Revenue growth has decelerated significantly from 93.4% in 2024Q4 to 31.5% in 2026Q1, while operating margins remain strained at -0.7% due to persistent SG&A scaling.
| Sales/Revenue | 2.08B | 1.97B | 1.26B | 689.16M | 381.76M | 121.68M | 16.56M | 15.75M | 8.44M |
| Revenue Growth % | 46.7% | 55.65% | 83.5% | 80.52% | 213.74% | 634.83% | 5.13% | 86.53% | - |
| Cost of Goods Sold | 1.91B | 1.8B | 1.15B | 626.28M | 349.81M | 110.59M | 14.4M | 13.79M | 7.13M |
| COGS % of Revenue | - | 91.68% | 90.93% | 90.88% | 91.63% | 90.88% | 86.99% | 87.52% | 84.47% |
| Gross Profit | 173.33M | 163.76M | 114.74M | 62.87M | 31.95M | 11.09M | 2.15M | 1.97M | 1.31M |
| Gross Margin % | 8.33% | 8.32% | 9.07% | 9.12% | 8.37% | 9.12% | 13.01% | 12.48% | 15.53% |
| Gross Profit Growth % | - | 42.72% | 82.5% | 96.79% | 187.99% | 415.04% | 9.56% | 49.96% | - |
| Operating Expenses | 179.75M | 172.26M | 139.97M | 88.88M | 51.12M | 22.11M | 4.8M | 3.63M | 113.69K |
| OpEx % of Revenue | - | 8.75% | 11.07% | 12.9% | 13.39% | 18.17% | 28.99% | 23.07% | 1.35% |
| Selling, General & Admin | 159.54M | 154.81M | 117.17M | 81.52M | 46.83M | 18.38M | 4.75M | 3.4M | 113.69K |
| SG&A % of Revenue | - | 7.86% | 9.26% | 11.83% | 12.27% | 15.11% | 28.66% | 21.59% | 1.35% |
| Research & Development | 0 | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - |
| Operating Income | -6.42M | -8.5M | -25.23M | -26.01M | -19.17M | -11.02M | -2.65M | -1.67M | -113.69K |
| Operating Margin % | -0.31% | -0.43% | -1.99% | -3.77% | -5.02% | -9.05% | -15.98% | -10.59% | -1.35% |
| Operating Income Growth % | - | 66.32% | 3.01% | -35.69% | -73.99% | -316.36% | -58.63% | -1367.15% | - |
| EBITDA | -4.29M | -6.57M | -23.83M | -24.88M | -18.84M | -10.8M | -2.56M | -1.53M | -76.69K |
| EBITDA Margin % | -0.21% | -0.33% | -1.88% | -3.61% | -4.93% | -8.88% | -15.43% | -9.72% | -0.91% |
| EBITDA Growth % | 67.66% | 72.44% | 4.23% | -32.11% | -74.33% | -322.86% | -66.88% | -1896.35% | - |
| D&A (Non-Cash Add-back) | 2.13M | 1.93M | 1.4M | 1.13M | 333K | 213K | 91K | 137K | 37K |
| EBIT | -6.29M | -8.5M | -26.08M | -26.62M | -19.8M | -11.27M | -3.48M | -1.67M | -2.37M |
| Net Interest Income | -606K | -554K | -1.12M | -68K | -940K | -88K | -140K | -583K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 13K | 0 | 0 | 151K |
| Interest Expense | 0 | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - |
| Pretax Income | -7.1M | -8.81M | -26.45M | -27.22M | -20.34M | -11.68M | -3.62M | -2.25M | -113.77K |
| Pretax Margin % | -0.34% | -0.45% | -2.09% | -3.95% | -5.33% | -9.6% | -21.87% | -14.29% | -1.35% |
| Income Tax | -696K | -740K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 9.8% | 8.4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -6.56M | -8.11M | -26.54M | -27.5M | -20.58M | -12.34M | -4.46M | -2.83M | -113.77K |
| Net Margin % | -0.32% | -0.41% | -2.1% | -3.99% | -5.39% | -10.14% | -26.91% | -17.99% | -1.35% |
| Net Income Growth % | 57.44% | 69.46% | 3.49% | -33.65% | -66.74% | -176.95% | -57.23% | -2390.95% | - |
| Net Income (Continuing) | -6.4M | -8.07M | -26.45M | -27.22M | -20.34M | -11.68M | -3.62M | -2.25M | -113.77K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -111K | -90K | -3K | 209K | 263K | 0 | 14.82M | 0 | 0 |
| EPS (Diluted) | -0.03 | -0.04 | -0.14 | -0.15 | -0.12 | -0.07 | -0.04 | -0.02 | -0.00 |
| EPS Growth % | 61.2% | 73.64% | 6.67% | -25% | -73.91% | -57.53% | -116.83% | - | - |
| EPS (Basic) | - | -0.04 | -0.14 | -0.15 | -0.12 | -0.07 | -0.04 | -0.02 | -0.00 |
| Diluted Shares Outstanding | 223.69M | 219.87M | 191.17M | 178.13M | 178.2M | 178.97M | 101.85M | 140.1M | 140.1M |
| Basic Shares Outstanding | 223.69M | 219.87M | 191.17M | 178.13M | 178.2M | 175.27M | 101.85M | 140.1M | 140.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory commission model disruption
As reported in recent quarterly filings, REAX's year-over-year revenue growth has decelerated from the 93.4% observed in 2024Q4 to 31.5% by 2026Q1, indicating that the initial hyper-growth phase of agent recruitment is normalizing as the company faces a more challenging macro-environment for residential real estate transactions.
The rapid top-line expansion appears to be cooling, suggesting that the company's ability to capture market share is becoming increasingly sensitive to broader housing turnover trends. Investors should monitor whether this deceleration reflects a saturation of the current agent recruitment model or simply a cyclical response to interest rate pressures.
Based on the provided financial data, REAX maintains a thin gross margin profile of 8.32% on average, reflecting a business model where the vast majority of commission revenue is passed through to agents, leaving minimal room for operational error or significant bottom-line profitability in the current environment.
The persistent single-digit gross margins highlight the inherent difficulty in scaling a brokerage model that relies on aggressive commission splits to attract talent. Without a meaningful shift toward higher-margin ancillary services, the company appears structurally tethered to a low-margin, high-volume operational reality.
According to the income statement history, REAX has struggled to achieve consistent operating leverage, with operating margins fluctuating near breakeven and reaching -0.7% in 2026Q1, suggesting that SG&A expenses continue to scale in lockstep with revenue rather than providing the expected benefits of a cloud-based platform.
The lack of meaningful operating margin expansion despite significant revenue growth implies that the company's cost structure is more variable than a pure technology platform. This warrants further investigation into whether the current administrative overhead is truly optimized for long-term scalability or if it remains bloated by growth-related expenditures.
Analysis of the income statement reveals that stock-based compensation, which reached $19.9M in 2025Q3, serves as a critical component of the agent value proposition, effectively shifting the cost of growth from cash-based SG&A to shareholder dilution, which complicates the assessment of true economic profitability.
Investors should be cautious when evaluating the company's path to GAAP profitability, as the reliance on equity-based incentives may understate the true cost of acquiring and retaining productive agents. The impact of this dilution on EPS warrants careful modeling, as it may offset the benefits of any future operational improvements.
While the company has demonstrated an ability to scale rapidly, the most significant risk to the income statement, as suggested by recent industry shifts, is the potential for regulatory changes to the buyer-agent commission structure, which could fundamentally impair the core brokerage revenue stream.
Short-sellers would likely focus on the vulnerability of the percentage-based commission model in a post-NAR settlement environment. If the industry moves toward a flat-fee or fee-for-service structure, the current revenue trajectory may prove unsustainable, regardless of the company's success in agent recruitment.
Quick answers to the most common questions about buying REAX stock.
For fiscal year 2025, The Real Brokerage Inc. (REAX) reported total revenue of $1.97B. This represents a 23211.4% increase compared to $8.4M in 2018.
The Real Brokerage Inc. (REAX) reported a net loss of $8.1M for the fiscal year ending 2025.
The Real Brokerage Inc. (REAX) reported an operating income of $-8.5M, resulting in an operating profit margin of -0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
The Real Brokerage Inc. (REAX) generated $163.8M in gross profit for the year, representing a gross profit margin of 8.3%. This demonstrates the company's core pricing power and production efficiency.