Oct. 12 at 12:06 PM
$REAX
As well as the margins, I think the market is looking at
$FTHM and
$EXPI as comparisons for REAX. Neither of which are profitable. It seems every few years, there is a new hot brokerage that signs up lots of new agents.
Fathom has not added new agents for several years, and offer less advantageous incentivisation for agents and worse tech. REAX already has more agents and is growing at 50-100% still.
EXPI is a better comparator. They have c80k agents, but not growing. REAX, if this rate continues, may have 80k agents by 2027. EXPI appears better capitalised, with REAX achieving strong growth despite appearing relatively undercapitalised.
If REAX can demonstrate sustained profitability over next few quarters then this will signal to the market that they are not FTHM or EXPI.
So REAX needs to overcome brokerage sector dynamics, US residential housing dynamics, and a poor margin picture. Can see why the market needs to see much more for share price to improve.
