REAX Stock Forecast & Price Target

Real Brokerage Inc has demonstrated strong financial performance, with revenue and gross profit of $540.8 million and $47.9 million, respectively, surpassing both internal and consensus estimates, while achieving a 44% year-over-year increase in agent count. The company's pipeline remains robust, with a 4.1% quarter-to-date increase in agent count, indicating a healthy growth trajectory. Furthermore, as the mortgage and title segments approach profitability and the Real Wallet expands into U.S. credit lending, there is an anticipated contribution to margin expansion by FY26, further strengthening the positive outlook for the firm.

Real Brokerage Inc. demonstrates a sequential decline in gross margin, decreasing to 559 basis points from 605 basis points, primarily attributed to an increase in capped agents, a trend anticipated to persist into the second half of 2025. Despite a reduction in adjusted operating expenses per transaction to $459, the company is facing challenges in maintaining profitability due to pressures from market conditions and operational adjustments. Furthermore, the lowered price target reflects a diminished outlook, as it has been adjusted from 22x to 20x Adjusted EBITDA/EV in response to slower-than-expected industry home sales.