REAX Stock Forecast & Price Target

Real Brokerage Inc. has demonstrated strong financial performance, with revenue and gross profit reaching $540.8 million and $47.9 million respectively, surpassing both internal and consensus estimates, largely fueled by a notable 44% year-over-year increase in agent count. Additionally, nearly 45% of transactions in the third quarter came from capped agents, highlighting improved agent productivity and indicating potential for margin expansion through ancillary services as the company edges closer to profitability in mortgage and title services. With a robust pipeline reflected in a 4.1% quarter-to-date growth in agent count, Real Brokerage is positioned to capture further market share and enhance its operational efficiency through its proprietary technology platform, reZEN.

Real Brokerage Inc. has reported a decline in gross margin, decreasing to 5.12% sequentially from 5.59%, attributed to an increase in capped agents, a trend anticipated to continue into the fourth quarter of 2025. The adjusted operating expense per transaction has shown improvement, declining to $459, yet this positive metric is overshadowed by slower-than-expected industry home sales, leading to a reduced price-to-earnings valuation multiple compared to prior estimates. Additionally, potential adverse impacts from weather or seasonal conditions on revenue generation further contribute to the negative outlook for the company’s stock performance amidst macroeconomic uncertainties.