Real Brokerage (NASDAQ: REAX) reported consolidated revenue of $700.6 million for the second quarter ended June 30, 2026, marking a 30% increase year over year. The real estate technology firm also recorded adjusted EBITDA of $27.6 million, up 38% from the prior year, despite a challenging housing market environment.

The company attributed the top-line growth to a 27% rise in closed transactions, which reached a record 62,380 units. This volume growth significantly outpaced both U.S. and Canadian home sales markets. Average agent productivity improved by 1%, while average revenue per transaction rose by 2%. Ancillary businesses, including Real Wallet, One Real Title, and One Real Mortgage, contributed $4.2 million in revenue, reflecting a combined 28% year-over-year increase.

Financial Performance and Margins

Gross profit stood at $58.3 million, a 22% increase year over year. However, gross margin contracted to 8.3% from 8.9% in the comparable prior period. Management explained this decline as a mix effect driven by an increased proportion of transactions from capped agents, who now account for approximately 42% of closed transaction sides, up 300 basis points year over year.

Total operating expenses were $65.3 million, which included $11.6 million in acquisition-related costs associated with the pending RE/MAX transaction. Consequently, the company reported an operating loss of $7 million for the quarter, compared to operating income of $1.7 million in Q2FY25. Excluding these one-time acquisition costs, operating income would have more than doubled.

Balance Sheet and Merger Update

Real Brokerage ended the quarter with a record cash position of $86.6 million in unrestricted cash and short-term investments, up from $49.9 million at the start of the fiscal year. The company is currently in the process of merging with RE/MAX, with a security holder vote scheduled for August 14, 2026. Management projects approximately $30 million in cost synergies within three years post-closing.

Following the transaction's expected completion in the second half of 2026, the company plans to prioritize debt repayment and deleveraging. The pro forma combined adjusted EBITDA for the two entities was estimated at approximately $160 million for 2025, rising to roughly $190 million when including committed synergies.

What the Numbers Show

A divergence exists between robust volume growth and margin compression. While closed transactions surged 27% to a record high, gross margin declined by 60 basis points. This indicates that the company is prioritizing market share capture through higher-margin-friendly capped agent structures, accepting lower per-transaction brokerage margins to retain top-producing agents. The 140% growth in Real Wallet revenue suggests that ancillary monetization is beginning to offset some of the margin pressure from the core brokerage mix shift.