Real Brokerage Q2 2026 earnings: Revenue grew 30% as acquisition costs drove a GAAP loss

The Real Brokerage Inc. (NASDAQ: REAX) reported Q2 2026 revenue of $700.6 million, up 30% from $540.7 million, while diluted EPS swung to a loss of $0.03 from earnings of $0.01 a year earlier. Gross profit and adjusted EBITDA increased, but $11.6 million of costs related to the pending RE/MAX acquisition contributed to a GAAP net loss. Operating cash flow reached $47.2 million, and Real ended the quarter with $86.6 million of unrestricted cash and short-term investments and no debt.

Core earnings data

For the quarter ended June 30, growth was primarily supported by expansion in Real’s brokerage platform. Agent count increased 26%, closed transactions rose 27%, and completed transaction value grew 31%.

Profitability was mixed across accounting measures. Gross profit increased more slowly than revenue, while acquisition costs pushed GAAP operating results into a loss; adjusted EBITDA, which excludes acquisition costs and other items, rose 38%.

Adjusted EBITDA is a non-GAAP measure. Real’s calculation excludes items including stock-based compensation, acquisition costs, depreciation and amortization, restructuring expenses, and certain litigation-related costs.

Business and segment performance

North American brokerage commissions generated nearly all of Real’s revenue and almost all of the year-over-year increase. Transaction growth was accompanied by a higher median home sale price of $399,000, compared with $387,000 in Q2 2025.

Ancillary businesses also expanded, although they remained small relative to brokerage commissions. Real Wallet posted the highest percentage growth from a limited base, while mortgage revenue increased at a slower rate.

Agent churn improved to 6.1% from 9.4%, while revenue churn remained at 1.9%. Real also reported more than 36,000 agents on its platform as of August 5, 2026.

Acquisition costs drove the GAAP loss while transaction scale improved adjusted efficiency

Operating expenses rose 41% to $65.3 million, substantially faster than gross profit. The $11.6 million of RE/MAX acquisition costs represented about 61% of the $19.1 million year-over-year increase in operating expenses and were large enough to turn what otherwise would have been positive operating income into a reported loss.

Underlying expense metrics showed a different pattern. Operating expenses excluding revenue share and acquisition costs increased about 10% to $31.5 million, well below the 27% increase in transactions. Adjusted operating expense rose only about 2% to $23.1 million, while adjusted operating expense per transaction declined 19% to $371.

That operating leverage helped adjusted EBITDA rise to $27.6 million and lifted the adjusted EBITDA margin to about 3.9% from 3.7%. However, the reconciliation also included $21.8 million of stock-based compensation and $11.6 million of acquisition costs, so the improvement in non-GAAP earnings did not translate into GAAP profitability.

Profitability, cash flow, and balance sheet

Gross margin declined to about 8.3% from approximately 8.9% because gross profit grew 22%, below the 30% increase in revenue. The company did not provide a specific explanation for this compression in the supplied results.

Operating cash flow increased 15% despite the net loss, but a meaningful portion of the difference came from non-cash and working-capital items. Stock-based compensation added back $21.8 million, accrued liabilities increased by $24.3 million, and customer deposits increased by $18.0 million; a $9.6 million increase in trade receivables was a partial offset.

Real finished the quarter with $73.8 million of cash and cash equivalents and $12.8 million of investments in financial assets. The company reported $86.6 million of unrestricted cash, equivalents, and short-term investments in total, with no debt. Separately, restricted cash of $54.8 million corresponded to the same amount of customer deposit liabilities.

Management’s perspective

CEO Tamir Poleg said Real achieved double-digit organic revenue growth and adjusted EBITDA margin expansion even though the broader housing market remained near trough levels. Management also described its second-half pipeline as robust but did not provide quantitative revenue or earnings guidance.

The pending RE/MAX acquisition remains the company’s central strategic initiative. Real expected the transaction to close in the second half of 2026, subject to shareholder approvals and other closing conditions, with a securityholder meeting scheduled for August 14. The transaction had already received HSR antitrust clearance.

COO and Chief Integration Officer Jenna Rozenblat said integration planning was underway and expressed confidence in achieving $30 million of cost synergies within three years after closing. Management is also rolling out AI enhancements and expanding higher-margin ancillary services, including title, mortgage, and Real Wallet.

Recent insider transactions

The supplied insider data recorded no insider purchase transactions and no classified sale transactions during the six months through August 5, 2026. The latest June filings lacked transaction direction and value, so they cannot be interpreted as purchases or sales from the available information.

One older transaction in the supplied two-year record included sufficient detail for reporting. It does not, by itself, indicate the insider’s view of the company’s prospects.

Risks investors should monitor

• RE/MAX execution and integration: The transaction still required shareholder approvals and other closing conditions. Real’s $30 million synergy target depends on successful integration over three years after closing.
• Gap between GAAP and adjusted results: Adjusted EBITDA excludes substantial stock-based compensation and acquisition costs. Investors should track both measures rather than treating adjusted EBITDA as equivalent to GAAP earnings.
• Gross-margin pressure: Revenue grew faster than gross profit, reducing gross margin by about 54 basis points. Continued compression could limit the benefit of transaction growth.
• Housing-market exposure: Management described the market as remaining near trough levels. Real’s results depend heavily on transaction activity and value despite its agent-driven market-share growth.
• Share dilution and cash-flow composition: Stock-based compensation was $21.8 million, while outstanding common shares increased to 217.9 million from 210.5 million at the end of 2025. Operating cash flow also benefited materially from working-capital changes.

Summary

Real Brokerage’s Q2 2026 results showed continued expansion in agents, transactions, and brokerage revenue, alongside better adjusted expense efficiency. The pending RE/MAX acquisition costs produced a GAAP loss despite higher adjusted EBITDA, while operating cash flow and a debt-free balance sheet provided financial flexibility. The main issues to monitor are gross-margin pressure, the quality of cash conversion, dilution, and whether the RE/MAX transaction closes and delivers the targeted synergies.