Real Brokerage Reports Q2 2026 Results: Full Earnings Call Transcript

Real Brokerage (NASDAQ: REAX ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

6 million for Q2 2026. The company is in the process of merging with RE/MAX, with a security holder vote scheduled for August 14, 2026. The merger is expected to bring synergies and expand service offerings. Agent count increased by 26% year-over-year, totaling approximately 36,000 agents at present.

0, an AI relationship management platform, which has shown promising results in enhancing agent productivity. Real Brokerage continues to grow its ancillary businesses with a 28% increase in revenue from Real Wallet, One Real Title, and One Real Mortgage. 6 million in acquisition-related costs, leading to a reported operating loss of $7 million, though excluding these costs, operating income would have more than doubled. 6 million in unrestricted cash and short-term investments.

Management is confident in achieving $30 million in cost synergies within three years post the RE/MAX transaction and plans to focus on debt repayment and deleveraging. Full Transcript OPERATOR Good morning ladies and gentlemen and welcome to the Real Brokerage earnings call for the second quarter ended June 30, 2026. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. I will now turn the call over to Alex Lumpkin, Chief Legal Officer at Real Brokerage.

Ma'am, the floor is yours. Alex Lumpkin, Chief Legal Officer Thanks and good morning. Thank you for standing by and welcome to the Real Brokerage conference call and webcast for the second quarter ended June 30, 2026. We appreciate everyone for joining us today.

With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer, Jenna Rosenblatt, our Chief Operating Officer, and Ravi Johnny, our Chief Financial Officer. This morning Real Brokerage published an earnings press release including results for the second quarter ended June 30, 2026. S. Securities and Exchange Commission on EDGAR and with Canadian securities regulators on SEDAR Plus.

Before we get started, I'd like to remind everyone that statements made on this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements.

Our actual results may differ materially from these forward-looking statements and the risk factors that could cause these differences are detailed in our Canadian continuous disclosure documents, including our management's discussion and analysis for the period ended June 30, 2026, our annual information form for the fiscal year ended December 31, 2025, and our management information circular dated July 9, 2026, as well as our SEC reports and the S-4 registration statement filed in connection with the RE/MAX transaction. Real Brokerage disclaims any intent or obligation to update these forward-looking statements except as expressly required by law.

With that, I'd like to turn the call over to Chairman and Chief Executive Officer Tamir Poleg. Tamir, please proceed. Tamir Poleg, Chief Executive Officer Thank you Alex and good morning everyone. Real Brokerage is a real estate technology company built to improve how real estate works for the professionals at the center of a transaction and ultimately for the buyers and sellers they serve.

We attract productive real estate professionals with a differentiated value proposition, help them build stronger businesses through superior technology and support, and expand the products and services available to them and their clients over time. When we do these things well and operate with financial discipline, we create durable value for agents, consumers and shareholders alike. I want to frame today's call a little differently than usual as this could be the last time we report to you as a standalone Real Brokerage; our security holder vote on the RE/MAX transaction is scheduled for August 14th.

Assuming approval by both Real Brokerage security holders and RE/MAX's shareholders, and satisfaction of the remaining closing conditions, we expect to complete the transaction thereafter in the second half of 2026. The headline for the quarter is straightforward. Despite one of the most challenging housing markets in years, we again delivered significant growth, improved core profitability and further strengthened our balance sheet. Revenue increased 30% to more than $700 million.

6 million. 6 million. Those results reinforce something we've believed for a long time. When we consistently help great real estate professionals build better businesses, we can deliver differentiated growth, improve profitability and create long-term value.

That's why we believe the RE/MAX transaction is such an important step in our evolution. RE/MAX brings an iconic global brand, highly productive agents and franchise owners with deep local market expertise. Real Brokerage brings a modern AI-enabled technology platform, a differentiated economic model and a track record of innovation and disciplined execution. Together, we believe we can better support real estate professionals, improve the experience for buyers and sellers, and build a stronger, more profitable company for the long term.

Jenna will discuss the momentum in our operating results and integration progress. Ravi will then discuss our financials in more detail before I return with a few closing remarks. With that, I'll hand it over to Jenna. Jenna Rosenblatt, Chief Operating Officer Thanks Tamir and good morning.

We ended the second quarter with approximately 35,350 agents, up 26% year over year, and entered the second half with a strong pipeline. In fact, as of today, our agent count has already exceeded 36,000. Even in a difficult market environment, we continue to experience organic growth from entrepreneurial agents, teams and independent brokerages looking for better technology, better economics, and a platform that helps them run their businesses more efficiently and more profitably. We also continue to make progress rolling out new technology that can meaningfully change how agents operate and how they serve their clients.

As an example, Hey LEO, our AI relationship management platform for agents, continues to evolve to enhance both the agent and client experience. 0 has beta-launched in recent weeks, including direct integrations with some of the largest real estate CRMs in the industry. As a result, with the help of LEO, our agents can now seamlessly leverage agentic AI to help activate, engage and nurture their leads. This matters because most agents already have significant opportunities sitting inside their client database, but simply don't have the time or tools to consistently follow up with their clients.

By helping agents respond faster, maintain more consistent engagement, and identify when their clients are ready to act, we believe Hey LEO can improve agent productivity while creating a better experience for buyers and sellers. We're very pleased with the early results and feedback from our agents and look forward to making this technology available to all of our agents once fully rolled out. Turning to RE/MAX, as Chief Integration Officer for the transaction, my primary focus is straightforward: be ready to execute on Day One while preserving the strengths that have made both organizations successful.

Since our last call, we have established an Integration Management Office, identified leaders across every major division and work stream, and have engaged experienced third-party advisors to assist us with our integration plans and support Day One readiness. Based on the work completed to date, we remain confident in our ability to achieve approximately $30 million of cost synergies within three years of closing. As we gain better visibility after closing, we'll continue evaluating additional opportunities and we'll communicate our progress transparently throughout the process.

Our priority is to bring together the best of both organizations while making the transition as seamless as possible for employees, agents, franchise owners and consumers. Success won't be measured by how quickly we change things. It will be measured by how effectively we strengthen the combined platform while preserving the relationships and culture that have made both successful. With that, I'll turn it to Ravi.

Ravi Johnny, Chief Financial Officer Thank you, Jenna. Good morning everyone. Let me provide a little more context around the financial results. 6 million, up 30% year over year.

S. and Canadian home sales markets, together with a 1% improvement in average agent productivity and a 2% increase in average revenue per transaction. 2 million, with Wallet revenue growing 140%, Title growing 29% and Mortgage growing 10%. The key takeaway is that Real Brokerage continues to take market share and grow at a significant rate despite a housing market that remains near historically low transaction levels.

At the same time, our high-margin ancillary businesses are also delivering improved growth and profitability. 9% in the prior year. The year-over-year decline was primarily a mix effect. In the second quarter, approximately 42% of our closed transaction sides came from capped agents, up 300 basis points year over year.

Post-cap transactions carry a lower brokerage margin by design. That is the economic trade-off for retaining our highest producing agents, and our strong retention rates give us confidence that it remains the right trade-off. 6 million in acquisition-related costs associated with the pending RE/MAX transaction. 7 million in the second quarter of 2025.

On a normalized basis, excluding acquisition-related costs, operating income would have more than doubled from the prior year. 6 million, up 38% year over year. 7% in the prior year. 9 million at the start of the year.

Subject to the satisfaction of remaining closing conditions for the RE/MAX transaction, we expect to prioritize debt repayment and deleveraging following closing. With respect to the stand-alone Real Brokerage business, we expect the third quarter to follow normal seasonal patterns across the residential real estate industry, with revenue and adjusted EBITDA declining sequentially from the second quarter and gross margin lower year over year. Assuming the RE/MAX transaction closes as expected, we intend to use our third quarter call in November to provide a combined company baseline and preliminary 2027 guidance for the combined business.

More details on our results and key operating metrics can be found in the earnings press release, financial statements and investor presentation that accompany this call. I will now turn it back to Tamir. Tamir Poleg, Chief Executive Officer Thank you Ravi and thank you Jenna. Twelve years ago, we started Real Brokerage with a simple mission: make life better for real estate agents.

That mission has never wavered. While we can't control mortgage rates or the pace of the housing market, we can control how we innovate, how we execute and how we support the thousands of real estate professionals who trust us with their businesses. This quarter's results reflect that focus. To our agents and employees, thank you for believing in what we're building every day.

And to the RE/MAX agents, franchise owners and employees listening today, thank you for the trust you've earned over more than 50 years. Together we have the opportunity to write the industry's next great chapter by bringing together the best of both organizations for our agents, our consumers and our shareholders. With that, we can open the line for questions. OPERATOR Certainly, everyone, at this time we will be conducting a Q&A session for analysts.

If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. We do ask that participants please ask one question and one follow-up, then re-enter the queue. Once again, if you have any questions or comments, please press star one on your phone.

Your first question is coming from Steven Sheldon from William Blair. Your line is live. Steven Sheldon, Analyst at William Blair Hey, good morning. Thanks for taking my questions.

First, it would be great to hear what you're seeing and hearing in the agent and team recruiting pipeline. You continue to grow quickly there, which is great. Have there been any signs that the pending merger with RE/MAX is impacting that pipeline either positively or negatively? I'd love to hear what you're seeing there.

Tamir Poleg, Chief Executive Officer Thanks, Steven. Yes, after a somewhat slower start for the year in Q1, Q2 was more robust in terms of agent adds, and we're seeing a stronger pipeline at the moment. I think that the announcement of the RE/MAX deal definitely gave us some tailwinds in terms of agents or teams reaching out and contemplating joining Real Brokerage. So I think that, all in all, is a positive.

We are seeing momentum. As Jenna mentioned, we are over 36,000 agents at the moment. So Q3 started very strongly and we expect that momentum to continue through the rest of the year. Our focus at the moment is obviously attracting agents that are not with the Real—RE/MAX group.

So we're trying to attract agents from other brokerages and making sure that we protect the network on the RE/MAX side and protect the broker-owners' businesses as well. So we are focused on attracting agents from the outside and, at the same time, also working on integration. But the pipeline is strong and we have a few very large opportunities as well in the pipeline. Hopefully they will materialize before the end of the year.

Steven Sheldon, Analyst at William Blair Got it. That's helpful. And then as a follow-up on ancillary solutions, title and mortgage continue to grow quickly but still remain pretty small, I think, in the grand scheme of things. So I think some investors are wondering when we might see more of a step-function change within those high-margin revenue streams.

And with the RE/MAX merger, maybe things might change a little bit. But just as we think about the existing business, any signs that things might pick up as we enter into 2027? Tamir Poleg, Chief Executive Officer Sure. So on the mortgage side, we see a lot of momentum.

Kate is doing the right things, and we're seeing some of our best agents opting into the Real Originate program. I think that revenue will probably show that momentum later this year or the beginning of 2027. So I think that on the mortgage side, we should expect some better results moving forward. On the title side, title did grow 30% year over year.

We are seeing some great attach rates with some of the JVs. I think that we can do a better job at propelling revenue over there as well, but we're mindful of that. And again, those two companies continue to grow. 0, which we just launched for beta—I'll just maybe spend a minute on it.

0 is a version of LEO that enables our agents to connect their CRMs into LEO and allow LEO to nurture their leads. We are now integrating the mortgage and title flows into LEO so that LEO can actually offer One Real Mortgage and One Real Title solutions to our agents' clients. And we're seeing some great results before even integrating mortgage and title flows into LEO. LEO is able to nurture leads and create opportunities for agents.

So the feedback has been amazing, and we expect that to also push the ancillary services revenue moving forward. It's not a short-term effort—it's going to take a while—but we're confident that we're on the right track. Steven Sheldon, Analyst at William Blair Good to hear. Thank you.

OPERATOR Thank you. Your next question is coming from Navid Khan from B. Riley. Your line is live.

Navid Khan, Analyst at B. Riley Great, thanks a lot. Maybe just one on LEO. How many MLSs are you connected to now?

Are you able to have nationwide coverage with LEO, or is that still something that you're broadening out? Tamir Poleg, Chief Executive Officer We're still broadening it out. S. and all of Canada, so it's almost fully built out in terms of MLS coverage.

Navid Khan, Analyst at B. Riley Got it.