Free cash flow remains highly volatile, swinging from a peak of $40.8M in 2025Q2 to negative territory in 2025Q4, highlighting sensitivity to cyclical transaction volumes.
| Cash from Operations | 82.8M | 65.93M | 48.73M | 19.87M | 6M | 3.94M | -1.6M | -1.32M | -2.55M |
| Operating CF Margin % | - | 3.35% | 3.85% | 2.88% | 1.57% | 3.24% | -9.68% | -8.41% | -30.19% |
| Operating CF Growth % | 252.28% | 35.29% | 145.21% | 231.49% | 52.08% | 345.91% | -21.07% | 48.06% | - |
| Net Income | -6.56M | -8.11M | -26.54M | -27.5M | -20.34M | -12.03M | -3.62M | -2.25M | -2.52M |
| Depreciation & Amortization | 2.13M | 1.93M | 1.4M | 1.13M | 333K | 213K | 91K | 137K | 147K |
| Stock-Based Compensation | 37.71M | 0 | 52.92M | 38.4M | 16.2M | 4.03M | 1.14M | 488K | -25K |
| Deferred Taxes | -922.93K | -921K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 55.83M | 68M | 1.06M | 1.1M | 167K | 694K | 599K | -31K | 107K |
| Working Capital Changes | -5.59M | 5.02M | 19.9M | 6.74M | 9.63M | 11.03M | 190K | 333K | -254K |
| Change in Receivables | -20.62M | -14.48M | -7.85M | -4.88M | -1.29M | -137K | -61K | 220K | -257K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -755.82K | -213K | 803K | 97K | 420K | 5.79M | 479K | -16K | 0 |
| Cash from Investing | -14.58M | -13.59M | 3.81M | -6.63M | -9.05M | -10.21M | -16K | -3K | -1K |
| Capital Expenditures | -3.74M | -3.85M | -1.04M | -629K | -1.41M | -172K | -16K | 0 | 0 |
| CapEx % of Revenue | 0.18% | 0.2% | 0.08% | 0.09% | 0.37% | 0.14% | 0.1% | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -6M | 637K | -1.1M | 0 | -3K | -1K |
| Cash from Financing | -30.52M | -40.25M | -33.14M | -3.96M | -7.85M | 13.95M | 22.93M | 880K | 413.41K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -28.11M | -37.19M | -36.28M | -2.87M | -8.06M | 14.04M | 2.09M | 1M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -26.65M | -39.36M | -36.28M | -2.87M | -8.06M | -12.64M | 0 | 0 | 0 |
| Other Financing | -2.41M | -3.05M | 3.14M | -999K | 246K | -84K | 20.72M | 0 | 1.33M |
| Net Change in Cash | 27.86M | 12.09M | 19.81M | 9.33M | -10.8M | 7.86M | 21.17M | -432K | 416.81K |
| Free Cash Flow | 81.81M | 64.83M | 47.69M | 19.24M | 4.59M | 3.77M | -1.62M | -1.32M | -36.6K |
| FCF Margin % | 3.93% | 3.29% | 3.77% | 2.79% | 1.2% | 3.1% | -9.78% | -8.41% | -0.43% |
| FCF Growth % | 60.76% | 35.94% | 147.8% | 319.53% | 21.67% | 332.86% | -22.28% | -3517.19% | - |
| FCF per Share | 0.37 | 0.29 | 0.25 | 0.11 | 0.03 | 0.02 | -0.02 | -0.01 | -0.00 |
| FCF Conversion (FCF/Net Income) | -12.47x | -8.13x | -1.84x | -0.72x | -0.29x | -0.32x | 0.36x | 0.47x | 22.40x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory commission model disruption
As reported in financial statements, REAX exhibits a persistent divergence between net income and operating cash flow, with the latter frequently positive despite recurring net losses, suggesting that non-cash adjustments and working capital fluctuations are the primary drivers of the company's reported cash position.
The consistent gap between net income and operating cash flow suggests that the company's accounting earnings do not reflect its underlying cash generation capability. Investors should monitor whether this reliance on working capital swings to bolster cash flow is sustainable as the business scales.
Based on REAX's reported figures, free cash flow remains highly volatile, swinging from a peak of $40.8M in 2025Q2 to negative territory in 2025Q4, which highlights the company's vulnerability to the cyclical nature of residential real estate transaction volumes and agent-related cash outflows.
The erratic FCF trajectory indicates that the company has yet to achieve a stable cash-generative state. This volatility appears to be a direct consequence of the brokerage model's sensitivity to market turnover, which may limit the company's ability to self-fund growth during industry downturns.
According to recent SEC filings, REAX's operating cash flow is heavily influenced by working capital changes, such as the $21.2M inflow in 2025Q2 followed by a $22.7M outflow in 2025Q3, indicating that timing differences in commission settlements significantly impact the company's quarterly liquidity profile.
These large, oscillating working capital movements suggest that the company's cash position is highly sensitive to the timing of agent payouts and commission receipts. Such fluctuations may obscure the true underlying cash-generating efficiency of the core brokerage operations.
Analysis of the cash flow statement reveals that stock-based compensation, which reached $19.9M in 2025Q3, acts as a significant non-cash expense that effectively subsidizes agent recruitment, thereby masking the true economic cost of growth that would otherwise be reflected in cash-based operating expenses.
By utilizing equity to attract and retain agents, the company avoids immediate cash outflows but creates a persistent dilution risk for shareholders. This strategy warrants further investigation to determine if the long-term value generated by these agents justifies the ongoing equity-based compensation burden.
Quick answers to the most common questions about buying REAX stock.
The Real Brokerage Inc. (REAX) generated $65.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Real Brokerage Inc. (REAX) generated $64.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Real Brokerage Inc. (REAX) spent $3.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Real Brokerage Inc. (REAX) spent $39.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.