REAX Stock Forecast & Price Target

Real Brokerage Inc. has demonstrated strong financial performance, reporting revenue and gross profit of $540.8 million and $47.9 million, respectively, surpassing both internal and consensus estimates, driven by a substantial 44% year-over-year increase in agent count. The company’s pipeline appears robust, with a 4.1% increase in agent count quarter-to-date, indicating continued growth potential. Furthermore, as its mortgage and title services move closer to profitability and the Real Wallet expands into US credit lending, there are expectations for margin expansion in FY26, bolstering the company's positive financial outlook.

Real Brokerage Inc. has experienced a decline in gross margin, which fell to 559 basis points from 605 in the previous quarter, primarily due to an increase in capped agents, suggesting challenges in maintaining profitability amid changing business dynamics. Although the adjusted operating expense per transaction has improved, dropping to $459, the overall financial performance remains under pressure as reflected in the company's reduced price target, which has been lowered to account for slower-than-anticipated home sales across the industry. This combination of declining gross margins and external market challenges presents a negative outlook for the company's stock performance moving forward.