Real REMAX Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 28% year-over-year to $727.9 million in Q3 2026, compared to $568.5 million in Q3 2025; pro forma revenue assuming the acquisition occurred on January 1, 2025, increased 20% to $770.0 million.
• GAAP Operating Loss was $72.0 million in Q3 2026 versus $0.5 million in Q3 2025, driven by $52.3 million in acquisition-related expenses and $26.4 million in accelerated stock-based compensation.
• GAAP Net Loss was $67.2 million ($2.25 per diluted share) in Q3 2026, compared to a net loss of $0.3 million ($0.02 per diluted share) in Q3 2025.
• Adjusted EBITDA increased 66% year-over-year to $33.8 million in Q3 2026, compared to $20.4 million in Q3 2025.
• Adjusted EBITDA margin expanded to 4.6% in Q3 2026 from 3.6% in Q3 2025.
• Cash and cash equivalents were $102.5 million as of September 30, 2026, up from $33.2 million as of December 31, 2025; total cash, cash equivalents, and short-term investments totaled $109.4 million.
• The Company holds a $550 million senior secured term loan facility and a $40 million revolving credit facility; outstanding term loan principal was $525 million after a voluntary $25 million repayment during the quarter.
• The Company repurchased approximately 264,000 common shares for $4.7 million during the quarter.
• Deferred revenue was $20.7 million (current) and $10.3 million (non-current) as of September 30, 2026, compared to $0 in the prior period.

Guidance and Future Outlook:

• Full-year 2027 Adjusted EBITDA outlook is set at $175 million to $190 million.
• Q4 2026 revenue guidance is $575 million to $625 million; Adjusted EBITDA guidance is $32 million to $38 million.
• Full-year 2027 revenue guidance is $2.6 billion to $2.8 billion.
• Outlook assumes a 5%–10% decline in U.S. existing-home sales and a 3%–4% decline in home prices in 2027.
• The Company expects to realize more than $30 million in Adjusted EBITDA synergies in full-year 2027, increasing to more than $40 million in full-year 2028.
• Management targets reducing the net leverage ratio to below 2.0x by the end of 2028.

Business Segments and Product Lines:

• Brokerage: Real brokerage agent count increased 21% to 36,610 at quarter-end; closed transaction sides increased 17% to 62,738.
• Franchise: REMAX U.S. and Canada agent count declined 3% to 72,118; REMAX agents outside U.S. and Canada increased 4% to 75,970; Global REMAX agent count increased 0.4% to 148,088.
• Other Revenue: Increased 64.4% year-over-year to $5.3 million, driven by growth in Real Wallet, One Real Title, and acquired businesses.
• Technology: Launched Leo Pro AI platform on October 20, 2026, featuring over 300 specialized AI agents for workflow automation.
• Integration: Actioned over $40 million in annualized gross cost savings within two months of closing the Real and REMAX combination.

Market and Competitive Landscape:

• The combined company operates with approximately 185,000 real estate professionals across more than 120 countries and territories.
• Joined AGNT Inc., HomeServices of America, and Keller Williams as a founding member of the Open Real Estate initiative to modernize listing data distribution.
• Management notes the residential real estate market remains challenging, citing increased agent attrition in October following quarter-end.

Risks and Challenges:

• Continued weakness in the residential real estate market and potential agent attrition.
• Execution risks related to integration, technology modernization, and achieving anticipated cost-saving synergies.
• Indebtedness levels and the ability to service debt and comply with credit agreement covenants.
• Risks associated with legal proceedings, cybersecurity incidents, and regulatory changes.

Management Commentary and Tone:

• CEO Tamir Poleg stated the combination reinforces belief in "tremendous opportunity ahead" and focuses on simplifying the organization, improving efficiency, and delivering sustainable market share growth.
• President and Chief Integration Officer Jenna Rozenblat highlighted decisive action on integration, noting the first phase of organizational restructuring is largely complete.
• CFO Ravi Jani emphasized prioritizing cash generation, disciplined capital allocation, and deleveraging despite acquisition-related expenses.

Other Key Points:

• The Real Brokerage Inc. acquisition of RE/MAX Holdings, Inc. was completed on August 24, 2026, creating Real REMAX Group Inc.
• Common stock began trading on Nasdaq under the symbol "REAX" on August 25, 2026.
• The Company advanced efforts to deploy Real's proprietary reZEN technology platform and AI capabilities across the REMAX network.
• October departures included over 500 agents proactively offboarded due to unpaid dues or expired licenses.