REAX Stock Forecast & Price Target

Real Brokerage Inc. has reported impressive revenue and gross profit figures of $540.8 million and $47.9 million, respectively, surpassing both internal and consensus estimates, driven by a notable 44% year-over-year increase in agent count. The increasing contribution of capped agents, growing ancillary services, and the proximity of mortgage and title services to profitability are expected to enhance margins in the medium to long term. Furthermore, the company's consistent growth in agent productivity and a robust pipeline support its strong position to capture additional market share, highlighting a favorable outlook for ongoing operational success.

Real Brokerage Inc. has demonstrated a decline in gross margin including revenue share, decreasing to 5.12% from 5.59% sequentially, attributed to the increase in capped agents, a trend expected to persist. Furthermore, the recent adjustments to revenue projections, including a downward revision of price targets due to slower-than-expected industry home sales and margin expansion, reflect a cautious outlook for the company. Additionally, external factors such as poor weather and seasonality are anticipated to further limit listing activity, potentially exacerbating revenue challenges amid changing macroeconomic conditions.