TORONTO & NEW YORK - The Real Brokerage Inc. (NASDAQ: REAX), a real estate services company, has received final approval from the United States District Court for the Western District of Missouri on a settlement agreement related to a class action lawsuit. The approval, granted today by Judge Stephen R. Bough, resolves the litigation known as Umpa v. NAR, No. 4:23-cv-00945.
The lawsuit's claims against Real and its subsidiaries have been conclusively addressed by the settlement, which releases the company and its affiliated agents from these claims without admitting liability or validating the claims made in the litigation.
As part of the agreement, Real contributed $9.25 million to a qualified settlement fund following the court's preliminary approval of the settlement on April 30, 2024. The company anticipates that the settlement will not have a material impact on its future operations.
The settlement will become effective after any appeals process is completed, if applicable.
Real, known for its digital brokerage platform, supports over 22,000 agents in the U.S. and Canada, providing a suite of real estate, mortgage, and closing services combined with technology to streamline the transaction process.
The press release from Real also contains forward-looking statements regarding expectations about the settlement and its effects. These statements are based on current management beliefs and available information. However, they are subject to risks and uncertainties that could cause actual outcomes to differ materially from those projected.
This article is based on a press release statement from The Real Brokerage Inc.
In other recent news, Real Brokerage reported an 84% increase in its second-quarter revenue for 2024, surging to $341 million. This growth was driven by a substantial increase in transactions, an expanded agent network, and the success of its ancillary mortgage and title businesses. Despite a net loss of $1.2 million, the company demonstrated an improvement from the previous year.
The company's agent network expanded to 19,500, a 70% increase from the previous year, and the company closed 73% more transactions. Additionally, Real Brokerage's ancillary mortgage and title businesses grew by 68%, contributing significantly to the overall revenue growth.
Real Brokerage has expressed optimism about future adjusted EBITDA growth and expects substantial growth in its ancillary mortgage and title businesses throughout the rest of the year. The company also anticipates year-over-year gross margin improvement.
These are recent developments, and the company's strategy of investing in technology and focusing on ancillary services is expected to contribute to its future growth and profitability. The upcoming launch of the Real wallet, aimed at providing rewards and financing options for agents, also signals the company's continued innovation.
InvestingPro Insights
The Real Brokerage Inc. (NASDAQ: REAX) has demonstrated remarkable growth and financial resilience, as evidenced by recent InvestingPro data. The company's revenue growth of 87.15% over the last twelve months as of Q2 2024 aligns with its expanding agent base and technological advancements mentioned in the article. This robust growth trajectory is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
Despite the recent $9.25 million settlement contribution, REAX's financial position appears strong. An InvestingPro Tip reveals that the company holds more cash than debt on its balance sheet, suggesting a solid financial foundation to weather legal challenges and invest in future growth initiatives.
The market has responded positively to REAX's performance and prospects, with the stock showing a significant 308.7% price total return over the past year. This impressive gain reflects investor confidence in the company's business model and growth potential in the real estate services sector.
For investors seeking a deeper understanding of REAX's financial health and market position, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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