The Real Brokerage (REAX) Q3 2025 earnings summary

Executive summary

• Achieved rapid organic growth in Q3 2025, with closed transactions up 49% year over year and agent count surpassing 30,000, leveraging a software-based, capital-efficient model with no physical office requirements.

• Focused on empowering agents through technology, unique compensation, and a collaborative culture, while expanding into high-margin ancillary services like mortgage, title, and fintech.

• Maintains a strong balance sheet with net cash and no debt, supporting continued investment in technology and growth initiatives.

• Continued to outperform the broader housing market, gaining share and expanding the agent base.

Financial highlights

• Q3 2025 revenue rose 53% year over year to $568.5 million, with gross profit up 40% to $44.9 million and gross margin at 7.9%.

• Adjusted EBITDA grew 54% to $20.4 million, and net loss improved to $(0.4) million from $(2.6) million in Q3 2024.

• Operating expenses increased 31% to $45.3 million, representing 8% of revenue, with adjusted operating expenses at $21.7 million.

• Cash flow from operations was $8.8 million; ended Q3 with $55.8 million in unrestricted cash and no debt.

• Repurchased 3.2 million shares for $15.5 million under buyback authorization.

Outlook and guidance

• Management expects continued agent growth, revenue expansion, and profitability, with a focus on scaling new products like Real Wallet and AI-driven offerings.

• Q4 revenue expected to decline sequentially due to seasonality, with lower gross margin year over year.

• Non-variable OpEx expected to increase in Q4 due to planned headcount additions and annual conference costs.

• Laying the foundation for a stronger 2026, leveraging current momentum.