v3.26.1
OPERATING SEGMENTS DISCLOSURES
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
OPERATING SEGMENTS DISCLOSURES

 

5. OPERATING SEGMENTS DISCLOSURES

 

The Company identifies an operating segment as a component of the business that (i) engages in business activities from which it may earn revenues and incur expenses, (ii) has discrete financial information available, and (iii) is regularly reviewed by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources.

 

Segment information is prepared on the same basis used by the CODM, who is the Company’s Chief Executive Officer, to manage the business and make decisions regarding allocating resources and performance evaluation. Based on this assessment, the Company has identified the following operating segments:

 

  ● North American Brokerage - generates revenue by processing real estate transactions, which entitles the Company to earn commissions.

 

  ● One Real Title - generates revenue by offering title insurance and closing services for residential and commercial transactions.

 

  ● One Real Mortgage - generates revenue from origination fees earned in connection with facilitating mortgage transactions between borrowers and lenders.

 

  ● Real Wallet - generates revenue from interchange fees on Company-branded debit cards, interest income on certain deposit accounts, and interest income and various fees associated with business loans.

 

Once operating segments are identified, the Company evaluates each segment using both quantitative and qualitative analysis, including current and historical revenue and profitability for each operating segment, to determine whether the segments have similar operating characteristics and whether they meet the criteria for separate disclosure under ASC 280.

 

Based on this evaluation, the Company has determined that it operates as three reportable segments - North American Brokerage, One Real Title and One Real Mortgage, each of which meets the quantitative thresholds for separate disclosure under ASC 280-10-50-12 and which collectively comprise more than 90% of the Company’s total revenue and income (loss) from operations. Real Wallet does not meet any of the quantitative thresholds for separate disclosure under ASC 280 and is therefore included within “Other Segments”. Prior period segment information has been recast to reflect the change in the number of reportable segments and allocate revenue, cost of sales and operating expenses between the various segments.

 

The CODM evaluates segment performance using revenue, gross profit and operating income (loss). These metrics are used to assess performance, identify trends affecting the segments, develop forecasts and make strategic operating decisions. All segments follow the same basis of presentation and accounting policies as those described throughout the notes to the interim condensed consolidated financial statements and as included herein.

  

  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
   For the Three Months Ended June 30, 2026 
  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
Revenues  $696,364   $1,743   $1,876   $592   $700,575 
Cost of sales   640,858    255    1,118    88    642,319 
Gross Profit  $55,506   $1,488   $758   $504   $58,256 
                          
Segment Operating Expenses(1)(2)   50,756    2,045    384    519    53,704 
Segment Operating Income (Loss)  $4,750   $(557)  $374   $(15)  $4,552 
                          
Reconciliation of profit or (loss) (segment profit/(loss))                         
Acquisition costs                       11,582 
Operating Loss                       (7,030)
Other income, net                       192 
Finance expense, net                       (631)
Loss Before Tax                      $(7,469)

 

1Segment Operating expenses consist of General and administrative expenses, Marketing expenses, and Research and development expenses.

 

2Segment Operating expenses also include Revenue share expense of approximately $22,210 thousand for the three months ended June 30, 2026, which was 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, 2026 AND 2025

UNAUDITED

 

  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
   For the Six Months Ended June 30, 2026 
  

North
American

Brokerage

   One Real
Title		   One Real
Mortgage		   Other
Segments		   Total 
Revenues  $1,158,926   $3,002   $3,170   $1,028   $1,166,126 
Cost of sales   1,063,153    437    1,924    201    1,065,715 
Gross Profit  $95,773   $2,565   $1,246   $827   $100,411 
                          
Segment Operating Expenses(1)(2)   92,624    3,900    1,332    1,131    98,987 
Segment Operating Income (Loss)  $3,149   $(1,335)  $(86)  $(304)  $1,424 
                          
Reconciliation of profit or (loss) (segment profit/(loss))                         
Acquisition costs                       11,894 
Operating Loss                       (10,470)
Other income, net                       304 
Finance expense, net                       (717)
Loss Before Tax                      $(10,883)

 

1Segment Operating expenses consist of General and administrative expenses, Marketing expenses, and Research and development expenses.

 

2Segment Operating expenses also include Revenue share expense of approximately $37,898 thousand for the six months ended June 30, 2026, which was recorded in the North American Brokerage segment.

 

  

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 
                          
Segment Operating Expenses(1)(2)   42,222    2,123    1,492    340    46,177 
Segment Operating Income (Loss)  $3,486   $(993)  $(683)  $(126)  $1,684 
                          
Reconciliation of profit or loss (segment profit/loss)                         
Other income, net                       166 
Finance expenses, net                       (300)
Income Before Tax                      $1,550 

 

1Segment Operating expenses consist of General and administrative expenses, Marketing expenses, and Research and development expenses.

 

2Segment Operating expenses also include Revenue share expense of approximately $17,644 thousand for the three months ended June 30, 2025, which was 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, 2026 AND 2025

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 
                          
Segment Operating Expenses(1)(2)   77,623    4,411    2,792    496    85,322 
Segment Operating Income (Loss)  $585   $(2,418)  $(1,484)  $(208)  $(3,525)
                          
Reconciliation of profit or loss (segment profit/loss)                         
Other income, net                       288 
Finance expenses, net                       (334)
Loss Before Tax                      $(3,571)

 

1Segment Operating expenses consist of General and administrative expenses, Marketing expenses, and Research and development expenses.

 

2Segment Operating expenses also include Revenue share expense of approximately $30,148 thousand for the six months ended June 30, 2025, which was recorded in the North American Brokerage segment.

 

Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales for the periods ended June 30, 2026, and June 30, 2025.

 

Segment assets and liabilities are not regularly provided to the Chief Operating Decision Maker and, accordingly, are not disclosed.

 

Depreciation and Amortization (in thousands):

 

   2026   2025   2026   2025 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
North American Brokerage  $358   $204   $739   $388 
One Real Title   168    168    336    336 
One Real Mortgage   27    26    53    53 
Total  $553   $398   $1,128   $777 

 

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

  

   2026   2025   2026   2025 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
United States  $638,273   $480,678   $1,066,415   $801,170 
Canada   62,302    60,069    99,711    93,558 
Total revenue by region  $700,575   $540,747   $1,166,126   $894,728 

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED June 30, 2026 AND 2025

UNAUDITED