The Real Brokerage Inc. Q3 FY2025 earnings call

• Tamir highlighted Real's differentiation from traditional brokerages, Q3 organic growth with 50% YoY closed transaction growth and over 30,000 agents on the platform. - Jenna discussed operational progress with AI and automation teams, Leo CoPilot's increased usage handling over 10,000 agent interactions, and agent satisfaction above 90%, with revenue churn at 1.4%. She also mentioned the RISE Agent Conference and Canadian expansion into Saskatchewan. - Ravi detailed financials with 53% revenue growth to $568.5 million, gross profit up 40% to $44.9 million, operating expenses up 31% to $45.3 million, adjusted EBITDA up 54% to $20.4 million, and cash flow from operations of $8.8 million.

Brokerage revenue grew 53% to $565 million, driven by agent growth and higher productivity, with over 30,100 agents on the platform and 53,500 closed transactions totaling over $21 billion. One Real Title had revenue of $1.3 million as it transitioned to state-based joint ventures. One Real Mortgage had revenue up 47% year-over-year to $1.8 million, with approximately 100 loan officers. Real Wallet had an annualized revenue run rate of over $1.2 million, with over 4,600 agents using its business checking accounts and Real Wallet Capital launched in 28 US states.

• Q4 revenue expected to decline compared to Q3, with lower gross margin year-over-year. - Non-variable operating expenses expected to increase in Q4 due to planned headcount additions and costs associated with the annual RISE Agent Conference.

Q: Stephen Sheldon asked about the reduction in agent churn and factors driving it, and thoughts on agent churn trends.

A: Tamir said agent churn has volatility but reflects platform value and stickiness, with focus on improving service and AI enhancing stickiness.

Q: Naved Khan asked about Leo CoPilot adoption and Mortgage attach levers.

A: Jenna said Leo has 100% adoption as all support goes through it, and Tamir mentioned technology integration and upcoming innovation as levers for Mortgage.

Q: Matthew Erdner asked about R&D expenses and go-forward run rate.

A: Ravi said R&D is increasing due to technology investments, including from Flyhomes acquisition, and will continue to grow.

Q: Nick McAndrew asked about adjusted OpEx per transaction and automation.

A: Jenna said they're investing in AI and automation, with plans to automate more transactions and improve efficiency