A few years ago, Wall Street thought the residential real estate industry was going to vertically integrate. iBuying -- or when companies like Opendoor directly buy and sell homes from consumers -- was promised as the next big thing.
It failed spectacularly. Now, as we sit here in 2025, a new business model may be finally able to modernize the homebuying process: Cloud-based real estate brokers. The Real Brokerage (REAX 0.26%) is a cloud brokerage growing its revenue incredibly quickly as it steals market share across the United States. With a share price below $10, this stock may be about to go parabolic. Here's why.
NASDAQ: REAX
Key Data Points
Impressive revenue growth; taking market share
A cloud brokerage like The Real Brokerage is not trying to disrupt the entire way people buy homes, but simply make it easier for all parties in the transaction. It is essentially a software layer that acts as a brokerage for individual real estate agents and their teams, eliminating the need to pair up with legacy mortgage brokers.
Offering better revenue sharing, easy-to-use software, and the freedom to build up your own brand as a real estate agent has enabled The Real Brokerage to grow quickly over the last few years. Last quarter, revenue grew 53% year-over-year to $568.5 million, with overall sales going from virtually nothing in 2021 to $1.8 billion over the last 12 months.
Image source: Getty Images.
Why The Real Brokerage may go parabolic
It now has over 30,000 agents that use its software to power real estate transactions, with 2,100 added last quarter. But that is only scratching the surface of the residential real estate market in the United States. Estimates peg the number of agents at over 1 million.
This gives The Real Brokerage plenty of room to keep gaining market share. Now, it is adding new services for its agents, such as title insurance, mortgage financing, and a financial tool called the One Real Wallet. If this impressive growth is sustained, The Real Brokerage will trade at a market cap vastly higher than its $800 million level today, sending its $3.78 share price into the stratosphere over the next few years.
