As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the real estate services industry, including The Real Brokerage (NASDAQ:REAX) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 13 real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q1: The Real Brokerage (NASDAQ:REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $354 million, up 76.3% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“Real delivered outstanding results to start 2025, continuing our track record of differentiated growth,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer.
The Real Brokerage pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.6% since reporting and currently trades at $3.90.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Marcus & Millichap (NYSE:MMI)
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Marcus & Millichap reported revenues of $145 million, up 12.3% year on year, outperforming analysts’ expectations by 3.5%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $30.23.
Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: eXp World (NASDAQ:EXPI)
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $954.9 million, up 1.3% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 4.6% since the results and currently trades at $9.07.
Read our full analysis of eXp World’s results here.
RE/MAX (NYSE:RMAX)
Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.
RE/MAX reported revenues of $74.47 million, down 4.9% year on year. This number topped analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
RE/MAX scored the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $7.75.
Read our full, actionable report on RE/MAX here, it’s free.
Opendoor (NASDAQ:OPEN)
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Opendoor reported revenues of $1.15 billion, down 2.4% year on year. This result surpassed analysts’ expectations by 9.3%. It was an exceptional quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.
Opendoor delivered the biggest analyst estimates beat among its peers. The stock is down 18.8% since reporting and currently trades at $0.57.
Read our full, actionable report on Opendoor here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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