Real Brokerage Inc. ((REAX)) has held its Q2 earnings call. Read on for the main highlights of the call.

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Real Brokerage Inc.’s latest earnings call struck an upbeat tone, underscoring robust growth despite some short-term pressures. Management emphasized double‑digit revenue gains, record transaction and agent levels, expanding adjusted EBITDA, and a fortified cash position, while acknowledging margin compression, acquisition costs, and seasonal headwinds that temporarily weigh on reported profitability.

Strong Revenue Growth

Revenue climbed 30% year over year to $700.6 million in the second quarter of 2026, powered by higher closed transactions and richer revenue per deal. Management framed the top‑line advance as evidence that Real’s model continues to scale even in a housing market that remains far from boom conditions.

Record Transactions and Agent Expansion

Closed transaction sides jumped 27% from a year earlier to a record 62,380, reflecting both higher volumes and rising productivity across the network. Agent count reached roughly 35,350, up 26% year over year, and has already topped 36,000 entering the back half of 2026, signalling continued share gains.

Improved Adjusted EBITDA and Profitability

Adjusted EBITDA grew 38% year over year to $27.6 million, lifting the adjusted margin to 3.9% from 3.7% as scale benefits flowed through the income statement. Gross profit increased 22% to $58.3 million, underscoring what executives called an improving core earnings engine even as reported margins face mix‑driven pressure.

Record Cash and Balance Sheet Strength

Unrestricted cash and short‑term investments ended the quarter at a record $86.6 million, up sharply from $49.9 million at the start of the year. Management highlighted the strengthened liquidity as a strategic cushion heading into the RE/MAX combination and as support for ongoing tech and ancillary investments.

Ancillary Business Momentum

Ancillary revenue from Real Wallet, One Real Title, and One Real Mortgage rose 28% year over year to $4.2 million, with wallet revenue surging 140%, title up 29%, and mortgage advancing 10%. Executives stressed that while still small, these businesses are growing quickly and should add higher‑margin fee streams over time.

Technology Progress and HeyLeo 2.0

The company launched the beta of HeyLeo 2.0 with direct CRM integrations and tested it with about 200 top agents, who offered highly positive feedback. Real also expanded MLS coverage to roughly 90% of U.S. transactions and all of Canada, positioning its platform as a more comprehensive operating system for agents.

RE/MAX Transaction and Synergy Potential

The pending acquisition of RE/MAX remains on track for a second‑half 2026 close, subject to approvals, and is central to Real’s long‑term playbook. Management reiterated an expectation of roughly $30 million in cost synergies within three years and cited pro forma 2025 adjusted EBITDA of about $160 million, rising toward $190 million with synergies.

Market Share Gains in a Tough Backdrop

Executives argued that Real is steadily gaining market share despite a choppy housing environment, with growth driven by agent additions and productivity rather than a rising tide. They stressed that the model is designed to perform without relying on a housing boom, framing current momentum as structurally driven rather than cyclical.

Operating Loss and Acquisition Costs

Despite the growth metrics, Real reported an operating loss of $7.0 million for the quarter versus operating income of $1.7 million a year ago, alongside a net loss of $8.0 million. The company pointed to $11.6 million of acquisition‑related expenses tied to the RE/MAX deal within total operating costs of $65.3 million as key drivers of the headline loss.

Gross Margin Pressure from Mix Shift

Gross margin slipped to 8.3% from 8.9% a year earlier, largely due to a higher share of post‑cap agents that intentionally carry lower brokerage margins. About 42% of transactions came from these post‑cap agents, up 300 basis points year over year, and management framed this as a trade‑off that boosts total transactions and supports long‑term scale.

Seasonality and Expected Q3 Softness

Looking to the near term, Real expects third‑quarter revenue and adjusted EBITDA to decline sequentially, consistent with its historical seasonal pattern. Gross margin is projected to be lower year over year in Q3, with fee model changes taking effect in September and Q4 margins expected to be roughly flat versus the prior year.

Canadian Market Weakness

In Canada, average transactions per agent fell 9% year over year, reflecting softer local housing conditions and tough comparisons in some provinces. Even so, the company noted that overall Canadian revenue and agent count still advanced, suggesting that the regional slowdown has not derailed broader growth.

Ancillary Scale and Operating Efficiency

Management acknowledged that ancillary businesses, while fast growing, remain modest at $4.2 million in quarterly revenue and will need more scale to materially lift margins. They also noted that converting certain contractor roles to employees modestly reduced headcount efficiency metrics, but they expect the move to be profit‑and‑loss neutral over time.

Forward Guidance and Strategic Outlook

Guidance centers on closing the RE/MAX transaction in the second half of 2026, delivering about $30 million in synergies over three years, and prioritizing debt reduction once the deal is done. For the standalone business, Real anticipates a seasonal dip in Q3 results, relatively flat gross margins in Q4, and plans to unveil a combined‑company baseline and early 2027 outlook on its November call.

Real Brokerage’s earnings call painted a picture of a rapidly scaling brokerage that is willing to absorb near‑term margin and cost noise to build a larger, more diversified platform. For investors, the key watch points will be execution on the RE/MAX integration, the ramp of ancillary services, and evidence that seasonal softness and Canadian weakness remain manageable bumps along an otherwise steady growth path.