Real REMAX looks to trim costs, anticipates 'very challenging' 2027 

Real REMAX Group reported its first quarterly results as a combined company Nov. 5, telling investors it has moved fast to lower expenses since closing its acquisition of REMAX in August and is preparing for another tough year in 2027.

The company said it has identified $40 million in annual cost savings, including $28 million from the elimination of overlapping expenses post-acquisition, and it has already trimmed its combined headcount by more than 14%, or upward of 150 positions.

Revenue rose 28% year-over-year to $728 million in Q3, a figure that includes about five weeks of REMAX results, but one-time deal costs resulted in a $67.2 million net loss for the quarter.

"As we look to 2027, we're preparing for another very challenging year," Chairman and CEO Tamir Poleg told investors.

Real REMAX Group's share price fell about 16% following the earnings release but has partially recovered in late-morning trading. 

What Real REMAX Group had to say

Agent attrition: While the company saw a net annual gain in agent count, more agents left the industry in September, and Real "was not immune," Poleg said. The company offboarded upwards of 1,000 agents over the past two months, bringing Real's count to about 36,200 this week, down from 36,610 at the end of Q3. Most departing agents contributed "very little revenue," Poleg said, and recruiting is holding steady. 

Shutting down Motto: Since late August, 104 of Motto Mortgage's 151 offices have closed, and 92% of the network is moving toward termination, Real REMAX Group President Jenna Rozenblat said, acknowledging that "these are difficult decisions."

Betting on tech: About 3,500 Real agents are paying for Leo Pro, the AI platform Real launched during its RISE conference in October, and Rozenblat said "the feedback has been overwhelmingly positive." After the platform was announced at RISE, "so many people kept coming up just saying, 'This is going to be so big for my business," she added. 

REMAX broker-owners, who will gain access to the platform soon, have felt "a lot of disappointment" with the franchisor's past tech offerings, Poleg said. He believes Real's tech will "help a lot of the broker-owners with some of their struggles around profitability and just managing their roster and freeing up their time to focus on agent attraction and also teaching their agents on just how to sell more, even though they're already extremely productive."

The motivation behind Open Real Estate: Real REMAX Group joined Keller Williams, HomeServices of America and AGNT as a founding member of Open Real Estate, a broker-led listings platform, in October. Poleg said the company sponsored the initiative "to have a seat at the table" as data distribution evolves, but he cautioned that "it's still very, very early," declining to speculate on revenue opportunities.

Why the gloomy forecast? A shareholder asked why the company expects sales to fall 5-10% in 2027 when industry forecasts show sales remaining flat. CFO Ravi Jani said the company has "more visibility into our cost actions than into the top line and market environment," so "we want to be prudent in our outlook and not plan for a recovery."

Key numbers

Q3 results include REMAX starting Aug. 25, while Q3 2025 figures reflect Real alone, so year-over-year comparisons aren't apples to apples.

Revenue: $727.9 million, up 28% from $568.5 million in Q3 2025. On a pro forma basis, as if the deal had closed Jan. 1, 2025, combined revenue rose 20% to $770 million.

Net loss: $67.2 million, compared to a $0.3 million loss in Q3 2025. The quarter included $52.3 million in acquisition-related expenses and $26.4 million in accelerated stock-based compensation tied to job cuts.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $33.8 million, up 66% from $20.4 million a year ago and up from $27.6 million in Q2. On a pro forma basis, adjusted EBITDA was about $50 million, Jani said.

Cash and debt: $102.5 million in cash and cash equivalents, up from $73.8 million at the end of Q2. The company owes $525 million on the term loan that funded the acquisition after a voluntary $25 million payment.

Agents and transactions: Real's agent count rose 21% year-over-year to 36,610, and closed transaction sides rose 17% to 62,738. REMAX's U.S. and Canada agent count fell 3% to 72,118, while its count outside the U.S. and Canada rose 4% to 75,970.

Outlook: For Q4, the company expects revenue of $575 million to $625 million and adjusted EBITDA of $32 million to $38 million. For 2027, it projects revenue of $2.6 billion to $2.8 billion.

Notable moves

Deal done: Real and REMAX shareholders approved the acquisition Aug. 14, and the deal closed Aug. 24. The combined company now trades on the Nasdaq under the ticker REAX.

New leadership: Rozenblat was named the first president of Real REMAX Group in August as the rest of the leadership team took shape. In September, former ERA leader Alex Vidal was appointed president of REMAX, although Compass is challenging the move, claiming in a lawsuit that Vidal violated a noncompete agreement. 

New tech and programs: In addition to unveiling Leo Pro in October, Real launched a Real Young Professionals network last month.