The Real Brokerage Inc (REAX) saw its stock plummet by 5.59% in Thursday's trading session, despite reporting better-than-expected first-quarter earnings. The company's financial results, released pre-market, showed mixed performance with some positive highlights overshadowed by ongoing profitability concerns.

The real estate technology company reported a quarterly loss of $0.02 per share, which was less than the analysts' consensus estimate of a $0.04 loss. Revenue for the quarter surged to $354 million, marking a impressive 76.3% increase from the same period last year and surpassing Wall Street expectations of $332.92 million. The company also reported an adjusted EBITDA of $8.3 million and a gross profit of $33.9 million for the quarter.

Despite these seemingly positive results, investors appeared to focus on the company's continued net loss, which stood at $5 million for the quarter. The sharp stock decline suggests that market participants may have been looking for more substantial progress towards profitability, especially given the strong revenue growth. Additionally, the broader market sentiment towards high-growth technology companies in the real estate sector may have contributed to the negative reaction, as investors reassess valuations in light of economic uncertainties.