What Happened?
Shares of real estate technology company The Real Brokerage (NASDAQ:REAX) jumped 8.3% in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
The shares closed the day at $3.74, up 7.9% from previous close.
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What Is The Market Telling Us
The Real Brokerage’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 4% on the news that the company reported strong third-quarter 2025 financial results, highlighted by significant revenue growth and a much-improved bottom line.
Revenue for the quarter climbed 53% from the previous year to $568.5 million, beating expectations. The company also substantially narrowed its net loss to just $0.4 million, a significant improvement compared to the $2.6 million loss reported in the same period a year ago. This progress toward profitability was a key driver for the stock. Operationally, the brokerage expanded its agent base by 39%, surpassing 30,000 agents for the first time. This growth contributed to a nearly 50% increase in home sale transactions. The company's financial health appeared solid, as it generated $8.8 million in cash from operations and ended the quarter with $55.8 million in cash and no debt. The Real Brokerage also repurchased 3.2 million of its own shares during the quarter.
The Real Brokerage is down 18.8% since the beginning of the year, and at $3.74 per share, it is trading 32.2% below its 52-week high of $5.51 from February 2025. Investors who bought $1,000 worth of The Real Brokerage’s shares 5 years ago would now be looking at an investment worth $2,558.
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