The Real Brokerage (NASDAQ:REAX) Reports Upbeat Q4 CY2025

Real estate technology company The Real Brokerage (NASDAQ:REAX) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 44.1% year on year to $505.1 million. Its GAAP loss of $0.02 per share was $0.01 above analysts’ consensus estimates.

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“Real delivered strong fourth quarter results, with revenue increasing 44% year-over-year and closed transactions growing 38%,” said Tamir Poleg, Chairman and Chief Executive Officer.

Company Overview

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, The Real Brokerage’s 160% annualized revenue growth over the last five years was incredible. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. The Real Brokerage’s annualized revenue growth of 69% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, The Real Brokerage reported magnificent year-on-year revenue growth of 44.1%, and its $505.1 million of revenue beat Wall Street’s estimates by 7.6%.

Looking ahead, sell-side analysts expect revenue to grow 19.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is healthy and implies the market is forecasting success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

The Real Brokerage’s operating margin has generally stayed the same over the last 12 months. The company broke even over the last two years, inadequate for a consumer discretionary business. Its large expense base and inefficient cost structure were the main culprits behind this performance.

This quarter, The Real Brokerage generated a negative 1% operating margin.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Although The Real Brokerage’s full-year earnings are still negative, it reduced its losses and improved its EPS by 8.9% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.

In Q4, The Real Brokerage reported EPS of negative $0.02, in line with the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects The Real Brokerage to improve its earnings losses. Analysts forecast its full-year EPS of negative $0.03 will advance to negative $0.03.

Key Takeaways from The Real Brokerage’s Q4 Results

It was good to see The Real Brokerage beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 1.5% to $2.78 immediately after reporting.

The Real Brokerage put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).