The Real Brokerage Inc (FRA:87M)

Q1 2025 Real Brokerage Inc Earnings Call Transcript

May 8, 2025 / 12:00 PM GMT

Release Date Price: €3.88 (+6.01%)

Transcript

Key Points

Positve

The Real Brokerage Inc (REAX) reported record first quarter results with revenue of $354 million, a 76% increase compared to the prior year.
The company saw a 77% increase in the number of transactions closed, reaching 33,600, despite a 2% decline in the existing home sale industry.
Agent count increased by 61% year-over-year, with over 27,700 agents as of the call date.
The company's technology platform and high-margin ancillary businesses, including mortgage, title, and RealWallet, grew by a combined 50% versus the prior year.
RealWallet generated $126,000 in revenue in its first full quarter, with an annualized run rate revenue exceeding $700,000, highlighting strong adoption and growth potential.

Negative

The company reported a net loss of $5.1 million, although this was an improvement from a $16.1 million loss in the prior year.
Gross margin declined to 9.6% from 10.3% in the prior year, due to a higher mix of production from agents who have reached their annual commission cap.
Operating expenses increased by approximately $12 million year-over-year, driven by higher revenue share, agent equity-based compensation, and corporate investments.
The company faces ongoing challenges in the housing market, with existing home sales down about 2% year-over-year due to affordability pressures.
The shift in revenue mix towards more productive capped agents may continue to impact gross margins in the short term, despite efforts to offset this with fee changes and ancillary services.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

REAX.OQ - Real Brokerage Inc
Q1 2025 Real Brokerage Inc Earnings Call
May 08, 2025 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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And good morning, ladies and gentlemen, and welcome to the Real Brokerage first quarter 2025 earnings call.

At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation.

I will now turn the call over to Alex Lumpkin. Ma'am, the floor is yours.

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Unidentified_2 [2]
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Thanks and good morning.

Thank you for standing by and welcome to the Real Brokerage conference call and webcast for the first quarter ended March 31, 2025. We appreciate

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