On Real Brokerage’s first earnings call since announcing its planned acquisition of REMAX, executives sought to reassure investors, analysts and agents on both sides of the deal that the move was the right one — and that the two companies could combine without disrupting the models that made each of them distinct.
For REMAX agents and franchisees, the message was that they won’t be forced onto Real’s cloud-based brokerage model. For investors, the message was that REMAX’s brand, transaction volume and consumer leads could help Real expand its technology, AI, mortgage, title and fintech tools while delivering $30 million in expected run-rate savings.
Tamir Poleg
The call offered one of the clearest looks yet at how Real is trying to explain the proposed combination after announcing last week that it would acquire REMAX Holdings in a deal that implied an enterprise value of approximately $880 million for REMAX as of the announcement date.
“Real has built the platform, the technology and the agent-aligned community and economics,” Real CEO Tamir Poleg said during the call. “REMAX has the brand recognition, the global network and decades of trust with some of the most productive agents in the business.”
Real says REMAX model won’t be disrupted
Real executives repeatedly emphasized that the acquisition does not mean REMAX agents and franchisees will be required to adopt Real’s brokerage model.
“Real and REMAX are going to continue operating as distinct brands, with their distinct models and value propositions,” COO Jenna Rozenblat said during the call. “There’s not going to be any forced migration of REMAX agents or franchisees onto the Real model.”
Jenna Rozenblat
Instead, Rozenblat said, the deal would give REMAX agents and franchisees access to Real’s technology and services, including reZEN, Leo AI, Real Wallet, ancillary services and consumer lead-generation tools.
Poleg struck a similar note in his prepared remarks, saying REMAX agents who prefer working in offices alongside broker-owners and teams will be able to continue doing so.
“If you are a REMAX agent who thrives working in office side by side with your broker-owner and your team, that is not changing,” Poleg said. “What you can look forward to is access to new technology, tools and services that Real has built, which will be available to you upon closing.”
Still, Poleg acknowledged that the early response from REMAX franchisees included some uncertainty. Asked by an analyst about feedback from the network, he said the initial reaction included “a little bit of mixed excitement and surprise,” adding that “naturally, people don’t really like change.” But he said the response shifted toward excitement as REMAX management communicated with franchisees, and said Real agents had also fielded calls from REMAX agents interested in learning more about the company’s technology.
Later in the call, Poleg named agent and franchisee retention as the first major hurdle Real is focused on before closing.
“The most important thing we can do between signing and closing is to communicate very clearly and demonstrate to REMAX agents and franchisees as well, and also Real agents, that their businesses are going to be better and not disrupted by this combination,” Poleg said.
Real sees upside in leads, services and AI
While Real sought to reassure agents and franchisees, executives also made clear that they see REMAX’s network as a major opportunity to expand ancillary services and AI-powered lead conversion.
Poleg said the combined Real and REMAX networks closed more than 700,000 transaction sides in the U.S. last year. A 1 percent attachment rate for One Real Mortgage across that transaction base would generate approximately $25 million in high-margin revenue for the combined company, he said, while a 1 percent attachment rate for title would generate more than $10 million.
“Our goal over time is to be much higher than 1 percent,” Poleg said. “So you can see how these numbers can genuinely transform the P&L over time.”
The company also sees an opportunity in REMAX’s consumer-facing web traffic. Poleg said REMAX.com and REMAX.ca generate roughly 1 million leads annually, and that Real wants to use Leo AI to nurture those leads before handing them off to agents.
“We want to put Leo to work on those websites, so Leo can actually nurture the leads and then hand them over to an agent who’s ready to transact and take the buyer through the process,” Poleg said.
Rozenblat also provided an update on HeyLeo, Real’s consumer home search portal and AI relationship management platform, which launched in beta in March. She said HeyLeo has ingested 357 MLSs and is on track to reach more than 400 by the end of the second quarter. The platform already covers more than 85 percent of Real agents’ geographic distribution, she said, with 450 agents in beta and another 4,500 on the waitlist.
Real also reported continued growth in its core brokerage and emerging platform businesses during the quarter. The company said its agents closed nearly 42,000 transactions, up 25 percent year-over-year, while its agent count rose to about 33,500 at the end of the quarter and more than 33,900 as of May 6. Real Wallet revenue more than tripled year-over-year to $436,000, with 8,000 active agents using the platform and deposit balances topping $25 million.
Real promises millions in savings
Beyond the growth opportunities, Real executives also emphasized the cost savings they expect from the transaction.
Poleg said the company is targeting $30 million in run-rate savings from the combination, based on what he called “real, visible and duplicative costs,” including two public company cost structures, shared services and vendor contracts.
CFO Ravi Jani said Real underwrote the transaction based on what it could see before owning the combined company, but suggested there could be additional opportunities after the deal closes. He pointed to Compass’ recent execution on synergies as an example from the sector, while saying Real would remain disciplined.
Ravi Jani
“As you’ve seen in other M&A transactions in the sector, what you underwrite the transaction to from a synergy standpoint is sort of based on what you can see before you own the combined company and can look under the hood,” Jani said. “Could that synergy number change? Yes, of course.”
Poleg later identified delivering the $30 million in savings as one of Real’s three biggest priorities before closing, along with agent and franchisee retention and operational stability on Day One. He also said Real wants the day the deal closes to be “a boring day in the best possible way,” with agents and franchisees on both sides waking up to find their businesses operating as they did the prior day.
Poleg closed the call by tying his own stake in the company to the broader vision for the deal, reminding investors that he is not only Real’s CEO and co-founder, but also “one of the largest individual shareholders” of the company.
“I have never been more excited about our future than I am right now,” Poleg said. “The opportunity in front of us is generational, and I deeply believe the best days of this company are ahead of us.”