What is REAX Stock?
REAX Stock is the ticker for The Real Brokerage Inc., a technology-driven real estate brokerage listed on NASDAQ. Operating across the U.S. and Canada, Real Brokerage offers a suite of services, including residential brokerage, mortgage and title services, and its in-house digital wallet—Real Wallet—all powered by its proprietary platform, reZEN.
REAX Stock Performance & Valuation
- Current Price: Around $4.26 (as of July 2, 2025)
- 52‑Week Range: $3.55 to $6.75
- Market Cap: Approximately $900–934 million
- Beta: ~1.5 (reflecting higher volatility than the broader market).
- Analyst Outlook: Consensus “Strong Buy” or “Buy,” with an average target price around $6.33–6.67, suggesting 40% upside.
Revenue & Profitability
Q1 2024 Highlights:
- Revenue reached ~$201 million—an 86% year-over-year increase.
- Gross profit was $20.8 million; adjusted EBITDA hit $3.6 million.
Fiscal 2024 Totals:
- Full-year revenue: ~ $1.26–1.42 billion (up ~83–94% YoY).
- Net loss: ~ $15–26 million (widened year-over-year) .
- Margins remain slim: gross margin is ~9%, and net margin is ~–1%.
Key Business Drivers
Agent-Centric Model: REAX’s low-fee, digital-first structure attracts agents and reduces overhead.
Technology Stack—reZEN: Integrated tools for transaction automation, compliance, payments, and AI-driven support are central to its value proposition.
Vertical Integration: Expanding into mortgage, title services, and its own Real Wallet creates diversified revenue.
Strategic Acquisitions & Capital Return: Notable boilerplate acquisitions like Amerivest and Legends; launched a $150 million share buyback in mid-2025.
Price History & Shareholder Returns
1-Year: ~2–3% return, underperforming broader real estate (26%) and S&P 500 (~14%).
3-Year & 5-Year: Exceptional growth (+165% over 3 years; +1027% over 5 years) .
Recent Volatility: Monthly moves ~9%; weekly ~5–6%—somewhat less volatile than market averages.
Analyst Ratings & Upgrades
Zacks (June 2025): Upgraded to #2 (Buy) based on improved earnings outlook, nasdaq.com.
Major Brokers: B. Riley, BTIG, William Blair—consistent Buy calls since June 2025.
Price Target Range: $6.33–6.67—equates to 40–42% upside.
Risks & Challenges
Profitability Lag: Despite explosive top-line growth, net losses persist.
Thin Margins: Gross margins of ~9% indicate tight operating leverage.
Real Estate Cycles: Sensitive to interest rates, housing market fluctuations, and tightening credit.
Competition: Faces pressure from tech-forward brokerages like Compass and industry giants such as RE/MAX and Keller Williams.
Execution Risk: Expansion into non-core services (mortgage/title) demands flawless integration.
Upcoming Catalysts
- Q2 2025 earnings report on August 6, 2025.
- Completion of $150 million buyback announced for June 2025.
- New product launches: Real Wallet adoption, mobile app rollout, and AI enhancements, such as Leo CoPilot.
- Further acquisitions: Opportunities to consolidate market share through targeted buyouts.
Investment Thesis
Bull case: REAX stock is quietly carving out space as a digital-first brokerage that genuinely tries to deliver extra value to both agents and customers. Its revenue keeps climbing, analysts keep bumping up their estimates, and there is a clear path for margins to widen, all of which feeds the optimistic story.
Bear case: That said, as long as the company remains in the red and the broader economy feels shaky, any growth in Reax stock will be questioned regarding its valuation. A slip in execution or a chill in the housing market could amplify those doubts and hit the shares hard.
Valuation view: At roughly 0.7 times sales, the Reax stock sits well below some faster-growing peers, a gap that likely reflects lingering questions about long-term profitability
Final Thoughts
REAX functions as a high-growth, tech-driven challenger to traditional real estate services, merging classic brokerage practices with fintech tools. Its healthy analyst sentiment, crisp top-line expansion, and European tilt make it especially interesting for investors who believe in structural industry disruption.
Still, tight margins, unpredictable earnings, and volatile real estate trends mean the story could swing either way. Would-be shareholders should track Q2 results, watch for margin improvements, and observe how new technologies are adopted before committing fresh capital.
Bottom line: REAX stock holds real promise in the digital brokerage arena; however, its payoff hinges on consistent execution, a resilient housing market, and steady progress toward profitability.