The Real Brokerage Inc. (REAX) AI Stock Analysis
REAX AI stock analysis summary
AI ResearchThe Real Brokerage Inc. (REAX) is a technology-focused real estate brokerage operating across 42 US states, the District of Columbia, and Canada. In FY2025, revenue grew 55.7% to $1.97B while free cash flow reached $64.8M. However, the company generated an annual net loss of -$8.1M and its shares fell 56.9% over the past year.
- Market cap
- $577.2M
- Revenue (TTM)
- $2.24B
- P/E
- —
- 1Y return
- -56.9% S&P 500 16.8%
- Avg. target
- $31.58 98.4% vs last close
Bull case
- Revenue expanded at a 5-year CAGR of 160.0% through FY2025, reaching $1.97B.
- The business generated $64.8M of free cash flow in FY2025 and held $86.6M in cash and short-term investments as of June 30, 2026.
- Analysts maintain 6 Strong Buy ratings on the stock with a mean price target of $31.58, representing 98.4% upside above the last close.
Bear case
- The company generated a trailing twelve-month net loss of -$0.70 per share alongside a profit margin of -0.7%.
- Shares dropped 56.9% over the past year, significantly trailing the 16.8% return of the S&P 500.
- Gross margin narrowed from 9.1% in FY2024 to 8.3% in FY2025, reflecting tight unit economics.
What Real Brokerage does
The Real Brokerage Inc. is a technology-driven real estate brokerage headquartered in Toronto, Canada. Through its subsidiaries, the company equips agents with a mobile-focused technology platform that supports client management, transaction processing, and service delivery tools. The firm's business model emphasizes attractive business terms and wealth-building opportunities for agents. Operating across 42 states in the United States, the District of Columbia, and Canada, The Real Brokerage Inc. combines traditional brokerage practices with digital tools to serve a diverse real estate clientele.
Growth and profitability
Annual revenue grew from $121.7M in FY2021 to $381.8M in FY2022, $689.2M in FY2023, $1.26B in FY2024, and $1.97B in FY2025, representing a 5-year revenue CAGR of 160.0%. Gross margin stood at 8.3% in FY2025 compared to 9.1% in FY2021. Net losses narrowed from -$27.5M in FY2023 and -$26.5M in FY2024 to -$8.1M in FY2025, resulting in a net margin of -0.4% and an EPS of -$0.03. For the trailing twelve months ending June 30, 2026, revenue reached $2.24B with an operating margin of 0.7% and an EPS of -$0.70. Quarterly revenue rose 29.6% year-over-year in the quarter ended June 30, 2026.
Balance sheet and cash flow
As of June 30, 2026, The Real Brokerage Inc. held $86.6M in cash and short-term investments, with total assets of $213.4M and shareholders' equity of $78.7M. The company reported a current ratio of 1.44. During FY2025, operating cash flow reached $65.9M, funding capital expenditures of $1.1M to produce free cash flow of $64.8M. The company also allocated $39.4M to share buybacks in FY2025, while its share count expanded 19.8% over five years.
Valuation and performance
At the last close of $15.92 on October 16, 2026, The Real Brokerage Inc. held a market capitalization of $577.2M and an enterprise value of $241.8M. The stock trades at a price-to-sales multiple of 0.3x and an EV-to-revenue multiple of 0.1x, both below the 3.7x price-to-sales median of its US-listed Real Estate peers. Its price-to-book ratio is 4.2x. Over the past year, REAX shares fell 56.9%, underperforming the 16.8% return of the S&P 500 (SPY).
What analysts expect
Wall Street coverage includes 6 Strong Buy ratings, 1 Buy rating, and 0 Hold or Sell ratings. The mean price target is $31.58, indicating an upside of 98.4% compared to the last close of $15.92. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.14 on revenue of $2.47B. For the subsequent fiscal year, 2 analysts project revenue of $2.92B and EPS of $1.84. The company surpassed EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.
Key risks and what to watch
- Trailing twelve-month return on equity stood at -24.9%, reflecting ongoing cumulative losses.
- The stock traded 31.1% below its 200-day moving average and remains down 56.4% year-to-date.
- Total share count increased 19.8% over five years, creating shareholder dilution despite $39.4M in FY2025 share repurchases.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this REAX AI stock analysis
This page is an AI-written research summary of The Real Brokerage Inc. (REAX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: REAX income statement, REAX balance sheet, REAX key metrics, REAX analyst forecast, REAX chart. See the REAX stock overview for the latest quote and news.
REAX AI stock analysis FAQ
Does The Real Brokerage Inc. pay a dividend?
No, The Real Brokerage Inc. does not pay a dividend. Capital has instead been allocated to business operations and share buybacks, which totaled $39.4M in FY2025.
What was REAX's revenue growth in FY2025?
Revenue in FY2025 grew 55.7% to $1.97B, up from $1.26B in FY2024. Over the five-year period from FY2020 to FY2025, revenue increased at a compound annual growth rate of 160.0%.
Is The Real Brokerage Inc. profitable?
The company is not currently profitable, reporting a net loss of -$8.1M in FY2025 and trailing twelve-month EPS of -$0.70. However, consensus estimates from 2 analysts project positive EPS of $1.84 for the next fiscal year.
What is the consensus analyst price target for REAX?
The mean analyst price target is $31.58, which is 98.4% above the last closing price of $15.92 recorded on October 16, 2026.