Real estate technology company The Real Brokerage (NASDAQ: REAX) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 31.5% year on year to $465.6 million. Its GAAP loss of $0.02 per share was in line with analysts’ consensus estimates.
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The Real Brokerage (REAX) Q1 CY2026 Highlights:
- Revenue: $465.6 million vs analyst estimates of $481.9 million (31.5% year-on-year growth, 3.4% miss)
- EPS (GAAP): -$0.02 vs analyst estimates of -$0.03 (in line)
- Adjusted EBITDA: $14.14 million vs analyst estimates of $11.76 million (3% margin, 20.2% beat)
- Operating Margin: -0.7%, in line with the same quarter last year
- Free Cash Flow Margin: 4.9%, similar to the same quarter last year
- Market Capitalization: $448.5 million
“Real delivered another quarter of significant growth, with revenue increasing 32% year-over-year, demonstrating the continued strength of our platform and agent value proposition,” said Tamir Poleg, Chairman and Chief Executive Officer.
Company Overview
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, The Real Brokerage’s 146% annualized revenue growth over the last five years was incredible. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. The Real Brokerage’s annualized revenue growth of 63.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, The Real Brokerage pulled off a wonderful 31.5% year-on-year revenue growth rate, but its $465.6 million of revenue fell short of Wall Street’s rosy estimates.
Looking ahead, sell-side analysts expect revenue to grow 17.5% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and indicates the market is baking in success for its products and services.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
The Real Brokerage’s operating margin has generally stayed the same over the last 12 months. The company broke even over the last two years, inadequate for a consumer discretionary business. Its large expense base and inefficient cost structure were the main culprits behind this performance.
The Real Brokerage’s operating margin was negative 0.7% this quarter.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Although The Real Brokerage’s full-year earnings are still negative, it reduced its losses and improved its EPS by 5.4% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.
In Q1, The Real Brokerage reported EPS of negative $0.02, in line with the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.
Key Takeaways from The Real Brokerage’s Q1 Results
We were impressed by how significantly The Real Brokerage blew past analysts’ adjusted operating income expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue missed. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 3.8% to $2.16 immediately after reporting.
The Real Brokerage put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
