Real Brokerage (NASDAQ:REAX) Releases Quarterly Earnings Results

Real Brokerage (NASDAQ:REAX) announced its earnings results on Thursday. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.01, Zacks reports. The firm had revenue of $465.55 million for the quarter, compared to the consensus estimate of $474.84 million. Real Brokerage had a negative return on equity of 12.16% and a negative net margin of 0.32%.

Here are the key takeaways from Real Brokerage’s conference call:

• Real reported Q1 revenue of $466 million (?32%), adjusted EBITDA of $14.9 million (?80%), a narrower operating loss of $3.4 million, record unrestricted cash of $62.9 million, and closed ~42,000 transactions (?25%) despite a weak housing market.
• The company announced a definitive agreement to acquire RE/MAX for an implied enterprise value of roughly $880 million, targeting $30 million of cost synergies and creating scale to monetize 700k+ U.S. transaction sides and ~1M annual website leads via title, mortgage, Wallet and AI tools.
• Ancillary businesses are gaining traction—Real Wallet revenue more than tripled to $436k with 8,000 active agents and >$1M weekly debit spend, One Real Title revenue grew 22% with 13 JVs across 19 states (20 expected), and One Real Mortgage revenue rose 20% while moving to a new LOS to reduce per?file costs.
• Gross margin compressed to 9.1% (from 9.6%) due to a higher mix of post?cap transactions and management expects margins to trend lower sequentially as more agents reach caps; Q2 will also see a material step?up in RE/MAX acquisition?related costs and pro forma leverage will increase before planned deleveraging.

Real Brokerage Stock Down 8.5%

Real Brokerage stock traded down $0.19 during trading on Friday, hitting $2.04. The stock had a trading volume of 5,726,013 shares, compared to its average volume of 3,686,179. The stock’s 50 day moving average is $2.48 and its two-hundred day moving average is $3.23. Real Brokerage has a 1 year low of $1.92 and a 1 year high of $5.41. The stock has a market cap of $435.54 million, a price-to-earnings ratio of -68.00 and a beta of 0.81.

Institutional Trading of Real Brokerage

Hedge funds have recently made changes to their positions in the company. Polymer Capital Management US LLC grew its stake in shares of Real Brokerage by 292.2% during the 3rd quarter. Polymer Capital Management US LLC now owns 40,733 shares of the company’s stock worth $170,000 after acquiring an additional 30,347 shares during the period. AQR Capital Management LLC raised its stake in Real Brokerage by 277.4% in the 4th quarter. AQR Capital Management LLC now owns 43,882 shares of the company’s stock valued at $160,000 after acquiring an additional 32,256 shares during the period. NewEdge Advisors LLC purchased a new stake in Real Brokerage during the fourth quarter valued at about $128,000. Marshall Wace LLP purchased a new stake in Real Brokerage during the second quarter valued at about $127,000. Finally, Man Group plc bought a new position in Real Brokerage during the third quarter worth about $97,000. 53.28% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently commented on the company. Weiss Ratings lowered Real Brokerage from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, April 27th. Benchmark initiated coverage on Real Brokerage in a research note on Thursday, March 26th. They issued a “buy” rating and a $5.50 price objective for the company. William Blair reaffirmed an “outperform” rating on shares of Real Brokerage in a research report on Wednesday, March 4th. Zelman & Associates reiterated a “neutral” rating on shares of Real Brokerage in a research note on Thursday, March 5th. Finally, BTIG Research restated a “buy” rating and set a $4.25 price target on shares of Real Brokerage in a research report on Monday, April 27th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $5.69.

Real Brokerage Company Profile

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.