Real Matters (REAL) investor relations material

Executive summary

• Achieved double-digit sequential growth in all three segments, with consolidated revenues up 22% to $45.4M, driven by seasonal uptick and improved refinance conditions.

• Launched four new clients in Q3, including the largest credit union in U.S. Title, and doubled market share in U.S. Title; post-quarter, added a second Tier 1 U.S. Title lender and a top-15 U.S. Appraisal lender.

• Maintained a strong balance sheet with $43.8M–$44M in cash and no debt at quarter-end.

• Net loss of $4.9M, compared to net income of $1.7M in Q3'24, mainly due to a $5.6M increase in net foreign exchange loss.

• Continued investment in sales headcount and pipeline growth, positioning for future expansion.

Financial highlights

• Q3 consolidated revenue was $45.4M, up 22% sequentially but down 8% year-over-year; net revenue was $11.9M, down 10% year-over-year.

• Adjusted EBITDA was $0.3M, a significant improvement from $(1.9)M in Q2 but down from $1.7M in Q3'24.

• Net loss of $4.9M, compared to a net loss of $2.2M in the previous quarter.

• Nine-month revenue declined 3% year-over-year to $123.7M; net loss for the period was $4.8M.

• Ended the quarter with $43.8M in cash and no debt.

Outlook and guidance

• Management expects to benefit from pent-up demand as nearly 12M U.S. mortgages carry rates above 6%, positioning for growth when rates fall.

• Target operating model projects U.S. Appraisal segment adjusted EBITDA of $50M–$65M and U.S. Title of $30M–$45M in a normalized market.

• Anticipates significant volume increase from Rocket in 2026 following the Mr. Cooper acquisition.

• Management remains focused on growing market share and scaling as mortgage market volumes normalize.