The Real BrokerageREAX +6.65%62 Gross Margin % is 9.05% as of Mar. 2026, which is 1% below its 10-year median of 9.12. GuruFocus rates REAX with a GF Score™ of 62/100 and a GF Value™ of $6.25 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,644 Real Estate companies, The Real Brokerage ranks worse than 89.66% on this metric.
The Real Brokerage Inc gross margin has been in long-term decline. The average rate of decline per year is -5.8%.
The historical rank and industry rank for The Real Brokerage's Gross Margin % or its related term are showing as below:
REAX'
s Gross Margin % Range Over the Past 10 Years
Min: 8.36 Med: 9.12 Max: 13.01
Current: 8.36
During the past 7 years, the highestGross Margin % of The Real Brokerage was 13.01%. The lowest was 8.36%. And the median was 9.12%.
REAX's Gross Margin % is ranked worse than 89.66% of 1644
companies
in the Real Estate industry
Industry Median: 36.96
vs REAX: 8.36
The Real Brokerage had a gross margin of 9.05% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The Real Brokerage was -5.80% per year.
The Real Brokerage (NAS:REAX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Real Brokerage had a gross margin of 9.05% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Real Brokerage Gross Margin % Related Terms
The Real Brokerage Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Real Brokerage's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Real Estate Services subindustry, The Real Brokerage's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Real Brokerage Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, The Real Brokerage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Real Brokerage's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Real Brokerage (REAX) has a Gross Margin % of 9.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Real Brokerage and its competitors. This is near median its historical median of 9.12. Over the past decade, The Real Brokerage's Gross Margin % has ranged from 8.36 to 13.01. According to the industry distribution chart, The Real Brokerage ranks #1474 out of 1644 companies in the Real Estate industry, placing it in the top 89.7%.
Is The Real Brokerage's Gross Margin % too high?
The Real Brokerage's current Gross Margin % of 9.05% is near median its 10-year median of 9.12. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 13.01. The Real Estate industry median Gross Margin % is 36.96. The Real Brokerage's value of 9.05% is 75.5% below this industry median. Based on the distribution chart, The Real Brokerage ranks #1474 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, The Real Brokerage has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Real Brokerage's Gross Margin % compare to RMR and MLP?
According to the Real Estate industry distribution chart, The Real Brokerage ranks #1474 out of 1644 companies for Gross Margin %. This places The Real Brokerage in the lower half of its industry. The industry median Gross Margin % is 36.96. The Real Brokerage's value of 9.05% is 75.5% below this benchmark. Historically, The Real Brokerage's own Gross Margin % has ranged from 8.36 to 13.01 over the past decade. While the company's 10-year median is 9.12 vs. the industry median of 36.96, The Real Brokerage has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Real Brokerage's current Gross Margin % of 9.05% is 75.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Real Brokerage and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Real Brokerage's current Gross Margin % is 9.05%, which is near median its own 10-year median of 9.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Real Brokerage stock overvalued right now?
Based on GuruFocus' analysis, The Real Brokerage (REAX) is currently considered Significantly Undervalued. The stock's GF Value™ is $6.25, compared to a current price of $1.85 — trading 70.5% below its estimated fair value. The current Gross Margin % is 9.05%, which is near median its 10-year median of 9.12 and 75.5% below the Real Estate industry median of 36.96. The Real Brokerage's overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Real Brokerage (REAX), the current Gross Margin % is 9.05% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Real Brokerage (REAX) Overvalued in 2026?
Based on GuruFocus' analysis, The Real Brokerage stock appears to be undervalued.
The current stock price of $1.85 is trading 70.5% below its estimated GF Value™ of $6.25.
GuruFocus considers The Real Brokerage to be Significantly Undervalued.
Key valuation signals for REAX:
Gross Margin %: 9.05% (near median its 10-year median of 9.12)
GF Value™: $6.25 vs. price of $1.85 (70.5% below fair value)
Industry Position: 75.5% below the Real Estate median (#1474 of 1644)
No single metric tells the full story. See the REAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Real Brokerage Inc is a technology-powered real estate brokerage firm located in the United States and Canada. It has developed a proprietary transaction management and brokerage operations software called reZEN, which powers nearly all of its brokerage operations, enabling efficiency, automation, and flexibility by incorporating end-to-end transaction management, automated compliance and brokerage oversight, integrated payments and financial services, Leo CoPilot, and open API for customization. In addition, the company also offers mortgage brokering and title services. The company's operating segments are North American Brokerage, which derives key revenue, One Real Title, One Real Mortgage, and Real Wallet. Geographically, it derives key revenue from the United States.
62GF Score
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