What Happened?
Shares of real estate technology company The Real Brokerage (NASDAQ: REAX) jumped 4% in the afternoon session after the company reported strong third-quarter 2025 financial results, highlighted by significant revenue growth and a much-improved bottom line. Revenue for the quarter climbed 53% from the previous year to $568.5 million, beating expectations. The company also substantially narrowed its net loss to just $0.4 million, a significant improvement compared to the $2.6 million loss reported in the same period a year ago. This progress toward profitability was a key driver for the stock. Operationally, the brokerage expanded its agent base by 39%, surpassing 30,000 agents for the first time. This growth contributed to a nearly 50% increase in home sale transactions. The company's financial health appeared solid, as it generated $8.8 million in cash from operations and ended the quarter with $55.8 million in cash and no debt. The Real Brokerage also repurchased 3.2 million of its own shares during the quarter.
After the initial pop the shares cooled down to $3.60, up 3.8% from previous close.
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What Is The Market Telling Us
The Real Brokerage’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 1.6% on the news that a cooler-than-expected inflation report fueled optimism for potential Federal Reserve rate cuts. The September Consumer Price Index (CPI) rose 3.0% year-over-year, coming in just below the 3.1% analysts had forecast. While still above the Federal Reserve's 2% target, investors interpreted the slight cooling as a sign that inflationary pressures may be easing, potentially giving the central bank room to consider interest rate cuts in the near future. Sectors that are typically sensitive to interest rates, such as real estate and utilities, saw a notable lift. Lower rates can reduce borrowing costs and increase the appeal of dividend-paying stocks, boosting investor confidence in these areas.
The Real Brokerage is down 21.8% since the beginning of the year, and at $3.60 per share, it is trading 44.7% below its 52-week high of $6.50 from November 2024. Investors who bought $1,000 worth of The Real Brokerage’s shares 5 years ago would now be looking at an investment worth $2,463.
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