Real Matters (REAL) Q3 2025 earnings summary

Executive summary

• Achieved double-digit sequential growth in all three segments in Q3 2025, with consolidated revenues up 22% from Q2 2025 to $45.4M.

• Positive consolidated adjusted EBITDA of $0.3M, reversing a $1.9M loss in Q2 2025.

• Net loss of $4.9M, compared to net income of $1.7M in Q3 2024, mainly due to a $5.6M increase in net foreign exchange loss.

• Added four new clients in Q3 2025, including the largest credit union in U.S. Title; post-quarter, launched a second Tier 1 U.S. Title lender and a top-15 U.S. Appraisal lender.

• Ended the quarter with $43.8M–$44M in cash and no debt, maintaining a strong balance sheet.

Financial highlights

• Q3 2025 consolidated revenue was $45.4M, up 22% sequentially but down 8% year-over-year; net revenue was $11.9M, down 10% year-over-year.

• Adjusted EBITDA was $0.3M, up from $(1.9)M in Q2 2025 but down from $1.7M in Q3 2024.

• Net loss of $4.9M compared to net income of $1.7M in Q3 2024.

• Nine-month revenue declined 3% year-over-year to $123.7M; net loss for the period was $4.8M.

• Cash and cash equivalents stood at $43.8M–$44M with no debt at quarter end.

Outlook and guidance

• Management expects to benefit from pent-up demand in the U.S. mortgage market as interest rates decline, with a large pool of refinance candidates.

• Target operating model projects U.S. Appraisal adjusted EBITDA potential of $50–$65M and U.S. Title $30–$45M in a normalized market.

• Anticipates significant volume increase from Rocket in 2026 due to the Mr. Cooper acquisition.

• Pipeline remains strong with several top 100 lenders in discussions.

• Management remains focused on growing market share and preparing to scale as mortgage market volumes normalize.