Want to see TSE:REAL full AI Analyst Report?
Top Page
Real Matters Inc
(TSX:REAL)
Select Model
Select Model
Rating:50Neutral
Price Target:
C$5.00
▲(5.49% Upside)
Action:Reiterated
Date:07/31/26
Overall score reflects (1) weak profitability and negative operating/free cash flow despite strong revenue rebound and a low-debt balance sheet, (2) a clearly bearish technical trend with the stock below all key moving averages, partially offset by (3) a constructive earnings-call setup showing improving adjusted EBITDA, strong client onboarding, and supportive liquidity/no debt. Valuation contributes limited support due to the negative P/E and no dividend yield data.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet with substantial cash gives Real Matters flexibility to fund platform investment, support client onboarding, and absorb mortgage-volume volatility. Low leverage also reduces financing pressure while management pursues growth and operating leverage across its network-based business.
Negative Factors
Persistent losses and cash outflow
The sharp revenue rebound has not yet translated into sustainable earnings or cash generation. Continued operating and free-cash-flow deficits can constrain internally funded investment, weaken value creation, and increase execution risk until higher volumes produce consistent positive returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet with substantial cash gives Real Matters flexibility to fund platform investment, support client onboarding, and absorb mortgage-volume volatility. Low leverage also reduces financing pressure while management pursues growth and operating leverage across its network-based business.
Read all positive factors
Real Matters Inc (REAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$328.36M
Dividend YieldN/A
Average Volume (3M)38.95K
Price to Earnings (P/E)―
Beta (1Y)1.39
Revenue Growth11.98%
EPS Growth-280.96%
CountryCA
Employees338
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.26
Shares Outstanding74,290,000
10 Day Avg. Volume22,658
30 Day Avg. Volume38,952
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.27
Price to Sales (P/S)2.29
P/FCF Ratio-47.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.00Price Target Upside26.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.01
Revenue Forecast (FY)C$54.09M
Real Matters Inc Business Overview & Revenue Model
Company Description
Real Matters Inc. is a Canadian enterprise delivering technology-driven network management solutions, primarily serving the mortgage lending and insurance industries across Canada and the United States. Under its Solidifi brand, the company provid...
How the Company Makes Money
Real Matters makes money by earning fees for facilitating and managing property-related services used in residential mortgage origination, refinance, and other real estate transactions. Its key revenue streams generally come from (1) Title and clo...
Real Matters Inc Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call conveyed a positive operational and financial trajectory: double-digit revenue growth, a more-than-doubled consolidated adjusted EBITDA, record client onboarding (25 YTD), strong U.S. Title and Appraisal momentum, first-mover advantage on the new appraisal form, and a debt-free balance sheet with $40M cash. Near-term challenges include an ongoing adjusted EBITDA loss in U.S. Title, margin pressure in appraisal, higher operating expenses (including planned AI/tech investments that may raise corporate OpEx 10%–20% in the near term), a modest revenue decline in Canada, and continued market volatility. Overall, the substantive growth, improving leverage and strong client wins outweigh the near-term costs and market-driven variability.Positive Updates
Consolidated Revenue Growth
Consolidated revenues increased 13% year-over-year to $51.5 million and consolidated net revenue increased 15% to $13.7 million for Q3 FY2026.
Negative Updates
U.S. Title Adjusted EBITDA Loss
Despite strong revenue growth, U.S. Title reported an adjusted EBITDA loss of $1.3 million in Q3 (improved from a $1.7 million loss in Q3 2025), reflecting ongoing investment and onboarding costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenues increased 13% year-over-year to $51.5 million and consolidated net revenue increased 15% to $13.7 million for Q3 FY2026.
Read all positive updates
Company Guidance
Management guided that scaling volumes from 25 new clients year‑to‑date (10 in Q3) and ongoing market‑share gains should drive continued top‑line growth and operating‑leverage benefits—after reporting Q3 consolidated revenue of $51.5M (+13% YoY), consolidated net revenue $13.7M (+15%) and adjusted EBITDA $0.7M (up 117% YoY; fifth consecutive quarter of positive EBITDA)—and noted YTD revenue +17% and adjusted EBITDA +150%; near‑term investments in AI/platform modernization will modestly raise corporate OpEx (expected to increase roughly 10–20% over the next few quarters), spreads are anticipated to remain around ~200 bps over the next couple of quarters, and the company enters the period with $40.0M cash, no debt, and capacity to support further growth.Real Matters Inc Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
74
Positive
Cash Flow
27
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 190.47M | 169.75M | 172.72M | 163.91M | 339.64M | 504.11M |
| Gross Profit | 50.31M | 44.66M | 46.36M | 43.02M | 22.66M | 78.50M |
| EBITDA | 4.14M | -1.72M | 2.70M | -4.99M | 5.91M | 51.56M |
| Net Income | -19.18M | -22.66M | 18.00K | -6.17M | -9.27M | 32.99M |
Balance Sheet | ||||||
| Total Assets | 107.21M | 111.56M | 134.28M | 128.74M | 137.00M | 194.34M |
| Cash, Cash Equivalents and Short-Term Investments | 39.95M | 40.19M | 49.14M | 42.34M | 46.14M | 60.21M |
| Total Debt | 1.29M | 1.73M | 2.82M | 4.10M | 5.86M | 8.04M |
| Total Liabilities | 19.22M | 20.70M | 18.58M | 17.16M | 22.00M | 34.79M |
| Stockholders Equity | 87.99M | 90.87M | 115.70M | 111.58M | 114.89M | 159.44M |
Cash Flow | ||||||
| Free Cash Flow | -1.64M | -8.21M | 4.67M | -3.59M | 16.39M | 22.00M |
| Operating Cash Flow | -1.02M | -7.18M | 5.45M | -2.56M | 17.57M | 25.02M |
| Investing Cash Flow | -1.50M | -686.00K | -169.00K | -799.00K | -1.08M | -2.88M |
| Financing Cash Flow | -538.50K | -479.00K | 1.42M | -445.00K | -30.42M | -94.05M |
Real Matters Inc Technical Analysis
Negative
4.74
Price Trends
4.96
Negative
5.25
Negative
5.72
Negative
Market Momentum
-0.16
Positive
33.57
Neutral
15.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REAL, the sentiment is Negative. The current price of 4.74 is below the 20-day moving average (MA) of 4.78, below the 50-day MA of 4.96, and below the 200-day MA of 5.72, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 33.57 is Neutral, neither overbought nor oversold. The STOCH value of 15.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:REAL.
Real Matters Inc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$295.60M | 20.10 | 18.44% | 1.06% | -3.23% | -27.76% | |
50 Neutral | C$328.36M | -12.36 | -21.48% | ― | 11.98% | -280.96% | |
50 Neutral | C$420.97M | 105.84 | 5.99% | 1.22% | 10.55% | -9.36% | |
47 Neutral | C$140.36M | -14.63 | -60.80% | ― | 48.65% | 25.20% | |
45 Neutral | C$72.31M | -4.91 | -43.54% | ― | -66.56% | -940.17% |
* Real Estate Sector Average
TSE:REAL
Real Matters Inc
4.42
-2.58
-36.86%
TSE:CMG
Computer Modelling
3.79
-2.57
-40.39%
TSE:IMP
Intermap Technology
0.98
-2.20
-69.18%
TSE:XTRA
Xtract One
0.54
-0.04
-6.90%
TSE:TCS
TECSYS Inc. J
29.20
-4.72
-13.92%
Real Matters Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Real Matters CFO to Step Down as Firm Launches Succession Search
Neutral
Sep 3, 2026
Real Matters Inc., a TSX-listed provider of technology-enabled network management services for mortgage lenders and insurers, said Chief Financial Officer Rodrigo Pinto will step down to pursue a role outside the mortgage sector. Pinto will remain...
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.