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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The Real Brokerage (NASDAQ:REAX) Q3 Earnings: Leading The Real Estate Services Pack

REAX Cover Image

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including The Real Brokerage (NASDAQ: REAX) and its peers.

Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.

The 13 real estate services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 1.4% below.

While some real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.

Best Q3: The Real Brokerage (NASDAQ: REAX)

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

The Real Brokerage reported revenues of $372.5 million, up 73.5% year on year. This print exceeded analysts’ expectations by 7.4%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

“Real delivered another exceptional quarter underpinned by industry-leading growth and innovation,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer.

The Real Brokerage Total Revenue

The Real Brokerage scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.1% since reporting and currently trades at $5.35.

Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.

JLL (NYSE: JLL)

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.

JLL reported revenues of $5.87 billion, up 14.8% year on year, outperforming analysts’ expectations by 4.2%. The business had a stunning quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.

JLL Total Revenue

The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $284.76.

Is now the time to buy JLL? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: eXp World (NASDAQ: EXPI)

Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

eXp World reported revenues of $1.23 billion, up 1.5% year on year, falling short of analysts’ expectations by 3.4%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

eXp World delivered the weakest performance against analyst estimates in the group. The stock is down 23.5% since the results and currently trades at $11.01.

Read our full analysis of eXp World’s results here.

Redfin (NASDAQ: RDFN)

Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ: RDFN) is a real estate company offering brokerage services through an online platform.

Redfin reported revenues of $278 million, up 3.4% year on year. This result came in 1% below analysts' expectations. Aside from that, it was a weak quarter as it also logged a significant miss of analysts’ EBITDA estimates.

The stock is down 28.5% since reporting and currently trades at $8.20.

Read our full, actionable report on Redfin here, it’s free.

Marcus & Millichap (NYSE: MMI)

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Marcus & Millichap reported revenues of $168.5 million, up 4% year on year. This number beat analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

The stock is down 5.9% since reporting and currently trades at $37.83.

Read our full, actionable report on Marcus & Millichap here, it’s free.


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