Real Matters (TSE:REAL) Announces Quarterly Earnings Results

Real Matters (TSE:REAL – Get Free Report) posted its earnings results on Thursday. The company reported C$0.01 EPS for the quarter, FiscalAI reports. Real Matters had a negative net margin of 10.15% and a negative return on equity of 21.51%. The company had revenue of C$73.12 million for the quarter.

Here are the key takeaways from Real Matters’ conference call:

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• Q3 revenue rose 13% to CAD 51.5 million, while net revenue increased 15% to CAD 13.7 million and adjusted EBITDA more than doubled to CAD 0.7 million, marking the fifth consecutive quarter of positive EBITDA.
• The company launched 10 clients in Q3 and 25 year-to-date, a record since going public. U.S. Title revenue grew 70%, refinance origination volume increased 138%, and its adjusted EBITDA loss narrowed to CAD 1.3 million.
• Management highlighted continued market-share opportunities from strong lender scorecards, cross-selling its appraisal client base into title, and leadership in the upcoming UAD 3.6 appraisal-form transition, which could support additional client wins.
• U.S. Appraisal revenue increased 14% to CAD 37.3 million, but net revenue margin fell 160 basis points to 24.6% because of geographic, client, and product-mix effects; adjusted EBITDA was essentially flat at CAD 4.2 million.
• Management expects corporate operating expenses to rise by approximately 10%–20% over the next few quarters as it invests in AI, platform enhancements, and appraisal-form modernization, creating near-term pressure on EBITDA despite anticipated long-term efficiency and growth benefits.

Real Matters Price Performance

Real Matters stock opened at C$4.80 on Friday. The company has a quick ratio of 3.75, a current ratio of 113.51 and a debt-to-equity ratio of 1.46. Real Matters has a 52-week low of C$4.72 and a 52-week high of C$8.00. The firm has a market cap of C$356.58 million, a PE ratio of -14.12, a price-to-earnings-growth ratio of -59.18 and a beta of 1.62. The company’s 50 day moving average is C$5.18 and its two-hundred day moving average is C$5.78.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. TD lowered their price objective on shares of Real Matters from C$9.00 to C$7.00 and set a “buy” rating for the company in a research report on Friday. National Bank Financial cut their target price on Real Matters from C$7.50 to C$6.50 and set a “sector perform” rating on the stock in a research report on Wednesday, May 27th. Raymond James Financial decreased their price target on Real Matters from C$8.25 to C$7.50 and set an “outperform” rating on the stock in a research note on Friday. BMO Capital Markets lowered their price target on Real Matters from C$7.00 to C$6.00 and set a “market perform” rating for the company in a research report on Monday, May 4th. Finally, ATB Cormark Capital Markets downgraded Real Matters from an “outperform” rating to a “sector perform” rating and cut their price objective for the company from C$8.00 to C$6.00 in a report on Friday. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Real Matters has an average rating of “Moderate Buy” and an average price target of C$7.43.

View Our Latest Analysis on Real Matters

Real Matters Company Profile

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Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada.

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