MIAMI--(BUSINESS WIRE)--March 04, 2026--
The Real Brokerage Inc. (NASDAQ: REAX) ("Real" or the "Company"), a leading real estate technology platform redefining the industry through innovation and culture, announced today financial results for the fourth quarter and full year ended December 31, 2025.
"Real delivered strong fourth quarter results, with revenue increasing 44% year-over-year and closed transactions growing 38%," said Tamir Poleg, Chairman and Chief Executive Officer. "We ended 2025 with revenue up 56% for the full year and 31,739 agents on our platform, reflecting continued organic share gains despite a tepid housing environment. Our differentiated agent value proposition and expanding ecosystem of products and services continue to attract productive agents seeking greater flexibility, technology, and financial opportunity."
"Throughout 2025, we scaled our platform with discipline, with growth in revenue and gross profit outpacing growth in operating expenses," said Jenna Rozenblat, Chief Operating Officer. "As we enter 2026, we remain focused on investing in technology and expanding adoption of our ancillary services to enhance agent productivity and deepen engagement across our network."
"In 2025, we generated $65.9 million of cash from operating activities and ended the year with $49.9 million of unrestricted cash and short-term investments and no debt," said Ravi Jani, Chief Financial Officer. "We repurchased $39.4 million of common shares during the year while continuing to invest in platform innovation and ancillary expansion. Looking ahead, we remain focused on driving organic growth, expanding margins, and allocating capital to generate long-term value."
Q4 2025 Financial Highlights(1)
-- Revenue rose to $505.1 million in the fourth quarter of 2025, an
increase of 44% from $350.6 million in the fourth quarter of 2024.
-- Gross profit reached $39.0 million in the fourth quarter of 2025, an
increase of 30% from $30.0 million in the fourth quarter of 2024.
-- Operating expenses totaled $44.3 million in the fourth quarter of 2025,
a 22% increase from $36.4 million in the fourth quarter of 2024.
-- Net loss attributable to owners of the Company improved to $(4.2)
million in the fourth quarter of 2025, compared to $(6.6) million in the
fourth quarter of 2024.
-- Basic and diluted loss per share was $(0.02) in the fourth quarter of
2025, compared to $(0.03) in the fourth quarter of 2024.
-- Adjusted EBITDA2 was $14.2 million in the fourth quarter of 2025,
compared to $9.1 million in the fourth quarter of 2024.
-- Revenue share expense, which is included in Marketing expenses, totaled
$14.6 million in the fourth quarter of 2025, a 53% increase compared to
$9.5 million in the fourth quarter of 2024.
-- Adjusted operating expenses, which reflect operating expenses less
revenue share expense, stock-based compensation, depreciation, and other
unique or non-cash expenses, were $21.5 million in the fourth quarter of
2025, compared to $20.0 million in the fourth quarter of 2024.
-- Adjusted operating expense per transaction was $440 in the fourth
quarter of 2025, a decline of 22% from $565 in the fourth quarter of
2024.
-- Cash provided by operating activities totaled $149.0 thousand during
the fourth quarter of 2025.
-- The Company repurchased 3.9 million common shares for $15.1 million in
the fourth quarter.
-- The Company ended the fourth quarter of 2025 with $49.9 million of
unrestricted cash and equivalents and short-term investments on its
balance sheet and no debt.
(1) All dollar references are in U.S. dollars.
(2) There are references to "Adjusted EBITDA" and "Adjusted Operating Expense"
in this press release, which are non-GAAP measures. Real's method for
calculating non-GAAP measures may differ from other reporting issuers' methods
and accordingly may not be comparable. See accompanying note under the heading
"Non-GAAP Measures and Ratios" for an explanation of the composition of these
non-GAAP measures.
Full Year 2025 Financial Highlights
-- Revenue rose to $2.0 billion for the full year 2025, an increase of 56%
from $1.3 billion for the full year 2024.
-- Gross profit reached $165.7 million for the full year 2025, an increase
of 44% from $114.7 million in 2024.
-- Operating expenses totaled $174.9 million for the full year 2025, a 25%
increase from $140.0 million in 2024.
-- Net loss attributable to owners of the Company improved to $(8.1)
million for the full year 2025, compared to $(26.5) million in 2024.
-- Basic and diluted loss per share was $(0.04) for the full year 2025,
compared to $(0.14) in 2024.
-- Adjusted EBITDA2 was $62.9 million for the full year 2025, compared to
$40.0 million for the full year 2024.
-- Revenue share expense totaled $60.5 million for the full year 2025, a
42% increase compared to $42.7 million in 2024.
-- Adjusted operating expenses were $87.0 million for the full year 2025,
an increase of 34% from $65.1 million in 2024.
-- Cash provided by operating activities totaled $65.9 million for the
full year 2025.
-- The Company repurchased 9 million common shares for $39.4 million for
the full year 2025.
Q4 and Full Year 2025 Business and Operational Highlights
-- North American Brokerage -- North American Brokerage revenue rose to $502.0 million in the fourth quarter of 2025, an increase of 44% from $348.1 million in the fourth quarter of 2024. Revenue for the full year 2025 was $2.0 billion, an increase of 56% from $1.3 billion in 2024. -- The total number of agents increased to 31,739 at the end of the fourth quarter of 2025, an increase of 31% from the fourth quarter of 2024. -- The total number of transactions closed was 48,903 in the fourth quarter of 2025, an increase of 38% from 35,370 in the fourth quarter of 2024. For the full year 2025, the total number of transactions closed was 185,314, an increase of 54% from 120,601 for the full year 2024. -- The total value of completed real estate transactions reached $20.3 billion in the fourth quarter of 2025, an increase of 39% from $14.6 billion in the fourth quarter of 2024. For the full year 2025, the total value of completed real estate transactions reached $75.3 billion, an increase of 53% from $49.0 billion for the full year 2024. -- As of March 3, 2026, over 33,200 agents are now on the Real platform. -- One Real Title -- One Real Title revenue was $1.4 million in the fourth quarter of 2025, a 1% increase compared to $1.3 million in the fourth quarter of 2024. Revenue for the full year 2025 was $5.0 million, compared to $4.8 million in 2024. -- Title results reflect the transition from legacy team-based joint ventures to state-based joint ventures. -- One Real Mortgage -- One Real Mortgage revenue reached $1.5 million in the fourth quarter of 2025, a 26% increase compared to $1.2 million in the fourth quarter of 2024. Revenue for the full year 2025 was $6.0 million, compared to $4.0 million in 2024. Growth was driven by the addition of productive loan officers to the platform. -- As of February 2026, One Real Mortgage had 119 mortgage loan officers, including 85 affiliated with the Real Originate program. -- Real Wallet -- Real Wallet revenue totaled $339.0 thousand in the fourth quarter of 2025, compared to $42.0 thousand in the fourth quarter of 2024. Revenue for the full year 2025 was $889.0 thousand, compared to $42.0 thousand in 2024. -- As of February 2026: -- More than 7,000 Real agents were utilizing Real Wallet Business Checking Accounts, including over 1,400 Real Wallet Tax Planning Business Checking Accounts. -- The total deposit balance held in all Real Wallet Business Checking and Tax Planning accounts was approximately $22.5 million. -- The total balance of credit outstanding was $8.0 million. -- Real Wallet is a financial technology platform that centralizes an agent's access to certain Company-branded financial products. Real Wallet currently includes: (i) Business Checking Accounts for eligible U.S. agents with Thread Bank, Member FDIC, including a Company-branded debit card; and (ii) credit lines for eligible agents in certain U.S. states and Canadian provinces, based on their earnings history with Real. -- Corporate Update -- On December 31, 2025, the Company entered into a settlement agreement to resolve the Cwynar class action lawsuit on a nationwide basis. Under the terms of the settlement, Real will pay $750,000 into a qualified settlement fund following the court's preliminary approval. The settlement does not constitute an admission of liability and remains subject to court approval. -- On January 20, 2026, Kate Gurevich was appointed Chief Executive Officer of One Real Mortgage. Ms. Gurevich brings more than 18 years of experience in the mortgage and real estate industries,
including leadership roles focused on scaling distributed sales
teams, improving operational efficiency and driving loan officer
productivity.
-- On February 11, 2026, Ken Pozek was appointed to the Company's
Board of Directors. Mr. Pozek is the founder and leader of The
Pozek Group, a 38-agent Orlando-based real estate team. His
appointment brings active agent leadership and field-level
operating perspective to the Board as the Company continues to
scale its agent-focused platform.
The Company will discuss the fourth quarter and full year results on a conference call and live webcast today at 8:00 a.m. ET.
Conference Call Details:
Date: Wednesday, March 4, 2026
Time: 8:00 am ET
Dial-in Number: North American Toll Free: 888-506-0062
International: 973-528-0011
Access Code: 243802
https://www.webcaster5.com/Webcast/Page/2699/534
Webcast: 64
Replay Information:
Replay Number: North American Toll Free: 877-481-4010
International: 919-882-2331
Access Code: 53464
Replay Link: https://www.webcaster5.com/Webcast/Page/2699/534
64
Non-GAAP Measures and Ratios
This news release includes references to "Adjusted EBITDA", "Adjusted Operating Expense", and "Operating Expense Excluding Revenue Share", which are non-U.S. generally accepted accounting principles ("GAAP") financial measures. Non-GAAP measures, including non-GAAP ratios, are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP, and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is a supplemental non-GAAP financial measure that management uses to evaluate operating performance. Adjusted EBITDA is calculated as net income/(loss) before finance expenses, income tax expense, depreciation and amortization, stock-based compensation, restructuring expenses, and expenses related to litigation settlements.
Operating Expense Excluding Revenue Share is used as an alternative to operating expenses by removing variable cash expenses associated with revenue share expenses, which is a component of marketing expenses.
Adjusted Operating Expense is used as an alternative to operating expenses by removing major non-cash items such as stock-based compensation, depreciation, and other unique or non-cash expenses, while retaining ongoing fixed operating expenses and excluding variable cash expenses associated with revenue share.
Adjusted EBITDA, Adjusted Operating Expense and Operating Expense Excluding Revenue Share have no direct comparable GAAP financial measures. The Company has used or included these non-GAAP measures solely to provide investors with added insight into Real's financial performance. Readers are cautioned that such non-GAAP measures may not be appropriate for any other purpose. Non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our Adjusted EBITDA is reconciled to the most comparable GAAP measure for the three and twelve months ended December 31, 2025 and 2024 and is presented in the table below labeled Reconciliation of Net Loss to Adjusted EBITDA. Our Adjusted Operating Expense and Operating Expense Excluding Revenue Share reconciled to the most comparable GAAP measure is presented for the three and twelve months ended December 31, 2025 and on a quarterly basis for the prior two fiscal years in the table below labeled Reconciliation of Operating Expense to Adjusted Operating Expense by Quarter.
This press release also includes non-GAAP financial measure ratios. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components.
Operating Expense Excluding Revenue Share per Transaction is a ratio calculated as Operating Expense Excluding Revenue Share, divided by the number of closed transaction sides. Adjusted Operating Expense per Transaction is a ratio calculated as Adjusted Operating Expense, divided by the number of closed transaction sides.
THE REAL BROKERAGE INC.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars and shares in thousands)
As of
------------------------------------------
December 31, 2025 December 31, 2024
------------------- ---------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 33,213 $ 23,376
Restricted cash 26,338 24,089
Investments in financial
assets 16,731 9,449
Trade receivables 20,170 14,235
Short-term financing
receivables, net 6,231 -
Other current assets 3,081 1,762
-------------- --------------
TOTAL CURRENT ASSETS $ 105,764 $ 72,911
============== ==============
NON-CURRENT ASSETS
Intangible assets, net 4,157 2,575
Goodwill 8,993 8,993
Property and equipment, net 2,455 2,116
Investment in equity
securities 2,250 -
Long-term financing
receivables, net 2,311 -
Deferred tax asset 931 -
-------------- --------------
TOTAL NON-CURRENT ASSETS $ 21,097 $ 13,684
-------------- --------------
TOTAL ASSETS $ 126,861 $ 86,595
============== ==============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable 1,161 1,374
Accrued liabilities 38,205 25,939
Customer deposits 26,338 24,089
Other payables 9,562 3,050
-------------- --------------
TOTAL CURRENT LIABILITIES $ 75,266 $ 54,452
NON-CURRENT LIABILITIES
Deferred tax liability 10 -
TOTAL NON-CURRENT LIABILITIES 10 -
-------------- --------------
TOTAL LIABILITIES $ 75,276 $ 54,452
============== ==============
EQUITY
EQUITY ATTRIBUTABLE TO OWNERS
Common Shares, no par value,
unlimited Common Shares
authorized, 210,478 Shares
issued and outstanding at
December 31, 2025; and 202,941
Shares issued and 202,499
outstanding at December 31,
2024 - -
Additional paid-in capital 164,208 138,639
Accumulated deficit (112,851) (104,746)
Accumulated other
comprehensive income 318 708
Treasury stock, at cost, 0 and
442 Common Shares at December
31, 2025 and December 31,
2024, respectively - (2,455)
-------------- --------------
EQUITY ATTRIBUTABLE TO OWNERS 51,675 32,146
-------------- --------------
Non-controlling interests (90) (3)
TOTAL EQUITY 51,585 32,143
-------------- --------------
TOTAL LIABILITIES AND EQUITY $ 126,861 $ 86,595
============== ==============
THE REAL BROKERAGE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(U.S. dollars and shares in thousands, except for per share amounts)
Three Months Ended
December 31, For the Year Ended December
(unaudited) 31,
----------------------- -----------------------------
2025 2024 2025 2024
------------ --------- -------------- -------------
Revenues $505,139 $350,630 $1,968,416 $1,264,639
Cost of Sales 466,105 320,645 1,802,728 1,149,898
------- ------- --------- ---------
Gross Profit 39,034 29,985 165,688 114,741
General and
administrative
expenses 18,359 18,632 74,359 61,084
Marketing
expenses 20,368 13,698 82,383 57,477
Research and
development
expenses 4,806 4,042 17,443 12,156
Settlement of
litigation 750 -- 750 9,250
------- ------- --------- ---------
Operating
Expenses 44,283 36,372 174,935 139,967
------- ------- --------- ---------
Operating Loss (5,249) (6,387) (9,247) (25,226)
Other income, net 342 115 995 496
Finance expenses,
net (137) (434) (554) (1,723)
------- ------- --------- ---------
Loss Before Tax $ (5,044) $ (6,706) $ (8,806) $ (26,453)
Tax Benefit (829) -- (740) --
Net Loss $ (4,215) $ (6,706) $ (8,066) $ (26,453)
Net income
attributable to
non-controlling
interests (12) (62) 39 88
------- ------- --------- ---------
Net Loss
Attributable to
the Owners of
the Company $ (4,203) $ (6,644) $ (8,105) $ (26,541)
Other
comprehensive
income/(loss),
Items that will
be reclassified
subsequently to
profit or loss:
Unrealized gain
(loss) on
investments in
financial
assets (84) (16) (212) 81
Foreign currency
translation
adjustment 10 529 (178) 794
------- ------- --------- ---------
Total
Comprehensive
Loss
Attributable to
Owners of the
Company $ (4,277) $ (6,131) $ (8,495) $ (25,666)
------- ------- --------- ---------
Total
Comprehensive
Income
Attributable to
Non-Controlling
Interest (12) (62) 39 88
------- ------- --------- ---------
Total
Comprehensive
Loss $ (4,289) $ (6,193) $ (8,456) $ (25,578)
Loss per share
Basic loss per
share $ (0.02) $ (0.03) $ (0.04) $ (0.14)
Diluted loss per
share $ (0.02) $ (0.03) $ (0.04) $ (0.14)
------- ------- --------- ---------
Weighted-average
shares, basic
and diluted 221,311 200,144 219,873 191,172
THE REAL BROKERAGE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollar in thousands)
Three Months Ended
December, 31 Twelve Months Ended
(unaudited) December 31,
---------------------- -------------------------
2025 2024 2025 2024
------------ -------- ------------ -----------
OPERATING
ACTIVITIES
Net Loss $ (4,215) $(6,705) $ (8,066) $(26,453)
Adjustments to
reconcile net
loss to net cash
provided by
operating
activities:
Depreciation and
amortization 585 372 1,929 1,396
Equity-settled
stock-based
payment 17,732 15,119 68,146 52,916
Finance costs (99) 338 (180) 376
Change in fair
value of
warrants
liability - - - 600
Deferred income
taxes, net (921) - (921) -
Changes in
operating assets
and
liabilities:
Funds Held in
Restricted
Escrow Account - 9,250 - -
Trade
receivables 7,691 3,070 (5,935) (7,794)
Financing
receivables,
net (4,088) - (8,542) -
Other current
assets (180) 672 (1,319) 433
Accounts payable 83 241 (213) 803
Accrued
liabilities (9,450) (5,052) 12,266 12,565
Customer
deposits (9,607) (3,427) 2,249 11,141
Other payables 2,618 (9,793) 6,512 2,748
------- ------ ------- -------
NET CASH
PROVIDED BY
OPERATING
ACTIVITIES 149 4,085 65,926 48,731
INVESTING
ACTIVITIES
Purchase of
investment in
equity
securities - - (2,250) -
Purchase of
property and
equipment (165) (81) (1,100) (1,045)
Purchase of
intangible
assets - - (2,750) -
Purchase of
financial
assets (269) 123 (16,053) (1,692)
Proceeds from
sale of
financial
assets 2,806 (220) 8,559 6,546
------- ------ ------- -------
NET CASH
PROVIDED BY
(USED IN)
INVESTING
ACTIVITIES 2,372 (178) (13,594) 3,809
FINANCING
ACTIVITIES
Repurchase of
common shares (15,064) (5,947) (39,363) (36,283)
Payment of
employee taxes
on certain
stock-based
arrangements (954) (1,355) (2,928) (2,832)
Proceeds from
exercise of
stock options 598 658 2,169 6,275
Distributions to
non-controlling
interest (31) (129) (126) (300)
NET CASH USED IN
FINANCING
ACTIVITIES (15,451) (6,773) (40,248) (33,140)
Net change in
cash, cash
equivalents and
restricted
cash (12,930) (2,866) 12,084 19,400
Cash, cash
equivalents and
restricted
cash, beginning
of period 72,372 50,128 47,465 27,655
Effect of
foreign
exchange rate
changes on
cash, cash
equivalents,
and restricted
cash 109 203 2 410
------- ------ ------- -------
CASH, CASH
EQUIVALENTS AND
RESTRICTED
CASH, ENDING
BALANCE $ 59,551 $47,465 $ 59,551 $ 47,465
------- ------ ------- -------
THE REAL BROKERAGE INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(U.S. dollars in thousands)
Unaudited
Three Months Ended
December 31, For the Year Ended
--------------------- ------------------------
December December
2025 2024 31, 2025 31, 2024
----------- -------- ----------- -----------
Net Loss $(4,215) $(6,705) $(8,066) $(26,453)
Add/(Deduct):
Finance
Expenses,
Net 137 169 554 1,723
Depreciation
and
Amortization 585 372 1,929 1,396
Stock-Based
Compensation 17,732 15,119 68,146 52,916
Restructuring
Expenses - - 250 -
Expenses
Related to
Litigation
Settlement 750 118 777 10,377
Tax Benefit (829) (740) -
------ -------- ------ -------
Adjusted
EBITDA(i) 14,160 9,073 62,850 39,959
i. Represents a non-GAAP measure. Real's method for calculating non-GAAP
measures may differ from other reporting issuers' methods and
accordingly may not be comparable. For definitions and basis of
presentation of Real's non-GAAP measures, refer to the non-GAAP measures
and ratios section of this press release.
THE REAL BROKERAGE INC.
BREAKOUT OF REVENUE BY SEGMENT
(U.S. dollars in thousands)
Three Months Ended
December 31, Twelve Months Ended
(unaudited) December 31,
------------------ ------------------------
2025 2024 2025 2024
-------- -------- ---------- ------------
Main revenue
streams
Commissions $501,982 $348,083 $1,956,483 $1,255,799
Title 1,352 1,338 5,035 4,788
Mortgage
Broker
Income 1,466 1,167 6,009 4,010
Wallet 339 42 889 42
------- ------- --------- ---------
Total
Revenue $505,139 $350,630 $1,968,416 $1,264,639
======= ======= ========= =========
THE REAL BROKERAGE INC.
RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER
(U.S. dollars in thousands)
Unaudited
2024 2025
------------------------------ ------------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
------ ------ ------ ------ ------ ------ ------ ------
Operating Expense 36,477 32,512 34,607 36,371 39,145 46,177 45,330 44,283
Less: Revenue
Share Expense 9,064 12,475 11,651 9,537 12,504 17,644 15,738 14,634
Revenue Share
Expense (% of
revenue) 4.5% 3.7% 3.3% 2.7% 3.5% 3.3% 2.8% 2.9%
Operating Expense
Excluding Revenue
Share(1) 27,413 20,037 22,956 26,834 26,641 28,533 29,592 29,649
Less:
Stock-Based
Compensation -
Employees 1,493 2,265 3,139 3,405 1,651 2,057 3,422 2,605
Stock-Based
Compensation -
Agent 2,137 2,335 2,665 2,940 3,115 3,478 3,935 4,199
Depreciation and
Amortization
Expense 326 340 358 372 379 398 567 585
Restructuring
Expense -- -- -- -- 250 -- -- --
Expenses Related
to Litigation
Settlement 9,857 369 33 118 27 -- -- 750
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