Real Brokerage (NASDAQ:REAX) reported fourth-quarter and full-year 2025 results that management described as a “transformational year,” highlighting strong transaction growth, improving operating leverage, and expanding contributions from ancillary products including mortgage, title, and its Real Wallet fintech offering.
Fourth-quarter results capped a strong 2025
Chairman and CEO Tamir Poleg said the company closed the year with a strong fourth quarter, growing closed transactions 38% year-over-year to nearly 49,000. The company said that outpaced the broader existing home sales market, which CFO Ravi Jani noted rose about 1% in the same period.
For the full year, management said revenue grew 56% to nearly $2.0 billion and gross profit rose 44% to $166 million. Operating expenses increased 25% to $175 million, which the company said reflected a decoupling of expense growth from revenue and gross profit growth. 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.
Margins pressured by capped-agent mix shift; retention cited as key benefit
Jani said fourth-quarter gross margin was 7.7%, down from 8.6% a year earlier, and full-year gross margin was 8.4%. He attributed the year-over-year decline primarily to transaction mix, noting a 400-basis-point increase in the proportion of transactions completed by agents who had reached their annual commission cap. Those “post-cap” transactions carry a lower margin for the brokerage, he said, but are an important component supporting retention.
Management highlighted improvement in revenue churn to 1.6% in the fourth quarter from 1.8% in the prior-year period. Jani said the company expects the mix shift to continue into 2026, but anticipates margins will “ultimately normalize” as market activity improves and growth becomes more evenly distributed across the broader agent base. He also said ancillary businesses and platform efficiencies are expected to support further gross margin expansion over time.
When asked about margin normalization, Jani said the company expects the mix shift dynamic to continue in the first half of 2026, but that it should “level off” in the second half as fee model changes announced last year begin to manifest and as ancillary growth re-accelerates.
Operating leverage and cash flow; buybacks and liquidity
Operating expenses increased 22% year-over-year in the fourth quarter to $44 million. Jani noted the quarter included $750,000 related to an agreement to settle the Cwynar class action lawsuit on a nationwide basis.
As a percentage of revenue, operating expenses improved to 8.8% in the fourth quarter and 8.9% for the full year, according to Jani. He added that “adjusted operating expense,” a non-GAAP metric intended to reflect fixed cash overhead, improved to 4.3% of revenue from 5.7% in the prior-year period. On a unit basis, Adjusted OpEx per transaction declined 22% year-over-year to $440 in the fourth quarter from $565 in the prior year, which management said further supports the scalability of its platform.
For the full year, the company generated approximately $66 million in cash flow from operating activities. Poleg and Jani said the company returned $39 million to shareholders through share repurchases, including $15 million in the fourth quarter, while maintaining a debt-free balance sheet. The company ended 2025 with $49.9 million in unrestricted cash and investments and approximately $50 million in liquidity, management said.
In a shareholder Q&A, management addressed stock-based compensation, emphasizing that “nearly all” agent equity awards are tied to production rather than upfront guarantees. The company said stock-based compensation as a percentage of revenue declined by 80 basis points year-over-year in the fourth quarter, and management said it expects continued leverage over time while remaining “highly mindful of dilution,” citing its buyback program as an offset.
Agent growth and technology investments: reZEN, Leo, and consumer-facing HeyLeo
Real said it ended 2025 with 31,739 agents, up 31% year-over-year, and Poleg added that the count has since grown to more than 33,000. He attributed continued growth to “structural factors,” including agent attraction, improving productivity, and higher engagement and retention, even as existing home sales remain below long-term averages and industry transaction volumes stay constrained.
COO Jenna Rozenblat said the company’s proprietary transaction management platform, reZEN, serves as a single system of record for transactions, compliance, and commission payouts, enabling standardized workflows and structured data across the agent base. She said the unified platform allows Real to embed AI directly into live transaction workflows and deploy enhancements at scale.
- Agent productivity: Rozenblat highlighted “Leo CoPilot,” an assistant embedded in reZEN that provides guidance on transaction status, commissions, next steps, and marketing assets. She said agents have engaged with Leo more than 700,000 times since launch in 2023.
- Support and compliance: She said Leo became the first line of support across email and phone last summer and has answered more than 20,000 support inquiries, or about 46% of total support volume. The company also introduced “Leo Voice Broker” and “Automated Broker Review,” which uses AI to review documents as they are uploaded to identify missing information or inconsistencies before human review.
- Internal automation: Rozenblat said the company has automated portions of “ready to close” workflows and standardized processes including refund coordination, commission calculations, and bulk document retrieval to reduce manual work and prevent headcount from scaling linearly with transaction volume.
Rozenblat also discussed a consumer-facing expansion of the company’s AI efforts with HeyLeo.com, which she described as an AI-powered consumer portal in beta. She said HeyLeo provides each agent a customized web portal, a dedicated SMS line, and a dedicated email address, supported by an “Atlas” skill layer backed by MLS data and other insights. She said the platform has 180 integrations today and is targeting 400 integrations by July, and that it can provide instant responses to buyer inquiries and schedule showings on an agent’s calendar.
Ancillary businesses: mortgage, title, and Real Wallet
Management emphasized continued investment in ancillary products as “the next layer of value creation” designed to increase engagement, improve retention, and expand revenue and gross margin per transaction.
Poleg said One Real Mortgage generated $6 million in revenue in 2025, up 50% year-over-year, driven by loan officer growth and productivity. He noted that Kate Gurevich joined in January as CEO of One Real Mortgage. During Q&A, Poleg said the company has “a very strong pipeline of productive agents” getting licensed as loan officers and expects an uptick in mortgage results as those loan officers ramp, adding that early AI experiments aimed at nurturing and converting leads could also support mortgage and title attachment over time.
One Real Title generated $5 million in revenue in 2025, up 5%, as the company transitioned toward “more scalable state-based joint ventures,” according to Poleg. He said One Real Title operates 13 joint ventures across 17 states and expects to open three additional joint ventures in 2026. In Q&A, management said attach rates in the past couple of months were between 3% and 4% overall, while attach rates within the joint ventures were 30% to 40%, with a goal to increase further. Jani quantified the revenue drag from title JV transitions at roughly $200,000, similar to the prior quarter, and said the company expects title growth to re-accelerate as it laps those transitions, with an expectation to return to “double digit and solid double-digit growth” as 2026 progresses.
Real Wallet, which completed its first full year, generated nearly $900,000 of revenue in 2025 with 77% gross margins, Poleg said, and the company cited a current run rate of approximately $1.5 million. Management said more than 7,000 agents actively use Wallet, with approximately $23 million in deposits. In the shareholder Q&A, Poleg said the company has extended over $8 million in lines of credit and noted that U.S. balances now exceed those in Canada. Responding to an analyst question on adoption, Poleg said expanding Real Wallet Capital into more states—currently “in 20 or 21 states”—is a key driver, as more agents gain access to credit lines.
For outlook, Jani said the company is not providing formal guidance. He noted an “unseasonably slow” start to January and February, with volatile weather and historic snowstorms affecting transaction velocity. As a result, he said the company expects first-quarter revenue, operating loss, and Adjusted EBITDA to decline sequentially from fourth-quarter 2025 levels, while maintaining confidence that organic growth will continue to outpace the broader industry over the full year and that profitability metrics should improve year-over-year in 2026.
About Real Brokerage (NASDAQ:REAX)
Real Brokerage Inc is a publicly traded, cloud-based residential real estate brokerage headquartered in Toronto, Canada, with operations across the United States and Canada. The company’s platform offers licensed real estate professionals a fully integrated suite of digital tools designed to streamline every phase of the property transaction process, from lead generation to closing.
Through its proprietary technology, Real Brokerage provides agents with transaction management, customer relationship management, digital marketing automation and real-time analytics in a single, user-friendly interface.
