the most comparable GAAP measure is presented for the three and six months ended June 30, 2026, and on a quarterly basis for the prior two fiscal years in the table below labeled Reconciliation of Operating Expense to Adjusted Operating Expense by Quarter.
This press release also includes non-GAAP ratios, which are financial measures disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components.
Operating Expense per Transaction Excluding Revenue Share and Acquisition Costs is a ratio calculated as Operating Expense Excluding Revenue Share and Acquisition Costs, divided by the number of closed transaction sides. Adjusted Operating Expense per Transaction is a ratio calculated as Adjusted Operating Expense, divided by the number of closed transaction sides.
THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars and shares in thousands) Unaudited | |||||||
| As of | ||||||
| June 30, 2026 |
| December 31, 2025 | ||||
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents | $ | 73,824 |
|
| $ | 33,213 |
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Restricted cash |
| 54,785 |
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|
| 26,338 |
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Investments in financial assets |
| 12,816 |
|
|
| 16,731 |
|
Trade receivables |
| 34,820 |
|
|
| 20,170 |
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Short-term financing receivables, net |
| 10,114 |
|
|
| 6,231 |
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Other current assets |
| 7,719 |
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|
| 3,081 |
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TOTAL CURRENT ASSETS | $ | 194,078 |
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| $ | 105,764 |
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Intangible assets, net |
| 3,480 |
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| 4,157 |
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Goodwill |
| 8,993 |
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|
| 8,993 |
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Property and equipment, net |
| 2,353 |
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|
| 2,455 |
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Investment in equity securities |
| 2,250 |
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| 2,250 |
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Long-term financing receivables, net |
| 1,275 |
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| 2,311 |
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Deferred tax asset |
| 966 |
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| 931 |
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TOTAL ASSETS | $ | 213,395 |
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| $ | 126,861 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
| 948 |
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| 1,161 |
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Accrued liabilities |
| 73,316 |
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| 38,205 |
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Customer deposits |
| 54,785 |
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| 26,338 |
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Other payables |
| 5,744 |
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| 9,562 |
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TOTAL CURRENT LIABILITIES | $ | 134,793 |
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| $ | 75,266 |
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Deferred tax liability |
| 10 |
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| 10 |
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TOTAL LIABILITIES | $ | 134,803 |
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| $ | 75,276 |
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EQUITY |
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EQUITY ATTRIBUTABLE TO OWNERS |
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Common Shares, no par value, unlimited Common Shares authorized, 217,944 Shares issued and outstanding at June 30, 2026; and 210,478 Shares issued and outstanding at December 31, 2025 |
| - |
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| - |
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Additional paid-in capital |
| 202,621 |
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| 164,208 |
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Accumulated deficit |
| (124,295 | ) |
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| (112,851 | ) |
Accumulated other comprehensive income |
| 355 |
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| 318 |
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EQUITY ATTRIBUTABLE TO OWNERS |
| 78,681 |
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| 51,675 |
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Non-controlling interests |
| (89 | ) |
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| (90 | ) |
TOTAL EQUITY |
| 78,592 |
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| 51,585 |
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TOTAL LIABILITIES AND EQUITY | $ | 213,395 |
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| $ | 126,861 |
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THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (U.S. dollars and shares in thousands, except for per share amounts) Unaudited | |||||||||||||||
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||||
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| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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Revenues | $ | 700,575 |
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| $ | 540,747 |
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| $ | 1,166,126 |
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| $ | 894,728 |
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Cost of Sales |
| 642,319 |
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| 492,886 |
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| 1,065,715 |
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| 812,931 |
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Gross Profit |
| 58,256 |
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| 47,861 |
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| 100,411 |
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| 81,797 |
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General and administrative expenses |
| 20,211 |
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| 18,900 |
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| 39,215 |
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| 36,416 |
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Marketing expenses |
| 28,140 |
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| 23,284 |
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| 49,272 |
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| 40,981 |
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Research and development expenses |
| 5,353 |
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| 3,993 |
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| 10,500 |
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| 7,925 |
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Acquisition costs |
| 11,582 |
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|
| — |
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| 11,894 |
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|
| — |
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Operating Expenses |
| 65,286 |
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| 46,177 |
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| 110,881 |
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|
| 85,322 |
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Operating Income (Loss) |
| (7,030 | ) |
|
| 1,684 |
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|
| (10,470 | ) |
|
| (3,525 | ) |
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Other income, net |
| 192 |
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|
| 166 |
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|
| 304 |
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| 288 |
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Finance expenses, net |
| (631 | ) |
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| (300 | ) |
|
| (717 | ) |
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| (334 | ) |
Income (Loss) Before Tax | $ | (7,469 | ) |
| $ | 1,550 |
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| $ | (10,883 | ) |
| $ | (3,571 | ) |
Tax Expense |
| 487 |
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|
| — |
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| 531 |
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| — |
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Net Income (Loss) | $ | (7,956 | ) |
| $ | 1,550 |
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| $ | (11,414 | ) |
| $ | (3,571 | ) |
Net income (loss) attributable to non-controlling interests |
| 67 |
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| 38 |
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| 30 |
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| (116 | ) |
Net Income (Loss) Attributable to the Owners of the Company | $ | (8,023 | ) |
| $ | 1,512 |
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| $ | (11,444 | ) |
| $ | (3,455 | ) |
Other comprehensive income/(loss), Items that will be reclassified subsequently to profit or loss: |
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Unrealized gain (loss) on investments in financial assets |
| 91 |
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|
| (9 | ) |
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| 165 |
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| 3 |
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Foreign currency translation adjustment |
| (437 | ) |
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| (8 | ) |
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| (128 | ) |
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| (129 | ) |
Total Comprehensive Income (Loss) Attributable to Owners of the Company | $ | (8,369 | ) |
| $ | 1,495 |
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| $ | (11,407 | ) |
| $ | (3,581 | ) |
Total Comprehensive Income (Loss) Attributable to Non-Controlling Interest |
| 67 |
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| 38 |
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|
| 30 |
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|
| (116 | ) |
Total Comprehensive Income (Loss) | $ | (8,302 | ) |
| $ | 1,533 |
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| $ | (11,377 | ) |
| $ | (3,697 | ) |
Loss per share |
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Basic earnings (loss) per share | $ | (0.03 | ) |
| $ | 0.01 |
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| $ | (0.05 | ) |
| $ | (0.02 | ) |
Diluted earnings (loss) per share | $ | (0.03 | ) |
| $ | 0.01 |
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| $ | (0.05 | ) |
| $ | (0.02 | ) |
Weighted-average shares, basic |
| 230,278 |
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| 214,787 |
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|
| 227,844 |
|
|
| 213,738 |
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Weighted-average shares, diluted |
| 230,278 |
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| 233,366 |
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| 227,844 |
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| 213,738 |
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THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollar in thousands) Unaudited | |||||||||||||||
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||||
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| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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OPERATING ACTIVITIES |
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Net Income (Loss) | $ | (7,956 | ) |
| $ | 1,550 |
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| $ | (11,414 | ) |
| $ | (3,571 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization |
| 553 |
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|
| 398 |
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| 1,128 |
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| 777 |
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Equity-settled stock-based payment |
| 21,804 |
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|
| 17,795 |
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|
| 38,805 |
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|
| 30,502 |
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Impairment of intangible assets |
| - |
|
|
| - |
|
|
| 12 |
|
|
| - |
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Finance income (expenses) |
| (225 | ) |
|
| 62 |
|
|
| (174 | ) |
|
| (87 | ) |
Amortization of debt issuance costs |
| 846 |
|
|
| - |
|
|
| 846 |
|
|
| - |
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Deferred income taxes, net |
| (35 | ) |
|
| - |
|
|
| (35 | ) |
|
| - |
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Changes in operating assets and liabilities: |
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Trade receivables |
| (9,635 | ) |
|
| (10,031 | ) |
|
| (14,650 | ) |
|
| (12,586 | ) |
Financing receivables, net |
| (614 | ) |
|
| (1,249 | ) |
|
| (2,847 | ) |
|
| (4,218 | ) |
Other current assets |
| (967 | ) |
|
| (36 | ) |
|
| (672 | ) |
|
| 139 |
|
Accounts payable |
| 17 |
|
|
| 324 |
|
|
| (213 | ) |
|
| (123 | ) |
Accrued liabilities |
| 24,323 |
|
|
| 14,496 |
|
|
| 35,111 |
|
|
| 22,129 |
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Customer deposits |
| 17,980 |
|
|
| 16,043 |
|
|
| 28,447 |
|
|
| 22,213 |
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Other payables |
| 1,155 |
|
|
| 1,666 |
|
|
| (3,818 | ) |
|
| 1,793 |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
| 47,246 |
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|
| 41,018 |
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|
| 70,526 |
|
|
| 56,968 |
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INVESTING ACTIVITIES |
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Purchase of investment in equity securities |
| - |
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| (2,250 | ) |
|
| - |
|
|
| (2,250 | ) |
Purchase of property and equipment |
| (123 | ) |
|
| (255 | ) |
|
| (361 | ) |
|
| (540 | ) |
Purchase of financial assets |
| (6,246 | ) |
|
| (109 | ) |
|
| (11,660 | ) |
|
| (1,459 | ) |
Proceeds from sale of financial assets |
| 10,425 |
|
|
| 5,496 |
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|
| 15,740 |
|
|
| 5,753 |
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NET CASH PROVIDED BY INVESTING ACTIVITIES |
| 4,056 |
|
|
| 2,882 |
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|
| 3,719 |
|
|
| 1,504 |
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FINANCING ACTIVITIES |
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Repurchase of common shares |
| - |
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| (2,708 | ) |
|
| - |
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|
| (8,830 | ) |
Payment of employee taxes on certain stock-based arrangements |
| (484 | ) |
|
| (498 | ) |
|
| (484 | ) |
|
| (1,711 | ) |
Proceeds from exercise of stock options |
| 39 |
|
|
| 351 |
|
|
| 92 |
|
|
| 661 |
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Debt issuance costs |
| (4,813 | ) |
|
| - |
|
|
| (4,813 | ) |
|
| - |
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Distributions to non-controlling interest |
| (45 | ) |
|
| (23 | ) |
|
| (29 | ) |
|
| (99 | ) |
NET CASH USED IN FINANCING ACTIVITIES |
| (5,303 | ) |
|
| (2,878 | ) |
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| (5,234 | ) |
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| (9,979 | ) |
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Net change in cash, cash equivalents and restricted cash |
| 45,999 |
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| 41,022 |
|
|
| 69,011 |
|
|
| 48,493 |
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Cash, cash equivalents and restricted cash, beginning of period |
| 82,821 |
|
|
| 54,965 |
|
|
| 59,551 |
|
|
| 47,465 |
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Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
| (211 | ) |
|
| (71 | ) |
|
| 47 |
|
|
| (42 | ) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ | 128,609 |
|
| $ | 95,916 |
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| $ | 128,609 |
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| $ | 95,916 |
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THE REAL BROKERAGE INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (U.S. dollars in thousands) Unaudited | ||||||||||||
| For the Three Months Ended |
| For the Six Months Ended | |||||||||
| June 30, 2026 | June 30, 2025 |
| June 30, 2026 | June 30, 2025 | |||||||
Net Income (Loss) | $ | (7,956 | ) | $ | 1,550 |
| $ | (11,414 | ) | $ | (3,571 | ) |
Add/(Deduct): |
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Finance Expenses, Net |
| 631 |
|
| 300 |
|
| 717 |
|
| 334 |
|
Depreciation and Amortization |
| 553 |
|
| 398 |
|
| 1,128 |
|
| 777 |
|
Stock-Based Compensation |
| 21,804 |
|
| 17,795 |
|
| 38,805 |
|
| 30,502 |
|
Intangible Asset Impairment |
| - |
|
| - |
|
| 12 |
|
| - |
|
Restructuring Expenses |
| 472 |
|
| - |
|
| 712 |
|
| 250 |
|
Expenses Related to Litigation Settlement |
| 13 |
|
| - |
|
| 109 |
|
| 27 |
|
Acquisition Costs |
| 11,582 |
|
| - |
|
| 11,894 |
|
| - |
|
Tax Expense |
| 487 |
|
| - |
|
| 531 |
|
| - |
|
Adjusted EBITDA(i) | $ | 27,586 |
| $ | 20,043 |
| $ | 42,494 |
| $ | 28,319 |
|
i. | Represents a non-GAAP measure. Real’s method for calculating non-GAAP measures may differ from other reporting issuers’ methods and accordingly may not be comparable. For definitions and basis of presentation of Real’s non-GAAP measures, refer to the non-GAAP measures and ratios section of this press release. |
THE REAL BROKERAGE INC. BREAKOUT OF REVENUE BY SEGMENT (U.S. dollars in thousands) Unaudited | |||||||||
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||
| 2026 | 2025 |
| 2026 | 2025 | ||||
Main revenue streams |
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|
|
|
| ||||
Brokerage Commissions | $ | 696,364 | $ | 537,445 |
| $ | 1,158,926 | $ | 889,194 |
Title |
| 1,743 |
| 1,346 |
|
| 3,002 |
| 2,376 |
Mortgage Broker Income |
| 1,876 |
| 1,709 |
|
| 3,170 |
| 2,785 |
Wallet |
| 592 |
| 247 |
|
| 1,028 |
| 373 |
Total Revenue | $ | 700,575 | $ | 540,747 |
| $ | 1,166,126 | $ | 894,728 |
THE REAL BROKERAGE INC. RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER (U.S. dollars in thousands) Unaudited | ||||||||
|
|
| ||||||
| 2024 | 2025 | 2026 | |||||
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
Operating Expense | $34,607 | $36,371 | $39,145 | $46,177 | $45,330 | $44,283 | $45,595 | $65,286 |
Less: Revenue Share Expense | 11,651 | 9,537 | 12,504 | 17,644 | 15,738 | 14,634 | 15,688 | 22,210 |
Revenue Share Expense (% of revenue) | 3.3% | 2.7% | 3.5% | 3.3% | 2.8% | 2.9% | 3.4% | 3.2% |
Less: Acquisition Costs | — | — | — | — | — | — | 312 | 11,582 |
Operating Expense Excluding Revenue Share and Acquisition Costs1 | $22,956 | $26,834 | $26,641 | $28,533 | $29,592 | $29,649 | $29,595 | $31,494 |
Less: |
|
|
|
|
|
|
|
|
Stock-Based Compensation - Employees | 3,139 | 3,405 | 1,651 | 2,057 | 3,422 | 2,605 | 3,027 | 2,630 |
Stock-Based Compensation - Agent | 2,665 | 2,940 | 3,115 | 3,478 | 3,935 | 4,199 | 4,371 | 4,712 |
Depreciation and Amortization Expense | 358 | 372 | 379 | 398 | 567 | 585 | 575 | 553 |
Restructuring Expense | — | — | 250 | — | — | — | 240 | 472 |
Expenses Related to Litigation Settlement | 33 | 118 | 27 | — | — | 750 | 96 | 13 |
Subtotal | 6,195 | 6,835 | 5,422 | 5,933 | 7,924 | 8,139 | 8,309 | 8,380 |
Adjusted Operating Expense2 | $16,761 | $19,998 | $21,219 | $22,601 | $21,668 | $21,510 | $21,286 | $23,114 |
Adjusted Operating Expense (% of revenue) | 4.5% | 5.7% | 6.0% | 4.2% | 3.8% | 4.3% | 4.6% | 3.3% |
| 1Operating expense excluding revenue share excludes revenue share expense and acquisition costs. |
2Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. |
THE REAL BROKERAGE INC. KEY PERFORMANCE METRICS BY QUARTER (U.S. dollars in thousands) Unaudited | ||||||||
|
|
| ||||||
| 2024 | 2025 | 2026 | |||||
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
Transaction Data |
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|
|
|
|
|
|
|
Closed Transaction Sides1 | 35,832 | 35,370 | 33,617 | 49,282 | 53,512 | 48,903 | 41,882 | 62,380 |
Total Value of Home Side Transactions ($, billions)2 | $14.4 | $14.6 | $13.5 | $20.1 | $21.4 | $20.3 | $16.8 | $26.3 |
Median Home Sales Price ($, thousands)3 | $383 | $380 | $380 | $387 | $390 | $385 | $385 | $399 |
Agent Metrics |
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|
|
|
Total Agents4 | 21,770 | 24,140 | 26,870 | 28,034 | 30,183 | 31,739 | 33,510 | 35,348 |
Agent Churn Rate (%)5 | 7.3 | 6.8 | 8.7 | 9.4 | 4.9 | 5.2 | 8.0 | 6.1 |
Revenue Churn Rate (%)6 | 2.0 | 1.8 | 2.5 | 1.9 | 1.4 | 1.6 | 2.4 | 1.9 |
Headcount and Efficiency Metrics |
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|
Full-Time Employees7 | 240 | 264 | 410 | 429 | 439 | 435 | 489 | 511 |
Full-Time Employees, Excluding One Real Title and One Real Mortgage8 | 142 | 178 | 307 | 324 | 340 | 338 | 394 | 428 |
Headcount Efficiency Ratio9 | 1:140 | 1:136 | 1:88 | 1:87 | 1:89 | 1:94 | 1:85 | 1:83 |
Revenue Per Full Time Employee ($, thousands)10 | $2,403 | $1,970 | $1,153 | $1,669 | $1,672 | $1,490 | $1,182 | $1,637 |
Operating Expense Excluding Revenue Share and Acquisition Costs ($, thousands)11 | $22,956 | $26,835 | $26,641 | $28,533 | $29,592 | $29,649 | $29,595 | $31,494 |
Operating Expense Per Transaction Excluding Revenue Share and Acquisition Costs ($)12 | $641 | $759 | $792 | $579 | $553 | $606 | $707 | $505 |
Adjusted Operating Expense ($, thousands)13 | $16,761 | $19,998 | $21,219 | $22,601 | $21,668 | $21,510 | $21,286 | $23,114 |
Adjusted Operating Expense Per Transaction ($)14 | $468 | $565 | $631 | $459 | $405 | $440 | $508 | $371 |
| 1 Represents the number of transactions closed by our agents during the period. |
2 Represents the U.S. dollar value of all sale, lease and purchase transactions closed by our agents during the period. |
3 Represents the median price (in USD) of homes sold or purchased by our agents during the period, based on closed transactions. |
4 Represents the total number of agents affiliated with Real at the end of the period. |
5 Represents the rate at which agents left our platform during the period, calculated as the number of churned agents during the period divided by the total agent base at the beginning of the period. |
6 A supplementary financial measure, calculated as the percentage of revenue lost from agents who churned during the period, calculated as commission revenue generated by churned agents during the last six months divided by total Company commissions revenue for the last six months. |
7 Represents the total number of full-time employees of the Company at period end. |
8 Represents the total number of full-time employees of the Company excluding employees of One Real Title and One Real Mortgage. |
9 Represents the ratio of full-time brokerage employees (excluding One Real Title and One Real Mortgage employees) to the number of agents on our platform. |
10 A supplementary financial measure calculated as total company revenue divided by full-time brokerage employees (excludes One Real Title and One Real Mortgage employees). |
11 A non-GAAP measure, calculated as total operating expenses per the Financial Statements, less revenue share expense and acquisition costs. Real's method for calculating non-GAAP measures may differ from other reporting issuers' and accordingly may not be comparable. For definitions and basis of presentation of Real's non-GAAP measures, refer to the "Non-GAAP measures and ratios" section in this press release. |
12 A non-GAAP measure, calculated as operating expense excluding revenue share and acquisition costs, divided by the number of closed transaction sides. Real's method for calculating non-GAAP measures may differ from other reporting issuers' and accordingly may not be comparable. For definitions and basis of presentation of Real's non-GAAP measures, refer to the "Non-GAAP measures and ratios" section in this press release. |
13 Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. |
14 Adjusted operating expense per transaction, calculated as adjusted operating expense divided by the number of closed transaction sides. |
Contacts
For additional information, please contact:
Loren Irwin
Director, Investor Relations and Financial Reporting
investors@therealbrokerage.com
908.280.2515
For media inquiries, please contact:
press@therealbrokerage.com
201.564.4221
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