Real Matters (TSE:REAL) Issues Earnings Results

Real Matters (TSE:REAL) posted its quarterly earnings results on Thursday. The company reported C$0.01 EPS for the quarter, FiscalAI reports. Real Matters had a negative return on equity of 26.40% and a negative net margin of 13.58%.The company had revenue of C$73.12 million for the quarter.

Here are the key takeaways from Real Matters’ conference call:

• Q3 revenue rose 13% to CAD 51.5 million, while net revenue increased 15% to CAD 13.7 million and adjusted EBITDA more than doubled to CAD 0.7 million, marking the fifth consecutive quarter of positive EBITDA.
• The company launched 10 clients in Q3 and 25 year-to-date, a record since going public. U.S. Title revenue grew 70%, refinance origination volume increased 138%, and its adjusted EBITDA loss narrowed to CAD 1.3 million.
• Management highlighted continued market-share opportunities from strong lender scorecards, cross-selling its appraisal client base into title, and leadership in the upcoming UAD 3.6 appraisal-form transition, which could support additional client wins.
• U.S. Appraisal revenue increased 14% to CAD 37.3 million, but net revenue margin fell 160 basis points to 24.6% because of geographic, client, and product-mix effects; adjusted EBITDA was essentially flat at CAD 4.2 million.
• Management expects corporate operating expenses to rise by approximately 10%–20% over the next few quarters as it invests in AI, platform enhancements, and appraisal-form modernization, creating near-term pressure on EBITDA despite anticipated long-term efficiency and growth benefits.

Real Matters Price Performance

Shares of TSE REAL traded down C$0.05 during midday trading on Thursday, reaching C$4.88. 17,638 shares of the stock traded hands, compared to its average volume of 63,574. The company has a debt-to-equity ratio of 1.41, a current ratio of 111.56 and a quick ratio of 3.75. The stock has a market capitalization of C$362.52 million, a PE ratio of -14.35, a P/E/G ratio of -59.18 and a beta of 1.62. Real Matters has a one year low of C$4.79 and a one year high of C$8.00. The company’s 50 day moving average is C$5.21 and its 200 day moving average is C$5.80.

Analysts Set New Price Targets

Several research firms have recently commented on REAL. National Bank Financial lowered their target price on shares of Real Matters from C$7.50 to C$6.50 and set a “sector perform” rating on the stock in a report on Wednesday, May 27th. Raymond James Financial cut their target price on shares of Real Matters from C$9.00 to C$8.25 and set an “outperform” rating for the company in a research note on Monday, May 4th. Finally, BMO Capital Markets reduced their price target on shares of Real Matters from C$7.00 to C$6.00 and set a “market perform” rating on the stock in a report on Monday, May 4th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of C$8.38.

Real Matters Company Profile

Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada.