(REAX) Real Brokerage - Overview
Sector: Real Estate | Industry: Real Estate Services | Exchange: NASDAQ (USA) | Market Cap: 377m USD | Total Return: -60.5% in 12m
Industry Rotation: -2.2
Avg Turnover: 7.91M
EPS Trend: 36.4%
Qual. Beats: 0
Rev. Trend: 94.8%
Qual. Beats: 0
Warnings
High Debt/EBITDA (19.9) with thin interest coverage (-10.4)
Interest Coverage Ratio -10.4 is critical
Altman Z'' -2.18 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
The Real Brokerage Inc. (REAX) is a technology-driven real estate platform operating across the United States and Canada. The company integrates traditional brokerage services with a proprietary software suite designed to streamline residential transactions. Its business model centers on a cloud-based brokerage structure, which reduces physical overhead costs compared to traditional brick-and-mortar competitors.
Beyond agent representation, the firm provides a vertically integrated stack of ancillary services, including mortgage origination, title insurance, and escrow services. This multi-revenue stream approach is common among modern proptech firms seeking to capture more value from the end-to-end homebuying lifecycle. For a deeper look at the fundamental metrics driving this company, ValueRay offers additional data points.
Founded in 2014 and headquartered in Miami, Florida, the company operates within the Real Estate Development GICS sub-industry. By utilizing financial technology and lending products, the firm aims to digitize the administrative components of real estate for both agents and consumers.
- Agent headcount growth drives gross commission income and market share expansion
- Mortgage and title service integration increases high-margin ancillary revenue capture
- High mortgage rates and low housing inventory suppress transaction volume
- Scalable cloud-based infrastructure reduces operational overhead compared to traditional brokerages
- Competitive commission split structures attract top-performing agents from legacy competitors
| Net Income: -6.56m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.52 > 0.02 and ΔFCF/TA 1.48 > 1.0 |
| NWC/Revenue: 2.18% < 20% (prev 1.13%; Δ 1.06% < -1%) |
| CFO/TA 0.53 > 3% & CFO 82.8m > Net Income -6.56m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.50 > 1.5 & < 3 |
| Outstanding Shares: last quarter (223.7m) vs 12m ago 9.45% < -2% |
| Gross Margin: 8.33% > 18% (prev 0.09%; Δ 824.3% > 0.5%) |
| Asset Turnover: 1.62k% > 50% (prev 1.41k%; Δ 204.9% > 0%) |
| Interest Coverage Ratio: -10.39 > 6 (EBITDA TTM -4.17m / Interest Expense TTM 606k) |
| A: 0.29 (Total Current Assets 136.7m - Total Current Liabilities 91.3m) / Total Assets 156.9m |
| B: -0.74 (Retained Earnings -116.3m / Total Assets 156.9m) |
| C: -0.05 (EBIT TTM -6.29m / Avg Total Assets 128.7m) |
| D: -1.27 (Book Value of Equity -115.6m / Total Liabilities 91.3m) |
| Altman-Z'' Score: -2.18 = D |
| DSRI: 1.38 (Receivables 34.2m/16.8m, Revenue 2.08b/1.42b) |
| GMI: 1.08 (GM 8.33% / 9.00%) |
| AQI: 0.79 (AQ_t 0.11 / AQ_t-1 0.14) |
| SGI: 1.47 (Revenue 2.08b / 1.42b) |
| TATA: -0.57 (NI -6.56m - CFO 82.8m) / TA 156.9m) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
Over the past week, the price has changed by -16.18%, over one month by -37.59%, over three months by -34.98% and over the past year by -60.51%.
- StrongBuy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 5.2 | 201.2% |
P/B = 6.632
Revenue TTM = 2.08b USD
EBIT TTM = -6.29m USD
EBITDA TTM = -4.17m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = unknown
Net Debt = -82.8m USD (from netDebt column, last quarter)
Enterprise Value = 276.9m USD (376.6m + (null Debt) - CCE 99.7m)
Interest Coverage Ratio = -10.39 (Ebit TTM -6.29m / Interest Expense TTM 606k)
EV/FCF = 3.38x (Enterprise Value 276.9m / FCF TTM 81.8m)
FCF Yield = 29.54% (FCF TTM 81.8m / Enterprise Value 276.9m)
FCF Margin = 3.93% (FCF TTM 81.8m / Revenue TTM 2.08b)
Net Margin = -0.32% (Net Income TTM -6.56m / Revenue TTM 2.08b)
Gross Margin = 8.33% ((Revenue TTM 2.08b - Cost of Revenue TTM 1.91b) / Revenue TTM)
Gross Margin QoQ = 8.93% (prev 7.73%)
Tobins Q-Ratio = 1.76 (Enterprise Value 276.9m / Total Assets 156.9m)
Interest Expense / Debt = unknown (Interest Expense 86.0k / Debt none)
Taxrate = 21.0% (US default 21%)
NOPAT = -4.97m (EBIT -6.29m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.50 (Total Current Assets 136.7m / Total Current Liabilities 91.3m)
Debt / Equity = unknown (Debt none)
Debt / EBITDA = 19.87 (negative EBITDA) (Net Debt -82.8m / EBITDA -4.17m)
Debt / FCF = -1.01 (Net Debt -82.8m / FCF TTM 81.8m)
Total Stockholder Equity = 55.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.10% (Net Income -6.56m / Total Assets 156.9m)
RoE = -11.92% (Net Income TTM -6.56m / Total Stockholder Equity 55.0m)
RoCE = -9.60% (EBIT -6.29m / Capital Employed (Total Assets 156.9m - Current Liab 91.3m))
RoIC = -9.65% (negative operating profit) (NOPAT -4.97m / Invested Capital 51.5m)
WACC = 10.03% (E(376.6m)/V(376.6m) * Re(10.03%) + (debt-free company))
Discount Rate = 10.03% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 9.79%
[DCF] Terminal Value 75.26% ; FCFF base≈69.4m ; Y1≈85.7m ; Y5≈146.2m
[DCF] Fair Price = 8.61 (EV 1.76b - Net Debt -82.8m = Equity 1.85b / Shares 214.6m; r=10.03% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 36.43 | EPS CAGR: 1.81% | SUE: 0.43 | # QB: 0
Revenue Correlation: 94.84 | Revenue CAGR: 46.09% | SUE: -0.82 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=-76.43% | Revisions=-20% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.01 | Chg30d=+66.67% | Revisions=N/A | Analysts=3
EPS current Year (2026-12-31): EPS=-0.01 | Chg30d=+6.25% | Revisions=-33% | GrowthEPS=+81.2% | GrowthRev=+21.6%
EPS next Year (2027-12-31): EPS=0.04 | Chg30d=+2.18% | Revisions=+33% | GrowthEPS=+600.0% | GrowthRev=+14.1%
[Analyst] Revisions Ratio: -33%