Real Brokerage Q2 2025 slides: revenue surges to $540M as company turns profitable

Introduction & Market Context

Real Brokerage Inc. (NASDAQ:REAX) released its Q2 2025 investor presentation on August 7, 2025, showcasing significant financial growth and its first profitable quarter amid challenging real estate market conditions. The company’s stock responded positively in premarket trading, rising 9.49% to $4.50 following the presentation.

The results mark a significant milestone for the technology-focused real estate brokerage, which has been pursuing an aggressive growth strategy centered on agent recruitment, proprietary technology development, and expansion of ancillary services. This performance comes as the broader real estate market continues to face headwinds, with existing home sales showing weakness throughout 2025.

Quarterly Performance Highlights

Real Brokerage reported Q2 2025 revenue of approximately $540 million, significantly exceeding analyst expectations of $479.2 million that were projected following the company’s Q1 earnings report. More notably, the company achieved profitability with a net income of approximately $1.5 million, a substantial improvement from the $5.1 million net loss reported in Q1 2025.

As shown in the following snapshot of key metrics, the company has demonstrated consistent growth across multiple dimensions:

Gross profit for Q2 reached approximately $48 million, while the company’s last twelve months (LTM) revenue climbed to $1.618 billion. The company maintained consistent gross margins between 8.6% and 10.3% throughout recent quarters, while simultaneously reducing operating expenses as a percentage of revenue.

The following chart illustrates the company’s revenue and adjusted EBITDA growth trajectory:

Real Brokerage’s balance sheet remains strong with no debt and positive cash flow from operations, positioning the company well for continued investment in growth initiatives. The company generated approximately $41 million in net cash from operating activities in Q2 2025, reflecting improved operational efficiency.

Strategic Initiatives

Real Brokerage’s presentation emphasized its technology-driven approach to disrupting the traditional real estate brokerage model. The company highlighted several key strategic initiatives that have contributed to its recent success.

Central to the company’s strategy is its agent value proposition, which combines competitive economics (85%/15% commission split with a $12,000 annual cap), revenue sharing opportunities, and equity participation through stock purchase plans. This approach has fueled rapid agent growth, with the company’s agent count reaching 28,034, representing 61% year-over-year growth.

The company’s proprietary technology platform, reZEN, provides agents with comprehensive tools for productivity, marketing, community engagement, and brokerage operations. Real Brokerage is also heavily investing in AI capabilities, including its Leo CoPilot platform, which serves as an agent command center providing 24/7 assistance.

As illustrated in the following chart, AI adoption among Real agents is already substantial, with 58% of agents using AI daily and 68% reporting significant time savings:

Another key initiative is the expansion of ancillary services. The company launched Real Wallet in Q4 2024, which generated $247,000 in revenue in Q2 2025 and is being used by approximately 3,600 agents as of July 2025. The company is also expanding its mortgage and title services, which offer attractive gross margins of 45-50% and 80%, respectively.

Competitive Industry Position

Real Brokerage’s presentation highlighted its strong competitive positioning relative to peers. Despite operating in a challenging market environment, the company has significantly outperformed competitors in both revenue growth and agent recruitment.

The following chart compares Real Brokerage’s growth metrics to industry peers:

The company’s agent count has grown by over 7x since the end of 2021, even as existing home sales have declined. This counter-cyclical growth demonstrates the effectiveness of Real Brokerage’s value proposition and technology platform in attracting agents away from traditional brokerages.

Despite this rapid growth, Real Brokerage still represents less than 2% of the total agent market, suggesting substantial room for continued expansion. The company estimates its total addressable market at approximately $180-260 billion, including residential brokerage commissions, mortgage commissions, title insurance, and other real estate services.

Market Insights and Agent Sentiment

The presentation included valuable insights from the company’s monthly agent surveys, providing perspective on market conditions and agent sentiment. The Agent Optimism Index shows improving sentiment among Real agents regarding their local markets:

However, affordability remains the biggest challenge for prospective home buyers according to Real agents, with mortgage rates being the primary concern:

These insights align with broader market conditions, where elevated mortgage rates continue to impact housing affordability despite strong buyer demand. The survey data suggests that while market challenges persist, Real agents are increasingly optimistic about future conditions.

Forward-Looking Statements

Looking ahead, Real Brokerage outlined several focus areas for continued growth. The company plans to further develop its AI capabilities, with the rollout of "Leo for Clients" scheduled for Q4 2024. This AI-driven solution aims to streamline the homebuying experience by integrating various aspects of the transaction process.

The company also intends to expand its ancillary services, particularly in mortgage and title, to enhance revenue diversification and margin improvement. Currently, these services are available in select markets, with plans for broader geographic expansion.

Real Brokerage’s operational efficiency continues to improve, with the number of agents per full-time employee reaching 87 as of Q2 2025. This scalability is a key component of the company’s path to sustained profitability.

CEO Tamir Poleg emphasized the company’s mission of "empowering each agent" through innovation and fostering "a culture of shared success and wealth creation." Meanwhile, CFO Ravi Jani highlighted the focus on "driving execution, expanding margins, and allocating capital to create long-term value for agents, consumers, and shareholders."

With its first profitable quarter now achieved, strong agent growth momentum, and continued technology innovation, Real Brokerage appears well-positioned to capitalize on its disruptive model even amid challenging market conditions. Investors will be watching closely to see if the company can sustain this positive trajectory in subsequent quarters.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.