The Real Brokerage (REAX) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $372.5M, up 74% year-over-year, with 35,832 closed transactions (up 76%) and agent count rising 79% to 21,770; surpassed 22,500 agents in early Q4.

• Launched major technology initiatives including Leo CoPilot (AI-driven agent platform), Leo for Clients (consumer-facing AI portal), and Real Wallet (financial platform for agents).

• Ancillary businesses (mortgage and title) grew 97% year-over-year, with mortgage up over 200%.

• Real Brokerage leverages a proprietary software platform, innovative compensation models, and a collaborative culture to drive agent growth and operational efficiency.

• Outpaced a declining home sales market, continuing to invest in technology and new product rollouts.

Financial highlights

• Gross profit rose 71% to $32.1M from $18.8M year-over-year.

• Adjusted EBITDA improved to $13.3M from $3.5M year-over-year.

• Operating loss narrowed to $2.5M from $4M year-over-year; net loss was $2.6M versus $4M.

• Cash and investments at quarter-end were $32M; $7.2M cash flow from operations, $15.1M allocated to share repurchases.

• LTM revenue reached $1,095M, up from $938M in the prior period.

Outlook and guidance

• Q4 operating expenses expected to rise sequentially due to headcount additions, while revenue will decline in line with industry seasonality.

• Focus remains on scaling technology, agent support, and ancillary services, with attach rates for ancillary products targeted to reach double digits in the long term.

• No immediate plans for international expansion beyond North America; Canadian expansion into Saskatchewan planned for 2025.

• Plans to launch Leo for Clients, a consumer-facing AI-driven app, in 2025 to streamline the homebuying process and increase ancillary service attachment.

• Continued agent and revenue growth expected, leveraging scalable platform and expanding fintech offerings.