third quarter 2026
Filed Nov 5, 2026Revenue increased 28% year-over-year to $727.9 million; GAAP net loss was $67.2 million; Adjusted EBITDA increased 66% to $33.8 million; the Company provided full-year 2027 Adjusted EBITDA outlook of $175 million to $190 million.
Revenue and Adjusted EBITDA grew, supported by the initial REMAX contribution and brokerage growth, but the Company reported a $67.2 million GAAP net loss after acquisition-related and accelerated stock-based compensation expenses, entered the quarter with $525 million of term-loan principal, and expects continued housing-market weakness.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $727.9M | – | 28% |
| Revenue, nine months ended September 30, 2026GAAP | $1.89B | – | – |
| Pro forma combined revenue, three months ended September 30, 2026other | $770M | – | 20% year-over-year |
| Cost of sales, three months ended September 30, 2026GAAP | $646.2M | – | – |
| Cost of sales, nine months ended September 30, 2026GAAP | $1.71B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $81.76M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $182.2M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $60.52M | – | – |
| Marketing expenses, three months ended September 30, 2026GAAP | $27.45M | – | – |
| Marketing funds expense, three months ended September 30, 2026GAAP | $6.72M | – | – |
| Research and development expenses, three months ended September 30, 2026GAAP | $6.50M | – | – |
| Settlement of litigation and impairment charges, three months ended September 30, 2026GAAP | $239K | – | – |
| Acquisition costs and integration expenses, three months ended September 30, 2026GAAP | $52.33M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $153.8M | – | – |
| Operating loss, three months ended September 30, 2026GAAP | −$72.01M | – | – |
| Operating loss, nine months ended September 30, 2026GAAP | −$82.48M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$67.22M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$78.64M | – | – |
| Net loss attributable to Real REMAX Group Inc., three months ended September 30, 2026GAAP | −$67.31M | – | – |
| Basic loss per share, three months ended September 30, 2026GAAP | $(2.25) | – | – |
| Diluted loss per share, three months ended September 30, 2026GAAP | $(2.25) | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $33.75M | – | 66% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 4.6% | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $76.24M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 4.0% | – | – |
| Closed transaction sides, three months ended September 30, 2026other | 62,738 | – | 17% |
| Real Brokerage agent count, September 30, 2026other | 36,610 | – | 21% |
| Transactions per average agent, three months ended September 30, 2026other | 1.7 | – | – |
| REMAX U.S. and Canada combined agent count, September 30, 2026other | 72,118 agents | – | decrease of 3% from the prior year |
| REMAX agent count outside the U.S. and Canada, September 30, 2026other | 75,970 agents | – | increase of 4% from the prior year |
| Global REMAX agent count, September 30, 2026other | 148,088 agents | – | increase of 0.4% from the prior year |
| Cash and cash equivalents, September 30, 2026GAAP | $102.5M | – | – |
| Investments in financial assets, September 30, 2026GAAP | $6.93M | – | – |
| Debt, September 30, 2026GAAP | $30.94M | – | – |
| Debt, net of current portion, September 30, 2026GAAP | $482.6M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $14.48M | – | – |
| Purchases of property and equipment, nine months ended September 30, 2026GAAP | −$239K | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | −$393.4M | – | – |
| Net cash provided by financing activities, nine months ended September 30, 2026GAAP | $484.5M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Brokerage revenue, three months ended September 30, 2026Not stated | $695.5M | – | – |
| Franchise revenue, three months ended September 30, 2026Initial contribution from REMAX following the August 24, 2026 business combination. | $27.10M | – | – |
| Other revenue, three months ended September 30, 2026Growth in Real Wallet, One Real Title, and the contribution from acquired businesses. | $5.33M | – | 64.4% year-over-year |
| One Real Title revenue, three months ended September 30, 2026Not stated | $1.62M | – | – |
| One Real Mortgage revenue, three months ended September 30, 2026Not stated | $1.51M | – | – |
| Real Wallet revenue, three months ended September 30, 2026Not stated | $695K | – | – |
| Motto Mortgage revenue, three months ended September 30, 2026Contribution from acquired businesses. | $1.37M | – | – |
| wemlo loan processing revenue, three months ended September 30, 2026Contribution from acquired businesses. | $144K | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter of 2026 and full year ending 2027 outlook
- RevenueFourth quarter of 2026: $575 million to $625 million; full year ending 2027: $2.6 billion to $2.8 billion
- NoteFourth quarter of 2026 Adjusted EBITDA: $32 million to $38 million
- NoteFull year ending 2027 Adjusted EBITDA: $175 million to $190 million
- NoteAssumes a 5%–10% decline in U.S. existing-home sales and a 3%–4% decline in home prices in 2027.
- NoteAssumes no additional acquisitions or divestitures and no material changes in foreign currency exchange rates.
- NoteExpects to realize more than $30 million in Adjusted EBITDA synergies in full-year 2027, increasing to more than $40 million in full-year 2028.
- NoteFor full year 2027, anticipates approximately $100 million in stock-based compensation; approximately $40 million to $50 million in depreciation and amortization; and approximately $50 million in interest expense.
Capital returns
- Made a voluntary $25 million principal repayment during the quarter.
- Repurchased approximately 264,000 common shares for $4.7 million during the quarter.
- Repurchase of common stock was $(4,707) (in thousands) for the nine months ended September 30, 2026.
- Management's capital allocation priorities are funding high-return organic growth initiatives, reducing leverage, and offsetting shareholder dilution.
- The Company remains on track to reduce its net leverage ratio to below 2.0x by the end of 2028.
What drove it
- The quarter was the first reporting period after the August 24, 2026 completion of Real's acquisition of REMAX; reported results include REMAX operations beginning August 25, 2026.
- The Company actioned more than $40 million in annualized gross cost savings, including approximately $28 million in annualized synergies that benefit Adjusted EBITDA.
- GAAP operating loss reflected $52.3 million of acquisition-related expenses and $26.4 million of accelerated stock-based compensation expense related to employee terminations resulting from the acquisition.
- Real Brokerage agent count increased 21% year-over-year to 36,610 and closed transaction sides increased 17% year-over-year to 62,738.
- The Company launched Leo Pro on October 20, 2026, with a subscription and usage-based pricing model intended to create opportunities for incremental technology revenue.
Concerns
- The Company reported a GAAP net loss of $67.2 million and GAAP operating loss of $72.0 million in the third quarter of 2026.
- Real experienced increased agent attrition following quarter-end. As of November 3, 2026, it had approximately 36,200 agents, compared with 36,610 at September 30, 2026.
- October departures included more than 500 agents proactively offboarded due to unpaid dues or expired real estate licenses.
- REMAX U.S. and Canada combined agent count declined 3% from the prior year to 72,118 agents.
- The outlook assumes continued weakness in the residential real estate market, including a 5%–10% decline in U.S. existing-home sales and a 3%–4% decline in home prices in 2027.
- The Company had $525 million of outstanding term-loan principal at September 30, 2026.
What to watch
- Realization of more than $30 million in Adjusted EBITDA synergies in full-year 2027 and more than $40 million in full-year 2028.
- Execution of technology integration, systems consolidation, and efforts to strengthen REMAX franchise-network economics and competitiveness.
- Real Brokerage agent retention following the decline to approximately 36,200 agents as of November 3, 2026.
- Trends in REMAX U.S. and Canada agent count and global REMAX agent growth.
- Progress toward the target of reducing net leverage ratio to below 2.0x by the end of 2028.
- Fourth-quarter delivery against revenue guidance of $575 million to $625 million and Adjusted EBITDA guidance of $32 million to $38 million.
Balance sheet and cash flow
- Cash and cash equivalents were $102.5 million as of September 30, 2026, compared to $33.2 million as of December 31, 2025.
- Short-term investments were $6.9 million, bringing total cash, cash equivalents and short-term investments to $109.4 million at quarter-end.
- Restricted cash was $62,306 (in thousands) as of September 30, 2026.
- The new credit agreement provides for a $550 million senior secured term loan facility and a $40 million revolving credit facility.
- Outstanding term loan principal balance was $525 million at September 30, 2026.
- Net cash provided by operating activities was $14,485 (in thousands) for the nine months ended September 30, 2026, compared to $65,777 (in thousands) in the prior-year period.
- Acquisition, net of cash, cash equivalents and restricted cash acquired of $131 million, was $(402,810) (in thousands) for the nine months ended September 30, 2026.
- Proceeds from the issuance of debt were $539,000 (in thousands), payments on debt were $(25,000) (in thousands), and debt issuance costs were $(7,616) (in thousands) for the nine months ended September 30, 2026.
Analysis
Real REMAX Group reported its first quarter following the August 24, 2026 acquisition of REMAX, with reported results including REMAX operations beginning August 25, 2026. Third-quarter revenue increased 28% year-over-year to $727.9 million, while pro forma combined revenue, assuming the acquisition occurred on January 1, 2025, increased 20% year-over-year to $770.0 million. Brokerage revenue was $695,499 (in thousands), franchise revenue was $27,098 (in thousands), and other revenue grew 64.4% year-over-year to $5.3 million, driven by Real Wallet, One Real Title, and acquired businesses.
Underlying operating indicators were stronger in the owned brokerage business. Real Brokerage agent count rose 21% year-over-year to 36,610, and closed transaction sides increased 17% to 62,738. However, transactions per average agent declined to 1.7 from 1.8. Franchise trends were mixed: REMAX U.S. and Canada combined agent count declined 3% year-over-year to 72,118 agents, while agents outside the U.S. and Canada increased 4% to 75,970 and global REMAX agent count increased 0.4% to 148,088.
Profitability showed the effect of the acquisition and the initial synergy program. Adjusted EBITDA increased 66% year-over-year to $33.8 million, and Adjusted EBITDA margin increased to 4.6% from 3.6%. GAAP operating loss widened to $72.0 million and GAAP net loss was $67.2 million, or $2.25 per diluted share. The operating loss included $52.3 million of acquisition-related expenses and $26.4 million of accelerated stock-based compensation expense related to acquisition-driven employee terminations. The Company has actioned more than $40 million in annualized gross cost savings, including approximately $28 million in annualized synergies benefiting Adjusted EBITDA.
Capital allocation centered on acquisition financing and deleveraging. Cash and cash equivalents were $102.5 million at quarter-end, alongside $6.9 million of short-term investments. The Company made a voluntary $25 million principal repayment, leaving $525 million of outstanding term-loan principal, and repurchased approximately 264,000 common shares for $4.7 million. Nine-month operating cash flow was $14,485 (in thousands), compared with $65,777 (in thousands) in the prior-year period.
Management guided fourth-quarter 2026 revenue to $575 million to $625 million and Adjusted EBITDA to $32 million to $38 million. Full-year 2027 guidance calls for revenue of $2.6 billion to $2.8 billion and Adjusted EBITDA of $175 million to $190 million. The outlook assumes continued housing-market weakness, including a 5%–10% decline in U.S. existing-home sales and a 3%–4% decline in home prices in 2027. The principal operating watchpoint is agent retention: the Company reported approximately 36,200 Real agents as of November 3, 2026, below the 36,610 reported at September 30, 2026.
Management, verbatim
While the housing market remains challenging, we are focused on what we can control: providing an unmatched value proposition, executing our integration, and delivering sustainable market share growth and margin expansion.
Tamir Poleg, Chairman and Chief Executive Officer
In just two months, we've actioned more than $40 million in annualized gross cost savings, exceeding our initial expectations.
Jenna Rozenblat, President and Chief Integration Officer
Our 2027 outlook reflects the earnings potential of the combined company, even against a challenging housing market backdrop. With our new capital structure in place, we are prioritizing cash generation, disciplined capital allocation and deleveraging.
Ravi Jani, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-quarter figures for reported quarterly financial metrics
- Third-quarter operating cash flow
- Third-quarter free cash flow
- Free cash flow for any reported period
- GAAP gross margin for any reported period
- Non-GAAP earnings per share for any reported period
- Dividend amount or dividend policy
- Prior earnings outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.