The Real Brokerage Inc (NASDAQ:REAX) Surpasses Revenue Estimates in Q3 2025 Earnings

The Real Brokerage Inc (NASDAQ:REAX) has announced its financial results for the third quarter of 2025, delivering a performance that notably surpassed analyst revenue expectations. The real estate technology platform demonstrated significant growth across its core metrics, painting a picture of a company expanding rapidly even as it moves closer to profitability.

Earnings and Revenue Performance

The company's top-line growth was the standout figure from the quarterly report. Real posted revenue of $568.5 million for the quarter, a substantial increase of 53% compared to the $372.5 million reported in the same period last year. This result comfortably exceeded the analyst revenue estimate of approximately $544.5 million.

On the bottom line, the company reported a net loss attributable to owners of $0.4 million, a significant improvement from the $2.6 million loss in the third quarter of 2024. This translated to a basic and diluted loss per share of $0.002, which was better than the analyst estimate of a $0.01 loss per share. The company's performance on this non-GAAP EPS basis effectively met expectations, coming in at a near-breakeven result against a forecasted slight loss.

Key financial highlights from the quarter include:

• Revenue: $568.5M (Actual) vs. ~$544.5M (Estimate) - Beat
• EPS (Non-GAAP): ~$0.00 (Actual) vs. -$0.01 (Estimate) - Beat
• Gross Profit: $44.9 million, a 40% year-over-year increase
• Adjusted EBITDA: $20.4 million, up 54% year-over-year

Market Reaction and Operational Highlights

The market responded positively to the earnings beat and improved profitability. In pre-market trading following the announcement, REAX shares were up approximately 10%. This positive momentum contrasts with the stock's performance over the past month, during which it had declined about 12%.

The strong financial results were underpinned by robust operational growth, as detailed in the press release. The company's core North American brokerage business continued to be the primary growth driver.

Notable operational achievements for Q3 2025:

• A 49% year-over-year increase in closed transactions, reaching 53,512
• The agent count grew to 30,183, a 39% increase from the prior year
• The total value of real estate transactions completed reached $21.4 billion
• The company ended the quarter with $55.8 million in unrestricted cash and short-term investments, with no debt

Ancillary Services and Financial Position

Real is continuing to build out its ecosystem of ancillary services. Its mortgage division, One Real Mortgage, saw revenue increase 47% to $1.8 million. The company also highlighted its Real Wallet platform, a fintech offering for agents that now has over 4,600 users with business checking accounts holding approximately $20 million in deposits.

From a balance sheet perspective, the company strengthened its financial position, generating $8.8 million in cash from operating activities during the quarter. Management also deployed $15.5 million to repurchase 3.2 million common shares, signaling confidence in the company's valuation.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the coming quarters, management expressed optimism about "closing out the year from a position of strength, while laying the foundation for an even stronger 2026." For context, analysts are currently estimating Q4 2025 revenue of approximately $474.7 million and full-year 2025 sales of around $1.93 billion.

The company's ability to grow its agent base and transaction volume at a pace that significantly outpaces the broader housing market, combined with its improving path to profitability, appears to be resonating with investors, as evidenced by the positive pre-market price action.

For a detailed look at historical earnings and future analyst estimates for The Real Brokerage, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The performance data and estimates referenced are based on publicly available information and are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.