The Real Brokerage Announces Third Quarter 2023 Financial Results

TORONTO & NEW YORK–(BUSINESS WIRE)–The Real Brokerage Inc. (NASDAQ: REAX), the fastest-growing publicly traded real estate brokerage, this morning announced results for its third quarter ended September 30, 2023. 

“The third quarter marks another significant achievement for Real. We generated record revenue, a second consecutive quarter of positive adjusted EBITDA, and expanded our agent base to 12,175. We remain an outlier in our industry, continuing our track record of significant growth despite challenging end market conditions,” said Tamir Poleg, Chairman and Chief Executive Officer. “The investments we are making into our business will continue to distinguish our platform from peers, and we remain laser focused on building solutions that we believe will fundamentally transform the real estate buying and selling experience. I was thrilled to bring this vision into sharper focus at our annual RISE agent conference in October, where we unveiled our One Real consumer app, introduced a groundbreaking agent-focused financial suite called Real Wallet, and showcased a range of innovative products and services designed to further support our agents and their clients.”

Q3 2023 Financial Highlights

  • Revenue increased 92% year-over-year to $214.6 million.
  • Gross profit increased 119% year-over-year to $18.8 million.
  • Adjusted EBITDA profit of $3.5 million, a $3.0 million improvement from the third quarter of 2022, and our second consecutive quarter of positive adjusted EBITDA.
  • Operating expenses, including Revenue Share, increased 77% year-over-year to $22.7 million.
  • Revenue share expense increased 105% year-over-year to $7.9 million.
  • Adjusted operating expense, which reflects operating expenses less revenue share, stock-based compensation, depreciation and other unique or non-cash expenses, increased 67% year-over-year to $11.4 million.
  • Net loss attributable to owners of the Company was $4.0 million, compared to a $5.2 million loss in the third quarter of 2022.
  • Loss per share of $0.02, compared to a loss per share of $0.03 in the third quarter of 2022.
  • Unrestricted cash and investments increased by $5.0 million during the quarter to $33.0 million. As of September 30, 2023 the Company held $19.0 million in cash and an additional $14.0 million held in investments in financial assets. The $33.0 million does not include $16.3 million of restricted cash associated with customer deposits.
  • The Company repurchased 159,000 common shares for $306,000 pursuant to its normal course issuer bid.

Q3 2023 Operational Highlights

  • Total agents on the platform increased to 12,175 at the end of the third quarter, an 81% year-over-year increase.
  • The number of transactions closed in the third quarter of 2023 grew 82% year-over-year to 20,397.
  • The total value of completed real estate transactions grew 91% year-over-year to $8.1 billion.
  • Operating expense per transaction, excluding revenue share, declined 10% year-over-year to $725.
  • As of September 30, 2023, Real’s headcount efficiency ratio, defined as full-time brokerage employees excluding One Real Title and One Real Mortgage employees, divided by the number of agents on our platform, was 1 to 101. This compares to 1 to 77 employees as of September 30, 2022.

Business Highlights and Recent Updates

Subsequent to the end of the quarter, in October, Real unveiled an array of innovative products and features at its annual RISE agent conference in San Diego. These introductions represent a leap forward toward our goal of redefining the real estate experience and simplifying the entire homebuying process for consumers, while equipping agents with the tools, technology, and resources to effectively manage and expand their businesses. Highlights included:

  • The “One Real” consumer-facing mobile app — the first step towards realizing our vision of creating a simple solution that combines every touchpoint in the home buying and selling process into a single, seamless consumer experience. The initial version gives agents the ability to invite clients to be pre-approved and cleared to close on a home mortgage from the palm of their hand in as little as 14 days.
  • The Real Wallet — a first-of-its-kind fintech product designed specifically for Real agents that centralizes the functionality of a debit card, credit card, reward points and an array of perks. This new suite of products will open new monetization opportunities within the vast amount of commission dollars already transacted on our reZEN transaction platform. Initial testing for the Real Wallet is scheduled for the first half of 2024.
  • Leo 2.0 — a major update to our AI-powered virtual concierge, Leo 2.0 introduces powerful predictive capabilities. It enables Leo to anticipate agents’ questions based on analyzing historical interactions and patterns across our entire agent network. In essence, Leo has evolved into a proactive assistant, adept at anticipating questions and addressing issues before agents even think to ask them.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence throughout the U.S. and Canada, Real supports more than 12,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses. Additional information can be found on its website at