Real REMAX Group (NASDAQ:REAX) projected 2027 adjusted EBITDA of $175 million to $190 million, even as it prepares for further declines in home sales and prices, executives said on the company’s first earnings call since acquiring RE/MAX.
The outlook assumes U.S. existing home sales fall 5% to 10% next year and average home prices decline 3% to 4%. Chief Financial Officer Ravi Jani said the company expects revenue of $2.6 billion to $2.8 billion in 2027, supported by market share gains at its Real brokerage, acquisition-related savings and improvements in the RE/MAX franchise business.
Chairman and CEO Tamir Poleg said the housing market has operated near trough levels for four years and that higher mortgage rates have delayed the recovery he and others anticipated. The company closed its RE/MAX acquisition on Aug. 24.
Acquisition Costs Weigh on Third-Quarter Results
Third-quarter revenue rose 28% year over year to $728 million, including approximately five weeks of RE/MAX contributions. Adjusted EBITDA increased 66% to $34 million.
Jani cautioned that reported comparisons with the prior year are not directly comparable because the results include RE/MAX only after the acquisition closed. On a pro forma basis, assuming the acquisition had occurred on Jan. 1, 2025, combined third-quarter revenue rose 20% to approximately $770 million, while adjusted EBITDA was approximately $50 million.
The company reported an operating loss of $72 million, compared with a $0.5 million loss a year earlier, and a net loss of $67.2 million, compared with a $0.3 million loss. Results included approximately $78.7 million of non-recurring acquisition-related expenses, including transaction and severance costs and accelerated stock-based compensation associated with employee terminations.
Cost Cuts and Mortgage Business Wind-Down
President Jenna Rozenblat said the company has actioned more than $40 million in annualized gross cost savings across operating expenses and capital expenditures. More than $28 million of that amount represents synergies that directly benefit adjusted EBITDA.
The actions include a reduction of more than 150 positions, or over 14% of combined headcount, as well as consolidation of technology, vendors and overlapping functions. Jani said approximately $4 million of the savings relates to capital expenditures or capitalized software and another $8 million to stock-based compensation; neither flows through to adjusted EBITDA.
Real REMAX expects to realize more than $30 million in annual adjusted EBITDA synergies in 2027 and more than $40 million in 2028. Jani said the current $28 million annual run rate should begin contributing at approximately $7 million per quarter in the first quarter of 2027, with savings increasing as contracts expire.
The company is also winding down Motto Mortgage and wemlo. Rozenblat said 104 of Motto’s 151 franchise offices operating at the end of August had closed, and 92% of the network was moving toward termination. The legacy RE/MAX mortgage businesses generated a combined $5 million adjusted EBITDA loss in 2025, she said.
Agent Attrition and Technology Rollout
Real Brokerage ended the third quarter with approximately 36,600 agents, up 21% from a year earlier, while closed transaction sides rose 17% to approximately 62,700. Poleg said the brokerage’s agent count had since fallen to approximately 36,200, after the company proactively off-boarded more than 1,000 agents over the previous two months.
Those departures were concentrated among agents contributing little revenue, Poleg said. He added that slightly more agents had joined Real in 2026 than in 2025, but industrywide churn remained a challenge.
At the RE/MAX franchise business, U.S. and Canadian agent count fell 3% year over year on a pro forma basis to approximately 72,100. Agent count outside those markets increased 4% to approximately 76,000.
The company plans to offer its Leo Pro AI platform across the RE/MAX network within weeks, Poleg said. During the question-and-answer session, he said approximately 5,600 agents were using the product, including about 3,500 paying subscribers. The company is also alpha testing its reZEN software for a phased RE/MAX rollout, with the broker-owner platform expected to be ready at some point in the first quarter of 2027.
Debt Repayment and Outlook
For the fourth quarter of 2026, Real REMAX projected revenue of $575 million to $625 million and adjusted EBITDA of $32 million to $38 million. Its outlook includes a high-single-digit to low-double-digit decline in transactions per Real agent and a low- to mid-single-digit decline in RE/MAX’s North American agent count, both year over year.
The company ended September with $109 million in unrestricted cash, equivalents and short-term investments. It voluntarily repaid $25 million of its acquisition-related term loan during the quarter, leaving $525 million outstanding, and repurchased $4.7 million of common shares.
Management’s current plan contemplates approximately $75 million in debt repayment in 2027, with a goal of reducing net leverage below two times by the end of 2028. Jani said that if the market were flat rather than declining as assumed in the company’s forecast, adjusted EBITDA would likely be in the $200 million range.
About Real REMAX Group (NASDAQ:REAX)
Real Brokerage Inc is a technology-powered residential real estate brokerage serving real estate agents and their clients in the United States and Canada. The company operates through a cloud-based model that enables agents to manage their businesses remotely while providing brokerage services for home buyers and sellers.
Real’s platform is designed to support key aspects of the real estate transaction process, including lead management, transaction coordination, document management, communication and collaboration.
