After the Real Brokerage completed its acquisition of RE/MAX Holdings this past August, the third quarter earnings for the company revealed a significant shift in revenue, sparked by AI investments and slight drops in agent retention.
Tamir Poleg—Real REMAX chairman and CEO—started off the first earnings call for the combined companies, and expressed his confidence in “delivering strong growth in adjusted EBITDA” even if the housing market “gets worse.”
He also acknowledged the increases in agent offboarding. The Q3 earnings release stated that 500 agents had been let go in October alone, with the total REMAX agent count in the U.S. and Canada reportedly down 3% from the previous year at 72,118.
“The housing market has been operating near trough levels for the past four years,” Poleg added. “The recent increase in mortgage rates has further delayed the recovery that many, myself included, had anticipated. Beginning in September, we saw an uptick in the number of agents leaving the industry altogether. Real REMAX Group was not immune. Over the past two months, we’ve proactively offboarded more than 1,000 agents, many of whom allowed their real estate licenses to expire or left the industry.”
Real REMAX Group President Jenna Rozenblat echoed Poleg’s sentiment and noted that personnel other than agents were let go throughout the third quarter.
“We’ve reduced our combined headcount by more than 14%, which translates to over 150 positions across the organization while simplifying management structures and consolidating overlapping functions,” she stated.
While the series of layoffs and offboarding can be a cause for concern for some agents, Rozenblat emphasized the reason why restructuring is taking place, and mentioned the importance of AI technology.
“We don’t expect an immediate reversal in agent attrition in a franchise business, but our priority is to improve franchise owner economics and help them deliver a more competitive value proposition to agents and the clients they serve,” she continued. “Technology is an important part of that effort. We have already begun alpha testing Real’s proprietary reason software and AI capabilities for a phase rollout to the broader REMAX network.”
Poleg also briefly addressed a question on Open Real Estate, the initiative promising a new platform for listing distribution.
Poleg said Real REMAX believed strongly in its principles of “a more open, transparent and competitive approach to how real estate data is distributed,” but declined to comment on “specific products, economics or revenue opportunities” stemming from Open Real Estate.
On the point of AI, October’s introduction of Leo Pro—Real REMAX’s AI platform for agents and brokerages—could have instigated the large offboarding process. Poleg pointed out how Leo Pro can perform the functions “that traditionally required hiring additional staff, paying for multiple software subscriptions or spending hundreds of hours doing the work yourself.”
“The main usage of Leo Pro we’re seeing is creating marketing materials, social media posts and working their CRMs. It’s mostly nurturing their leads, and we’re seeing great conversions for our agents in terms of scheduling appointments for them and listing agreements,” Poleg stated.
Poleg also claimed that “historically, there has been a lot of disappointment with what REMAX has been offering their agents and brokers” in terms of tech, and that he has seen a lot of excitement from franchise owners.
“The fact that we have mature technology that is serving the Real side on the brokerage side gives them a lot of confidence that this is proven technology that can help them run better businesses,” Poleg said.
The data for the Q3 earnings call predates the release of Leo Pro.
The numbers
Overall, the Real REMAX Group’s revenue increased 28% on a yearly basis, clocking in at nearly $728 million for Q3. The Q3 revenue for 2025 was $568.5 million.
The jump in revenue can mostly be attributed to the acquisition, as the release also notes that assuming the acquisition had taken place on Jan. 1, 2025 (a pro forma basis). It’s estimated that the combined revenue had increased by 20% instead to $770 million, compared to the prior year’s $641.8 million.
“On a pro forma basis, combined revenue increased 20% year-over-year to approximately $770 million compared with a 2% decline in industry existing-home sales transactions in the quarter,” Real REMAX CFO Ravi Jani said. “Within our brokerage business, Real continued to gain market share, while our franchise business continues to see attrition in North America.”
As for profitability, the company’s operating loss clocked in at $72 million for the third quarter, a significant increase from last year’s loss of $0.5 million. Jani attributed the growth in operating loss to the $52.3 million in acquisition-related expenses, and another $26.4 million in accelerated stock-based compensation related to employee terminations following the acquisition.
Net loss also grew dramatically year-over-year, at $67.2 million—or $2.25 per diluted share—for Q3. Last year’s Q3 net losses were estimated to be $0.3 million, or only $0.02 per diluted share.
Despite significant growth in losses and expenses—primarily caused by the acquisition—Real REMAX’s adjusted EBITDA increased 66% to $33.8 million in Q3, compared to $20.4 million the same period last year. The adjusted EBITDA margin also increased slightly by 4.6%, whereas last year’s margin was 3.6%.
For the final quarter of 2026, Jani expects revenue to fall, while EBITDA maintains itself in the mid-$30 million range.
“For the fourth quarter of 2026, we’re expecting continued pressure on housing activity, including declines in transactions per agent at Real and a year-over-year decline in REMAX’s North American agent count,” he concluded. “Against that backdrop, we expect fourth quarter revenue of $575 million to $625 million and adjusted EBITDA of $32 million to $38 million.”
Leo Pro may take center stage in the company’s Q4 earnings call and throughout 2027, as Poleg mentioned that plans to roll out the AI platform for the entire REMAX network are underway.
“Within a few weeks, we want to roll out Leo Pro for the entire REMAX network. Our operating platform for the broker/owners will be ready at some point in Q1 2027,” Poleg added. “I think that once that’s in place, we will be able to help a lot of the broker/owners with some of their struggles around profitability, freeing up time to focus on agent attraction and teaching their agents on how to sell more.”
