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Real Brokerage
(NASDAQ:REAX)
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Rating:63Neutral
Price Target:
$20.00
▼(-29.65% Downside)
Action:Reiterated
Date:08/29/26
The score is primarily supported by strong and improving cash generation plus a low-debt balance sheet, reinforced by a generally positive earnings call (growth, adjusted EBITDA progress, and potential synergy upside). Offsetting these positives are continued GAAP losses/negative ROE, a technically mixed chart with price below key longer-term averages, and limited traditional valuation support due to negative earnings and no dividend yield provided.
Positive Factors
Strong cash generation
Consistently positive and rising operating cash flow, with free cash flow closely tracking it, gives Real internal funding capacity. Strong cash conversion can support technology investment, agent expansion and transaction integration while reducing reliance on external financing.
Negative Factors
Persistent unprofitability
Despite substantial revenue growth, Real has not yet converted its business model into sustained GAAP profitability. Continued operating and net losses limit retained earnings, weaken shareholder returns and leave less evidence that growth is translating into durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive and rising operating cash flow, with free cash flow closely tracking it, gives Real internal funding capacity. Strong cash conversion can support technology investment, agent expansion and transaction integration while reducing reliance on external financing.
Read all positive factors
Real Brokerage (REAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$409.27M
Dividend YieldN/A
Average Volume (3M)829.62K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth38.44%
EPS Growth-12.22%
CountryUS
Employees511
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.66
Shares Outstanding21,921,352
10 Day Avg. Volume1,362,125
30 Day Avg. Volume829,622
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)15.53
Price to Sales (P/S)0.41
P/FCF Ratio12.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$37.50Price Target Upside31.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$2.40B
Real Brokerage Business Overview & Revenue Model
Company Description
Operating with its various subsidiaries, The Real Brokerage Inc. functions as a technology-driven real estate brokerage enterprise. The company delivers comprehensive real estate agency solutions through an expansive network of agents. It equips i...
How the Company Makes Money
REAX primarily generates revenue by taking a portion of the commissions earned on residential real estate transactions completed by agents affiliated with its brokerage. When an agent closes a home sale or purchase, a commission is paid (typically...
Real Brokerage Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial trajectory: strong top-line growth (30% revenue increase), record transaction volume and agent growth, meaningful adjusted EBITDA expansion (38%), and a strengthened cash position. Management also highlighted technology momentum (HeyLeo 2.0), ancillary business acceleration, and anticipated $30M of post-close synergies from the RE/MAX transaction. Offsetting items include an operating loss driven by $11.6M of acquisition-related costs, mix-driven gross margin pressure, near-term seasonal declines (Q3), and localized weakness in Canada. On balance the results emphasize durable growth, improving core profitability, and strategic upside from the RE/MAX deal, while acknowledging short-term margin and seasonal headwinds.Positive Updates
Strong Revenue Growth
Revenue increased 30% year-over-year to $700.6 million in Q2 2026, driven by higher closed transactions and improved per-transaction revenue.
Negative Updates
Operating Loss and Acquisition-Related Costs
Reported operating loss of $7.0 million in Q2 2026 compared with operating income of $1.7 million in Q2 2025; total operating expenses were $65.3 million and included $11.6 million of acquisition-related costs tied to the pending RE/MAX transaction. Net loss was $8.0 million.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased 30% year-over-year to $700.6 million in Q2 2026, driven by higher closed transactions and improved per-transaction revenue.
Read all positive updates
Company Guidance
Management guided that, pending security holder votes on August 14 and satisfaction of remaining closing conditions, the RE/MAX transaction is expected to close in the second half of 2026 and the combined company should realize approximately $30 million of cost synergies within three years of closing; on a pro forma basis the two companies generated about $160 million of adjusted EBITDA in 2025 (rising to roughly $190 million when adding the $30 million synergies). They said they will prioritize debt repayment and deleveraging after closing and noted a record cash and short‑term investments balance of $86.6 million at quarter end. For stand‑alone Real, they expect Q3 to follow normal seasonal patterns with revenue and adjusted EBITDA declining sequentially from Q2 (Q2 revenue was $700.6 million and adjusted EBITDA $27.6 million) and gross margin lower year‑over‑year in Q3 (with fee model changes effective in September and Q4 gross margin expected to be relatively flat YoY), and they will provide a combined‑company baseline and preliminary 2027 guidance on the November call.Real Brokerage Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.24B | 1.97B | 1.26B | 689.16M | 381.76M | 121.68M |
| Gross Profit | 184.30M | 163.76M | 114.74M | 62.87M | 31.95M | 11.09M |
| EBITDA | -12.90M | -6.57M | -24.68M | -25.49M | -19.55M | -11.05M |
| Net Income | -16.09M | -8.11M | -26.54M | -27.50M | -20.58M | -12.34M |
Balance Sheet | ||||||
| Total Assets | 213.40M | 126.86M | 86.59M | 64.55M | 43.76M | 40.00M |
| Cash, Cash Equivalents and Short-Term Investments | 86.64M | 76.28M | 32.83M | 28.93M | 18.74M | 34.63M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 96.00K | 131.00K |
| Total Liabilities | 134.80M | 75.28M | 54.45M | 27.46M | 21.35M | 12.99M |
| Stockholders Equity | 78.68M | 51.67M | 32.15M | 36.88M | 22.15M | 27.00M |
Cash Flow | ||||||
| Free Cash Flow | 89.03M | 64.83M | 47.69M | 19.24M | 4.59M | 3.77M |
| Operating Cash Flow | 89.90M | 65.93M | 48.73M | 19.87M | 6.00M | 3.94M |
| Investing Cash Flow | -13.62M | -13.59M | 3.81M | -6.63M | -9.05M | -10.21M |
| Financing Cash Flow | -33.24M | -40.25M | -33.14M | -3.96M | -7.85M | 13.95M |
Real Brokerage Technical Analysis
Negative
28.43
Price Trends
20.87
Negative
20.20
Negative
26.25
Negative
Market Momentum
-0.50
Positive
41.09
Neutral
5.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REAX, the sentiment is Negative. The current price of 28.43 is above the 20-day moving average (MA) of 23.20, above the 50-day MA of 20.87, and above the 200-day MA of 26.25, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REAX.
Real Brokerage Peers Comparison
UnderperformOutperform
Sector (65)
REAX
Real Brokerage
18.67
-32.13
-63.25%
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.92
-1.01
-5.36%
DOUG
Douglas Elliman Inc.
1.81
-1.04
-36.49%
Real Brokerage Corporate Events
Real Brokerage Securityholders Overwhelmingly Back RE/MAX Combination
Aug 14, 2026
On August 14, 2026, The Real Brokerage Inc. held a special meeting of securityholders to vote on an arrangement underpinning its proposed business combination with U.S.-based RE/MAX Holdings. Shareholders representing 62.29% of outstanding common ...
Real Brokerage Sets Board Lineup for Planned RE/MAX Merger and Nasdaq-Listed Real REMAX Group
Aug 6, 2026
On April 26, 2026, The Real Brokerage Inc. entered into an Arrangement Agreement and Plan of Merger to acquire RE/MAX Holdings, Inc., creating a new Delaware holding company, Rome Wildlife, Inc., expected to be renamed Real REMAX Group Inc. The co...
The Real Brokerage Files Form 6-K with Q2 2026 Financial Disclosures
Aug 6, 2026
On August 6, 2026, The Real Brokerage Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing its management’s discussion and analysis and unaudited interim condensed consolidated financial statements for the perio...
Real Brokerage and RE/MAX Set August 18 Election Deadline for Merger Consideration
Aug 4, 2026
On August 4, 2026, Real Brokerage Inc. and RE/MAX Holdings Inc. reminded RE/MAX Class A shareholders of an August 18, 2026, 5:00 p.m. New York time deadline to elect the type of consideration they will receive in Real’s pending acquisition o...
Real Brokerage and RE/MAX Clear U.S. Antitrust Hurdle for Planned Merger
Jul 14, 2026
On April 26, 2026, The Real Brokerage entered into an Arrangement Agreement and Plan of Merger with RE/MAX Holdings and several subsidiaries, outlining a series of transactions that would combine the two real estate businesses. The deal structure ...
Real Brokerage Advances RE/MAX Acquisition Plan as Shareholders Prepare to Vote
Jul 10, 2026
On July 9, 2026, Real Brokerage distributed meeting materials to securityholders ahead of an August 14 special meeting to approve a complex cross-border transaction through an arrangement and series of mergers with RE/MAX Holdings. Under an April ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.