The Real Brokerage, Inc.

earnings call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. I will now turn the call over to Alex Lumpkin. Ma'am, the floor is yours.

Thanks, and good morning. Thank you for standing by, and welcome to the Real Brokerage Conference call and webcast for the first quarter ended March 31, 2025. We appreciate everyone for joining us today. With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer, Sharan Srivastava, President, and Ravi Jani, our Chief Financial Officer. This morning, Real published an earnings press release, including results for the first quarter ended March 31, 2025. The press release, along with the unaudited consolidated financial statements and related management discussion and analysis for the quarter ended, have been filed with the U.S. Securities and Exchange Commission on EDGAR and with the Canadian Securities Regulators on SEDAR. Before we get started, I'd like to remind everyone that statements made in this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements. Our actual results may differ materially from these forward-looking statements, and the risk factors that could cause these differences are detailed in our Canadian Continuous Disclosure Documents and SEC reports. REAL disclaims any intent or obligation to update these forward-looking statements, except as expressly required by law. With that, I'd like to turn the call over to Chairman and Chief Executive Officer, Tamir Poleg. Tamir, please proceed.

Good morning, and thank you, Alex. I will start with an overview of our strategy and recent business highlights. Sharan will provide an update on actions we are taking to drive agent growth and improve agent experience, and Ravi will provide a more in-depth discussion of our financial results. I'll then provide a few closing remarks before opening up the call for Q&A. To begin, Real is a real estate technology company that is differentiated in our industry. Unlike traditional real estate brokerage firms, we provide real estate agents with a compelling combination of financial incentives, a proprietary software-based technology platform which eliminates the need for an agent's physical office space, and a collaborative culture that we believe is unique in our industry. Our vision is to simplify life's most complex transaction, that is, a purchase or sale of a home, by providing agents with the tools, technology, and resources they need to grow both their businesses and as individuals while delivering a seamless experience for clients. In the short term, this vision includes the rollout of a consumer-facing product, which streamlines the client experience and enhances the attachment of our higher-margin ancillary services. in the long term we expect our platform to encompass a holistic ecosystem of financial technology products and investment planning tools providing agents with an avenue to build long-term wealth ultimately as the platform matures we believe homebuyers and sellers could also benefit from the breadth of our service offering Our goal is to redefine the role of a real estate brokerage in the lives of our agents and in the broader housing industry. Importantly, just like our institutional investors, many of our agents are also shareholders in our company. That is why we will remain relentless in our focus on delivering long-term value for our agents, for their clients, and for our shareholders. turning to the quarter this morning real reported record first quarter results revenue of three hundred and fifty four million dollars increased seventy six per cent compared to two hundred one million dollars in the prior year driven by a seventy seven per cent increase in the number of transactions closed which reached thirty three thousand six hundred This compares favorably to the 2% decline in existing home sale industry transactions during the quarter. Gross profit in the first quarter of 2025 was $33.9 million, an increase of 63%, while net loss improved to $5.1 million from a loss of $16.1 million in the prior year. Our strong top-line growth contributed to adjusted EBITDA of $8.3 million, a significant improvement from $3.6 million in the first quarter of 2024. We ended the first quarter with 26,870 agents, up 61% versus the prior year. As of this morning, our agent count exceeds 27,700, meaning we've added over 800 agents since the start of the second quarter. we continue to see strong momentum across our technology platform in high margin ancillary businesses including mortgage title and real wallet which grew by a combined fifty percent versus the prior year as a reminder these business lines typically generate gross margins that are typically five to eight times higher than our core brokerage segment and are central to our long-term strategy for driving margin expansion and operating leverage That momentum is also being driven by the rapid evolution of Leo Copilot, our AI-powered agent assistant. In April, we transitioned all inbound agent support calls to Leo, making Real one of the first brokerages to automate its primary support layer with AI. Leo now handles thousands of agent interactions daily across mobile and voice, and continuously learns from those interactions to deliver faster, more accurate, and more personalized assistance. This represents a meaningful step forward in our vision to build a scalable, intelligent brokerage platform that increases agent productivity while driving efficiency across our operation. RealWallet continues to show strong progress across both product development and adoption. This quarter, we were pleased to welcome Dominic Parikh to Real as General Manager of RealWallet. Dominic brings over a decade of experience in fintech and lending, including prior roles at Funding Circle and BCG, and we're excited about the future of the platform under his leadership. We've expanded product functionality with new Apple Pay and Google Pay integrations, and in March, launched dedicated tax planning business checking accounts to help agents better manage their tax liabilities. In the U.S., over 3,200 agents now use RealWallet business checking accounts, with total deposits reaching approximately $8 million, including nearly 300 agents using the new tax-focused business checking accounts. In Canada, we've extended over $2 million in credit to 200 agents through our production-based lending program. To put that in perspective, it took Real seven years to reach 3,000 agents. RealWallet hit that same milestone in just seven months, highlighting the demand for agent-aligned financial tools. In Q, one real wallet generated $126,000 in revenue, and we now estimate the annualized run rate revenue exceeds $700,000, an increase from $500,000 at the time of our last earnings call, and we expect meaningful upside as adoption and product offerings continue to expand. At One Real Title, we are executing a strategic pivot under new leadership to position the business for greater scalability. Rather than expanding via individual team-based joint ventures, we are now pursuing statewide strategy, which provides more consistent operating leverage and allows us to grow more efficiently. We're launching our first three state-level JVs this month, with three more expected next month. This model will position us for re-acceleration in title growth in the back half of the year. At OneReal Mortgage, we continue building an agent-aligned mortgage business. In the first quarter, we introduced a new stock award program that enables loan officers the opportunity to earn RSUs and participate in Real's long-term upside, similar to programs offered to our agents. This initiative enhances alignment across the transaction and reinforces our commitment to attracting and retaining top-performing LOs who share our vision to reshape the home buying and selling experience. We now have 97 loan officers, over half of whom are Real Agents licensed to originate loans under the Real Agents program, delivering a more connected, transparent financing experience for clients. Altogether, these initiatives reflect our continued focus on building a tech-enabled real estate platform that supports agents at every step of the transaction and strengthens our financial profile in the process. With that, I'll turn it over to Sharon for an update on our growth and agent initiatives.