REAX Stock Forecast & Price Target

Real Brokerage Inc. has demonstrated a robust financial performance, reporting revenue and gross profit of $540.8 million and $47.9 million, respectively, surpassing both internal and consensus estimates, largely driven by a 44% year-over-year increase in agent count. The company's focus on enhancing ancillary services, such as mortgage and title offerings, is expected to improve margins as these segments approach profitability, alongside ongoing growth in its core brokerage operations. Furthermore, the continuous rise in agent productivity and the company's favorable commission structure position Real Brokerage to capture greater market share and sustain its positive growth trajectory in the competitive real estate industry.

Real Brokerage Inc. has experienced a decline in gross margin, with figures decreasing to 5.12% from 5.59% sequentially and facing pressure from an increase in capped agents, which is anticipated to persist into 4Q25. Additionally, the company's adjusted operating expense per transaction highlighted improved scalability with a reduction to $459, yet the overall financial outlook remains dim due to slower margin expansion and diminished revenue from key segments such as the North American Brokerage. Furthermore, external factors, including poor weather or seasonal impacts, pose potential risks to listing activity and revenue, compounded by an industry slowdown impacting home sales, indicating ongoing challenges for future performance.