v3.25.2
OPERATING SEGMENTS DISCLOSURES
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
OPERATING SEGMENTS DISCLOSURES

5. OPERATING SEGMENTS DISCLOSURES

 

Segment information aligns with how the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, manages the business and allocates resources into four operating segments:

 

  ● North American Brokerage: generates revenue by processing real estate transactions which entitles the Company to commissions.
     
  ● One Real Title: generates revenue by offering title insurance and closing services for residential and/or commercial transactions.
     
  ● One Real Mortgage: derives revenue from premiums associated with facilitating mortgage transactions between borrowers and lenders.
     
  ● Real Wallet: derives revenue from fees associated with the program and the offering of financial products.

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2025 AND 2024

UNAUDITED

 

The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information and is (iii) regularly reviewed by the CODM. Once operating segments are identified, the Company performs a quantitative analysis of the current and historic revenues and profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics.

 

Each operating segment is assessed both quantitatively and qualitatively to determine whether it meets the thresholds for separate disclosure under ASC 280. The Company has elected to separately disclose Title and Mortgage segments as management expects that the segments will continue to be significant. Both segments were previously classified as part of Other Segments. As a result of this change, prior period segment information has been recast to conform to our current presentation in our financial statements. The Company has determined that it operates as three reporting segments - North American Brokerage, One Real Title and One Real Mortgage, which comprise more than 90% of the Company’s total revenue and income (loss) from operations. The other segment, Real Wallet, is not considered a reporting segment as its revenue and net loss do not meet the quantitative threshold set for reporting segments. This segment is disclosed in the “Other Segments” category below.

 

The CODM uses revenues, gross profit and operating income (loss) as key metrics to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. All segments follow the same basis of presentation and accounting policies as those described throughout the notes to the audited consolidated financial statements included herein. The following tables provide information about the Company’s reportable segments (in thousands).

 

  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
   For the Three Months Ended June 30, 2025 
  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
Revenues  $537,445   $1,346   $1,709   $247   $540,747 
Cost of sales   491,737    216    900    33    492,886 
Gross Profit  $45,708   $1,130   $809   $214   $47,861 
                          
Operating Expenses(1)(2)   42,222    2,123    1,492    340    46,177 
Operating Income (Loss)  $3,486   $(993)  $(683)  $(126)  $1,684 
                          
Reconciliation of profit or (loss) (segment profit/(loss))                         
Other income, net                       166 
Finance expense, net                       (300)
Net Income                      $1,550 

 

1Operating expenses includes General and administrative expenses, Marketing expenses, and Research and development expenses.
2Operating expenses includes Revenue share expense of approximately $17,644 thousand and is recorded in the North American Brokerage segment.

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2025 AND 2024

UNAUDITED

 

  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
   For the Six Months Ended June 30, 2025 
  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
Revenues  $889,194   $2,376   $2,785   $373   $894,728 
Cost of sales   810,986    383    1,477    85    812,931 
Gross Profit  $78,208   $1,993   $1,308   $288   $81,797 
                          
Operating Expenses(1)(2)   77,623    4,411    2,792    496    85,322 
Operating Income (Loss)  $585   $(2,418)  $(1,484)  $(208)  $(3,525)
                          
Reconciliation of profit or loss (segment profit/loss)                         
Other income, net                       288 
Finance expense, net                       (334)
Net Loss                      $(3,571)

 

1Operating expenses includes General and administrative expenses, Marketing expenses, and Research and development expenses.
2Operating expenses includes Revenue share expense of approximately $30,148 thousand and is recorded in the North American Brokerage segment.

 

  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
   For the Three Months Ended June 30, 2024 
  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
Revenues  $338,574   $1,255   $949   $340,778 
Cost of sales   308,268    143    499    308,910 
Gross Profit  $30,306   $1,112   $450   $31,868 
                     
Operating Expenses(1)(2)   29,983    1,641    888    32,512 
Operating Income (Loss)  $323   $(529)  $(438)  $(644)
                     
Reconciliation of profit or (loss) (segment profit/(loss))                    
Other income, net                  57 
Finance expenses, net                  (523)
Net Loss                 $(1,110)

 

1Operating expenses includes General and administrative expenses, Marketing expenses, Research and development expenses and Settlement of Litigation.

2Operating expenses includes Revenue share expense of approximately $12,475 thousand and is recorded in the North American Brokerage segment.

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2025 AND 2024

UNAUDITED

 

  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
   For the Six Months Ended June 30, 2024 
  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
Revenues  $537,826   $2,050   $1,645   $541,521 
Cost of sales   487,736    285    873    488,894 
Gross Profit  $50,090   $1,765   $772   $52,627 
                     
Operating Expenses(1)(2)   64,404    2,892    1,693    68,989 
Operating Loss  $(14,314)  $(1,127)  $(921)  $(16,362)
                     
Reconciliation of profit or (loss) (segment profit/(loss))                    
Other income, net                  230 
Finance expenses, net                  (1,075)
Net Loss                 $(17,207)

 

1Operating expenses includes General and administrative expenses, Marketing expenses, Research and development expenses and Settlement of Litigation.
2Operating expenses includes Revenue share expense of approximately $21,539 thousand and is recorded in the North American Brokerage segment.

 

Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales for the three and six months ended June 30, 2025 and June 30, 2024.

 

Segment specific assets and liabilities are not disclosed in these interim condensed consolidated financial statements because the CODM is not regularly provided with that information.

 

Depreciation and Amortization (in thousands):

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the Three Months Ended   For the Six Months Ended 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
North American Brokerage  $204   $146    388    277 
One Real Title   168    168    336    336 
One Real Mortgage   26    26    53    53 
Other Segments   —    —    —    — 
Total  $398   $340   $777   $666 

 

The amount of revenue from external customers, by geography, is shown in the table below (in thousands):

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the Three Months Ended   For the Six Months Ended 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
United States  $480,678   $296,261   $801,170   $472,750 
Canada   60,069    44,517    93,558    68,771 
Total revenue by region  $540,747   $340,778   $894,728   $541,521 

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2025 AND 2024

UNAUDITED