The Real Brokerage, Inc.

Let me spend a moment on how each of our businesses performed. Brokerage revenue grew 53% to $565 million, driven by both agent growth and higher productivity. We ended the quarter with over 30,100 agents, up 39% from a year ago, and as of today, our agent count stands at approximately 30,700. Real agents closed more than 53,500 transactions, totaling over $21 billion, up 49%. That performance speaks to the strength of our attraction flywheel and the quality of the agents who continue to choose real. Our brokerage business was once again profitable on a net income basis, and we continue to reinvest these earnings back into our ancillary businesses, which typically generate gross margins that are five to eight times higher than brokerage. In one real title, revenue was $1.3 million as we continued transitioning from team-based to state-based joint ventures, a shift designed to enhance scalability and long-term profitability. Under our new title, Leadership, we expect this structure to begin contributing more meaningfully in the quarters ahead, and we are encouraged that attach rates among our JV partners exceeded 35% in the quarter. One Real Mortgage delivered another strong quarter, with revenue up 47% year-over-year to $1.8 million. Growth was driven by the addition of productive loan officers and the launch of our inside sales team earlier this year. As of now, the business included approximately 100 loan officers, more than 60 of whom are participating in our Real Originate program. Lastly, RealWallet, our financial technology platform, continues to scale quickly and is deepening engagement with our agents. Quarterly revenue reflects the launch of our RealWallet Rewards program, a new benefit that we believe will further accelerate adoption. As of today, more than 4,600 agents now use real wallet business checking accounts with total deposits exceeding $20 million, up from approximately $14 million at the time of our last earnings call. Earlier this month, we launched real wallet capital across 28 U.S. states, providing agents with fast access to liquidity, allowing them to invest in their business and help manage cash flow between transactions. For agents, income can often be highly variable. In some cases, months can pass between closings, and traditional lenders simply aren't equipped to underwrite that type of earnings profile. With Real Wallet Capital, we can extend credit based on an agent's production history and projected income with Real, offering financing that many banks could not. We believe Real is the only major brokerage offering agents this kind of embedded access to capital. and doing so often same day. Beyond the financial opportunity, we view Real Wallet Capital as both a differentiated attraction and retention mechanism, a solution that helps agents remain engaged on our platform. While we're still in the early innings, we see this as a meaningful differentiator for agents choosing where to build their business. Today, Real Wallet is currently operating at an annualized revenue run rate of over $1.2 million, and we remain encouraged by the momentum. Now, For more detail on our operational performance, I'll turn it over to our COO, Jenna Rosenblatt.

Thanks, Tamir, and good morning. During the third quarter, our operations organization made meaningful progress in leveraging AI and automation to streamline workflows, enhance service metrics, and improve our ability and overall cost to serve. I'll give a few examples. In September, we launched Real's dedicated AI automation team, focused on using AI and workflow automation to reduce manual or low-value processes across the organization. In just their first few weeks, the team delivered more than a dozen live automations, collectively saving the business more than 10,000 hours annually, equivalent to multiple full-time roles. Those hours represent capacity we've been able to reallocate toward higher value activities, improving agent support, quality assurance, and product development without adding additional headcount. For example, an automation of our protein migration process allowed us to complete the migration of all of our existing teams into our protein infrastructure months ahead of schedule. At the same time, we're continuing to scale our agent-facing AI tools through Leo Copilot, our proprietary intelligent assistant integrated within the Reason app. As a reminder, in Q2, we rolled out Leo as the first line of agent support for phone calls in Reason, answering questions instantly, routing requests, and resolving issues before they reach our human support team. In Q3, we expanded Leo's reach to also be the first line of support for agent emails. In the second quarter, Leo handled about 28% of all calls initiated through Reason. By the end of the third quarter, that figure had grown to approximately 47%, handling more than 10,000 agent phone and email interactions autonomously. Overall, even as our agent base grew nearly 40% year over year, response and resolution times declined, and agent satisfaction remained above 90%. Importantly, these improvements are translating into stronger agent retention, evidenced by our revenue churn, which declined to 1.4% in the third quarter, the lowest level in more than two years. Each of these initiatives, while small individually, compound to create significant productivity gains over time. They enable us to handle higher transaction volume and agent growth with limited incremental cost, directly contributing to Real's improving operating expense per transaction and overall operating leverage. Now, before I hand it over to Ravi, I want to highlight two additional developments impacting our agent community. First, next week we'll host our annual Rise Agent Conference in Orlando, where 2,000 agents and industry partners will gather to share best practices, collaborate in person, and celebrate the culture that makes Real so unique. We'll also showcase several new initiatives designed to further power our agents' businesses and enhance their ability to win in today's market. So stay tuned. Second, this month we officially expanded our operations into Saskatchewan, our fifth Canadian province. Canada continues to be a meaningful growth opportunity for Real, and we expect this expansion to unlock additional agent and transaction growth as we strengthen our presence across the country. In short, we're executing on the operational foundation that enables Real to grow faster than the market, while continuously improving efficiency, scalability, and engagement. Now, I'll turn it over to Ravi to walk through the financial impact in more detail.

Thank you, Jenna, and good morning, everyone. Our third quarter results demonstrate the continued strength of REEL's model, high organic growth, disciplined expense management, and improving operating margins. Total revenue for the third quarter rose 53% to $568.5 million compared to $372.5 million in the same period last year. Growth was driven primarily by our North American brokerage segment, which saw a 49% increase in closed transactions to more than $53,000 in the quarter. Our ancillary businesses generated $3.2 million in revenue of 25% year-over-year, led by one real mortgage and real wallet, while one real title was impacted by the shift from team-based to state-based joint ventures. Gross profit increased 40% to $44.9 million compared to $32.1 million a year ago, with gross margin of 7.9% versus 8.6% in the prior year period. The year-over-year change primarily reflects a higher proportion of transactions completed by agents who have reached their annual cap. For reference, the percentage of total transactions closed that were post-cap increased by approximately 500 basis points relative to last year. As a reminder, once an agent caps, they stop paying real the standard 15% split and instead pay a $285 per transaction fee, which results in lower gross margin on those post-cap transactions. While this mixed shift creates near-term pressure, it also reflects the maturity and productivity of our agent base. We do expect this to normalize as market activity improves and transaction growth becomes more evenly distributed between capped and non-capped agents. And of course, over time, continued growth in our ancillary businesses should support overall gross margin expansion. Operating expenses, including G&A, marketing, and R&D, totaled $45.3 million, up 31% from $34.6 million last year. The largest driver was revenue share expense, which rose 35% to $15.6 million, up from $11.7 million in the prior year, consistent with our strong agent production. The remainder reflects investments to support growth, including expanding our operations and R&D teams and further enhancing our technology platform. Operating expenses represented 8% of revenue in the third quarter, an improvement of 130 basis points from 9.3% a year ago, reflecting strong cost discipline. Adjusted operating expense, what we view as our fixed cash costs, was 21.7 million, or 3.8% of revenue, down from 4.5 percent in the third quarter of 2024. On a per-transaction basis, adjusted operating expense declined 13 percent year-over-year to $405 compared to $468 in the third quarter of 2024. For the third quarter, we reported an operating loss of negative $0.5 million compared with a $2.5 million loss in the third quarter of 2024. Operating margin improved to negative 0.1% from negative 0.7% in the prior year period. Our core brokerage segment remained profitable, generating $0.8 million of operating income, while we continued to reinvest in one real mortgage, one real title, and real wallet, which collectively generated an operating loss of $1.3 million as they scale. On a non-GAAP basis, adjusted EBITDA rose 54% to $20.4 million, up from $13.3 million last year, reflecting growth in gross profit, outpacing growth in operating expenses. Total stock-based compensation was $19.9 million, with $12.6 million related to the agent stock purchase program recorded in cost of sales, $3.9 million in agent equity awards recorded in marketing, and $3.4 million in employee-related stock compensation. We generated cash flow from operating activities at $8.8 million in the quarter and returned capital to shareholders by repurchasing 3.2 million shares for $15.5 million under our existing buyback authorization. We ended the quarter with nearly $56 million in unrestricted cash and short-term investments, an all-time high, and continue to carry no debt, giving us ample flexibility to fund growth and future share repurchases. To close, a few key operating metrics. Our median sale price was 390,000, a 2% year-over-year increase, and our headcount efficiency ratio, which reflects the number of full-time employees, excluding title and mortgage employees, divided by the number of agents on our platform, was 1 to 89, compared to 1 to 87 last quarter, still among the most efficient in the industry. While we don't provide formal guidance consistent with typical industry seasonality, we expect fourth quarter revenue to decline compared to the third quarter and for lower gross margin year over year in line with trends we've seen throughout 2025. From an OPEX standpoint, we expect an increase in our non-variable OPEX in the fourth quarter. This reflects both planned headcount additions to support future growth as we prepare for an even stronger 2026 as well as costs associated with our annual RISE agent conference, which takes place in the fourth quarter each year. More details on our results and key operating metrics can be found in the earnings press release and investor presentation that companies call. I'll now turn it back to Tamir.