Real Brokerage (REAX)
Market Price (12/30/2025): $3.59 | Market Cap: $786.2 MilSector: Real Estate | Industry: Real Estate Services
Real Brokerage (REAX)
Market Price (12/30/2025): $3.59Market Cap: $786.2 MilSector: Real EstateIndustry: Real Estate Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 66% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -10 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -0.6% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -28% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.5% |
| Attractive yieldFCF Yield is 8.4% | Key risksREAX key risks include [1] its challenge in maintaining profitability after a history of losses due to its significant expense base and agent incentive structure, Show more. |
| Low stock price volatilityVol 12M is 47% | |
| Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, E-commerce & Digital Retail, and Cloud Computing. Themes include Real Estate Data Analytics, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 66% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -28% |
| Attractive yieldFCF Yield is 8.4% |
| Low stock price volatilityVol 12M is 47% |
| Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, E-commerce & Digital Retail, and Cloud Computing. Themes include Real Estate Data Analytics, Show more. |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -10 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -0.6% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.5% |
| Key risksREAX key risks include [1] its challenge in maintaining profitability after a history of losses due to its significant expense base and agent incentive structure, Show more. |
Why The Stock Moved
Qualitative Assessment
AI Analysis | Feedback
Stock Movement Drivers
Fundamental Drivers
The -18.0% change in REAX stock from 9/29/2025 to 12/29/2025 was primarily driven by a -25.5% change in the company's P/S Multiple.| 9292025 | 12292025 | Change | |
|---|---|---|---|
| Stock Price ($) | 4.38 | 3.59 | -18.04% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 1617.85 | 1813.91 | 12.12% |
| P/S Multiple | 0.58 | 0.43 | -25.46% |
| Shares Outstanding (Mil) | 214.79 | 219.00 | -1.96% |
| Cumulative Contribution | -18.07% |
Market Drivers
9/29/2025 to 12/29/2025| Return | Correlation | |
|---|---|---|
| REAX | -18.0% | |
| Market (SPY) | 3.6% | 47.3% |
| Sector (XLRE) | -3.2% | 34.9% |
Fundamental Drivers
The -20.4% change in REAX stock from 6/30/2025 to 12/29/2025 was primarily driven by a -33.3% change in the company's P/S Multiple.| 6302025 | 12292025 | Change | |
|---|---|---|---|
| Stock Price ($) | 4.51 | 3.59 | -20.40% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 1417.88 | 1813.91 | 27.93% |
| P/S Multiple | 0.65 | 0.43 | -33.33% |
| Shares Outstanding (Mil) | 204.38 | 219.00 | -7.15% |
| Cumulative Contribution | -20.81% |
Market Drivers
6/30/2025 to 12/29/2025| Return | Correlation | |
|---|---|---|
| REAX | -20.4% | |
| Market (SPY) | 11.6% | 38.5% |
| Sector (XLRE) | -1.2% | 32.3% |
Fundamental Drivers
The -24.1% change in REAX stock from 12/29/2024 to 12/29/2025 was primarily driven by a -49.0% change in the company's P/S Multiple.| 12292024 | 12292025 | Change | |
|---|---|---|---|
| Stock Price ($) | 4.73 | 3.59 | -24.10% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 1095.35 | 1813.91 | 65.60% |
| P/S Multiple | 0.85 | 0.43 | -48.96% |
| Shares Outstanding (Mil) | 196.67 | 219.00 | -11.35% |
| Cumulative Contribution | -25.08% |
Market Drivers
12/29/2024 to 12/29/2025| Return | Correlation | |
|---|---|---|
| REAX | -24.1% | |
| Market (SPY) | 16.6% | 38.6% |
| Sector (XLRE) | 2.6% | 23.4% |
Fundamental Drivers
The 241.9% change in REAX stock from 12/30/2022 to 12/29/2025 was primarily driven by a 439.7% change in the company's Total Revenues ($ Mil).| 12302022 | 12292025 | Change | |
|---|---|---|---|
| Stock Price ($) | 1.05 | 3.59 | 241.90% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 336.12 | 1813.91 | 439.67% |
| P/S Multiple | 0.56 | 0.43 | -22.69% |
| Shares Outstanding (Mil) | 179.47 | 219.00 | -22.03% |
| Cumulative Contribution | 225.32% |
Market Drivers
12/30/2023 to 12/29/2025| Return | Correlation | |
|---|---|---|
| REAX | 124.4% | |
| Market (SPY) | 47.9% | 32.9% |
| Sector (XLRE) | 7.4% | 23.3% |
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| REAX Return | - | 490% | -72% | 52% | 187% | -20% | 490% |
| Peers Return | 16% | 38% | -12% | 21% | 26% | 16% | 151% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 17% | 114% |
Monthly Win Rates [3] | |||||||
| REAX Win Rate | - | 57% | 33% | 58% | 58% | 50% | |
| Peers Win Rate | 52% | 65% | 42% | 68% | 57% | 52% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| REAX Max Drawdown | - | -16% | -72% | 0% | -4% | -25% | |
| Peers Max Drawdown | -34% | -5% | -26% | -7% | -9% | -23% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: HPQ, HPE, IBM, CSCO, AAPL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/29/2025 (YTD)
How Low Can It Go
| Event | REAX | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -74.8% | -25.4% |
| % Gain to Breakeven | 296.2% | 34.1% |
| Time to Breakeven | 664 days | 464 days |
Compare to HPQ, HPE, IBM, CSCO, AAPL
In The Past
Real Brokerage's stock fell -74.8% during the 2022 Inflation Shock from a high on 12/27/2021. A -74.8% loss requires a 296.2% gain to breakeven.
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AI Analysis | Feedback
Here are 1-3 brief analogies for Real Brokerage (REAX):
Think of it as the Robinhood for real estate agents – a tech-first platform designed to empower agents with better commission splits and stock ownership compared to traditional brokerages.
It's like the Tesla of real estate brokerages – a tech-forward company disrupting traditional models like RE/MAX by offering agents superior tools, high commission splits, and stock incentives through a cloud-based platform.
Imagine a Zoom for real estate brokerages – a virtually-operated company that leverages technology to enable agents to work flexibly and efficiently without traditional physical offices, allowing for higher agent compensation.
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- Real Estate Brokerage Service: Facilitating residential property transactions by providing licensed agents with the necessary infrastructure and legal framework.
- Agent Productivity Platform: A technology suite offering tools for lead management, transaction coordination, and marketing support to real estate agents.
- Agent Equity & Revenue Share Programs: Incentive programs allowing agents to earn equity in the company and participate in revenue sharing from agent recruitment.
AI Analysis | Feedback
The Real Brokerage (symbol: REAX) operates a technology-powered real estate brokerage platform primarily serving individual real estate agents.
The company sells primarily to individuals, specifically licensed real estate agents who choose to affiliate with Real to operate their businesses. These agents are not "customers" in the traditional sense of buying a product from Real, but rather independent contractors utilizing Real's platform and services. Based on Real's value proposition and target market, its individual agent "customers" can be categorized as follows:
- Experienced and High-Producing Agents: These agents typically have an established client base and significant sales volume. They are attracted to Real's competitive commission splits (often 100% after a cap), revenue share program, and stock opportunities, which allow them to maximize their earnings and build long-term wealth.
- Growth-Oriented Agents and Teams: This category includes agents and small teams looking to efficiently scale their real estate businesses. They benefit from Real's technology platform, collaborative environment, and tools designed to streamline operations and expand their reach. The revenue share model also provides an incentive for team building and recruitment within the brokerage.
- Tech-Savvy Agents: Agents who prioritize modern, cloud-based tools and a mobile-first approach to real estate. They value Real's integrated platform for lead generation, transaction management, marketing, and communication, which enhances their productivity and client service in a digitally evolving market.
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Tamir Poleg Co-Founder, Chairman and Chief Executive Officer
Tamir Poleg is the Co-Founder, Chairman, and Chief Executive Officer of Real, a role he has held since 2014. Prior to launching Real, Poleg was the Founder and CEO of Optimum RE Investments, an investment firm focused on multi-family real estate and technology ventures. Earlier in his career, he held various leadership roles in the real estate and technology sectors across multiple continents. He has 15 years of experience in real estate. Under his leadership, Real achieved 4,062% revenue growth from 2020 to 2023, earning recognition on Deloitte's Fastest-Growing Companies list. He also led the acquisition of Flyhomes' AI-powered search platform and launched Real Wallet in 2024.
Ravi Jani Chief Financial Officer
Ravi Jani is the Chief Financial Officer of Real, where he is responsible for the company's financial strategy, accounting, financial reporting, capital allocation, investor relations, and long-term planning.
Sharran Srivatsaa President and Director
Sharran Srivatsaa is the President and a Director of The Real Brokerage, Inc., though he will transition from his role as President to join the company's Board of Directors effective June 1, 2025. He is a 4x Inc. 500 Entrepreneur with five successful exits in the last 20 years. Prior to Real, he grew Teles Properties by tenfold in five years to $3.4 billion in sales, ultimately selling the business to Douglas Elliman. He previously worked as a banker at Goldman Sachs and Credit Suisse. Srivatsaa also serves as the Chairman of the private equity firm Highland Prime and the Chairman of ARC Multifamily Group. He joined Real's leadership team in late 2022, contributing to more than a doubling of the company's revenue and agent count.
Pritesh Damani Chief Technology Officer
Pritesh Damani is the Chief Technology Officer at Real, where he has developed an industry-leading proprietary platform. He joined Real's senior leadership team in January 2021 following the company's acquisition of RealtyCrunch, a company he founded and served as Chief Executive Officer since 2019.
Jenna Rozenblat Chief Operating Officer
Jenna Rozenblat is the Chief Operating Officer at Real, overseeing daily operations, implementing efficiency strategies, and ensuring the execution of the company's vision. She brings over 15 years of experience in operations, program management, and customer service within the real estate industry. She was recognized as a 2024 Inman Future Leader in Real Estate and a 2024 Rising Star by HousingWire.
AI Analysis | Feedback
The Real Brokerage (REAX) faces several key risks, primarily stemming from the cyclical nature of the real estate market and challenges related to maintaining consistent profitability amid an aggressive growth strategy.
- Real Estate Market Sensitivity: The company's performance is highly susceptible to fluctuations in the broader real estate sector. Factors such as elevated mortgage rates, sustained high-interest rates set by the Federal Reserve, and a general decline in real estate transactions can significantly impede sales and reduce revenue. Although the company demonstrated growth in a challenging market, the overall sentiment among its agents indicates that affordability, driven by mortgage rates, remains a significant hurdle for prospective homebuyers.
- Achieving and Sustaining Profitability: Despite reporting its first profitable quarter in Q2 2025, Real Brokerage has historically experienced operating losses and net losses. Concerns exist regarding the company's ability to maintain this profitability, given its substantial expense base and the potential impact of agent incentives on gross margins. Analysts have noted a history of negative operating margins and a decline in earnings per share over the past five years, raising questions about the efficiency of its cost structure and profitable growth.
- Intense Competition and Agent-Centric Growth Model: The real estate brokerage industry is highly competitive, with many established players and new technology-driven firms. Real Brokerage's business model heavily relies on attracting and retaining a growing number of real estate agents through its technology platform, competitive commission splits, and equity incentives. While the company has shown strong agent growth, the sustainability of this rapid expansion could be challenged as competitors adapt and the market normalizes, potentially impacting its ability to continuously draw agents away from traditional and other tech-focused brokerages.
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The addressable markets for The Real Brokerage Inc.'s (REAX) main products and services in 2025 are detailed below, specifying the relevant regions:
- Real Estate Brokerage Services:
- U.S. Market: The Real Estate Sales & Brokerage industry in the United States is projected to be approximately $241.3 billion in 2025.
- Canada Market: The Real Estate Sales & Brokerage industry in Canada is estimated at $19.0 billion in 2025.
- Mortgage Services:
- U.S. Market: The total mortgage origination volume in the United States is expected to reach $2.3 trillion in 2025.
- Canada Market: The Mortgage/loan Brokers Market in Canada is projected to be approximately $778.56 million (USD) in 2025.
- Title Services:
- U.S. Market: The Title Insurance industry in the United States is estimated at $17.1 billion in 2025.
- Canada Market: The Canada Title Insurance market had a market size of approximately $2.74 billion (USD 2744.70 million) in 2024.
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Expected Drivers of Future Revenue Growth for The Real Brokerage (REAX)
The Real Brokerage (REAX) is anticipated to drive future revenue growth over the next 2-3 years through a combination of sustained agent growth, the expansion and scaling of its ancillary services, and continued investment in technology and AI-driven efficiencies.1. Sustained Agent Growth
The company has consistently demonstrated strong organic growth in its agent count. In the third quarter of 2025, Real Brokerage surpassed 30,000 agents on its platform, representing a 39% increase year-over-year. This growth has been described as "broad based and entirely organic" by management. A larger agent base directly translates to an increased volume of transactions and, consequently, higher brokerage revenue. The continued attraction and retention of real estate agents are expected to be a primary driver of top-line expansion.2. Expansion of Ancillary Services
Real Brokerage is actively developing and scaling its ancillary services, which are poised to contribute significantly to future revenue. These services include One Real Mortgage, One Real Title, and Real Wallet. While still in early development, One Real Mortgage's revenue was up 47%, and Real Wallet was operating at an annualized revenue run rate of over $1.2 million. In Q3 2025, ancillary businesses generated $3.2 million in revenue, a 25% increase year-over-year. The company is also exploring potential small acquisitions in title services. The ongoing investment and scaling of these offerings are expected to diversify revenue streams and enhance overall revenue growth.3. Technology and AI Integration
Real Brokerage's strategic focus on technology integration and AI adoption is a key driver for future growth and margin expansion. The company has launched innovative AI-driven solutions, such as HeyLeo, and plans to announce significant technological advancements at its upcoming Rise conference. These technological enhancements are aimed at improving agent productivity and efficiency, which can lead to a higher volume of transactions per agent and, in turn, increased revenue. The company's commitment to transforming into a modern real estate platform through technology is expected to fuel sustained growth.AI Analysis | Feedback
Share Repurchases
- The Real Brokerage authorized a $150 million share repurchase program on May 28, 2025.
- During the third quarter of 2025, the company deployed $15.5 million towards share repurchases.
- As of September 30, 2022, Real Brokerage repurchased 7.8 million Common Shares for $19.4 million under its Normal Course Issuer Bid.
Share Issuance
- The number of shares outstanding for Real Brokerage increased by 14.66% in the year ending November 2025, reaching 214,787,000 shares.
- There has been ongoing issuance of shares primarily through restricted stock units and stock option exercises to employees and insiders, as indicated by various Form 144 filings over the past few years.
Outbound Investments
- On July 1, 2025, The Real Brokerage acquired Flyhomes Consumer Home Search Technology and made a strategic investment.
- The company's strategy includes building, acquiring, or partnering to offer additional ancillary services, aiming to create a comprehensive "one-stop shop" experience.
Capital Expenditures
- In the last 12 months, capital expenditures for Real Brokerage were -$1.02 million.
- A primary focus of capital allocation is investing in the company's technology platform and supporting the expansion of ancillary services.
- Ongoing capital is directed towards AI-driven automation and digital platforms to enhance efficiency, reduce costs, and scale margin expansion across core and ancillary businesses.
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Trade Ideas
Select ideas related to REAX. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | MPW | Medical Properties Trust | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.1% | 0.1% | -5.8% |
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Peer Comparisons for Real Brokerage
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 51.06 |
| Mkt Cap | 159.0 |
| Rev LTM | 56,496 |
| Op Inc LTM | 7,584 |
| FCF LTM | 7,327 |
| FCF 3Y Avg | 7,366 |
| CFO LTM | 8,590 |
| CFO 3Y Avg | 8,697 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.4% |
| Rev Chg 3Y Avg | 3.2% |
| Rev Chg Q | 9.4% |
| QoQ Delta Rev Chg LTM | 2.1% |
| Op Mgn LTM | 12.1% |
| Op Mgn 3Y Avg | 11.9% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 14.6% |
| CFO/Rev 3Y Avg | 17.1% |
| FCF/Rev LTM | 11.6% |
| FCF/Rev 3Y Avg | 12.1% |
Price Behavior
| Market Price | $3.59 | |
| Market Cap ($ Bil) | 0.8 | |
| First Trading Date | 06/15/2021 | |
| Distance from 52W High | -34.8% | |
| 50 Days | 200 Days | |
| DMA Price | $3.84 | $4.24 |
| DMA Trend | down | down |
| Distance from DMA | -6.5% | -15.4% |
| 3M | 1YR | |
| Volatility | 52.6% | 47.3% |
| Downside Capture | 295.25 | 178.72 |
| Upside Capture | 148.64 | 124.45 |
| Correlation (SPY) | 45.9% | 38.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.47 | 1.94 | 1.84 | 1.69 | 0.95 | 0.92 |
| Up Beta | 1.42 | 2.17 | 2.72 | 1.67 | 0.63 | 0.74 |
| Down Beta | 0.39 | 1.43 | 1.27 | 1.20 | 0.67 | 0.92 |
| Up Capture | 451% | 175% | 65% | 160% | 133% | 155% |
| Bmk +ve Days | 13 | 26 | 39 | 74 | 142 | 427 |
| Stock +ve Days | 11 | 20 | 25 | 56 | 114 | 353 |
| Down Capture | 231% | 218% | 248% | 204% | 132% | 98% |
| Bmk -ve Days | 7 | 16 | 24 | 52 | 107 | 323 |
| Stock -ve Days | 8 | 21 | 35 | 65 | 126 | 365 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
nullBased On 5-Year Data
nullBased On 10-Year Data
nullSEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 10/30/2025 | 6-K (09/30/2025) |
| 06/30/2025 | 08/07/2025 | 6-K (06/30/2025) |
| 03/31/2025 | 05/08/2025 | 6-K (03/31/2025) |
| 12/31/2024 | 03/06/2025 | 40-F (12/31/2024) |
| 09/30/2024 | 11/07/2024 | 6-K (09/30/2024) |
| 06/30/2024 | 08/07/2024 | 6-K (06/30/2024) |
| 03/31/2024 | 05/07/2024 | 6-K (03/31/2024) |
| 12/31/2023 | 03/14/2024 | 40-F (12/31/2023) |
| 09/30/2023 | 11/09/2023 | 6-K (09/30/2023) |
| 06/30/2023 | 08/09/2023 | 6-K (06/30/2023) |
| 03/31/2023 | 05/11/2023 | 6-K (03/31/2023) |
| 12/31/2022 | 03/16/2023 | 40-F (12/31/2022) |
| 09/30/2022 | 11/10/2022 | 6-K (09/30/2022) |
| 06/30/2022 | 08/11/2022 | 6-K (06/30/2022) |
| 03/31/2022 | 05/09/2022 | 6-K (03/31/2022) |
| 12/31/2021 | 03/18/2022 | 40-F (12/31/2021) |
External Quote Links
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| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
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