The Real Brokerage (REAX) Q1 2026 earnings summary

Executive summary

• Revenue reached $466 million in Q1 2026, up 32% year-over-year, with adjusted EBITDA rising 80% to $14.9 million and operating loss improving to $3.4 million from $5.2 million.

• Agent count grew 25% year-over-year to over 33,900 as of May 6, 2026, with closed transactions up 25% to nearly 42,000.

• Announced a definitive agreement to acquire RE/MAX Holdings, aiming to combine a leading franchise network with advanced technology and agent-aligned economics.

• Gross market value for the last twelve months was $78.6 billion, with a median home sale price of $385,000.

• Closed transaction sides for the last twelve months were 193,579, reflecting strong operational growth.

Financial highlights

• Gross profit increased 24% to $42.2 million, with gross margin at 9.1% versus 9.6% last year, impacted by a higher mix of capped agents.

• Operating expenses rose 17% to $45.6 million, including $300,000 in RE/MAX acquisition costs; as a percentage of revenue, OpEx improved to 9.8% from 11.1%.

• Cash flow from operations was $23.3 million, ending the quarter with $62.9 million in unrestricted cash and no debt.

• LTM revenue as of Q1 2026 was $2.1 billion; LTM adjusted EBITDA was $70 million.

• Adjusted EBITDA margin for Q1 2026 was 3.2%, up 90 basis points year-over-year.

Outlook and guidance

• Q2 revenue expected to improve sequentially, following normal seasonal housing patterns.

• Gross margin anticipated to decline through the year as more agents reach commission caps, consistent with prior years.

• Q2 operating expenses will reflect a step up in RE/MAX acquisition-related costs, disclosed as non-recurring items.

• Management expects the REMAX acquisition to create significant value for agents, franchisees, consumers, and shareholders.

• Forward-looking statements highlight expectations for continued growth but caution about risks and uncertainties that may cause actual results to differ materially from projections.