The Real Brokerage, Inc. · NASDAQ:REAX
The Real Brokerage — Q1 2025 Earnings Presentation
50 slides from The Real Brokerage's earnings presentation, May 8, 2025
Slide 1: The Real Brokerage Inc. Investor Presentation
The Real Brokerage Inc. Investor Presentation May 2025 Nasdaq: REAX investors.onereal.com
Slide 2: Disclaimer
Disclaimer Certain statements herein relating to The Real Brokerage Inc. (“Real” or the Future Oriented Financial Information: To the extent any forward-looking “Company”) constitute “forward-looking statements”, within the meaning of information in this Presentation constitutes “future-oriented fin
Slide 3: The Real Brokerage Snapshot
NASDAQ: REAX Last Twelve Months Revenue ($mm) Agent Count The Real Brokerage LTM Revenue ($mm) Quarterly Revenue ($mm) $1,418 26,870 Snapshot $1,265 24,140 21,770 $1,095 19,540 $938 16,680 $782 13,650 Founded in 2014, The Real Brokerage Inc. $689 $604 11,500 12,175 (“Real”) is a real estate technolo
Slide 4: Table of Contents
Table of Contents CHAPTERS 01 / Real Overview 02 / Financial Overview 03 / Frequently Asked Questions 04 / Agent Survey Highlights 05 / Appendix 4
Slide 5: Real Overview
CHAPTER 01 REAL OVERVIEW “Our mission at Real is empowering each agent. Through innovation, we're not just enhancing efficiency, but fostering a culture of shared success and wealth creation. Our journey is about transforming the real estate landscape to make lives better, and sharing the fruits of
Slide 6: Investment Highlights
OVERVIEW Investment Highlights 01 / A New Approach 02 / Compelling Agent 03 / Proprietary 04 / Scalable, Capital to the Old Brokerage Value Proposition Software and Efficient Growth Model Technology Stack Platform Disruptive, software-based real estate Unique compensation model provides Software sta
Slide 7: A New Approach to the Old Brokerage Model
OVERVIEW 01 / A New Approach We are taking a first principles approach redefining the role of a real estate brokerage in agents’ lives and the broader housing ecosystem to the Old By empowering agents with a differentiated business model and technology interface that simplifies the transaction exper
Slide 8: Software-Based Real Estate Brokerage Platform
O V E R V I E W / 01 / A NEW APPROACH TO THE OLD BROKERAGE MODEL Our business was designed to provide real estate agents higher Real Today: value at a lower cost than traditional brokerage models Software-Based Real Estate Brokerage Platform Traditional FRANCHISE / MODEL Brokerage DESCRIPTION Softwa
Slide 9: Streamlining the Homebuying Experience
O V E R V I E W / 01 / A NEW APPROACH TO THE OLD BROKERAGE MODEL Real Tomorrow: Announced in Q4 2024, Leo for Clients is expected to provide agents and clients a seamless AI-driven solution to simplify the homebuying process Streamlining the Our vision is to transform the complex homebuying process
Slide 10: Compelling Agent Value Proposition
O V E R V I E W / 02 / COMPELLING AGENT VALUE PROPOSITION Compelling Agent Our revenue model provides agents the ability to earn more income and generate wealth from multiple sources Value Proposition Commission Revenue REAL Stock and Revenue Sharing Equity Awards Competitive 85% / 15% Unique top-do
Slide 11: Revenue Sharing
O V E R V I E W / 02 / COMPELLING AGENT VALUE PROPOSITION Revenue Sharing Revenue sharing gives agents the ability to earn income from commissions generated by agents whom they attract to Real How revenue sharing works Direct Referrals: If a Real agent brings in a new agent, they earn a share of the
Slide 12: reZEN Software Platform
O V E R V I E W / 03 / PROPRIETARY SOFTWARE AND TECHNOLOGY STACK reZEN Software Platform Our proprietary software platform, reZEN, offers a comprehensive range of tools tailored for today's real estate agents Productivity Marketing Community Brokerage Operations Proprietary transaction management Em
Slide 13: Leo CoPilot
O V E R V I E W / 03 / PROPRIETARY SOFTWARE AND TECHNOLOGY STACK In Q4 2024, Real unveiled Leo CoPilot, an Leo CoPilot innovative, proactive enhancement of its AI-powered virtual assistant for agents Leo CoPilot serves as an agent command center, anticipating each agent’s unique needs and providing
Slide 14: Real Wallet
O V E R V I E W / 03 / PROPRIETARY SOFTWARE AND TECHNOLOGY STACK Launched in Q4 2024, Real Wallet offers U.S. agents a Real Wallet Real-branded debit card and Canadian agents a business line of credit tied to their revenue and assets, KEY FEATURES Access earnings faster – Business Checking Accounts
Slide 15: Rapid Growth Enabled by Tech
O V E R V I E W / 04 / SCALABLE, CAPITAL EFFICIENT GROWTH MODEL Real's strategic use of technology enables capital efficient growth, requiring minimal upfront investment to generate Rapid Growth Enabled by Tech revenue growth LTM Adjusted Operating Expense (% of Revenue) Capital Efficient Growth 7.4
Slide 16: Significant Growth in Down Cycle
O V E R V I E W / 05 / FRAGMENTED MARKET WITH DEMONSTRATED THROUGH-CYCLE GROWTH Real has grown agent count by over 6x since the end of 2021; today we represent less than 2% of the industry Significant Growth in Down Cycle Real Agent Growth vs. Existing Home Sales US Agent Market Share 30,000 Real Ag
Slide 17: Ancillary Services Expand Addressable Market and Enhance Margins
O V E R V I E W / 06 / ANCILLARY SERVICES Integrating mortgage, title, and other ancillary services provides an opportunity to enhance Ancillary Services Expand Addressable per-transaction unit economics and drive long-term margin expansion Market and Enhance Margins US Estimated TAM: ~$180-260bn Ot
Slide 18: We are One Real
O V E R V I E W / 07 / DISTINCT, COLLABORATIVE CULTURE We are One Real By empowering a vibrant community through technology, Real agents collaborate, share best practices, and foster a uniquely tight-knit bond 18
Slide 19: These are our Values
O V E R V I E W / 07 / DISTINCT, COLLABORATIVE CULTURE Real prides itself on attracting like-minded people who These are our Values are passionate about succeeding in real estate WORK HARD WE ARE BIGGER TECH X BE KIND THAN ME HUMANITY Kindness is a superpower and the Together, we move further and fa
Slide 20: Executive Leadership
O V E R V I E W / 08 / EXPERIENCED MANAGEMENT TEAM Executive Leadership Real’s leadership team brings significant experience in scaling growth businesses across the Real Estate, Technology and Financial Services industries Tamir Sharran Ravi Pritesh Jenna Dre Alexandra Dipti David Poleg Srivatsaa Ja
Slide 21: Financial Overview
CHAPTER 02 FINANCIAL OVERVIEW “Our focus is on driving execution, expanding margins, and allocating capital to create long-term value for agents, consumers, and shareholders.” Ravi Jani CHIEF FINANCIAL OFFICER 21
Slide 22: Agent Count and Transaction Growth
F I N A N C I A L O V E R V I E W / 01 / KEY PERFORMANCE INDICATORS Agent Count and Transaction Growth End of Period Agent Count Last Twelve Months Transactions Closed 26,870 135,186 24,140 120,601 21,770 19,540 102,980 16,680 87,545 74,715 13,650 66,646 12,175 11,500 58,642 10,000 49,478 42,165 Q1
Slide 23: Gross Market Value and Median Sale Price
F I N A N C I A L O V E R V I E W / 02 / KEY PERFORMANCE INDICATORS Gross Market Value and Median Sale Price Last Twelve Months Gross Market Value Closed ($bn) Median Home Sale Price ($000s) $55.0 $384 $383 $380 $380 $49.0 $372 $369 $370 $355 $350 $41.2 $34.9 $29.3 $25.9 $22.6 $18.7 $16.0 Q1 23 Q2 2
Slide 24: Revenue and Adjusted EBITDA
F I N A N C I A L O V E R V I E W / 03 / INCOME STATEMENT TRENDS Revenue and Adjusted EBITDA Last Twelve Months Revenue ($mm) Last Twelve Months Adjusted EBITDA ($mm) LTM Adjusted EBITDA $44.6 LTM Revenue ($mm) Quarterly Adjusted EBITDA Quarterly Revenue ($mm) $40.0 $1,418 $1,265 $33.2 $1,095 $938 $
Slide 25: Gross Margin and Operating Expense
F I N A N C I A L O V E R V I E W / 04 / MARGIN TRENDS Gross Margin and Operating Expense Quarterly Gross Margin Quarterly Operating Expense 12.0% 16.0% Revenue Share as % of Revenue Adjusted Operating Expense as % of Revenue 11.0% 10.3% 14.0% 10.0% 10.0% 9.6% 9.6% 9.5% 9.4% 12.0% 9.0% 8.7% 8.6% 8.6
Slide 26: Real has net cash on its Balance Sheet with no debt
F I N A N C I A L O V E R V I E W / 05 / BALANCE SHEET & CASH FLOW Real has net cash on its Balance Sheet with no debt Unrestricted Cash & Investments vs. Total Debt ($mm) Last Twelve Months Net Cash Provided by Operating Activities ($mm) Unrestricted Cash & Investments ($mm) Total Debt ($mm) $35.3
Slide 27: Understanding our Income Statement
F I N A N C I A L O V E R V I E W / 06 / INCOME STATEMENT OVERVIEW Understanding our Income Statement Our largest variable cost items are commissions paid to real estate agents for transactions closed and revenue sharing payments LINE ITEM DESCRIPTION • Primary revenue source is commissions on trans
Slide 28: Illustrative Unit Economics for One Transaction
F I N A N C I A L O V E R V I E W / 07 / UNIT ECONOMICS Illustrative Unit Economics for One Transaction In the U.S., upon reaching a $12,000 annual cap on commission splits paid to Real, each agent receives 100% of commissions less a $285 per transaction fee and a $40 Compliance and Broker Review fe
Slide 29: Frequently Asked Questions
CHAPTER 03 FREQUENTLY ASKED QUESTIONS “At Real, we believe in the power of culture and community. When we uplift and empower our agents, we lay the foundation for a transformative and sustainable future in real estate.” Sharran Srivatsaa PRESIDENT 29
Slide 30: Agent Years of Experience
F R E Q U E N T L Y A S K E D Q U E S T I O N S / 01 / AGENT ATTRACTION Why do agents join Real? Percentage of Agents Influenced by Certain Factors Responses by Agent Years of Experience 95% 92% Percentage of Agents Selecting 89% ‘Influential’ or ‘Very Influential’ 82% 0-2 100% 83% 83% 78% 94% 72% 7
Slide 31: Where are Real agents located?
CA 4680 TX 2896 FL 1970 AZ 1412 AB 1108 VA 1049 NJ 1047 NC 867 NY 843 WA 755 UT 753 GA 749 MA 660 NV 655 ON 649 MN 495 CO 493 PA 488 SC 468 BC 440 IL 422 WI 393 MD 384 KS 380 MO 353 MI 345 F R E Q U E N T L Y A S K E D Q U E S T I O N S / 02 / GEOGRAPHIC MIX - BROKERAGE OH 315 As of March 31, 2025;
Slide 32: Where are One Real Mortgage and One Real Title available?
F R E Q U E N T L Y A S K E D Q U E S T I O N S / 03 / GEOGRAPHIC MIX - ANCILLARY SERVICES Where are One Real Mortgage and One Real Title available? WA Mortgage and Title1 Mortgage only OR MN Title only WI MI PA NJ DC NV OH MD IL DE CA CO VA NC TN AZ AR SC GA AL MS TX LA FL 1One Real Escrow in Calif
Slide 33: How does Real's growth compare to peers?
F R E Q U E N T L Y A S K E D Q U E S T I O N S / 04 / GROWTH VS PEERS How does Real’s growth compare to peers? 2024 Revenue Growth (YoY %) 2024 Agent Count Growth (YoY %) 84% 77% 21% 15% 13% 7% 4% 3% 3% 1% 1% (3%) (3%) (6%) (5%) (6%) Peer Peer REAX COMP EXPI DOUG HOUS FTHM RMAX REAX FTHM COMP RMAX
Slide 34: How many employees does Real have?
F R E Q U E N T L Y A S K E D Q U E S T I O N S / 05 / HEADCOUNT EFFICIENCY How many employees does Real have? Real Full Time Employees by Division (As of Q1 2025) Brokerage Peer Full Time Employees (As of Q4 2024) 7,805 58 307 2,566 45 24 Marketing 2,001 62 Administrative 410 106 R&D 783 115 Operat
Slide 35: Real Agent Survey Highlights
CHAPTER 04 REAL AGENT SURVEY HIGHLIGHTS “We are proud to be the only real estate brokerage where 100% of our agents use our proprietary software platform. This full adoption enables us to automate manual processes, and leverage AI and machine learning to provide deeper insights, predictive analytics
Slide 36: Agent Optimism Index
A G E N T S U R V E Y H I G H L I G H T S / 01 / MARKET OUTLOOK Agent Optimism Index 76.4 76.4 73.7 73.7 74.0 74.2 The Real Monthly Agent Survey was initially launched in 73.1 73.0 71.9 January 2024. Each month, agents are asked: 71.4 70.4 70.4 “Compared to one month ago, are you more optimistic or
Slide 37: Transaction Growth Index
A G E N T S U R V E Y H I G H L I G H T S / 02 / MARKET OUTLOOK Transaction Growth Index 51.3 Each month, agents are asked: “In your primary market, 50.2 50.2 50.8 50.2 49.9 how would you describe the number of transactions 49.0 49.1 49.4 48.7 48.548.6 closed compared to the same month last year?” 4
Slide 38: Balance of Power Between Buyers and Sellers
A G E N T S U R V E Y H I G H L I G H T S / 03 / MARKET OUTLOOK Balance of Power Between Buyers and Sellers 13% Each month, agents are asked: “As of the current month, 15% 16% 18% 20% 20% 23% would you consider your primary market to be a buyer's 25% 25% 27% 30% 30% 32% 33% market, seller's market,
Slide 39: Biggest Challenges for Prospective Home Buyers
A G E N T S U R V E Y H I G H L I G H T S / 04 / MARKET OUTLOOK Biggest Challenges for Prospective Home Buyers 2% 2% 3% 2% 3% 2% 4% 4% 2% 4% 3% 3% 3% 6% 5% 4% 4% 5% 4% 2% 4% 3% 5% 6% 4% 4% 5% Each month, agents are asked: “What is the biggest 5% 5% 5% 7% 8% 5% 6% 5% 10% challenge currently for buyer
Slide 40: Lead Generation Insights
A G E N T S U R V E Y H I G H L I G H T S / 05 / LEAD GENERATION INSIGHTS Lead Generation Insights Referrals Most Effective Lead Source 1/3 of Agents Utilize Search Portals Annual Search Portal Spend Responses to: As of January 2025, what is Responses to: Do you plan to use home For agents who use s
Slide 41: Impact of NAR Practice Changes
A G E N T S U R V E Y H I G H L I G H T S / 06 / INSIGHTS ON NAR PRACTICE CHANGES Impact of NAR Practice Changes Securing Buyer Rep Agreements Sellers Still Paying Buyer Agents Minimal Change to Commissions So Far Responses to: How easy has it been to get Responses to: Are sellers still willing to R
Slide 42: Appendix
CHAPTER 05 APPENDIX “At Real, we attract the best people to provide the best agent experience. Guided by our 'Work Hard. Be Kind.’ ethos, we foster a supportive and collaborative environment in order to streamline operations, and enhance efficiencies, ensuring our agents have everything they need to
Slide 43: Balance Sheet
A P P E N D I X / 01 / BALANCE SHEET As of (Expressed in thousands of U.S. dollars) March 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 24,706 $ 23,376 Restricted cash 30,259 24,089 Investments in financial assets 10,554 9,449 Trade receivables 16,789 14,235 Other rece
Slide 44: Income Statement
A P P E N D I X / 02 / INCOME STATEMENT Three Months Ended March 31, (Expressed in thousands of U.S. dollars, except for per share amounts) 2025 2024 Revenues $ 353,981 $ 200,743 Cost of Sales 320,045 179,984 Gross Profit $ 33,936 $ 20,759 General and administrative expenses 17,516 12,136 Marketing
Slide 45: Statement of Cash Flows
A P P E N D I X / 03 / STATEMENT OF CASH FLOWS Three Months Ended March 31, (Expressed in thousands of U.S. dollars) 2025 2024 OPERATING ACTIVITIES Net Loss $ (5,121) $ (16,097) Adjustments for: Depreciation and amortization 379 326 Equity-settled share-based payment 12,707 8,844 Finance costs (149)
Slide 46: Revenue by Business Line
A P P E N D I X / 04 / REVENUE BY BUSINESS LINE 2022 2023 2024 2025 (Expressed in thousands of U.S. dollars) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Main revenue streams: Commissions 61,247 111,850 111,149 95,622 107,115 184,022 213,319 180,417 199,252 338,574 369,890 348,083 351,749 Title 402 506 48
Slide 47: Adjusted EBITDA Reconciliation
A P P E N D I X / 05 / ADJUSTED EBITDA RECONCILIATION 2022 2023 2024 2025 (Expressed in thousands of U.S. dollars) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Loss (4,252) (4,155) (5,169) (6,759) (7,315) (3,972) (3,939) (11,990) (16,097) (1,110) (2,541) (6,705) (5,121) Add/(Deduct): Finance Costs 368
Slide 48: Adjusted Operating Expense Reconciliation
A P P E N D I X / 06 / ADJUSTED OPERATING EXPENSE RECONCILIATION 2022 2023 2024 2025 (Expressed in thousands of U.S. dollars) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Operating Expense 10,129 13,496 12,886 15,184 17,846 21,499 22,742 26,796 36,477 32,512 34,607 36,371 39,145 Less: Revenue Share Expens
Slide 49: Key Performance Indicators
A P P E N D I X / 07 / KEY PERFORMANCE INDICATORS 2022 2023 2024 2025 (U.S. dollar in thousands, except as otherwise noted) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Transaction Data Closed Transaction Sides 6,248 10,224 11,233 9,745 10,963 17,537 20,397 17,749 19,032 30,367 35,832 35,370 33,617 Total
Slide 50: Thank you!
[real] Thank you!