Real estate technology company The Real Brokerage (NASDAQ: REAX) announced better-than-expected revenue in Q2 CY2026, with sales up 29.6% year on year to $700.6 million. Its GAAP loss of $0.03 per share was significantly below analysts’ consensus estimates.
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The Real Brokerage (REAX) Q2 CY2026 Highlights:
- Revenue: $700.6 million vs analyst estimates of $654.4 million (29.6% year-on-year growth, 7.1% beat)
- EPS (GAAP): -$0.03 vs analyst estimates of $0.01 (significant miss)
- Adjusted EBITDA: $27.59 million vs analyst estimates of $24.24 million (3.9% margin, 13.8% beat)
- Operating Margin: -1%, down from 0.3% in the same quarter last year
- Free Cash Flow Margin: 6.7%, similar to the same quarter last year
- Market Capitalization: $377 million
Company Overview
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.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, The Real Brokerage’s sales grew at an incredible 120% compounded annual growth rate over the last five years. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. The Real Brokerage’s annualized revenue growth of 54.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, The Real Brokerage reported robust year-on-year revenue growth of 29.6%, and its $700.6 million of revenue topped Wall Street estimates by 7.1%.
Looking ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and indicates the market sees some success for its newer products and services.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
The Real Brokerage’s operating margin has generally stayed the same over the last 12 months. The company broke even over the last two years, inadequate for a consumer discretionary business. Its large expense base and inefficient cost structure were the main culprits behind this performance.
The Real Brokerage’s operating margin was negative 1% this quarter.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although The Real Brokerage’s full-year earnings are still negative, it reduced its losses and improved its EPS by 1.8% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.
In Q2, The Real Brokerage reported EPS of negative $0.03, down from $0.01 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast The Real Brokerage’s full-year EPS will improve from negative $0.07 to roughly break even.
Key Takeaways from The Real Brokerage’s Q2 Results
We enjoyed seeing The Real Brokerage beat analysts’ revenue expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print had some key positives. The stock traded up 1.7% to $1.76 immediately following the results.
So should you invest in The Real Brokerage right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
