Can REAX sustain its earnings momentum into 2025?

**The Real Brokerage (REAX) faces challenges in sustaining its earnings momentum into 2025.** Here's why:

1. **Expected Revenue Decline in Q1 2025**: The company anticipates a sequential decline in revenue in Q1 2025 compared to Q4 2024, due to seasonal trends. This indicates a potential slowdown in earnings growth in the upcoming quarter.
2. **Gross Profit Margin Challenges**: Despite significant revenue growth, The Real Brokerage faces challenges with gross profit margins, with a current ratio of 1.34, suggesting that the company may struggle to maintain profitability as revenue increases.
3. **Diluted EPS Growth**: The MRQ for REAX showed a negative Diluted EPS of -$6.71 million, which is a red flag for sustainability. Additionally, there is no available data on the growth rate of the Diluted EPS for REAX, which makes it difficult to assess the trend in earnings per share.

4. **Analyst Price Target and Consensus Rating**: The average analyst price target for REAX is $6, with a consensus rating of "Strong Buy". This suggests that analysts are optimistic about the company's future performance, which could indicate potential for sustained earnings growth.
5. **Operational and Strategic Focus**: The company has been focusing on scaling and expanding its operations, including adding 10,000 net agents. These strategic moves could support continued growth if implemented effectively.

In conclusion, while there are positive indicators such as the expected strong growth in revenue and the optimistic analyst consensus, the anticipated revenue decline in Q1 2025, gross profit margin challenges, and the negative Diluted EPS in the MRQ suggest that sustaining earnings momentum could be difficult. The company's operational and strategic focus may help, but careful monitoring of these factors will be crucial to assess the sustainability of REAX's earnings momentum into 2025.