The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2025 Financial Results
MIAMI--( BUSINESS WIRE)--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
1All dollar references are in U.S. dollars.
2There 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
Q4 and Full Year 2025 Business and Operational Highlights
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
Webcast:
https://www.webcaster5.com/Webcast/Page/2699/53464
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/2699/53464
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,
(unaudited)
For the Year Ended December 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
(unaudited)
Twelve Months Ended 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
2025
2024
December 31, 2025
December 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,
(unaudited)
Twelve Months Ended 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
Subtotal
13,813
5,309
6,195
6,835
5,422
5,933
7,924
8,139
Adjusted Operating Expense 2
13,600
14,728
16,761
19,998
21,219
22,601
21,668
21,510
Adjusted Operating Expense (% of revenue)
6.8%
4.3%
4.5%
5.7%
6.0%
4.2%
3.8%
4.3%
1 Operating expense excluding revenue share excludes revenue share expense.
2Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses.
THE REAL BROKERAGE INC.
KEY PERFORMANCE METRICS BY QUARTER
(U.S. dollars in thousands)
Unaudited
2024
2025
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Transaction Data
Closed Transaction Sides 1
19,032
30,367
35,832
35,370
33,617
49,282
53,512
48,903
Total Value of Home Side Transactions ($, billions) 2
7.5
12.6
14.4
14.6
13.5
20.1
21.4
20.3
Median Home Sales Price ($, thousands) 3
$372
$384
$383
$380
$380
$387
$390
$385
Agent Metrics
Total Agents 4
16.68
19,540
21,770
24,140
26.87
28.034
30,183
31,739
Agent Churn Rate (%) 5
7.9
7.5
7.3
6.8
8.7
9.4
4.9
5.2
Revenue Churn Rate (%) 6
1.9
1.6
2.0
1.8
2.5
1.9
1.4
1.6
Headcount and Efficiency Metrics
Full-Time Employees 7
151
231
240
264
410
429
439
435
Full-Time Employees, Excluding One Real Title and One Real Mortgage 8
117
142
155
178
307
324
340
338
Headcount Efficiency Ratio 9
1:143
1:138
1:140
1:136
1:88
1:87
1:89
1:94
Revenue Per Full Time Employee ($, thousands) 10
$1,716
$2,400
$2,403
$1,970
$1,153
$1,669
$1,672
$1,490
Operating Expense Excluding Revenue Share ($, thousands) 11
$27,413
$20,037
$22,956
$26,835
$26,641
$28,533
$29,592
$29,649
Operating Expense Per Transaction Excluding Revenue Share ($) 12
$1,440
$660
$641
$759
$792
$579
$553
$606
Adjusted Operating Expense ($, thousands) 13
$13,600
$14,728
$16,761
$19,998
$21,219
$22,601
$21,668
$21,510
Adjusted Operating Expense Per Transaction ($) 14
$715
$485
$468
$565
$631
$459
$405
$440
1 Represents the number of transactions closed by our agents during the period.
2 Represents the U.S. dollar value of all sale, lease and purchase transactions closed by our agents during the period.
3 Represents the median price (in USD) of homes sold or purchased by our agents during the period, based on closed transactions.
4 Represents the total number of agents affiliated with Real at the end of the period.
5 Represents the rate at which agents left our platform during the period, calculated as the number of churned agents during the period divided by the total agent base at the beginning of the period.
6 A supplementary financial measure, calculated as the percentage of revenue lost from agents who churned during the period, calculated as commission revenue generated by churned agents during the last six months divided by total Company commissions revenue for the last six months.
7 Represents the total number of full-time employees of the Company at period end.
8 Represents the total number of full-time employees of the Company excluding employees of One Real Title and One Real Mortgage.
9 Represents the ratio of full-time brokerage employees (excluding One Real Title and One Real Mortgage employees) to the number of agents on our platform.
10 A supplementary financial measure calculated as total company revenue divided by full-time brokerage employees (excludes One Real Title and One Real Mortgage employees).
11 A non-GAAP measure, calculated as total operating expenses per the Financial Statements, less revenue share expense. Real's method for calculating non-GAAP measures may differ from other reporting issuers' 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 in this press release.
12 A non-GAAP measure, calculated as operating expense excluding revenue share, divided by the number of closed transaction sides. Real's method for calculating non-GAAP measures may differ from other reporting issuers' 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 in this press release.
13 Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses.
14 Adjusted operating expense per transaction, calculated as adjusted operating expense divided by the number of closed transaction sides.
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to Real’s expectation regarding revenue growth and profitability and the business, strategic plans of Real.
Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, Real’s ability to attract new agents and retain current agents, Real’s inability to successfully launch new products and features; our inability to scale while improving operating leverage, our inability to successfully execute our strategies, including our strategy related to HeyLeo; possible unfavorable results in legal proceedings; changes in laws, regulations or the regulatory environment affecting our business; disruptions to our technology or cybersecurity incidents; and those risk factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated March 4, 2026, and “Risks and Uncertainties” in the Company’s Quarterly Management’s Discussion and Analysis for the period ended December 31, 2025, copies of which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.
These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
About Real
Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 33,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses. Additional information can be found on its website at www.onereal.com.
The Real Brokerage is a real estate technology company and is not a bank. Banking services are provided by Thread Bank, Member FDIC. The Real Wallet Visa debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.