The Real Brokerage reported accelerated growth to close out 2024 during its Q4 earnings call Thursday, adding a net of 10,000 agents and experiencing sharp increases in nearly every key metric reported for the quarter.
The company reported revenue of $350.6 million for Q4 2024, a 93% year-over-year increase, which brought revenue for the whole of 2024 to $1.26 billion, an 84% year-over-year increase. It was also the Real Brokerage’s first ever billion-dollar year, as the company experienced a sharp increase from $689 million in total revenue in 2023.
Q4 gross profit was $30 million, a 93% year-over-year increase, while gross profit for the entire fiscal year increased by a similar percentage—82%—to $114.7 million.
Real closed $14.6 billion in transaction volume for Q4 2024, a year-over-year increase of 115%. Total transaction volume was $49 billion, a healthy 90% year-over-year increase.
“As we head into 2025, our priorities remain clear: continue to drive agent growth, roll out initiatives to support our agents, invest in operational excellence and agent performance, expand our technology ecosystem and, most importantly, stay true to our mission of empowering agents with the best platform in the industry,” said Sharran Srivatsaa, president of The Real Brokerage.
The theme of scaling was something that was prominent for much of the call, as the company reported accelerating growth in a number of other key metrics, one of which was agent growth. The company noted that it added roughly 1,000 agents per month for the whole of 2024—an increase from 13,650 in 2023 to more than 24,000 (a 77% year-over-year increase) to end the year. To begin 2025, the company also added an additional 2,000 agents, stating that as of March 6, 2025, approximately 26,200 agents worked for Real.
“We are incredibly proud of the thousands of agents who have chosen Real as their home, but we also recognize that real estate is not a one-size-fits-all business,” Srivatsaa added. “Agents have diverse business models and personal circumstances that may lead them to explore other options. While we believe that Real provides the most compelling combination of economics and technology and flexibility and culture, we know that some level of churn is just simply inevitable. That said, we are pleased that our revenue churn was only 1.8% in the quarter and has remained steady at 2% or lower throughout 2024, a strong indicator that we’re successfully retaining the vast majority of our productive agents.”
The company also noted that it experienced four straight quarters of positive adjusted EBITDA, in spite of a difficult climate for real estate overall. For Q4, adjusted EBITDA was $9.1 million, yet another sharp increase from $2.3 million in Q4 2023 (excluding a prior non-recurring adjustment). For the entire year, adjusted EBITDA reached $40 million, which was nearly three times the level the company experienced for 2023.
According to Chief Financial Officer Michelle Ressler, operating expenses were $140 million in 2024, including approximately $10.4 million devoted to antitrust litigation. That seemingly would include a $9.2 million payment to settle the seller class-action lawsuits, which the company agreed to last spring.
Addressing a question received from an investor, Tamir Poleg, CEO and chairman of The Real Brokerage, explained what a typical transaction for the company looks like as it also seeks to scale its title and mortgage services.
“To put it in perspective, on a traditional brokerage transaction, we generate around $10,000 in revenue and about $900 in gross profit. In comparison, a title transaction typically generates $3,000 in revenue at an 80% gross margin, while a mortgage transaction generates roughly $6,000 in revenue at 50% gross margin. And when you add it all up, a transaction that includes both title and mortgage alongside a broker transaction results in total revenue of nearly $19,000 with gross profit exceeding $6,000, so about seven times the gross profit of a brokerage-only transaction.”
The company as a whole attributed its forward-thinking approach and its embrace of AI to help streamline its process as reasons why it was able to expand so rapidly while the rest of the market experienced difficulties. Poleg also noted that the company’s ancillary efforts contributed to its expanded bottom line.
“At the end of the day, our goal is to provide agents with a seamless, efficient and high-quality closing experience that helps them close more deals and grow their business. But obviously, as you look at the numbers, if we’re able to attach mortgage and title, the margin profile of the transaction completely changes.”
