We feel now is a pretty good time to analyse The Real Brokerage Inc.'s (NASDAQ:REAX) business as it appears the company may be on the cusp of a considerable accomplishment. The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. With the latest financial year loss of US$27m and a trailing-twelve-month loss of US$11m, the US$814m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Real Brokerage's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 4 industry analysts covering Real Brokerage, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$25m in 2027. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 54% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Real Brokerage's growth isn’t the focus of this broad overview, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Real Brokerage currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Real Brokerage which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Real Brokerage, take a look at Real Brokerage's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is Real Brokerage worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Real Brokerage is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Real Brokerage’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.