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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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REAX

REAX fundamentals

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