The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
The Real Brokerage Inc. (NASDAQ:REAX) ("Real" or the "Company"), a technology platform reshaping real estate for agents, home buyers, and sellers, announced today financial results for the fourth quarter and full year ended December 31, 2024.
"Real delivered record results in 2024, capping it off with another quarter of exceptional growth," said Tamir Poleg, Real's Chairman and Chief Executive Officer. "Our unwavering commitment to innovation and agent success continues to set us apart in the industry. From launching Real Wallet, our proprietary fintech platform, to rolling out AI-powered tools that enhance agent productivity, we're building the future of real estate."
"We continue to attract and empower top-performing agents at an industry-leading pace," said Sharran Srivatsaa, President of Real. "Our proprietary technology, competitive economics, world-class resources, and collaborative culture are driving momentum, further cementing Real as the platform of choice for entrepreneurial agents."
"Our strong fourth quarter and record full-year results reflect the power of our platform and our disciplined approach to growth," said Michelle Ressler, Real's Chief Financial Officer. "With our recent fee model changes now established, we're ensuring we can continue investing in cutting-edge technology and agent support, while driving sustainable year over year improvements in our operating and financial performance."
Q4 and Full Year 2024 Operational Highlights1
- The total value of completed real estate transactions reached $14.6 billion in the fourth quarter of 2024, an increase of 115% from $6.8 billion in the fourth quarter of 2023. For the full year 2024, the total value of completed real estate transactions reached $49.0 billion, an increase of 90% from $25.9 billion for the full year 2023.
- The total number of transactions closed was 35,370 in the fourth quarter of 2024, an increase of 99% from 17,749 in the fourth quarter of 2023. For the full year 2024, the total number of transactions closed was 120,601, an increase of 81% from 66,646 for the full year 2023.
- The total number of agents on the platform increased to 24,140 at the end of the fourth quarter of 2024, an increase of 77% from the fourth quarter of 2023. As of March 6, 2025, approximately 26,200 agents are now on the Real platform.
Q4 2024 Financial Highlights
- Revenue rose to $350.6 million in the fourth quarter of 2024, an increase of 93% from $181.3 million in the fourth quarter of 2023.
- Gross profit reached $30.0 million in the fourth quarter of 2024, an increase of 93% from $15.5 million in the third quarter of 2023.
- Net loss attributable to owners of the Company was $(6.6) million in the fourth quarter of 2024, compared to $(12.0) million in the fourth quarter of 2023.
- Adjusted EBITDA2 was $9.1 million in the fourth quarter of 2024. This compares to $8.5 million in the fourth quarter of 2023, which included the positive impact of a $6.2 million non-recurring stock based compensation balance sheet adjustment during the period. Excluding this impact, the comparable adjusted EBITDA in the fourth quarter of 2023 was $2.3 million.
- Operating expenses, which include General & Administrative, Marketing, and Research and Development expenses, totaled $36.4 million in the fourth quarter of 2024, a 36% increase from $26.8 million in the fourth quarter of 2023.
- Revenue share expense, which is included in Marketing expenses, was $9.5 million in the fourth quarter of 2024, a 39% increase compared to $6.8 million in the fourth quarter of 2023.
-
Adjusted operating expenses, which reflect operating expenses less revenue share expense, stock based compensation, depreciation, expenses related to the settlement of antitrust litigation, and other unique or non-cash expenses, were $20.0 million in the fourth quarter of 2024, an increase of 78% from $11.2 million in the fourth quarter of 2023.
- Adjusted operating expense per transaction was $565 in the fourth quarter of 2024, a decline of (11)% from $632 in the fourth quarter of 2023.
- Loss per share was $(0.03) in the fourth quarter of 2024, compared to a loss per share of $(0.07) in the fourth quarter of 2023.
- The Company repurchased 1.1 million common shares for $5.9 million in the fourth quarter of 2024, pursuant to its normal course issuer bid.
Full Year 2024 Financial Highlights
- Revenue for the full year 2024 was $1.26 billion, an increase of 84% from $689.2 million for the full year 2023.
- Gross profit for the full year 2024 rose to $114.7 million, an increase of 82% from $62.9 million for the full year 2023.
- Net loss attributable to owners of the Company for the full year 2024 was $(26.5) million, compared to a loss of $(27.5) million for the full year 2023.
- Adjusted EBITDA2 was $40.0 million for the full year 2024, compared to $13.9 million for the full year 2023, or $7.6 million excluding the impact of the non-recurring stock based compensation balance sheet adjustment recorded in 2023, which totaled $6.2 million.
- Operating expenses for the full year 2024 increased by 57% to $140.0 million, up from $88.9 million for the full year 2023.
- Revenue share expense, which is included in Marketing expenses, was $42.7 million for the full year 2024, a 53% increase from $27.9 million in 2023.
-
Adjusted operating expense for the full year 2024 was $65.1 million, a 52% increase from $42.8 million in 2023.
- For the full year 2024 adjusted operating expense per transaction was $540, a (16)% improvement from $642 in 2023.
- Loss per share was $(0.14) for the full year 2024, compared to a $(0.15) loss per share in 2023.
- For the full year 2024 the Company repurchased 8.2 million shares for $36.3 million.
- As of December 31, 2024, Real held cash and cash equivalents of $32.8 million, consisting of $23.4 million of unrestricted cash and $9.4 million held in investments in financial assets.
- Real continues to have no debt.
Business Highlights and Recent Updates
-
Real Wallet Expansion. During the fourth quarter of 2024, Real launched the Real Wallet, a financial technology platform that centralizes an agent's access to certain Company-branded financial products. Real Wallet currently includes:
- Business checking accounts for select U.S. agents with Thread Bank, Member FDIC, including a Company-branded debit card.
- Credit lines for select Canadian agents, based on their earnings history with Real.
As of the end of February 2025:
- Approximately 2,500 Real agents are utilizing Real Wallet business checking accounts.
- The average deposit balance held in all Real Wallet checking accounts was approximately $7M.
Real Wallet represents a significant step in Real's strategy to integrate fintech solutions into its platform, providing agents with greater financial flexibility.
-
Business Model Adjustments. Beginning in April 2025 (for new agents) and in May 2025 (for existing agents), Real will implement several adjustments to its brokerage model.
- In the U.S., the Broker review, E&O insurance, and Transaction Processing fee, will be renamed the Compliance and Broker Review ("CBR") Fee and increase from $30 to $40 per transaction.
- In Canada, a $40 CAD CBR Fee will be introduced, the annual cap will increase from $12,000 CAD to $15,000 CAD, post-cap transaction fees will rise from $275 CAD to $375 CAD, and Post-Elite transaction fees will increase from $129 CAD to $175 CAD.
These adjustments align Canadian fees more closely with U.S. fees and exchange rates. Additionally, in both the U.S. and Canada, the post-cap restricted share unit bonus for agents who participate in Real's Agent Stock Purchase Plan will decrease from 20% to 15%, effective April 2025. These updates reflect Real's ongoing commitment to investing in technology, support, and infrastructure to enhance agent services and long-term business sustainability.
1All dollar references are in U.S. dollars. |
2There are references to "Adjusted EBITDA" and "Adjusted Operating Expense" in this press release, which are non-GAAP measures. See accompanying note under the heading "Non-GAAP Measures" for an explanation of the composition of these non-GAAP measures. |
The Company will discuss the fourth quarter and full year results on a conference call and live webcast today at 8:30 a.m. ET.
Conference Call Details: |
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Date: |
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Thursday, March 6, 2025 |
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Time: |
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8:30 am ET |
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Dial-in Number: |
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North American Toll Free: 888-506-0062
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Access Code: |
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951707 |
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Webcast: |
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Replay Information: |
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Replay Number: |
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North American Toll Free: 877-481-4010
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Access Code: |
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51907 |
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Replay Link: |
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Non-GAAP Measures
This news release includes references to "Adjusted EBITDA", and "Adjusted Operating Expense", which are non-U.S. generally accepted accounting principles ("GAAP") financial measures. Non-GAAP measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP, and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is used as an alternative to net income by removing major non-cash items, such as depreciation, amortization, interest, stock-based compensation, current and deferred income tax expenses and other items management considers unique and/or non-operating in nature.
Adjusted Operating Expense is used as an alternative to operating expenses by removing major non-cash items such as stock-based compensation, depreciation, and other unique or non-cash expenses, while retaining ongoing fixed operating expenses and excluding variable cash expenses associated with revenue share.
Adjusted EBITDA and Adjusted Operating Expense have no direct comparable GAAP financial measures. The Company has used or included these non-GAAP measures solely to provide investors with added insight into Real's financial performance. Readers are cautioned that such non-GAAP measures may not be appropriate for any other purpose. Non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our Adjusted EBITDA is reconciled to the most comparable GAAP measure for the three months and year ended December 31, 2024 and 2023 and is presented in the table below labeled Reconciliation of Net Loss to Adjusted EBITDA. Our Adjusted Operating Expense reconciled to the most comparable GAAP measure is presented for the three months ended December 31, 2024 and on a quarterly basis for the prior two fiscal years in the table below labeled Reconciliation of Operating Expense to Adjusted Operating Expense.
THE REAL BROKERAGE INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Expressed in thousands of U.S. dollars) |
||||||||
|
As of |
|
||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS |
|
|
|
|
||||
Cash and cash equivalents |
$ |
23,376 |
|
|
$ |
14,707 |
|
|
Restricted cash |
|
24,089 |
|
|
|
12,948 |
|
|
Investments in financial assets |
|
9,449 |
|
|
|
14,222 |
|
|
Trade receivables |
|
14,235 |
|
|
|
6,441 |
|
|
Other receivables |
|
117 |
|
|
|
63 |
|
|
Prepaid expenses and deposits |
|
1,645 |
|
|
|
2,132 |
|
|
TOTAL CURRENT ASSETS |
|
72,911 |
|
|
|
50,513 |
|
|
NON-CURRENT ASSETS |
|
|
|
|
||||
Intangible assets |
|
2,575 |
|
|
|
3,442 |
|
|
Goodwill |
|
8,993 |
|
|
|
8,993 |
|
|
Property and equipment |
|
2,116 |
|
|
|
1,600 |
|
|
TOTAL NON-CURRENT ASSETS |
|
13,684 |
|
|
|
14,035 |
|
|
TOTAL ASSETS |
|
86,595 |
|
|
|
64,548 |
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
CURRENT LIABILITIES |
|
|
|
|
||||
Accounts payable |
|
1,374 |
|
|
|
571 |
|
|
Accrued liabilities |
|
25,939 |
|
|
|
13,374 |
|
|
Customer deposits |
|
24,089 |
|
|
|
12,948 |
|
|
Other payables |
|
3,050 |
|
|
|
302 |
|
|
TOTAL CURRENT LIABILITIES |
|
54,452 |
|
|
|
27,195 |
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
||||
Warrants liability |
|
- |
|
|
|
269 |
|
|
TOTAL NON-CURRENT LIABILITIES |
|
- |
|
|
|
269 |
|
|
TOTAL LIABILITIES |
|
54,452 |
|
|
|
27,464 |
|
|
Commitments and contingencies |
- |
- |
||||||
|
|
|
|
|
||||
EQUITY |
|
|
|
|
||||
EQUITY ATTRIBUTABLE TO OWNERS |
|
|
|
|
||||
Common Shares, $0 par value, unlimited Common Shares authorized, 202,941
|
|
- |
|
|
|
- |
|
|
Additional Paid in Capital |
|
138,639 |
|
|
|
115,504 |
|
|
Deficit |
|
(104,746 |
) |
|
|
(78,205 |
) |
|
Accumulated other comprehensive income (loss) |
|
708 |
|
|
|
(167 |
) |
|
Treasury stock, at cost |
|
(2,455 |
) |
|
|
(257 |
) |
|
EQUITY ATTRIBUTABLE TO OWNERS |
|
32,146 |
|
|
|
36,875 |
|
|
Non-controlling interests |
|
(3 |
) |
|
|
209 |
|
|
TOTAL EQUITY |
|
32,143 |
|
|
|
37,084 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
86,595 |
|
|
|
64,548 |
|
|
THE REAL BROKERAGE INC. |
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INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
||||||||||||||||
(Expressed in thousands of U.S. dollars, except for per share amounts) |
||||||||||||||||
|
Three Months Ended December 31,
|
|
For the Year Ended |
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues |
$ |
350,630 |
|
|
$ |
181,341 |
|
|
$ |
1,264,639 |
|
|
$ |
689,158 |
|
|
Cost of Sales |
|
320,645 |
|
|
|
165,810 |
|
|
|
1,149,898 |
|
|
|
626,285 |
|
|
Gross Profit |
|
29,985 |
|
|
|
15,531 |
|
|
|
114,741 |
|
|
|
62,873 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
|
18,632 |
|
|
|
15,387 |
|
|
|
61,084 |
|
|
|
42,913 |
|
|
Marketing expenses |
|
13,698 |
|
|
|
9,084 |
|
|
|
57,477 |
|
|
|
38,611 |
|
|
Research and development expenses |
|
4,042 |
|
|
|
2,325 |
|
|
|
12,156 |
|
|
|
7,359 |
|
|
Settlement of litigation |
|
— |
|
|
|
— |
|
|
|
9,250 |
|
|
|
— |
|
|
Operating Expenses |
|
36,372 |
|
|
|
26,796 |
|
|
|
139,967 |
|
|
|
88,883 |
|
|
Operating Loss |
|
(6,386 |
) |
|
|
(11,265 |
) |
|
|
(25,226 |
) |
|
|
(26,010 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
Other income |
|
115 |
|
|
|
(693 |
) |
|
|
496 |
|
|
|
(587 |
) |
|
Finance expenses, net |
|
(434 |
) |
|
|
(32 |
) |
|
|
(1,723 |
) |
|
|
(619 |
) |
|
Net Loss |
|
(6,705 |
) |
|
|
(11,990 |
) |
|
|
(26,453 |
) |
|
|
(27,216 |
) |
|
Net income attributable to noncontrolling interests |
|
(62 |
) |
|
|
(26 |
) |
|
|
88 |
|
|
|
285 |
|
|
Net Loss Attributable to the Owners of the Company |
|
(6,643 |
) |
|
|
(11,964 |
) |
|
|
(26,541 |
) |
|
|
(27,501 |
) |
|
Other comprehensive income/(loss); Items that will be reclassified
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain on investments in financial assets |
|
(16 |
) |
|
|
116 |
|
|
|
81 |
|
|
|
330 |
|
|
Foreign currency translation adjustment |
|
529 |
|
|
|
(38 |
) |
|
|
794 |
|
|
|
(28 |
) |
|
Total Comprehensive Loss Attributable to Owners of the Company |
|
(6,131 |
) |
|
|
(11,886 |
) |
|
|
(25,666 |
) |
|
|
(27,199 |
) |
|
Total Comprehensive Income Attributable to NCI |
|
(62 |
) |
|
|
(26 |
) |
|
|
88 |
|
|
|
285 |
|
|
Total Comprehensive Loss |
|
(6,192 |
) |
|
|
(11,912 |
) |
|
|
(25,578 |
) |
|
|
(26,914 |
) |
|
Loss per share |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss per share |
|
(0.03 |
) |
|
|
(0.07 |
) |
|
|
(0.14 |
) |
|
|
(0.15 |
) |
|
Weighted-average shares, basic and diluted |
|
200,144 |
|
|
|
182,450 |
|
|
|
191,172 |
|
|
|
178,127 |
|
|
THE REAL BROKERAGE INC. |
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INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS |
||||||||||||||||
(U.S. dollar in thousands) |
||||||||||||||||
|
Three Months Ended December 31,
|
|
For the Year Ended |
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Net Loss |
$ |
(6,705 |
) |
|
$ |
(11,990 |
) |
|
$ |
(26,453 |
) |
|
$ |
(27,216 |
) |
|
Adjustments for: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
372 |
|
|
|
298 |
|
|
|
1,396 |
|
|
|
1,128 |
|
|
Impairment of goodwill |
|
— |
|
|
|
723 |
|
|
|
- |
|
|
|
723 |
|
|
Equity-settled share-based payment |
|
15,119 |
|
|
|
19,423 |
|
|
|
52,916 |
|
|
|
38,403 |
|
|
Finance costs |
|
338 |
|
|
|
(88 |
) |
|
|
376 |
|
|
|
64 |
|
|
Change in fair value of warrants liability |
|
- |
|
|
|
23 |
|
|
|
600 |
|
|
|
27 |
|
|
Changes in operating asset and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(600 |
) |
|
Funds Held in Restricted Escrow Account |
|
9,250 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Trade receivables |
|
3,070 |
|
|
|
(3,902 |
) |
|
|
(7,794 |
) |
|
|
(4,894 |
) |
|
Other receivables |
|
(74 |
) |
|
|
12 |
|
|
|
(54 |
) |
|
|
11 |
|
|
Prepaid expenses and deposits |
|
746 |
|
|
|
(807 |
) |
|
|
487 |
|
|
|
(1,603 |
) |
|
Accounts payable |
|
241 |
|
|
|
(82 |
) |
|
|
803 |
|
|
|
97 |
|
|
Accrued liabilities |
|
(5,052 |
) |
|
|
(4,316 |
) |
|
|
12,565 |
|
|
|
7,752 |
|
|
Customer deposits |
|
(3,427 |
) |
|
|
(3,385 |
) |
|
|
11,141 |
|
|
|
5,467 |
|
|
Other payables |
|
(9,793 |
) |
|
|
(1,770 |
) |
|
|
2,748 |
|
|
|
(382 |
) |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
4,085 |
|
|
|
(5,861 |
) |
|
|
48,731 |
|
|
|
18,977 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(81 |
) |
|
|
(182 |
) |
|
|
(1,045 |
) |
|
|
(629 |
) |
|
Purchase of financial assets |
|
1,155 |
|
|
|
(81 |
) |
|
|
(1,692 |
) |
|
|
(6,847 |
) |
|
Sale of financial assets |
|
(220 |
) |
|
|
2 |
|
|
|
6,546 |
|
|
|
847 |
|
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
854 |
|
|
|
(261 |
) |
|
|
3,809 |
|
|
|
(6,629 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Purchase of common shares for Restricted Share Unit (RSU) Plan |
|
(5,947 |
) |
|
|
(1,104 |
) |
|
|
(36,283 |
) |
|
|
(2,865 |
) |
|
Payment of employee taxes on certain share-based arrangements |
|
(1,355 |
) |
|
|
(362 |
) |
|
|
(2,832 |
) |
|
|
(362 |
) |
|
Proceeds from exercise of stock options |
|
658 |
|
|
|
(90 |
) |
|
|
6,275 |
|
|
|
502 |
|
|
Distributions to non-controlling interest |
|
(129 |
) |
|
|
(36 |
) |
|
|
(300 |
) |
|
|
(339 |
) |
|
NET CASH USED IN FINANCING ACTIVITIES |
|
(6,774 |
) |
|
|
(1,592 |
) |
|
|
(33,140 |
) |
|
|
(3,064 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
Net change in cash, cash equivalents and restricted cash |
|
(1,835 |
) |
|
|
(7,714 |
) |
|
|
19,400 |
|
|
|
9,284 |
|
|
Cash, cash equivalents and restricted cash, beginning of period |
|
49,096 |
|
|
|
35,339 |
|
|
|
27,655 |
|
|
|
18,327 |
|
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
204 |
|
|
|
30 |
|
|
|
410 |
|
|
|
44 |
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE |
$ |
47,465 |
|
|
$ |
27,655 |
|
|
$ |
47,465 |
|
|
$ |
27,655 |
|
|
THE REAL BROKERAGE INC. |
||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
||||||||
(Expressed in thousands of U.S. dollars) |
||||||||
Unaudited |
||||||||
|
For the Three Months Ended |
|
For the Year Ended |
|
||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
Net Loss |
(6,705) |
|
(11,990) |
|
(26,453) |
|
(27,216) |
|
Add/(Deduct): |
|
|
|
|
|
|
|
|
Finance Costs |
169 |
|
(6) |
|
1,723 |
|
591 |
|
Depreciation and Amortization |
372 |
|
298 |
|
1,396 |
|
1,128 |
|
Stock-Based Compensation |
15,119 |
|
19,423 |
|
52,916 |
|
38,403 |
|
Goodwill Impairment |
- |
|
723 |
|
- |
|
723 |
|
Restructuring Expenses |
- |
|
58 |
|
- |
|
223 |
|
Expenses related to Anti-Trust Litigation Settlement |
118 |
|
- |
|
10,377 |
|
- |
|
Adjusted EBITDA |
9,073 |
|
8,506 |
|
39,959 |
|
13,852 |
|
Non-recurring Stock-Based Compensation Adjustments |
- |
|
6,208 |
|
- |
|
6,208 |
|
Adjusted EBITDA Excluding Non-Recurring Stock Based Compensation Adjustment |
9,073 |
|
2,298 |
|
39,959 |
|
7,644 |
|
THE REAL BROKERAGE INC. |
|||||||
BREAKOUT OF REVENUE BY SEGMENT |
|||||||
(Expressed in thousands of U.S. dollars) |
|||||||
Unaudited |
|||||||
|
For the Three Months Ended |
|
For the Year Ended |
||||
|
December 31, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
Main revenue streams |
|
|
|
|
|
|
|
Commissions |
348,083 |
|
180,417 |
|
1,255,799 |
|
684,873 |
Title |
1,338 |
|
480 |
|
4,788 |
|
2,990 |
Mortgage Income |
1,167 |
|
444 |
|
4,010 |
|
1,295 |
Wallet |
42 |
|
— |
|
42 |
|
— |
Total Revenue |
350,630 |
|
181,341 |
|
1,264,639 |
|
689,158 |
THE REAL BROKERAGE INC. |
|||||||||||||||||
RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER |
|||||||||||||||||
(Expressed in thousands of U.S. dollars) |
|||||||||||||||||
Unaudited |
|||||||||||||||||
|
2023 |
|
|
|
|
|
2024 |
|
|
|
|
||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
||||||||
Operating Expense |
17,846 |
|
21,499 |
|
22,742 |
|
26,796 |
|
|
36,477 |
|
32,512 |
|
34,607 |
|
36,371 |
|
Less: Revenue Share Expense |
5,434 |
|
7,684 |
|
7,946 |
|
6,840 |
|
|
9,064 |
|
12,475 |
|
11,651 |
|
9,537 |
|
Revenue Share Expense (% of revenue) |
5.0 |
% |
4.1 |
% |
3.7 |
% |
3.8 |
% |
|
4.5 |
% |
3.7 |
% |
3.1 |
% |
2.7 |
% |
Less: |
|
|
|
|
|
|
|
|
|
||||||||
Stock-Based Compensation - Employees |
1,019 |
|
1,214 |
|
285 |
|
6543 |
|
|
1,493 |
|
2,265 |
|
3,139 |
|
3,405 |
|
Stock-Based Compensation - Agent |
1,541 |
|
1,640 |
|
2,769 |
|
1,830 |
|
|
2,137 |
|
2,335 |
|
2,665 |
|
2,940 |
|
Depreciation Expense |
269 |
|
284 |
|
277 |
|
298 |
|
|
326 |
|
340 |
|
358 |
|
372 |
|
Restructuring Expense |
41 |
|
44 |
|
80 |
|
58 |
|
|
— |
|
— |
|
— |
|
— |
|
Expenses Related to Anti-Trust Litigation Settlement |
— |
|
— |
|
— |
|
— |
|
|
9,857 |
|
369 |
|
33 |
|
118 |
|
Subtotal |
2,870 |
|
3,182 |
|
3,411 |
|
8,729 |
|
|
13,813 |
|
5,309 |
|
6,195 |
|
6,835 |
|
Adjusted Operating Expense1 |
9,542 |
|
10,633 |
|
11,385 |
|
11,227 |
|
|
13,600 |
|
14,728 |
|
16,761 |
|
19,998 |
|
Adjusted Operating Expense (% of revenue) |
8.8 |
% |
5.7 |
% |
5.3 |
% |
6.2 |
% |
|
6.8 |
% |
4.3 |
% |
4.5 |
% |
5.7 |
% |
1Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. |
|||||||||||||||||
THE REAL BROKERAGE INC. |
||||||||||||||||
KEY PERFORMANCE METRICS BY QUARTER |
||||||||||||||||
(Dollar amounts expressed in U.S. dollars) |
||||||||||||||||
Unaudited |
||||||||||||||||
|
2023 |
|
2024 |
|||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
|||||||
Transaction Data |
|
|
|
|
|
|
|
|
|
|||||||
Closed Transaction Sides |
10,963 |
|
17,537 |
|
20,397 |
|
17,749 |
|
19,032 |
|
30,367 |
|
35,832 |
|
35,370 |
|
Total Value of Home Side Transactions ($, billions) |
4.0 |
|
7.0 |
|
8.1 |
|
6.8 |
|
7.5 |
|
12.6 |
|
14.4 |
|
14.6 |
|
Median Home Sales Price ($, thousands) |
$350 |
|
$369 |
|
$370 |
|
$355 |
|
$372 |
|
$384 |
|
$383 |
|
$380 |
|
Agent Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Agents |
10,000 |
|
11,500 |
|
12,175 |
|
13,650 |
|
16,680 |
|
19,540 |
|
21,770 |
|
24,140 |
|
Agent Churn Rate (%) |
8.3 |
|
6.5 |
|
10.8 |
|
6.2 |
|
7.9 |
|
7.5 |
|
7.3 |
|
6.8 |
|
Revenue Churn Rate (%) |
4.3 |
|
3.8 |
|
4.5 |
|
4.9 |
|
1.9 |
|
1.6 |
|
2.0 |
|
1.8 |
|
Headcount and Efficiency Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-Time Employees |
127 |
|
145 |
|
162 |
|
159 |
|
151 |
|
231 |
|
240 |
|
264 |
|
Full-Time Employees, Excluding One Real Title and One Real Mortgage |
88 |
|
102 |
|
120 |
|
118 |
|
117 |
|
142 |
|
155 |
|
178 |
|
Headcount Efficiency Ratio |
1:114 |
|
1:113 |
|
1:101 |
|
1:116 |
|
1:143 |
|
1:138 |
|
1:140 |
|
1:136 |
|
Revenue Per Full Time Employee ($, thousands) |
$1,226 |
|
$1,817 |
|
$1,789 |
|
$1,537 |
|
$1,716 |
|
$2,400 |
|
$2,403 |
|
$1,970 |
|
Operating Expense Excluding Revenue Share ($, thousands) |
$12,412 |
|
$13,815 |
|
$14,796 |
|
$19,956 |
|
$27,413 |
|
$20,037 |
|
$22,956 |
|
$26,835 |
|
Operating Expense Per Transaction Excluding Revenue Share ($) |
$1,132 |
|
$788 |
|
$725 |
|
$1,124 |
|
$1,440 |
|
$660 |
|
$641 |
|
$759 |
|
Adjusted Operating Expense ($, thousands) |
$9,542 |
|
$10,633 |
|
$11,385 |
|
$11,226 |
|
$13,600 |
|
$14,728 |
|
$16,761 |
|
$19,998 |
|
Adjusted Operating Expense Per Transaction ($) |
$870 |
|
$606 |
|
$558 |
|
$632 |
|
$715 |
|
$485 |
|
$468 |
|
$565 |
|
1Defined as the ratio of full-time brokerage employees excluding One Real Title and One Real Mortgage employees to the number of agents on our platform. |
||||||||||||||||
2Reflects total company revenue divided by full-time brokerage employees (excludes One Real Title and One Real Mortgage employees). |
||||||||||||||||
3Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. |
||||||||||||||||
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to Real's expectation regarding increasing the number of agents, revenue growth and profitability and the business, strategic plans of Real and expectations regarding Real Wallet, Leo CoPilot and Leo for Clients, including their anticipated features.
Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real's business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, Real's ability to attract new agents and retain current agents, Real's inability to successfully launch new products and features, including Real Wallet, Leo CoPilot and Leo for Clients and those risk factors discussed under the heading "Risk Factors" in the Company's Annual Information Form dated March 6, 2025, and "Risks and Uncertainties" in the Company's Quarterly Management's Discussion and Analysis for the period ended December 31, 2024, copies of which are available under the Company's SEDAR+ profile at www.sedarplus.ca.
These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
About Real
Real (NASDAQ:REAX) is a real estate experience company working to make life's most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 26,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses. Additional information can be found on its website at www.onereal.com.
The Real Brokerage is a real estate technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Real Wallet Visa debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250306001918/en/
For additional information, please contact:
Ravi Jani
Vice President, Investor Relations and Financial Planning & Analysis
[email protected]
908.280.2515
For media inquiries, please contact:
Elisabeth Warrick
Senior Director, Marketing, Communications & Brand
[email protected]
201.564.4221