The Real Brokerage says it was on the up-and-up in the second quarter.
The office-free firm reported 65 percent revenue growth year-over-year during the second quarter, Inman reported. The brokerage lead by Tamir Poleg said net losses fell 2.3 percent year-over-year to $4.1 million
The Real Brokerage also saw adjusted EBITDA flipped annually from the negative to the positive ahead of schedule according to Poleg, for a $2.6 million profit.
The New York City-based firm joined other residential players in recent months trying to cut costs and narrow losses in the wake of last year’s market downturn.
One of the brokerage’s most consequential decisions of the year came in March, when it instituted additional fees for agents. It raised the charge for incoming agents from $149 to $249 and increased the annual fee for all agents from $500 to $750.
Agent count grew by 105 percent year-over-year to hit 11,500 people. Commission revenue per productive agent declined 16 percent annually, while transaction count increased 72 percent.
The brokerage is known for automating the vast majority of employee positions and an unusual business model. It offers agents a generous 85/15 commission split while capping commission payments at $12,000; after that, agents pay a transaction fee per deal, otherwise keeping all of their commissions.
Agents can participate in revenue sharing if they bring in recruits and receive equity incentives.
As brokerages attempt to navigate the choppy housing market, they are pulling out all of the stops to stand above competition. Poleg announced that the brokerage plans to launch a consumer app in October, which follows various tech updates it has made this year.
“We are on fire,” Poleg said in an appearance at the Inman Connect industry event.
The Real Brokerage is pulling itself off the Toronto Stock Exchange, though it plans to continue trading on the NASDAQ Capital Market.
— Holden Walter-Warner
Read more
Commercial
National
Spin cycle: Earnings calls optimistic after tumultuous quarter for real estate
Residential
National
The Real Brokerage raises fees charged to agents
Residential
National
Most resi jobs can be automated: Real Brokerage CEO