The Real Brokerage (REAX) Q4 2025 earnings summary

Executive summary

• Achieved transformational growth in 2025, with revenue up 56% to $2.0B and closed transactions up 54%, outpacing the broader market despite a 30% industry decline.

• Ended 2025 with 31,739 agents, up 31% year-over-year, and over 33,000 agents as of the call.

• Focused on a disruptive, technology-driven brokerage model, leveraging proprietary software, high agent autonomy, and a collaborative culture.

• Growth driven by agent attraction, productivity, engagement, and expansion into ancillary services like mortgage, title, and fintech.

• Positive cash flow from operations of $65.9M–$66M enabled $39M in share buybacks, maintaining a debt-free balance sheet with $49.9M–$54.5M in liquidity.

Financial highlights

• Q4 2025 revenue: $505M (+44% YoY); full-year revenue: $2.0B (+56% YoY).

• Q4 gross profit: $39M (+30% YoY); full-year gross profit: $166M (+44% YoY).

• Q4 net loss: $4.2M (improved from $6.7M prior year); full-year net loss: $8.1M (improved from $26.5M prior year).

• Adjusted EBITDA: $14.2M in Q4 (+56% YoY); $62.9M for the year (+57% YoY).

• Operating expenses as a percent of revenue improved by 160 bps in Q4 and 220 bps for the year.

Outlook and guidance

• Expect Q1 2026 revenue, operating loss, and Adjusted EBITDA to decline sequentially due to slow start from weather impacts.

• Anticipate full-year 2026 organic growth to outpace the industry, with revenue and gross profit growth exceeding operating expense growth.

• Margins expected to normalize in the second half of 2026 as transaction mix stabilizes and ancillary growth accelerates.

• Management prioritizes margin expansion, capital allocation, and long-term value creation for agents and shareholders.

• Agent optimism index rose to 70.8 in December 2025, indicating strong confidence in the market outlook.