The Real Brokerage (REAX) Small-Cap Growth Virtual Investor Conference summary

Industry overview and market positioning

• Operates in a $100 billion North American real estate market with 1.6 million US agents and 160,000 in Canada.

• Traditional brokerages rely on brick-and-mortar offices and manual processes, often charging high fees for low value.

• Holds less than 1% market share but has grown revenue 20x from 2021 to 2024, despite a 30% market decline.

• Growth driven by a technology-first, low-cost, and flexible model for agents.

• Continues to rapidly add agents, surpassing 19,000, with 1,000 new agents monthly.

Business model and technology differentiation

• Offers an 85/15 commission split with no monthly fees and a $12,000 annual cap, making it highly attractive to agents.

• Proprietary technology stack includes mobile-first tools for productivity, marketing, community, and automated brokerage operations.

• Community features foster collaboration and knowledge sharing among agents nationwide.

• Achieves high operational efficiency with a 1:143 employee-to-agent ratio, far surpassing industry norms.

• Fixed cash operating expenses as a percentage of revenue continue to decline due to technology-driven efficiencies.

Growth strategy and ancillary services

• Expanded into title and mortgage businesses, which offer much higher margins (title: 80%+, mortgage: 50%) than brokerage.

• Ancillary services currently represent less than 2% of transactions but are expected to grow rapidly.

• Launched a consumer-facing app to integrate home search, mortgage, and title in one platform, aiming to streamline the home buying process.

• Introduced Real Wallet, a digital wallet and debit card for agents, enabling faster payments and new financial products.

• Plans to offer credit lines to agents based on their business assets, further monetizing agent relationships.