The Real Brokerage continued to post very strong growth in Q3 2025, with revenue, agent count, transaction volume, and Adjusted EBITDA all increasing substantially year over year despite a still-challenging housing market. Revenue reached $568.5 million, up more than 50% from the prior-year quarter, while Adjusted EBITDA rose to $20.4 million. The company remained slightly loss-making on a GAAP basis, but the net loss narrowed sharply from the prior year. Growth continues to be driven by rapid agent recruitment, increasing transaction volume, a highly scalable software-based operating model, and expansion of ancillary businesses such as mortgage, title, Real Wallet, and AI-powered products. Management continues to position Real as a low-cost, technology-enabled alternative to traditional brokerages, with the goal of gaining market share while increasing revenue per transaction and improving margins over time.
Key Financial Highlights
Q3 2025 revenue increased to $568.5 million, compared with $372.5 million in Q3 2024, representing approximately 53% year-over-year growth. Gross profit increased to $44.9 million from $32.1 million. The company reported an operating loss of only $0.5 million, compared with a $2.5 million loss in the prior-year quarter, while net loss improved to $0.3 million from $2.5 million.
Adjusted EBITDA reached $20.4 million, up from $13.3 million in Q3 2024 and slightly above $20.0 million in Q2 2025. The trailing-12-month Adjusted EBITDA shown in the presentation reached approximately $57.8 million, continuing the company’s strong profitability trend on an adjusted basis.
Operating cash flow remained positive at $8.8 million in Q3, compared with $7.2 million a year earlier. The company ended the quarter with $36.4 million in cash and cash equivalents and $19.4 million in financial investments, while continuing to report no debt.
Operationally, closed transaction sides increased to 53,512 from 35,832 a year earlier, total transaction value increased to $21.4 billion from $14.4 billion, and agent count increased to 30,183, up from 21,770 in Q3 2024.
Strategic Initiatives and Market Performance
Real’s strategy remains centered on rapidly expanding its agent network while using technology to keep the cost of growth low. The company’s software-based platform allows it to add agents with minimal incremental capital expenditure, and trailing-12-month adjusted operating expenses declined to 4.7% of revenue, down from 7.4% at the beginning of 2023. The Q3 agent-to-brokerage-employee ratio improved to 89:1, reflecting continued operating leverage from automation and technology.
Agent recruitment remains a major growth driver. Real has grown its agent count more than sevenfold since Q4 2021 and now estimates that it represents approximately 2% of the industry, leaving substantial room for further share gains in what management describes as a fragmented market.
Technology remains another major strategic pillar. Real continues to develop its proprietary reZEN platform and Leo CoPilot, its GPT-powered AI assistant for agents. Since April 2025, Leo has served as the initial point of contact for daily inbound support inquiries, helping automate traditionally labor-intensive brokerage functions.
The company is also preparing the beta launch of Leo for Clients in Q4 2025, an AI-driven consumer product intended to simplify the homebuying journey from discovery through closing while increasing attachment of higher-margin ancillary services.
Ancillary services remain an important long-term margin opportunity. Real continues to expand mortgage, title, and fintech products to generate more revenue from each real estate transaction. Real Wallet had generated $550,000 in year-to-date revenue through Q3, with more than 4,600 agents using the platform and approximately $20 million in deposits.
Challenges
The broader housing market remains the largest external challenge. Real’s September Transaction Growth Index was 49.5, still slightly below the 50 level indicating year-over-year transaction growth, although it improved materially from 42.7 in August. The U.S. subindex also remained just below 50 at 49.1.
Affordability remains the dominant issue for homebuyers. In September, 55% of agents cited mortgage rates and home prices as the biggest barrier, while 27% pointed to economic uncertainty. Market conditions also continued to favor buyers, with 52% of agents describing their local market as a buyer’s market compared with just 17% identifying a seller’s market.
GAAP profitability remains another challenge. Despite strong revenue and Adjusted EBITDA growth, Real still reported a small net loss in Q3, and stock-based compensation remained significant at approximately $19.9 million. This means a meaningful portion of the difference between GAAP profitability and Adjusted EBITDA continues to come from equity compensation.
Gross margin also declined sequentially, which the company notes is partly influenced by seasonal agent commission caps. Q3 gross margin was approximately 7.9%, down from 8.8% in Q2 and 9.8% in Q1.
Outlook
The presentation does not provide formal revenue or earnings guidance, but management’s strategy points to continued focus on agent growth, market-share gains, technology investment, ancillary-service expansion, and operating leverage.
Near-term momentum is supported by improving agent sentiment. Real’s Agent Optimism Index increased to 66.2 in September, with 63% of surveyed agents saying they were more optimistic about their local market outlook. Transaction sentiment also improved sharply during the month, although it remained just below the growth threshold.
Going forward, the key areas to monitor are whether housing transaction activity returns to sustained growth, whether Real can continue adding agents at its current pace, the adoption of Leo for Clients and Real Wallet, growth in mortgage and title attachment rates, and whether the company can convert its strong adjusted profitability into sustained GAAP profitability. The broader thesis remains that continued market-share gains and higher monetization per transaction can drive growth even if the overall housing market remains relatively subdued.
