REAX

Sane real estate or disguised high-tech?

Meet The Real Brokerage, the company trying to challenge the real estate world with an innovative business model.

By the SpyStocks desk · 8mo ago · 4 min read

$REAX

Sane real estate or disguised high-tech?

Meet the company trying to challenge the real estate world!

Post number 1

If you are experienced investors, then you probably hear "real estate" and smile politely.

After all, you are looking for aggressive growth, high-tech, robotics... not heavy offices and estates.

But what if we reveal to you that there is one company that aims to crack the real estate code – through:

A lean model, technology, and stock-based compensation in a real estate company?

And not only that, it's really one of our own.

Meet The Real Brokerage, the company trying to turn the American real estate brokerage market upside down.

It's not just another office – it's a cloud-based brokerage model that directly challenges the old and well-known "brick-and-mortar" companies.

What does $REAX do?

It operates a personalized digital brokerage platform, with advanced tools for managing and executing real estate transactions efficiently.

What does this include?

From property marketing, transaction management, mortgage origination, and even a digital wallet for managing transaction funds!

The company has already achieved several significant milestones. In 2024, it was ranked 38th among the fastest-growing companies in North America, and was even ranked among the top five largest brokerage firms in the United States by transaction volume (approximately $42 billion in total transactions).

This is above established and famous real estate brands, like Douglas Elliman and others.

How it works -

The business model: more value for the agent!

REAX's cleverness lies in dismantling the traditional cost structure and transferring value to the agent:

Cloud-based platform: The company foregoes expensive physical office costs, becoming 'lean' and digital.

This saving?

It is directly translated to the agents.

Unconventional commission structure compared to the industry standard model: Agents keep 85% of the commission, up to a fixed and low annual profit 'cap' (usually $12,000).

After the cap?

They receive 100% of the commission – this is an unprecedented economic incentive in the industry.

Turning the agent into an owner: stock compensation

The DNA of high-tech?

Real company rewards its agents by making them shareholders in a public company, creating a shared interest in growth -

Free shares - upon reaching the annual cap.

Bonus shares - for recruiting new agents and for top agents.

Revenue sharing: Agents receive a monthly payment for every agent they recruit to the company.

Growth and technology:

Real company shows aggressive agent growth, becoming an alternative in challenging markets, thanks to:

Digital tools: The platform (such as Leo Co-Pilot) includes CRM, transaction management, marketing tools, and training. The agent does not need to waste time on administration, but rather focus on the client and the growth of their business.

Culture and community: Despite the virtual model, Real invests in "Real Academy" and a culture of mutual knowledge sharing ('succeeding together').

The numbers behind the company's operations (Q3 2025 data)

Real Brokerage's latest financial performance illustrates its digital model.

The company shows accelerated growth and is gradually advancing towards profitability, despite the challenges in the broader real estate market.

Here are four key figures from the last quarter:

Revenue: Real's revenue recorded an impressive increase, totaling $568.5 million in Q3 2025, representing 53% year-over-year growth.

Transaction growth: The number of transactions closed on the platform jumped by 49% year-over-year.

Agent growth: As of the end of Q3 2025, the number of agents on the platform exceeded 30,000, with 39% year-over-year growth – the economic model (85/15, shares, and Revenue Share program) attracts many agents.

Improvement in operating profitability (Adjusted EBITDA): Adjusted EBITDA, which serves as a measure of the company's core operational efficiency, grew to $20.4 million in the quarter, representing a 54% increase.

This figure indicates a reduction in operating losses and significant progress towards full profitability (after net income was already recorded in Q2 2025).

The big question - will it succeed in 'disrupting' the traditional real estate market?

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