REAL BROKERAGE INC Oppenheimer 29th Annual Technology, Internet & Communications Conference

Thank you, Chad. Hi, everyone. Good morning. My name is Tamir, and I am the co-founder and CEO here at Real. I want to, first of all, thank Oppenheimer for the opportunity to speak to you today. For those of you who attended the conference last year, you may know The Real story. We are a fast-growing, technology-based real estate brokerage with a very differentiated growth trajectory, especially given the current housing market. A lot has changed over the past 12 months, and I want to spend some time today talking about both what we have built and what we think the next chapter looks like, because we think that the next chapter will be even more exciting than it has been so far. Before I get into it, our presentation contains forward-looking statements, so please review the full disclaimer in our slides and in our public filings.

Let me ground everyone with where Real is today. At the end of the second quarter of 2026, we had over 35,000 real estate agents across the U.S. and Canada, and that number is now over 36,000. We have been growing agents at a nearly 50% compounded growth rate since early 2023, which has translated to significant revenue and adjusted EBITDA growth over that same period. I want to put that in context because the housing market over the same period has been near a 30-year low in terms of transaction volume. We are growing our agent count 50% in a market that is basically flat to down.

The way we have done that is by building a platform that agents genuinely want to be a part of, not because the market is so great, but because our economics and our technology are just fundamentally better than what is available today by other brokerages. Our business model is pretty simple. At Real, agents keep 85% of every commission dollar they generate with a $12,000 annual cap in the U.S. and a CAD 15,000 annual cap in Canada. Once they hit the cap, they keep 100% of their commission, less a $325 transaction fee. On top of that, agents can earn revenue share income by attracting other agents to the platform. They can earn equity in the company through various agent equity programs, and there are a few more ways that they can monetize their businesses.

So there are multiple ways, as I said, for agents to build wealth on our platform, not just from transactions that they close. The reason we can offer agents such compelling economics is because instead of operating a traditional brick-and-mortar offices like most traditional brokerages, which has been the industry norm for many, many decades, we are a fully remote virtual brokerage, giving agents significant freedom and flexibility to run their businesses their own way. Looking at the next chart or the next slide with the four charts, the numbers here speak for themselves. Since the second quarter of 2023, we have grown our LTM revenue from $500 million to over $2.3 billion in the second quarter of 2026. LTM adjusted EBITDA has grown from pretty much breakeven to $77 million over the same period.

I think that it is worth highlighting here that the margin improvement comes from both a combination of improved pricing and operating leverage that we have in our business, which is just a function of our platform. As we add more agents, we do not have to add proportional headcount or infrastructure. Our technology does more of the work, and the numbers speak for themselves. Let me talk about the technology itself, because this is really our moat, and a lot of people are not aware of it. Our core technology platform is called reZEN. It is our proprietary transaction management software and business intelligence system used by 100% of our agents. Every deal, every document, every commission payout runs through reZEN. It is essentially the operating system for an agent's business. On top of reZEN, we have built Leo, which is our AI layer.

Leo currently handles over 100,000 agent questions each quarter, and I want you to think about what it means in terms of headcount efficiency. If we did not have Leo combing through all of our proprietary data, we would need a massive support organization to answer all of those agent questions. Instead, Leo does it instantly, around the clock, without agents needing to wait for answers. Leo does not just handle support. Leo helps agents with compliance questions, with questions about their own personal production. It helps them with marketing, with earnings. It even creates social media posts for them. So it is really embedded into how agents work on a day-to-day basis. Last month, we beta launched several new features for Leo. We call it Leo 2.0, including direct integration with some of the largest real estate CRMs in the industry.

As a result, with the help of Leo, our agents can now seamlessly leverage agentic AI to help activate, engage, and nurture their leads. So think about every agent having a CRM. Leo is now nurturing those leads instead of the agent staying on top of the follow-ups for every person they interacted with in the past in terms of potentially buying or selling a home. We also have RealWallet, which is our fintech business. RealWallet provides agents bank accounts, debit cards, near instant commission payments, and access to lines of credit, all powered by their transaction data. We believe that we are the only brokerage that underwrites our agents for credit lines, and that is because we have full visibility into their production, into their businesses, into the different assets that they are building on our platform.

The results of all this is that we operate one of the most efficient brokerages in the industry from a headcount standpoint, with 94 agents per full-time employee at the end of 2025. The next closest public competitor was at 45, while the industry largest player is at 12. One employee for every 12 agents versus our ratio of one to 94. That gap is structural and driven by our technology. It comes from automating nearly everything that we can or everything that can be automated by software, whereas most traditional brokerages just rely on humans who work in physical offices to do many of the things that Real does centrally and automatically. While we operate a super efficient and fast-growing brokerage, we've always known that there's a bigger opportunity to monetize transactions in a much better way.

On the brokerage side, our gross margins are around 8%-9%, but nearly every home sale transaction also involves mortgage and title insurance, and those businesses typically carry gross margins of 45%-80% or even north of that. Right now, most of that revenue flows to third parties, but we have been building the infrastructure to capture all of that revenue in-house through our One Real Mortgage and One Real Title businesses. The attach rates for these businesses are still early. We're in the low single digits for both. But over time, we think that the attach rates can move significantly meaningfully higher, and when they do, the profitability profile of the company will change dramatically. Now, moving to the big news that I think is top of mind for everyone in this room.

In April, we announced that we are acquiring RE/MAX Holdings, and our security holder vote is set for Friday, in two days. I want to explain why we think that this is such an important moment for Real and why this transaction makes a lot of sense. When we built Real, we made a deliberate decision not to create a consumer-facing brand. We focused entirely on helping agents brand themselves, and that has worked very well for us. Obviously, we've been growing agent count dramatically over the past six years. But we also know that there are certain agents in certain markets where the brokerage brand and in-office experience really does matter. RE/MAX clearly addresses that gap. RE/MAX is one of the most iconic, recognized name in the real estate world globally, with presence in over 120 countries and over 145,000 agents.

It's a completely different kind of business compared to Real. It's a high-margin, franchise-based business with two-thirds of revenue coming from recurring franchise fees and annual dues. In 2025, RE/MAX generated about $94 million of adjusted EBITDA at a 32% margin. What we're creating with this combination between Real and RE/MAX is something that does not exist anywhere in real estate today, a company with both high growth, AI-powered cloud brokerage, and a global franchise network. Those models are genuinely complementary. They serve different agent profiles, and together they give us access to a much larger part of the market. At announcement, the deal terms reflect an acquisition price that was approximately 7 times 2025 adjusted EBITDA on a fully synergized basis. One thing I want to be very clear about, and we've been very vocal about that, the RE/MAX brand is not changing.

RE/MAX will continue to operate as RE/MAX. Real will operate as Real. What we're adding is an advanced technology platform and shared back-office infrastructure supporting both brands. That's the operating philosophy behind that combination. As we noted, we expect to close the transaction in the second half of 2026, subject to shareholder approvals and customary closing conditions. To give you a sense of the scale of the combined company, on a pro forma basis, Real RE/MAX Group would have over 180,000 agents, and in 2025, would have generated $2.3 billion in revenue and $157 million in adjusted EBITDA or $187 million in adjusted EBITDA on a fully synergized basis. The company would have closed nearly 1 million transactions in North America annually and 1.8 million transactions globally.

I want to spend a minute talking about why these two models belong together because I think there's a question of whether the cultures are compatible. Real's community is built around agents who value flexibility and technology that allows them to work whenever and from wherever they want. RE/MAX community is built by franchisees and agents who have invested in brand, who want the credibility of a globally recognized name, and who operate in a more traditional brick-and-mortar model. Those are genuinely different agent profiles, but importantly, both models offer agents compelling economics that reward performance. The bright side is that agents don't need to pick just one model. An agent who thrives in the RE/MAX franchise environment stays with RE/MAX. An agent who prefers the Real model can stay with Real. From a financial standpoint, the combination gives us much more diversified revenue base.