Real Brokerage (NasdaqCM:REAX) has just posted its FY 2025 third quarter scorecard, with revenue of US$568.5 million and a small net loss of US$0.4 million translating to basic EPS of US$0.00. Trailing 12 month revenue sits at about US$1.8 billion alongside a net loss of US$10.5 million and basic EPS of US$0.05. Those figures come at a time when investors are weighing ongoing losses against forecasts for faster growth and a path to profitability, putting the focus firmly on how margins evolve from here.

See our full analysis for Real Brokerage.

With the headline numbers on the table, the next step is to set these results against the widely followed narratives around Real Brokerage to see which views hold up and which ones the latest figures call into question.

Trailing Losses Shrink To About US$10.5 Million

• On a trailing 12 month basis, Real Brokerage booked a net loss of US$10.5 million on US$1.8b of revenue, compared with quarterly Q3 FY 2025 net income excluding extra items of a US$0.4 million loss on US$568.5 million of revenue. This shows the latest quarter is close to breakeven even though the longer lookback is still in the red.
• Consensus narrative points to revenue growth of 20.3% a year and margins improving from around a 0.8% loss to a 0.9% profit, and that sits against a five year history where losses increased at roughly 19.3% a year, so:
  • Analysts are effectively saying the past widening of losses can flip into US$26.3 million of earnings by around 2028, even though the trailing 12 month line is still loss making today.
  • For you as an investor, that contrast means the path from a US$10.5 million loss to positive earnings really matters, because the current accounts do not yet reflect the margin recovery that the consensus expects.

P/S Of 0.3x Versus Real Estate Peers At 2.8x

• The shares trade on a P/S of 0.3x against a reported industry average of 2.8x and peer average of 0.6x, and the DCF fair value of US$20.18 sits well above the current US$2.76 share price. This highlights how much the market is discounting the business relative to both fundamentals and that DCF marker.
• Bulls argue that high forecast growth and a low multiple leave room for upside, yet the numbers also build in punchy expectations, because:
  • Revenue is forecast at 15.3% yearly growth and earnings at 56.57% a year, and the DCF fair value assumes those kinds of improvements eventually justify a much higher valuation than a 0.3x P/S.
  • At the same time, the company is still booking trailing 12 month losses, so the bullish case relies on that growth actually translating into the margin lift that is not visible in today’s reported net income.

Have bulls got the growth and margin story right, or is the current discount telling you something different about risk and timing for Real Brokerage’s turnaround? 🐂 Real Brokerage Bull Case

Ongoing Unprofitability Fuels The Bear Case

• Across the past five years, losses increased at an annualized 19.3%, and even in Q3 FY 2025, when net income excluding extra items was a relatively small US$0.4 million loss and basic EPS was roughly US$0.00, the trailing 12 month view still shows a US$10.5 million loss and basic EPS of about US$0.05 loss.
• Bears highlight that this pattern, together with insider selling flagged in recent months, keeps profitability risk front and center, because:
  • The business is expected to become profitable within three years, yet today it combines an unprofitable trailing 12 month record with cumulative loss growth over several years, which is exactly the risk the cautious narrative focuses on.
  • When you set that against forecasts of 56.57% yearly earnings growth and a path to profit, any delay in turning those losses around could keep the share price anchored closer to the current US$2.76 level rather than converging quickly toward either the analyst target of US$5.55 or the DCF fair value.

If you are weighing that risk, it can help to see how the more cautious investors frame the same numbers and why they think the profitability timeline still matters so much. 🐻 Real Brokerage Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Real Brokerage on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both bullish and bearish angles getting airtime, it makes sense to look at the full picture yourself and act promptly on your own judgment, starting with 3 key rewards and 1 important warning sign.

See What Else Is Out There

Real Brokerage is still working through trailing losses of about US$10.5 million and an unproven path to consistent profitability.

If that ongoing unprofitability and margin uncertainty makes you cautious, it could be worth shifting your attention toward 77 resilient stocks with low risk scores that focus on steadier, lower risk profiles right now.

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.