v3.25.3
OPERATING SEGMENTS DISCLOSURES
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
OPERATING SEGMENTS DISCLOSURES

 

5.OPERATING SEGMENTS DISCLOSURES

 

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 (iii) is regularly reviewed by the Chief Operating Decision Maker (“CODM”).

 

Segment information aligns with how the Company’s CODM, the Chief Executive Officer, manages the business and allocates resources. The Company has identified the following 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 - generates revenue from premiums associated with facilitating mortgage transactions between borrowers and lenders.

 

●Real Wallet - generates revenue from fees and interest associated with the program and the offering of financial products.

 

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 determined that it operates as three reportable 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 does not meet the quantitative thresholds for a reportable segment under ASC 280 and is therefore presented within “Other Segments”. The Company 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 the current presentation.

 

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 and as included herein.

 

  

North American

Brokerage

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

North American

Brokerage

   One Real Title   One Real Mortgage   Other Segments   Total 
Revenues  $               565,307   $1,307   $1,758   $177   $568,549 
Cost of sales   522,564    206    871    51    523,692 
Gross Profit  $42,743   $1,101   $887   $126   $44,857 
                          
Operating Expenses(1)(2)   41,966    1,853    1,126    385    45,330 
Operating Income (Loss)  $777   $(752)  $(239)  $(259)  $(473)
                          
Reconciliation of profit or (loss) (segment profit/(loss))                         
Other income, net                       365 
Finance expense, net                       (83)
Loss Before Tax                      $(191)

 

1Operating expenses includes General and administrative expenses, Marketing expenses, and Research and development expenses.
2Operating expenses includes Revenue share expense of approximately $15,738 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 SEPTEMBER 30, 2025 AND 2024

UNAUDITED

 

  

North American

Brokerage

   One Real Title   One Real Mortgage   Other Segments   Total 
   For the Nine Months Ended September 30, 2025 
  

North American

Brokerage

   One Real Title   One Real Mortgage   Other Segments   Total 
Revenues  $            1,454,501   $3,683   $4,543   $550   $1,463,277 
Cost of sales   1,333,550    589    2,348    136    1,336,623 
Gross Profit  $120,951   $3,094   $2,195   $414   $126,654 
                          
Operating Expenses(1)(2)   119,589    6,264    3,918    881    130,652 
Operating Income (Loss)  $1,362   $(3,170)  $(1,723)  $(467)  $(3,998)
                          
Reconciliation of profit or (loss) (segment profit/(loss))                         
Other income, net                       653 
Finance expense, net                       (417)
Loss Before Tax                      $(3,762)

 

1Operating expenses includes General and administrative expenses, Marketing expenses, and Research and development expenses.
2Operating expenses includes Revenue share expense of approximately $45,886 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 September 30, 2024 
  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
Revenues  $               369,890   $1,400   $1,198   $372,488 
Cost of sales   339,507    197    655    340,359 
Gross Profit  $30,383   $1,203   $543   $32,129 
                     
Operating Expenses(1)(2)   31,842    1,832    933    34,607 
Operating Loss  $(1,459)  $(629)  $(390)  $(2,478)
                     
Reconciliation of profit or loss (segment profit/loss)                    
Other income, net                  151 
Finance expenses, net                  (214)
Loss Before Tax                 $(2,541)

 

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 $11,651 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 SEPTEMBER 30, 2025 AND 2024

UNAUDITED

 

  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
   For the Nine Months Ended September 30, 2024 
  

North American

Brokerage

   One Real Title   One Real Mortgage   Total 
Revenues  $               907,716   $3,450   $2,843   $914,009 
Cost of sales   827,243    482    1,528    829,253 
Gross Profit  $80,473   $2,968   $1,315   $84,756 
                     
Operating Expenses(1)(2)   96,246    4,724    2,626    103,596 
Operating Loss  $(15,773)  $(1,756)  $(1,311)  $(18,840)
                     
Reconciliation of profit or loss (segment profit/loss)                    
Other income, net                  381 
Finance expenses, net                  (1,289)
Loss Before Tax                 $(19,748)

 

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 $33,190 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 nine months ended September 30, 2025 and September 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):

 

   2025   2024   2025   2024 
   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
North American Brokerage  $373   $163   $624   $440 
One Real Title   168    167    505    503 
One Real Mortgage   26    28    79    81 
Total  $567   $358   $1,344   $1,024 

 

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

 

   2025   2024   2025   2024 
   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
United States  $499,166   $319,411   $1,300,336   $792,161 
Canada   69,383    53,077    162,941    121,848 
Total revenue by region  $568,549   $372,488   $1,463,277   $914,009