Real Matters (REAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue increased 16% year-over-year to $41.0 million, with net revenue up 12%, driven by growth across all three business segments.

• Net income improved to $2.3 million from a net loss of $3.6 million in Q1 2024, with Adjusted EBITDA loss widening to $1.7 million from $1.1 million loss.

• Five new clients were launched, including three new U.S. Title clients (one Tier 1), a major Canadian reverse mortgage lender, and a new appraisal client.

• Maintained strong operating leverage, leading performance on lender scorecards, and expanded market share.

• Strong balance sheet with $49 million in cash and no debt.

Financial highlights

• Q1 2025 consolidated revenue was $41.0 million, up 16% year-over-year and down 10% sequentially; net revenue was $10.9 million, up 12% year-over-year and down 10% sequentially.

• Net income was $2.3 million, a turnaround from a $3.6 million loss in Q1 2024 and $0.2 million loss in Q4 2024.

• Adjusted EBITDA loss was $1.7 million, compared to a $1.1 million loss in Q1 2024 and $0.6 million gain in Q4 2024.

• Cash and cash equivalents stood at $49 million at quarter-end.

Outlook and guidance

• Management expects continued strong net revenue margins in U.S. Appraisal within the 26%-28% target range for fiscal 2025.

• Anticipates doubling of U.S. Title volume and revenue by year-end as new Tier 1 and top 25 clients ramp up.

• Confident in acquiring new, active franchise title clients in the coming months, with a sizeable pool of 8.8 million refinance candidates above 6% rates.

• Adjusted EBITDA margins in U.S. Title expected to improve as volumes increase and fixed costs are diluted.

• Positioned for significant growth in 2026 with additional Tier 1 and top 25 clients in the pipeline.