Looking back on real estate services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including eXp World (NASDAQ:EXPI) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 12 real estate services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.9% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q2: eXp World (NASDAQ:EXPI)
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $1.31 billion, up 1.1% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 8% since reporting and currently trades at $9.97.
Read our full report on eXp World here, it’s free.
Best Q2: The Real Brokerage (NASDAQ:REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $540.7 million, up 58.7% year on year, outperforming analysts’ expectations by 12.1%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Real Brokerage delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.6% since reporting. It currently trades at $4.04.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
RE/MAX (NYSE:RMAX)
Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.
RE/MAX reported revenues of $72.75 million, down 7.3% year on year, falling short of analysts’ expectations by 1.1%. It was a mixed quarter as it posted a decent beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
RE/MAX delivered the weakest full-year guidance update in the group. As expected, the stock is down 4.5% since the results and currently trades at $8.19.
Read our full analysis of RE/MAX’s results here.
Cushman & Wakefield (NYSE:CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.48 billion, up 8.6% year on year. This result topped analysts’ expectations by 4.6%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 9.5% since reporting and currently trades at $13.50.
Read our full, actionable report on Cushman & Wakefield here, it’s free.
CBRE (NYSE:CBRE)
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $9.75 billion, up 16.2% year on year. This print beat analysts’ expectations by 4.3%. It was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.
The stock is up 4.6% since reporting and currently trades at $153.49.
Read our full, actionable report on CBRE here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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