R
eal Estate News' illustration by Lanette BehiryThe company is bucking the trend in a challenging housing market, reporting significant growth in revenue and agent count despite affordability challenges. Real's innovative AI and financial products are giving it an edge, allowing it to defy gravity and achieve ambitious goals."We're focused on delivering exceptional experiences and value to our agents and clients," said Tamir Poleg, Co-Founder and CEO, during the third-quarter earnings call on November 7. To that end, Real highlighted its Wallet program, which combines earnings, revenue share, and equity on a single platform, as well as upgrades to its AI copilot, Leo, expanding into the consumer space.Real aims to "redefine the role of our brokerage in the lives of agents and in the broader housing industry," Poleg said. The company is preparing agents for industry rule changes related to compensation, with 89% feeling prepared or well-prepared after comprehensive training programs."We haven't observed a notable change in commission rates today on the buy side or sell side," said Sharran Srivatsaa, President. Real's mortgage and title business grew 97% year-over-year, with gross margins six to eight times higher than its brokerage business.Key numbersRevenue: $372.5 million, up 74% year-over-year, with average revenue per transaction increasing by 6%.Cash and cash equivalents: $32.0 million at the end of Q3, including $21.6 million in unrestricted cash and $10.4 million held in investments.Net income/loss: Real reported a net loss of $2.6 million vs. a loss of $4.0 million in Q3 2023.Adjusted EBITDA: $13.3 million, compared to $3.5 million a year prior.Transactions: 35,832, up from 30,367 transaction sides in the second quarter and an increase of 76% year-over-year.Agent count: The total number of agents on the Real platform was 22,500 at the end of Q3, up 79% from the same period last year.Real announced Leo for Clients, a text-based communication platform expected to roll out in 2025. Earlier this year, it launched Private Label, allowing teams to leverage its platform and revenue share model while retaining their own brand.