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- **Revenue Growth**: +53% YoY to $569M, driven by 39% agent expansion and 49% transaction growth. Brokerage segment profitable, reinvesting in high-margin ancillaries. 
- **Agent Retention**: Revenue churn at 1.4% (lowest in 2+ years), aided by AI-driven support (Leo CoPilot handling 47% of inquiries). 
- **Wallet Momentum**: Real Wallet Capital launched in 28 states, with $1.2M annualized revenue run rate. 
- **Efficiency**: OpEx as % of revenue improved 130bps to 8%, OpEx per transaction down 13% YoY. 
- **Ancillary Strategy**: Title JV attach rates at 35% in new states; major tech innovation announced to boost ancillary adoption. 
- **Financial Strength**: $56M cash, no debt; repurchased $15.5M in shares.

**【CEO Opening Remarks】**
- Q3 revenue grew 53% YoY to $569M, driven by 39% agent growth (30,100 agents) and 49% transaction increase. Brokerage segment was profitable, with ancillary businesses (Mortgage, Title, Wallet) reinvested for long-term growth. 
- Real Wallet Capital launched in 28 U.S. states, offering agents same-day credit based on transaction history. Wallet revenue run rate exceeds $1.2M annually.
- Agent retention improved, with revenue churn at 1.4% (lowest in 2+ years), reflecting platform stickiness and AI-driven support.

**【COO Operational Update】**
- AI automation team reduced manual processes by 10,000+ hours annually, freeing capacity for higher-value tasks. Leo CoPilot handled 47% of agent inquiries in Q3, up from 28% in Q2, with 90%+ agent satisfaction.
- Operational efficiency metrics: adjusted OpEx per transaction down 13% YoY to $405, headcount efficiency ratio 1:89 (vs. 1:87 last quarter). 
- Canada expansion into Saskatchewan to unlock transaction growth in key markets.

**【CFO Financial Review】**
- Gross profit +40% YoY to $44.9M, but margin declined to 7.9% (vs. 8.6%) due to 500bps increase in post-cap transactions (agents paying flat fee vs. 15% split). 
- Operating expenses +31% YoY to $45.3M, but OpEx as % of revenue improved 130bps to 8%. Adjusted EBITDA +54% to $20.4M.
- Cash position at $56M (all-time high), with no debt. Repurchased 3.2M shares ($15.5M) under buyback program.

**【Q&A Highlights】**
- **Agent Churn**: 1.4% revenue churn reflects platform stickiness; expect stabilization below 2% as AI adoption deepens. 
- **Title JV Progress**: Attach rates in new state-based JVs reached 35% (vs. 2.4-3% pre-transition). Announcing major tech innovation at RISE conference to boost ancillary adoption. 
- **Mortgage Expansion**: 100 loan officers (60% in Real Originate program); scaling inside sales team to drive attach rates. 
- **M&A Strategy**: No immediate brokerage acquisitions; evaluating small title company acquisitions for local presence. 
- **2026 Outlook**: Agent growth pipeline supports >30,000 mark; focus on ancillary scale and OpEx leverage (R&D fastest-growing OpEx category).

The Real Brokerage Inc. (REAX) Q3 2025 Earnings Call Transcript

- **Revenue Soars 59% YoY**: Driven by 62% transaction growth, Real achieved record Q2 revenue of $541 million and first positive net income.
- **Agent Growth & Efficiency**: 28,000 agents (29,200+ as of July), 7% YoY increase in transactions per agent, and 2% revenue churn.
- **Profitability Breakthrough**: $20 million Adjusted EBITDA (43% YoY growth) and $41 million operating cash flow.
- **Strategic Moves**: Flyhomes acquisition accelerates AI-driven consumer experience; Real Wallet U.S. lending launch imminent.
- **Ancillary Momentum**: Mortgage (+80%), Title (+7%), and Wallet ($250k Q2) drive high-margin growth.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q2 revenue reached $541 million, up 59% YoY, driven by a 62% increase in transactions (49,000+ closed). This outpaced the industry decline of 1% in existing home sales.
- **Agent Expansion**: Agent count rose to 28,000 (29,200 as of July), a 43% YoY increase. Transactions per agent grew 7% YoY, with only 2% revenue churn, reflecting high retention of top agents.
- **Profitability Milestone**: Achieved first-ever positive operating income ($1.7 million) and net income ($1.6 million), with Adjusted EBITDA up 43% to $20 million.
- **Strategic Acquisition**: Acquired Flyhomes' AI-powered consumer portal for $2-3 million annual expenses, enhancing Leo for Clients and mortgage solutions.

**【COO Operational Updates】**
- **AI Integration**: Leo CoPilot reduced support calls by 28%, automating 50% of transactions with minimal oversight.
- **Agent Support Programs**: Launched Agent Breakthrough (free productivity training) and Further Together events, fostering collaboration and skill-sharing.
- **Revenue Share Model**: Introduced faster revenue share tiers for top agents, rewarding network builders and high performers.

**【CFO Financial Commentary】**
- **Gross Profit**: $47.9 million (50% YoY growth), with 14% of agents capped (up from 11%), contributing 60% of commission revenue.
- **Operating Expenses**: $46.2 million (42% YoY increase), driven by agent growth and tech investments. OpEx as % of revenue improved to 8.5% (from 9.5%).
- **Cash Flow**: $41 million from operations, with $55 million in unrestricted cash. Share buybacks to accelerate in H2.
- **Ancillary Growth**: Mortgage (+80%), Title (+7%), and Real Wallet ($250k revenue) contributed 1% of total revenue but 5% of gross profit.

**【Q&A Highlights】**
- **Revenue Share Impact**: No financial impact on company; redistribution among agents only.
- **Gross Margin Trends**: Sequential decline expected due to higher capped agent mix, but long-term focus on ancillary margins (5-8x core).
- **Agent Recruitment**: Pipeline strong, adding 1,200 agents in 5 weeks post-Q2. Offboarding of 1,500 nonproductive agents improved productivity.
- **Wallet Expansion**: U.S. lending launch and rewards points expected to boost adoption, with Canada generating $4M in loans.
- **Title Strategy**: State JVs launched in 3 states, prioritizing scalability over short-term growth.


The Real Brokerage Inc. (REAX)-7 Aug 25-2025 Q2 Earnings call transcript

- **Revenue explosion**: 76% YoY growth to $354M, 77% transaction surge despite 2% industry decline.
- **AI disruption**: Leo CoPilot automates 100% agent support, with voice capabilities in testing.
- **Agent growth**: 27,700+ agents, adding 800+ post-Q1, with 50%+ ancillary revenue growth.
- **Profitability shift**: 12% agents capped, driving 50% of commission revenue but 9.6% gross margin.
- **Ancillary momentum**: Real Wallet $126K/Q1, title JV expansion, 97 mortgage loan officers.
- **Cash management**: $35M cash, $6M buybacks, no debt.


**【CEO Opening Remarks】**
- Q1 2025 revenue reached $354 million, up 76% YoY, driven by 77% increase in transactions (33,600 total) despite 2% industry decline in existing home sales.
- Gross profit rose 63% to $33.9 million, with adjusted EBITDA doubling to $8.3 million.
- Agent count exceeded 27,700 as of Q2 start, adding 800+ agents post-Q1.
- Ancillary businesses (mortgage, title, Real Wallet) grew 50% YoY, contributing $2.2 million in Q1.
- Leo CoPilot now handles thousands of daily agent interactions via voice and mobile, automating 100% of inbound support calls.
- Real Wallet achieved $126,000 in Q1 revenue, with annualized run rate exceeding $700,000.

**【President Sharran Srivatsaa - Brokerage Highlights】**
- Agents completed 5% more transactions YoY despite sluggish market, reflecting platform efficiency.
- Added 2,700 net new agents in Q1, with strong pipeline for top-producing teams.
- Real Academy and regional roadshows expanded agent training programs.
- Pro Teams and private-label partnerships drove 30%+ growth in team-based business.

**【CFO Ravi Jani - Financial Breakdown】**
- Revenue: $354M (76% YoY), with 77% growth in brokerage segment to $352M.
- Gross margin: 9.6% (vs 10.3% prior year), impacted by 12% of agents hitting commission caps.
- Operating expenses: $39.1M (11.1% of rev), down 80bps in adjusted OpEx ratio to 6.0%.
- Cash flow: $16M generated, with $6M returned via share buybacks.
- Key metrics: $13.5B GTV (80% YoY), $380K median sale price, $631 OpEx per transaction.

**【Q&A Key Takeaways】**
- AI adoption: Leo CoPilot now handles 100% agent support calls, with voice capabilities tested for consumer interactions.
- Agent retention: 50% of capped agents contribute 50% of commission revenue, driving margin pressure.
- Ancillary growth: Title JV expansion to 3 states/month, mortgage loan officers up to 97.
- Market strategy: Focused on 10+ key markets rather than nationwide expansion.
- Profitability: Expect continued margin compression in 2025, with ancillary scaling as offset.


The Real Brokerage Inc. (REAX)-8 May 25-2025 Q1 Earnings call transcript

- **Breakout Growth**: 81% transaction growth to 120,601 deals, $1.3B revenue (+84%), and 24,140 agents (+77%).
- **AI & Fintech Flywheel**: Leo Copilot handles 2,000+ daily agent interactions; Real Wallet reaches $500K annualized revenue run rate.
- **High Margin Ancillary Scaling**: Mortgage & Title up 105% YoY, contributing 5% of gross profit.
- **Agent Expansion Engine**: 10,000 net agents added in 2024, including 1,200 via private label program.
- **Luxury Market Dominance**: 230+ Real Luxury agents closed $1B+ in 2024, with $1B pipeline for 2025.


**【CEO Opening Remarks】**
- **Record 2024 Performance**: 81% transaction growth to 120,601 deals, $1.3B revenue (+84%), and 24,140 agents (+77%).
- **AI & Fintech Momentum**: Leo Copilot handles 2,000+ daily agent interactions; Real Wallet reaches $500K annualized revenue run rate.
- **Business Model Adjustments**: U.S. transaction fee increased to $40, Canada commission cap raised to CAD15,000, and post-cap RSU bonus reduced to 15%.

**【President Agent Growth Update】**
- **Agent Acquisition**: Added 10,000 net agents in 2024, including 1,200 via private label program with 40 independent brokerages.
- **Retention Strength**: 1.8% revenue churn in Q4, <2% annualized.
- **Luxury Expansion**: 230+ Real Luxury agents closed $1B+ in 2024, with $1B pipeline for 2025.

**【CFO Financial Highlights】**
- **2024 Results**: $1.3B revenue, $115M gross profit (+82%), $40M adj. EBITDA (+188%).
- **Ancillary Growth**: Mortgage & Title up 105% YoY, contributing <1% revenue but 5% of gross profit.
- **2025 Outlook**: Q1 seasonal low, Q3 peak; focus on scaling adj. EBITDA with gross profit outpacing OpEx.

**【Q&A Key Takeaways】**
- **Mortgage/Title Attach Rates**: Current 1% (Mortgage), 4% (Title); target >30% via Nancy Marsden's leadership.
- **Wallet Margins**: 90% gross margin on $7M U.S. deposits, $1M+ Canada credit utilization.
- **OpEx Management**: 2025 OpEx growth expected, but focused on gross profit margin expansion.


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