The Real Brokerage’s second quarter was marked by strong top-line growth, but the market’s negative reaction reflected concerns about underlying profitability trends and industry headwinds. Management pointed to a 62% increase in closed transactions and robust agent productivity as key drivers, with CEO Tamir Poleg highlighting, “Transactions per average agent increased by 7% year-over-year, significantly outpacing industry averages.” However, the effects of shifting agent mix and the offboarding of nonproductive agents impacted the quarter, with management acknowledging that more revenue is being generated by top-producing agents, which affects margins.

Is now the time to buy REAX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From The Real Brokerage’s Q2 Earnings Call

• Stephen Hardy Sheldon (William Blair) asked about financial impacts of the revenue share model changes. CEO Tamir Poleg explained the changes only affect internal distribution and will not impact company expenses.

• Stephen Hardy Sheldon (William Blair) requested clarity on expected gross margin trends in the second half of the year. CFO Ravi Jani confirmed margins would remain pressured due to more revenue from capped agents, calling it a high-class problem tied to productivity.

• Stephen Hardy Sheldon (William Blair) inquired about agent and team recruiting pipelines. Poleg said growth remains strong, with 1,200 agents added recently, and that offboarding was focused on nonproductive agents.

• Matthew Erdner (JonesTrading) asked about strategies to boost adoption of ancillary services among productive agents. Poleg said future adoption will depend on product and technology enhancements, rather than direct outreach.

• Naved Ahmad Khan (B. Riley) questioned the effectiveness of automation and future levers to drive more efficiency. COO Jenna Rozenblat stated that an in-house AI and automation team is being created to accelerate automation across departments.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will watch (1) the pace of adoption for Real Wallet’s U.S. lending product and the rollout of state-based title joint ventures, (2) the impact of AI-driven automation on transaction efficiency and support, and (3) continued improvements in agent productivity and retention as nonproductive agents are offboarded. Execution on integrating Flyhomes’ technology and expanding ancillary services will be key markers for sustainable margin expansion.

The Real Brokerage currently trades at $4.50, up from $4.11 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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