Real Brokerage Inc. Reports Robust 2024 Earnings

Real Brokerage Inc. ((REAX)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Real Brokerage Inc. showcased a robust performance, marked by significant growth in revenue, agent count, and ancillary services, alongside innovative developments like the Real Wallet. Despite these positive metrics, the company continues to face challenges with operating losses and anticipates a seasonal decline in revenue. However, the overall sentiment remains optimistic, with growth metrics outweighing ongoing challenges.

Record Revenue for 2024

Real Brokerage Inc. achieved a remarkable milestone in 2024, with revenue reaching $1.3 billion, an 84% increase from $689 million in 2023. This marks the first time the company has surpassed the $1 billion revenue threshold, highlighting its strong market position and growth trajectory.

Agent Growth Acceleration

The company reported a significant increase in its agent count, ending 2024 with 24,140 agents, a 77% increase from the previous year. By the start of 2025, the agent count had further increased to approximately 26,200, reflecting the company’s successful recruitment and retention strategies.

Real Wallet Launch and Expansion

The launch of Real Wallet has been a notable success, with 2,500 agents opening business checking accounts. This initiative has contributed to an annualized revenue run rate of over $500,000, showcasing the company’s innovative approach to integrating fintech solutions into its operations.

Significant Growth in Ancillary Services

One Real Mortgage and One Real Title experienced combined growth of 105% in 2024. Mortgage services grew over 200%, while title services saw a 60% increase, underscoring the company’s ability to expand its service offerings effectively.

Positive Adjusted EBITDA

Real Brokerage reported a record adjusted EBITDA of $40 million in 2024, reflecting a 188% increase from the prior year. This improvement in profitability highlights the company’s operational efficiency and strategic focus on sustainable growth.

Successful Private Label Program

The private label program has attracted approximately 40 independent brokerages, representing nearly 1,200 agents since its launch. This initiative has strengthened the company’s market presence and diversified its revenue streams.

Operating Loss Persisted

Despite the positive growth metrics, Real Brokerage reported an operating loss of $6.4 million in Q4 2024, compared to $11.3 million in Q4 2023. This indicates ongoing challenges in achieving net profitability.

Revenue Decline Expected in Q1 2025

The company anticipates a sequential decline in revenue in Q1 2025 compared to Q4 2024, due to seasonal trends. This expectation highlights the cyclical nature of the real estate market and the company’s need to adapt to these fluctuations.

Ongoing Investment Impacts Net Profit

Real Brokerage remains in an investment phase, which continues to impact net profit margins despite improved profitability. This strategic focus on long-term growth necessitates short-term sacrifices in net profitability.

Forward-Looking Guidance

The earnings call provided forward-looking guidance, emphasizing the company’s impressive growth metrics. In 2024, Real closed over 120,000 transactions, marking an 81% increase from 2023, with a total transaction value of $49 billion, up 90% year-over-year. The integration of AI-powered tools and the expansion of the fintech platform, Real Wallet, are expected to continue driving growth. The ancillary business lines also show promising potential for further expansion.

In summary, Real Brokerage Inc.’s earnings call painted a picture of a company on a strong growth trajectory, with impressive revenue and agent count increases. While challenges such as operating losses and seasonal revenue declines persist, the company’s strategic initiatives and innovative solutions position it well for future success.