The Real Brokerage Inc. Q4 FY2025 earnings call

• 2025 was transformational: 4Q closed transactions up 38% to nearly 49,000, revenue up 44% to $505M, gross profit up 30% to $39M, net loss narrowed, adjusted EBITDA up 56%. Full year revenue up 56% to nearly $2.0B, gross profit up 44%, GAAP net loss improved, adjusted EBITDA up 57%, positive cash flow from ops, returned $39M to shareholders, ended with 33,000 agents.
• Structural factors driving growth: agent attraction flywheel, improving agent productivity, engagement/retention. Ancillary products: OneReal Mortgage revenue up 50% in 2025, OneReal Title transitioning to state-based JVs with 13 JVs across 17 states and 3 more planned in 2026, RealWallet with ~$900k revenue in 2025 and ~$1.5M run rate.
• Reason platform: proprietary transaction management platform, unified for entire transaction lifecycle. AI integration: Leo Copilot embedded in Reason, provided real-time guidance to agents over 700,000 times; Leo as first line of support for over 20,000 inquiries; Leo Voice Broker for automated broker review; internal automation replacing manual tasks; HeyLeo.com extended to consumer as AI-powered consumer portal with AI relationship manager.

In the fourth quarter, closed transactions grew by 38% to nearly 49,000, revenue grew 44% to $505 million, gross profit increased 30% to $39 million, net loss narrowed to $4.2 million, and adjusted EBITDA was $14.2 million. For the full year, revenue grew 56% to nearly $2.0 billion, gross profit grew 44%, GAAP net loss was $8.1 million, adjusted EBITDA was $62.9 million, and generated positive cash flow from operations of approximately $66 million. Ancillary businesses: OneReal Mortgage generated $6 million in revenue in 2025, up 50% year-over-year; OneReal Title generated $5 million in revenue in 2025, up 5% from 2024, with 13 joint ventures operating across 17 states and expecting 3 more in 2026; RealWallet generated nearly $900,000 in revenue in 2025 with 77% gross margins, current run rate ~$1.5 million, over 7,000 agents actively using it with ~$23 million in deposits. Brokerage is the core engine, ancillary services are the next layer of value creation, increasing engagement, retention, and revenue/gross margin per transaction.

• Near term: January and February had unseasonably slow start due to volatile weather, expect Q1 revenue, operating loss, and adjusted EBITDA to decline sequentially from Q4 2025 levels.
• Full year: Expect fundamental trends of organic growth significantly outpacing broader industry to persist, confident in driving revenue and gross profit growth faster than operating expenses, resulting in year-over-year improvements in profitability metrics for 2026. No formal guidance provided at this time.

Q: Stephen Sheldon from William Blair asked about agent recruiting environment and pipeline, and title side trajectory.

A: Tamir said strong pipeline, not opportunistic with industry mergers, will announce exciting things for agent attraction, technology to help attract agents faster; on title, 2025 was transition year, changing from team to state-based JVs, focusing on non-teams/agents with 10-20 transactions in 13 states, expect signs of growth later this year.

Q: Naveed Khan from B. Riley asked about title transition drag in 4Q and attach rate progress, and mortgage early results.

A: On title, attach rates in past couple of months between 3%-4%, JV attach rates 30%-40%, want to see growth; on mortgage, Kate Gurevich as new CEO of One Real Mortgage, strong pipeline of productive agents getting licensed as loan officers, Leo experimentation with AI to help nurture leads and convert leads, showing promising signs.

Q: Matthew Erdner from Jones Trading asked about margins normalization and RealWallet adoption.

A: Expect margin mixed shift to continue in first half, then level off as fee model changes manifest and ancillary reaccelerate; on RealWallet, about 7,000 agents using it, want more adoption, contemplating actions, and more revenue to wallet as more states open and more agents have lines of credit available.

Q: Nick McAndrew from Zellman asked about agent churn attribution and AI risk.

A: Agent retention due to all services offered, adding value to platform, hard to leave; view agentic AI developments as opportunity, integrated platform with AI has unfair advantage, agents can't build something as powerful on their own.

Q: Shareholder asked when Real will turn profit and how shareholders can help.

A: Profitability strategic choice, largest segment nearly breakeven in 2025, most loss from ancillary businesses where investing for long-term returns; shareholders can help by engaging with ecosystem, using real agents, one real mortgage loan officers, one real title services to increase attach rates.

Q: Shareholder asked about stock-based compensation scaling.

A: Nearly all agent equity awards tied to production, not large upfront checks, stock-based compensation as % of revenue declined in 4Q, expect leverage to continue reducing it over time, have buyback program to offset dilution.

Q: Shareholder asked about RealWallet growth.

A: RealWallet generated ~$900k in 2025, annualized revenue over $1.5M, growing month-over-month, over 7,000 agents using it, over $23M in deposits, over $8M in lines of credit extended, US balances exceed Canada