The Real Brokerage, Inc.

Good morning, ladies and gentlemen, and welcome to the Real Brokerage first quarter ended March 31st, 2026 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 Alexandra Lumpkin at the Real Brokerage. 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, 2026. We appreciate everyone for joining us today. With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer, Jenna Rosenblatt, our Chief Operating Officer, and Ravi Jani, our Chief Financial Officer. This morning, Real published an earnings press release including results for the first quarter ended March 31, 2026. The press release, along with the consolidated financial statements and related management discussion and analysis for the quarter, have been filed with the U.S. Securities and Exchange Commission on EDGAR and with the Canadian securities regulators on SADAR. Before we get started, I'd like to remind everyone that statements made on 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 FCC 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.

Thank you, Alex, and good morning, everyone. I will cover our Q1 results and the Remax transaction. Jenna will provide an update on key brokerage initiatives. Ravi will walk through our financials in greater detail, and then I'll come back to close. I'll start with a quick overview of our results. Real delivered another impressive first quarter, and I think the numbers speak for themselves. Revenue of $466 million, up 32%. operating loss of three point four million dollars improved by one point eight million dollars year over year adjusted ebida of fourteen point nine million dollars increased eighty percent and our unrestricted cash and investments balance increased by thirteen million dollars in the quarter to a record sixty two point nine million dollars All of this occurred in one of the softest markets we've seen in years. U.S. existing home sales were essentially flat at trough levels, and Canadian home sales activity declined mid to high single digits. Despite this, our agents closed nearly 42,000 transactions, up 25% year over year. Gross profit grew faster than operating expenses, and adjusted EBITDA grew two and a half times faster than revenue. That is the model working exactly as we designed. We ended the first quarter with approximately 33,500 agents, and as of May 6th, that number has grown to over 33,900. This is happening while agents across the industry are struggling, transaction volumes are down, and productivity is under pressure. the fact that we are both growing rapidly and improving retention in that environment demonstrates the value the platform delivers for agents on our ancillary businesses the progress we are making is starting to become very tangible on real wallet revenue more than tripled year over year to four hundred thirty six thousand dollars We now have 8,000 active agents on the platform, which represents 23% of our total agent base, including 40% of those agents who generate over $150,000 in annual gross commissions. Weekly debit card spend has now exceeded $1 million a week, while deposit balances have grown to over $25 million. We ended the quarter with approximately $9 million of credit extended to agents across Canada and the U.S., and we are now seeing early data showing a direct link between wallet adoption and lower agent churn. We're still in the early stages of what real wallet can become, but I'm very excited to bring it to even more agents and, following the REMAX closing, franchisees across the country. On one real title, revenue increased 22% in the quarter. That is the strongest quarterly growth we have seen since Q1 of last year. We now operate 13 title joint ventures across 19 states, and we expect to open Colorado in the second quarter, bringing the total to 20 states. The state-based JV model is the right model to efficiently scale, and I am pleased that we are starting to see that play out in the numbers. On one real mortgage, revenue increased 20% year over year. Kate Gurevich, who joined as CEO in January, is focused on realigning the loan officer base with our current agent footprint while improving the cost structure. We are migrating to a new loan origination system in Q2 which will meaningfully reduce our per-file costs. meanwhile we are actively evaluating new lender partners to ensure we are offering clients a more comprehensive range of competitive financing options i think mortgage is on the right track and we will continue to see that reflected in the numbers as the year progresses now on Last week, we announced a definitive agreement to acquire Remax Holdings Inc. in a transaction that implies an enterprise value for Remax of approximately $880 million as of the transaction announcement date. I know this is top of mind for everyone on the call, so let me tell you why we announced this transaction and why now. At its core, RealRemax Group will unite an iconic real estate brand and franchise network with our innovative technology and the fastest growing major public real estate brokerage. Real has built the platform, the technology, and the agent-aligned community and economics. Remax has the brand recognition, the global network, and decades of trust with some of the most productive agents in the business. Together, we believe we can create a platform that is genuinely differentiated and purpose-built to be a leading presence in this industry for the next generation of real estate professionals and entrepreneurs. The financials are compelling. Based on 2025 results, RE-MAX generated approximately $94 million of high-margin adjusted EBITDA, mostly from recurring franchise fees, representing a transaction value of roughly nine times trailing adjusted EBITDA or about seven times post synergies. As a reminder, these figures are based on results at the bottom of the housing cycle. Last year, the combined REEL and RE-MAX networks closed over 700,000 transaction sites in the United States alone. That reflects a significant opportunity to grow our ancillary title and mortgage businesses. To put some numbers around what that means, we estimate a 1% attachment rate on one real mortgage across that addressable transaction base would generate approximately $25 million of high margin revenue for the combined company post-closing. Similarly, we estimate a 1% attachment rate on Tidal would generate over $10 million of revenue for the combined company. Our goal over time is to be much higher than 1%, so you can see how these numbers can genuinely transform the P&L over time. We also see significant opportunity to utilize our AI-powered consumer home search portal, Halio, to further nurture and monetize the 1 million annual leads generated across Remax.com and Remax.ca given the brand's strong trust with consumers. Remax is a brand built on production. The average Remax agent closes over 10 transactions a year, roughly double the industry average. These are exactly the kind of high-producing, full-time professionals that our technology platform and ancillary businesses are designed to support. Meanwhile, the cost synergy opportunity of $30 million is grounded in real, visible, and duplicative costs, two public company cost structures, shared services, vendor contracts, nothing that we believe is aspirational. We are standing up our integration team now and we will keep investors updated as we make additional progress. I also want to speak directly to agents on both sides of this combination because I know there are questions about what this means for you. The answer is straightforward. Real and Remax will continue to operate as separate brands with separate and distinct value propositions. If you are a Remax agent who thrives working in office, side by side with your broker owner and your team that is not changing What you can look forward to is access to new technology tools and services that Real has built, which will be available to you upon closing. And if you are a Real agent, you will continue to have all the flexibility and benefits of our model. Nothing about that changes. These are complementary businesses, each serving different agents in different ways, soon to be operating under one roof. When you have Reason as your single system of record, Leo AI helping you run your business every day, RealWallet getting you paid faster with access to lines of credit and integrated title and mortgage services, all inside one ecosystem. It's really hard to walk away from that. Every tool we add makes the platform more valuable, and every agent who joins makes the community stronger. And I think Q1 is showing exactly that. With that, I'll hand it over to Jenna.