Real Matters (REAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue grew 16% year-over-year to $41.0 million, with net revenue up 12%, driven by gains across all three segments.

• Net income improved to $2.3 million from a net loss of $3.6 million in Q1 2024, mainly due to unrealized FX gains.

• Five new clients were launched, including three in U.S. Title (one Tier 1, one Top 25, and one other), one major Canadian reverse mortgage lender, and one in U.S. Appraisal.

• Maintained strong operating leverage and margin expansion, with leading performance on lender scorecards and a growing pool of refinance candidates.

• Strong balance sheet with $49 million in cash and no debt.

Financial highlights

• Q1 consolidated revenue: $41.0 million (+16% year-over-year, -10% sequentially); net revenue: $10.9 million (+12% year-over-year, -10% sequentially).

• Net income: $2.3 million (up from $-3.6 million year-over-year); Adjusted EBITDA loss: $1.7 million (vs. $1.1 million loss year-over-year); cash balance of $49 million.

• Adjusted Net Income per diluted share: $0.00 (vs. $-0.02 year-over-year).

Outlook and guidance

• Expecting continued strong net revenue margins in U.S. Appraisal within the 26%-28% target range for fiscal 2025.

• Anticipate doubling of title volume and revenue by year-end as new Tier 1 and Top 25 clients ramp up.

• Confident in acquiring new, active franchise title clients in the coming months, with a sizeable pool of 8.8 million refinance candidates at or above 6% rates.

• Operating leverage expected to improve as volumes increase, especially in title and Canadian segments.

• Cost base managed prudently to align with market conditions and enable scaling when growth resumes.