Real Brokerage Inc. (REAX, Financial) has announced the immediate promotion of Ravi Jani to the position of Chief Financial Officer. This leadership shift comes after the departure of Michelle Ressler, whose employment was terminated following an alleged violation of company policies.
The transition occurs as Real Brokerage ensures stakeholders that Jani is well-positioned to steer the company's financial strategies forward. The company is currently conducting a thorough evaluation of Ressler’s actions but has confidently stated that there is no belief that her actions have influenced any previously released financial statements.
Ravi Jani, now at the helm of the financial department, is expected to continue reinforcing the company's financial stability and adhere to its strategic objectives. Investors and analysts await further updates on the situation as Real Brokerage navigates this leadership change.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for The Real Brokerage Inc (REAX, Financial) is $6.67 with a high estimate of $8.00 and a low estimate of $6.00. The average target implies an upside of 41.09% from the current price of $4.73. More detailed estimate data can be found on the The Real Brokerage Inc (REAX) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, The Real Brokerage Inc's (REAX, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Real Brokerage Inc (REAX, Financial) in one year is $8.03, suggesting a upside of 69.95% from the current price of $4.725. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Real Brokerage Inc (REAX) Summary page.
REAX Key Business Developments
Release Date: March 06, 2025
- Revenue: $1.3 billion for full year 2024, up 84% from $689 million in 2023.
- Gross Profit: $114.7 million for full year 2024, an increase of 82% from $62.9 million in 2023.
- Adjusted EBITDA: $40 million for full year 2024, up 188% from $13.9 million in 2023.
- Net Loss: $26.5 million for full year 2024, compared to $27.5 million in 2023.
- Total Transactions: 120,601 for full year 2024, an increase of 81% year over year.
- Agent Count: 24,140 agents at year-end 2024, up 77% from the prior year.
- Transaction Value: $49 billion for full year 2024, up 90% year over year.
- Cash Flow from Operations: $49 million for full year 2024.
- Fourth Quarter Revenue: $351 million, up 93% from $181 million in Q4 2023.
- Fourth Quarter Gross Profit: $30 million, up 93% from $15.5 million in Q4 2023.
- Fourth Quarter Adjusted EBITDA: $9.1 million, up from $8.5 million in Q4 2023.
- Real Wallet Revenue: $42,000 in its launch quarter, with an annualized run rate over $500,000.
- Ancillary Business Revenue: $2.5 million in Q4 2024, up 176% year over year.
- Operating Expenses: $140 million for full year 2024, up from $88.9 million in 2023.
- Revenue Share Expense: $42.7 million for full year 2024.
- Unrestricted Cash and Investments: $32.8 million at the end of Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Real Brokerage Inc (REAX, Financial) reported record 4th quarter and full year 2024 results, with revenue growing to $1.3 billion, marking its first-ever billion-dollar revenue year.
- The company closed over 120,000 transactions in 2024, an increase of 81% compared to 2023, demonstrating strong growth in transaction volume.
- Agent count increased by 77% year-over-year, ending 2024 with 24,140 agents and reaching approximately 26,200 agents by early 2025.
- The Real Brokerage Inc (REAX) launched innovative products like Leo CoPilot, an AI-powered agent assistant, and Real Wallet, a fintech platform, enhancing agent productivity and financial services.
- The company achieved a significant improvement in adjusted EBITDA, reaching $40 million in 2024, up 188% from the previous year, indicating strong financial performance.
Negative Points
- The Real Brokerage Inc (REAX) reported a net loss attributable to the owners of the company of $26.5 million for the full year 2024.
- Operating expenses increased to $140 million in 2024, including $10.4 million related to antitrust litigation, which impacted profitability.
- Despite growth in ancillary services, mortgage and title contributed less than 1% of total revenue, highlighting the need for further expansion in these high-margin areas.
- The company anticipates a sequential decline in revenue for the first quarter of 2025 due to seasonality in the existing home sales market.
- The Real Brokerage Inc (REAX) is still in a period of investment, which may delay achieving positive net margins in the near term.
