What drove REAX's earnings growth in 2024?

The Real Brokerage Inc. (REAX) experienced a net income cum Yoy growth of 0.03% by the end of 2024, with a net income of -$26.45 million for the year. While the company has shown a slight improvement in net income margin from -8.02% on Q1 2023 to -2.09% on Q4 2024, the negative net margins indicate that the company has been operating at a loss for the year.

1. **Revenue Growth**: The company's operating revenue has shown a seasonal trend with higher revenues in the third and fourth quarters compared to the first and second quarters. The peak in revenue during Q3 2024, with $372.49 million, suggests that this quarter may have contributed positively to the annual revenue, which was estimated at $1.17 billion for the full year 2024.

|code|Ticker|Name|Date|Operating Revenue YoY|Operating Revenue|market_code|
|---|---|---|---|---|---|---|
|REAX|REAX.O|The Real Brokerage|2024 Q1|86.14029394037739|2.00743E8|186|
|REAX|REAX.O|The Real Brokerage|2024 Q2|83.87434441974403|3.40778E8|186|
|REAX|REAX.O|The Real Brokerage|2024 Q3|73.54081252329482|3.72488E8|186|
|REAX|REAX.O|The Real Brokerage|2024 Q4|93.35395746135733|3.5063E8|186|

|code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|REAX|REAX.O|The Real Brokerage|2024 Q1|-18.219345707588218|-8.0187|186|
|REAX|REAX.O|The Real Brokerage|2024 Q2|17.465388711395093|-3.1775|186|
|REAX|REAX.O|The Real Brokerage|2024 Q3|27.939165527132037|-2.1606|186|
|REAX|REAX.O|The Real Brokerage|2024 Q4|47.03484249974678|-2.0917|186|

2. **Cost Management**: The improvement in net margin from -8.02% to -2.09% indicates that the company has been managing its costs more effectively over the year. However, the negative net margins suggest that the company's revenue has not been sufficient to cover its expenses.
3. **Economic Factors**: The performance of REAX is also influenced by broader economic conditions. The company's Q3 2024 earnings report coincides with the broader U.S. stock market's performance, which was affected by factors such as interest rates, inflation, and geopolitical events.

In conclusion, while REAX has shown some improvement in revenue and cost management, the company's earnings growth in 2024 has been limited by the negative net margins and the overall economic conditions. The company's ability to generate positive cash flows and improve its profitability will depend on its continued efforts to manage costs and capitalize on market opportunities.