Real estate technology company The Real Brokerage (NASDAQ: REAX) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 52.6% year on year to $568.5 million. Its GAAP loss of $0 per share was in line with analysts’ consensus estimates.

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“Real continued to materially outperform the broader housing market in the third quarter, with closed transactions up 49% year-over-year,” said Tamir Poleg, Chairman and Chief Executive Officer.

Company Overview

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, The Real Brokerage’s sales grew at an incredible 167% compounded annual growth rate over the last five years. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. The Real Brokerage’s annualized revenue growth of 73.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, The Real Brokerage reported magnificent year-on-year revenue growth of 52.6%, and its $568.5 million of revenue beat Wall Street’s estimates by 6.5%.

Looking ahead, sell-side analysts expect revenue to grow 18.3% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and suggests the market is forecasting success for its products and services.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

The Real Brokerage’s operating margin has been trending up over the last 12 months, but it still averaged negative 1.1% over the last two years. This is due to its large expense base and inefficient cost structure.

This quarter, The Real Brokerage generated a negative 0.1% operating margin.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

The Real Brokerage’s earnings losses deepened over the last five years as its EPS dropped 6.2% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. Consumer Discretionary companies are particularly exposed to this, and if the tide turns unexpectedly, The Real Brokerage’s low margin of safety could leave its stock price susceptible to large downswings.

In Q3, The Real Brokerage reported EPS of $0, up from negative $0.01 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects The Real Brokerage to improve its earnings losses. Analysts forecast its full-year EPS of negative $0.04 will advance to negative $0.02.

Key Takeaways from The Real Brokerage’s Q3 Results

It was encouraging to see The Real Brokerage meet analysts’ EPS expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 5.6% to $3.78 immediately following the results.

Indeed, The Real Brokerage had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.