Real Brokerage (NASDAQ:REAX) reported second-quarter revenue growth and higher adjusted EBITDA as the company continued to add agents and expand transaction volume in a challenging housing market, while preparing for a proposed combination with RE/MAX.
Revenue for the quarter ended June 30, 2026, increased 30% year over year to $700.6 million. Adjusted EBITDA rose 38% to $27.6 million, while the company ended the quarter with $86.6 million in unrestricted cash and short-term investments, up from $49.9 million at the beginning of the year.
Transactions and Agent Base Expand
Real recorded a 27% increase in closed transactions to a quarterly record of 62,380. The company said this growth was supported by a 1% improvement in average agent productivity and a 2% increase in average revenue per transaction.
The company ended the quarter with approximately 35,350 agents, a 26% increase from a year earlier. Chief Operating Officer Jenna Rozenblat said Real’s agent count had already exceeded 36,000 as of the earnings call, and management entered the second half with what it described as a strong recruiting pipeline.
Poleg said recruiting activity improved after a slower start to the year in the first quarter. He said the announcement of the planned RE/MAX deal had created “tailwinds” from agents and teams considering joining Real, while the company remained focused on recruiting agents from outside the combined Real and RE/MAX networks.
Chief Financial Officer Ravi Jani said U.S. transactions per average agent increased about 3%, while Canadian transactions per average agent declined 9%. He attributed the Canadian decline to difficult market conditions in the provinces where the company operates and challenging comparisons involving several high-producing agents in the prior year.
Margins Affected by Agent Mix and Deal Costs
Gross profit increased 22% year over year to $58.3 million. Gross margin, however, declined to 8.3% from 8.9% a year earlier. Jani said the decline primarily reflected a higher proportion of transaction volume from capped agents, whose post-cap transactions generate lower brokerage margins by design.
Approximately 42% of closed transaction volume came from capped agents during the quarter, up 300 basis points from the prior-year period, according to Jani. He said the economics reflect the company’s strategy to retain its highest-producing agents.
Operating expenses totaled $65.3 million, including $11.6 million of acquisition-related costs tied to the pending RE/MAX transaction. The company reported an operating loss of $7 million, compared with operating income of $1.7 million in the second quarter of 2025. Net loss was $8 million.
Jani said that excluding acquisition-related costs, normalized operating income would have more than doubled from the prior year. Adjusted EBITDA margin expanded to 3.9% from 3.7%.
For the third quarter, Real expects normal seasonal declines in revenue and adjusted EBITDA from second-quarter levels. The company also expects gross margin to be lower year over year in the third quarter, though Jani said the decline should not be of the same magnitude as in the second quarter. He said fee-model changes taking effect in September and growth in ancillary businesses should moderate the pressure, with fourth-quarter gross margin expected to be relatively flat year over year.
Ancillary Services and AI Platform
Revenue from Real Wallet, One Real Title and One Real Mortgage increased a combined 28% year over year to $4.2 million. Wallet revenue grew 140%, title revenue increased 29%, and mortgage revenue rose 10%.
Management said it sees increasing momentum in mortgage, with Poleg expecting improving revenue trends later in 2026 or early in 2027. On the title side, the company reported a 45% attach rate within joint ventures, while its companywide attach rate for eligible transactions was 3.24%, unchanged from the prior quarter.
Real also discussed its HeyLeo artificial-intelligence platform. Rozenblat said the company recently beta-launched Leo 2.0, including direct integrations with major real estate customer relationship management systems. The product is intended to help agents engage and nurture leads within their existing databases.
Poleg said more than 200 of the company’s successful agents and teams had connected their CRMs to the Leo 2.0 beta as of the call. He said the early feedback was positive and that the platform had helped agents identify opportunities among dormant leads. The company is also integrating mortgage and title workflows into Leo.
Separately, Rozenblat said Real has invested in an internal AI automation team that has automated hundreds of workflows, which management estimates have saved thousands of hours of manual work.
RE/MAX Integration Planning Continues
Rozenblat, who is serving as chief integration officer for the transaction, said Real has established an integration management office, identified leaders across major work streams and engaged third-party advisers to support planning and day-one readiness.
The company reiterated its expectation of approximately $30 million in cost synergies within three years of closing. Jani said the companies generated roughly $160 million of combined adjusted EBITDA on a pro forma basis in 2025; adding the planned run-rate synergies would bring that figure to approximately $190 million.
Poleg said Real intends to bring its operating efficiency practices to RE/MAX while preserving the franchise network’s local relationships and operating model. Following a closing, the company expects to use its November third-quarter earnings call to provide a combined-company baseline and preliminary 2027 guidance.
About Real Brokerage (NASDAQ:REAX)
Real Brokerage Inc is a publicly traded, cloud-based residential real estate brokerage headquartered in Toronto, Canada, with operations across the United States and Canada. The company’s platform offers licensed real estate professionals a fully integrated suite of digital tools designed to streamline every phase of the property transaction process, from lead generation to closing.
Through its proprietary technology, Real Brokerage provides agents with transaction management, customer relationship management, digital marketing automation and real-time analytics in a single, user-friendly interface.
