The Real Brokerage Inc. (REAX) Q3 2026 Earnings Call Transcript

Operator: Good morning, ladies and gentlemen, and welcome to the Real RE/MAX Group Earnings Call for the Third Quarter Ended 09/30/2026. At this time, all participants have been placed in a listen-only mode and we will open the floor for your questions and comments after the presentation. I will now turn the call over to Alexandra Lumpkin, chief legal officer at Real RE/MAX Group. Alexandra, the floor is yours.

Alexandra Lumpkin: Thanks, and good morning. Thank you for standing by, and welcome to the Real RE/MAX Group conference call and webcast for the third quarter ended 09/30/2026. We appreciate everyone for joining us today. With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer Jenna Marie Rozenblat, our president and Ravi Jani, our chief financial officer. Before we get started, I would like to remind everyone that statements made on this conference call that are not historical facts including statements about future time periods, may be deemed to constitute forward-looking statements. Many factors could affect future results and may cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in our earnings release and our SEC filings, including those under the caption risk factors contained in our quarterly report on Form 10 Q most recently filed with the SEC. Real RE/MAX Group assumes no obligation to update these forward-looking statements, except as expressly required by law. Today's conference call will also present certain non GAAP financial measures. Including adjusted EBITDA and adjusted EBITDA margin. For more information about these non GAAP financial measures and a reconciliation to the most comparable GAAP measures, please see our earnings release posted on our website. With that, I would like to turn the call over to Chairman and Chief Executive Officer, Tamir Poleg. Tamir, please proceed.

Tamir Poleg: Thank you, Alexandra, and good morning, everyone. Real RE/MAX Group is a global technology enabled real estate company built to improve how real estate works for the professionals at the center of every transaction and, ultimately, for the buyers and sellers they serve. We attract and retain productive real estate agents through compelling brands and attractive economics. Help them build stronger businesses through differentiated technology and support, and expand the products and services available to them and their clients over time. When we do these things well and execute with financial discipline, we expect to deliver sustainable growth, margin expansion, and long term value for agents, franchise owners, consumers, and shareholders. On August 24, we closed our acquisition of RE/MAX. And today marks our first earnings call as a combined company. I want to start with the headline. In just over 2 months, we have made substantial progress. And we believe we are well positioned to deliver strong growth in adjusted EBITDA and substantial free cash flow. Even if the housing market gets worse, before it gets better. Let me share a few highlights. Third quarter revenue was $728 million, up 28% year over year, including approximately 5 weeks of contribution from the RE/MAX business. Adjusted EBITDA was $34 million, up 66% year over year. We have already actioned more than $40 million in annualized gross cost savings, including over $28 million in adjusted EBITDA synergies. And we are introducing our initial 2027 adjusted EBITDA outlook of $175 million to $190 million. I want to put that outlook into perspective. The housing market has been operating near trough levels for the past 4 years. The recent increase in mortgage rates has further delayed the recovery that many, myself included, had anticipated. Beginning in September, we saw an uptick in the number of agents leaving the industry altogether. Real RE/MAX Group was not immune. Over the past 2 months, we have proactively off boarded more than 1 thousand agents, many of whom allowed their real estate licenses to expire or left the industry. That brought Real Brokerage's agent count to approximately 30.2 thousand as of this week. Importantly, these departures were concentrated among agents contributing very little revenue to the business. So as we look to 2027, we are preparing for another very challenging year. We expect existing home sales to decline, average home prices to fall, and for agent attrition across the industry to remain elevated. Even in that environment, we have unique opportunities create value that do not require a housing recovery. These include organic market share gains at REAL, significant cost savings and operational improvements at RE/MAX, and continued growth and margin expansion across our ancillary businesses. Technology will play a big part in that. As an example, last month, we introduced LEO Pro, the next generation of our AI platform with more than 300 specialized AI agents designed to help real estate professionals run grow their businesses. Historically, Reason and LEO Copilot primarily helped agents manage their transaction pipeline and back office functions more efficiently. With LEO Pro, we are taking the next step. Moving beyond helping agents save time to helping them make more money. With LEO Pro, we are equipping agents and broker owners with an entire team of AI agents working for them 24/7. Helping with marketing, social media, lead generation, market analysis, and even communicating directly with clients. These are functions that traditionally required hiring additional staff, paying for multiple software subscriptions, or spending hundreds of hours doing the work yourself. With LEO Pro, we can make these capabilities available at a fraction of the cost. And the early response has been very encouraging. Less than a month after launch, we already have over 3 thousand agents paying for LEO Pro subscriptions. We are also thinking about how technology can improve the industry more broadly. Last week, we joined Keller Williams, Home Services of America, and is a founding member of Open Real Estate, a national residential real estate data sharing initiative. The goal of Open Real Estate is to create a more open and efficient way for brokerage to aggregate and distribute listing information, reducing reliance on fragmented systems and giving the industry more flexibility in how that data is used. We believe agents, consumers, and the industry at large benefit when information is more accessible. it is been an exciting 2 months, and I am encouraged that we are already seeing what this combined organization is capable of. With that, I will turn it over to Jenna to walk you through the progress we have made integrating the businesses and where we are focused next.

Jenna Marie Rozenblat: Thanks, Tamir, and good morning, everyone. We have made significant progress since closing with a clear focus on building a more efficient organization, while improving the value we deliver to our agents and franchise owners. To date, we have actioned more than 40 million in annualized gross cost savings across operating expenses and capital expenditures. Of which more than $28 million represents synergies that directly benefit adjusted EBITDA. These savings reflect actions we have already taken not simply opportunities we have identified. A few examples of what we have accomplished. First, we have reduced our combined headcount by more than 14% which translates to over 150 positions across the organization while simplifying management structures and consolidating overlapping functions. Second, we have begun consolidating technology systems vendor relationships, and other duplicative costs including expenses associated with operating 2 separate public Third, we have moved to wind down underperforming businesses including Motto Mortgage and Wemo, to focus our resources on areas with greater long term potential. Motto is a good example of how quickly we are moving. At the end of August, the MOTO franchise network had 151 offices in operation. Many of which were unprofitable. In just 2 months, approximately 69% of the network or 104 offices have already closed and 92% of the network is now moving towards termination. We understand these are difficult decisions, but given the legacy RE/MAX mortgage businesses generated a combined $5 million adjusted EBITDA loss in 2025, These actions are necessary to build a more focused efficient and profitable organization. Looking ahead, we now expect to realize over $30 million in annual adjusted EBITDA synergies in 2027, and more than $40 million in 2028. Well ahead of our initial $30 million adjusted EBITDA synergy target. While the initial phase of headcount restructuring is largely complete, we are continuing to identify opportunities to simplify operations and improve efficiency. And we look forward to sharing our progress in the quarters ahead. Turning to the operating businesses, our brokerage business, reflects the legacy RealBrokerage, continue to significantly outperform the broader housing market during the third quarter. Agent count increased 21% year over year to 36.6 thousand. While closed transaction sides increased 17% year over year to approximately 62.7 thousand. These results reflect continued market share gains in a very challenging environment. We have been proactive in managing our agent base as industry conditions have weakened, and our focus remains on attracting and retaining productive agents. In our Franchise segment, which encompasses the legacy REMAX real estate business, third quarter agent count trends were mixed. US and Canada agent count fell 3% year over year on a pro forma basis to approximately 72.1 thousand agents. While agent count outside of The US and Canada increased 4% year-over-year to approximately 76 thousand agents. While the North American agent count trends remain challenging, I have spent considerable time with REMAX broker owners over the past 2 months and 1 thing has become abundantly clear. The strength of this brand and the passion of the people behind it are extraordinary. We do not expect an immediate reversal in agent attrition in the franchise business. But our priority is to improve franchise owner economics and help them deliver a more competitive value proposition to agents and the clients they serve. We are also actively working on initiatives aimed at reinvigorating growth across the network, and we look forward to sharing more as those plans take shape. As Tamir noted, technology is an important part of that effort. We have already begun alpha testing Real's proprietary Reason software and AI capabilities for a phased rollout to the broader RE/MAX network. Our objective is not to force change for the sake of change. it is to give RE/MAX agents and franchise owners tools that help them become more productive, operate more efficiently, and ultimately deliver better service to clients. I am proud of what we have accomplished in our first 2 months but we are just getting started. Ultimately, our success will not be measured by cost savings alone. It will be measured by our ability to improve the economics of both businesses deliver greater value to our agents and franchise owners, and return the RE/MAX network to sustainable growth. With that, I will turn it over to Ravi.

Ravi Jani: Thank you, Jenna, and good morning, everyone. Our third quarter results include the legacy Real business for the full quarter and the contribution from RE/MAX beginning August 25 following the closing of the transaction. Given this is our first quarter reporting as Real RE/MAX Group, our reported year over year comparisons are not directly comparable to historical standalone Real results. To provide additional transparency, we have included historical quarterly pro forma revenue and adjusted EBITDA by segment, assuming the acquisition had occurred on January 1, 2025, the investor presentation accompanying today's call. With that context, let me turn to our third quarter financial performance. Consolidated revenue for the third quarter was $728 million up 28% year over year. On a pro forma basis, combined revenue increased 20% year over year to approximately $770 million, compared with a 2% decline in industry existing home sales transactions in the quarter. Within our brokerage business, Real continued to gain market share while our franchise business continues to see attrition in North America. Other revenues, which reflect our ancillary business lines, increased 64% year over year to $5.3 million, reflecting growth in RealWallet and OneRealTitle as well as contributions from acquired businesses partially offset by a decline in OneReal Mortgage, which was impacted by higher mortgage rates in the quarter. Turning to profitability, Reported operating loss was $72 million in the quarter compared with the $500 thousand loss in the prior year period. Importantly, this quarter's results include approximately $78.7 million of nonrecurring expenses related to the REMAX acquisition, including $52.3 million in transaction related and severance costs as well as $26.4 million in accelerated stock based compensation associated with employee terminations. Reported net loss was $67.2 million compared with a $300 thousand loss in the prior year period. Adjusted EBITDA increased 66% year-over-year to $34 million compared with $20.4 million last year. On a pro forma basis, adjusted EBITDA was approximately $50 million for the quarter. Turning to the balance sheet, we ended September with $109 million of unrestricted cash equivalents, and short term investments. In connection with the acquisition, we established a $550 million senior secured term loan facility and a $40 million revolving credit facility, which remains undrawn. Given our strong cash flow generation, we made a voluntary $25 million principal repayment during the quarter reducing our outstanding term loan principal to $525 million as of September 30. We also repurchased $4.7 million of our common shares during the quarter under our new share repurchase authorization. Our capital allocation priorities are clear, investing in higher return organic growth opportunities, prioritizing debt reduction, and opportunistically offsetting dilution within the limits of our credit agreement. Turning to our outlook, this is the first quarter we are providing financial guidance as Real RE/MAX Group. We recognize that given the short cycle nature of residential real estate, it is still quite early to provide an outlook for the full-year 2027. However, we wanted to give investors and analysts a baseline for modeling the combined company particularly given the significant changes to our business following the acquisition. For the fourth quarter of 26, we are expecting continued pressure on housing activity including a high single digit to low double digit year over year decline in transactions per agent at Real and the low to mid single digit year over year decline in RE/MAX's North American agent count. Against that backdrop, we expect fourth quarter revenue of $575 million to $625 million, and adjusted EBITDA of $32 million to $38 million. Our 2027 outlook assumes US existing home sales decline another 5% to 10% bringing transaction volumes to their lowest levels in more than 30 years, alongside a 3% to 4% decline in average home prices. Based on those assumptions, we are introducing full-year 2027 guidance of revenue of $2.6 billion to $2.8 billion and adjusted EBITDA of $175 million to $190 million. Despite the difficult market assumptions, we expect strong adjusted EBITDA growth driven by continued market share gains at Real, more than $30 million of annual realized adjusted EBITDA synergies, and operating improvements across the REMAX franchise business. For additional 2027 assumptions, we anticipate approximately $100 million in stock based compensation expense $40 million to $50 million in depreciation and amortization, and approximately $50 million in interest expense. We expect to generate substantial free cash flow with our current plan contemplating approximately $75 million in debt repayment in 2027, while continuing to invest in the business. This would put us well on track toward our goal of reducing net leverage below 2x by the end of 28. More details on our results and key operating metrics can be found in the earnings release financial statements and investor presentation accompanying today's call. I will now turn it back to Tamir.

Tamir Poleg: Thank you, Ravi, and thank you, Jenna. When we started REAL 12 years ago, we had a simple goal. Always find ways to make agents' lives better. That has not changed. And bringing together REAL and RE/MAX gives us an opportunity to pursue that mission on a much larger scale. RE/MAX has spent more than 50 years building 1 of the most recognized brands in real estate with an extraordinary network of productive agents and entrepreneurial franchise owners, many of whom have built multibillion-dollar businesses. It pioneered a model that empowered agents to maximize their earnings and build successful enduring businesses. At the same time, the industry has evolved. And we recognize that RE/MAX must also evolve with it. This is where REAL comes in. REAL brings a modern technology platform, a culture of innovation and collaboration, a lean operating model, and a day 1 mindset. Our opportunity is to build on the strengths of both companies. Combining RE/MAX's brand, reach, and entrepreneurial spirit with Real's technology and innovation to help agents and franchise owners build more successful, more profitable businesses. We have made meaningful progress in just 2 months. But there is a great deal of work ahead. Change is never easy, and we know we will not get everything right. We are moving with urgency, making difficult decisions, and holding ourselves accountable for our results. To our agents, broker owners, and employees across both brands, thank you for your commitment and trust. We believe we are building a company that will emerge from this downturn in an even stronger competitive position. Operator, please open the line for questions.

Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. Withdraw your question, press *1 again. We ask that you pick up your handset when asking question to allow for optimum sound. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. The first question is from the line of Stephen Sheldon of William Blair. Your line is open. Please go ahead.

Emma Kozol: Hey. Good morning, everyone. This is Emma Kozol on for Stephen. Starting on the real agent recruiting pipeline, you touched on some attrition following the quarter due to the tougher housing environment. So if we could just walk through what you are seeing with the pipeline there and how that is trending into 2027, that would be great.

Tamir Poleg: Hi, Emma. This is Tamir. If we look at the numbers of agents who joined us in 2026 versus 2025, we actually see that more agents, slightly more agents joined in 2026. Obviously, the biggest problem right now in the industry is the churn, primarily the churn of agents just leaving the industry. And as we mentioned on the call, in the past 2 months, we offboarded about a thousand agents who just left the industry or did not pay their MLS dues. We have a list of another 300 to 400 agents that we are looking into. But I think that the most important part is the fact that while agents are churning, we are keeping the production. So those agents that are churning are either nonproducers or agents that really contribute very little to revenue. So in that sense, I think that we are actually improving our and actually taking the right steps when we are off boarding agents. But as to your question, the pipeline is still strong, and we are bringing in at least the same amount of agents as we did last year. Slightly more.

Emma Kozol: Okay. Great. that is helpful. And then following up on the LEO Pro announcement, coming out of Rise, can you touch on how traction has been coming out of the conference, both on the real side and with the RE/MAX franchisees?

Tamir Poleg: Sure. Well, RISE is RILE's annual event, and we had real agents there. REMAX's annual event is r 4, and it is taking place in February of 27. The energy at RISE was amazing. I think that all of the agents or all of the participants just came out of the conference very energized, very assured of their decision of being here. You know that it takes time for agents to make a brokerages, but we definitely see attraction momentum, and I believe that it will translate into more agents joining in the next few weeks and months. But the energy is definitely there and the excitement and also the anticipation of more and more innovation and value that we will be pouring into our agents. So great conference, great outcome, and we will probably see that in the numbers in the next few months.

Emma Kozol: Okay. Great. Thank you.

Tamir Poleg: Thank you.

Operator: The next question is from the line of Naved Khan of B. Riley. Your line is open. Please go ahead.

Naved Khan: Thanks so much. A couple of questions from me. Maybe just on the legacy Real side, Real Brokerage side. Maybe just talk about the attach rate for the title and mortgage. I think you gave us the revenue, but just talk about what the individual attaches for those 2 look like. And then on the combined business, I think you called out 40 million and run rate cost synergies have been actioned. But the benefit to EBITDA seems like it is on a run rate basis, 28 million. Let me just unpack for us the flow from cost savings into EBITDA line. Thank you.

Tamir Poleg: Sure. I can take the first point. David. Thank you for the question. There is no real change in attach rates from previous quarter. So on mortgage, we are talking about less than 1%. Even though there is a lot of momentum of agents that are joining or expressing their desire to send their contract or their clients to OneView Mortgage, We have a lot of agents in the pipeline getting licensed as loan office so we believe that this will translate into revenue. Quite soon. But again, a lot of excitement there. On the title side, we are talking about attach rates around 3% as previously, and we are starting to have a lot of conversations both with existing real teams, but also on the RE/MAX side both for 1 retitle and 1 remortgage. So the potential to unlock an even bigger network is definitely there, and it will take a little bit of time to materialize. Jenna, do you wanna talk on the.

Jenna Marie Rozenblat: You wanna address the synergy? Yeah. Sure. Thanks for the question, David. So you are correct. We have actioned more than $40 million in cost savings in the first 2 months. Of that amount, approximately $4 million relates to CapEx or capitalized software synergies. And another $8 million relates to stock based comp. So those 2 would not flow through to adjusted EBITDA. that is how you get to the $28 million of annual cash savings that do flow through to EBITDA. So that is the bridge.

Naved Khan: Understood. And then maybe just a clarification on the tax rates. That you gave to me. So I think you expanded the participation in the title JVs and in some states over the summer. When should we start to see a tangible benefit of that? And then of the agents that are participating in these JVs, what kind of volume are you able to draw into the JVs versus something that still might be going a different route.

Tamir Poleg: Yeah. I think that over time, we will see more and more and it is actually going up. In terms of the of the JVs, as before, we are seeing participation rates or attach rates of in some cases, 40%, in some cases, higher than 70%. Within those JVs. As of earlier this week, we have we started implementing some, things on the remax.com side. To try and experiment with, sending leads to 1, real mortgage. And just to see how that converts, and, and we are actually seeing encouraging data there. But still too little to actually draw any conclusion from. But yeah, it is kind of an ongoing effort and we are doing the right things.

Naved Khan: Thank you.

Tamir Poleg: Thanks, Ravi.

Operator: The next question is from the line of Matthew Erdner of Jones Trading. Your line is open. Please go ahead.

Matthew Erdner: Hey, good morning, guys. Thanks for taking the question. I would like to kind of touch on the synergies for next year. When should we expect those to flow through? Is it going to be somewhat of an even pace throughout the year? Or are there certain contracts that will kinda be canceled, call it, later in the year, earlier in the year? You know, what is the expectation there?

Ravi Jani: Yep. Thanks for the question, Matthew. As we said, we are we are at $28 million today, so you will start to see that $7 million quarterly run rate begin in Q1 and then we said over $30 million for the year. So it will tick up sequentially as the year progresses. You are correct. Some of it relates to contracts that will be expiring over the course of the year. So that is how it will inch up over the course of the year.

Matthew Erdner: Got it. That makes sense. And then, you mentioned that 3 thousand agents were on LEO Pro. I am curious on the feedback there in terms of their productivity, you know, how they are kinda utilizing the tool and just their overall thoughts on the new release I can actually jump in and speak to that.

Jenna Marie Rozenblat: And then, Tamir, feel free to fill in any additional details. I think the feedback has been overwhelmingly positive. You know, we got to be with a lot of the agents at RISE to announce it to them live, and so many people kept coming up just saying, this is going to be so big for my business. Right? it is really impactful both in the marketing side and then even operationally in a lot of the day to day where it is allowing them to free up their time so they can focus on the relationship side of the business, which is at the core of it all. So really great initial feedback that we are seeing from agents overall.

Tamir Poleg: Yeah. Thanks, Jenna. Matthew, we have approximately 5.6 thousand agents using LEO Pro and about 3.5 thousand agents paying for it. So just within a couple of weeks, we have a substantial amount of agents paying, and we are going to open or offer LEO Pro to the entire REMAX network. Very soon, so you can see those numbers going up then. The main usage of Leopro right now that we are seeing is creating marketing materials, social media posts, and working their CRMs. So just nurturing their leads. And we are seeing great conversion for our agents in terms of scheduling appointments for them, listing agreements, and also just nurturing buy side leads.

Matthew Erdner: that is great. Thanks for the color there. Appreciate it.

Tamir Poleg: Thanks.

Operator: The next question is from the line of Nick McAndrew of Zelman and Associates. Your line is open. Please go ahead.

Nick McAndrew: Yes. Thanks for taking my questions. Just curious now that you have had a couple of months kind of operating as a combined company. Just, you know, are there areas where you are seeing more opportunity in the combined business than you originally anticipated, or just any areas where you are priorities just have evolved as you have gotten deeper into the integration. Thanks.

Tamir Poleg: Yeah. Thanks, Nick. No. I think that we did a lot of due diligence prior to signing the deal and we knew exactly what the business looked like. Obviously, when post closing, you have full visibility and you are running the business and you know exactly where things are. I think that we are more excited than before. I think that there are more opportunities to evolve the business model on the RE/MAX side. I think that there are ways to reinvigorate growth and just reenergize that brand. So we are excited about that. Other than that, I am very happy with the progress that we have made on integration and cost cutting We think that, obviously, as we communicated, there are more synergy opportunities than we previously, thought. And that will translate into you know, more cost saving and just more EBITDA. But yeah, I mean, I think that we are we are more excited than before. Thanks, Tamir.

Nick McAndrew: Yeah. that is helpful. And I guess just going off of that, can you talk about maybe just some of the conversations you have been having with REMAX owners and agents since the merger closed? Maybe specifically about just what parts of the broader platform are generating the most excitement for RE/MAX agents, and maybe how has that feedback shaped your thinking around just like the Reason rollout as well? Thank you.

Tamir Poleg: Sure. So a few weeks ago, we announced that Alexandra Vidal is coming in as the president of RE/MAX, and Alexandra, just within a few weeks, managed to generate a lot of excitement and energy around the RE/MAX network. he is traveling the country. he is talking to a lot of broker owners, a lot of agents, and I think that there is just a renewed energy around the brand and within the network, and that is great because energy is contagious. And if you want to grow, you need that type of energy, and Alexandra brings exactly that. The main point that most of the broker owners have been talking to us was around technology and what we can offer them. Obviously, historically, there is been a lot of disappointment with what RE/MAX has been offering their agents and brokers. But the fact that we have mature technology that is serving the real side on the brokerage side gives them a lot of confidence that this is you know, proven technology that can help them run better businesses and eliminate a lot of their overhead and cost. So they are excited about the technology, as I mentioned, within a few weeks, we want to roll out VIO Pro for the entire REMAX network. And then reason our operating platform for the broker owners, will be ready at some point in Q1 27. So we are working very hard to deliver that. But I think that once that is in place, we will be able to help a lot of the broker owners with some of their struggles around profitability, and just managing their roster and freeing up their time to focus on agent attraction and also teaching their agents on just how to sell more even though they are already extremely productive. Great.

Nick McAndrew: Thanks, guys.

Tamir Poleg: Thanks. Thanks.

Operator: There are no further questions at this time. I will now turn the call back to Ravi Jani, CFO, for closing remarks.

Ravi Jani: Thank you, Connor. So now that we have completed the analyst Q&A session, we would like to address a few of the questions submitted through our STATE Technologies shareholder portal. We received some great questions this quarter, and so we appreciate everyone who participated. First question for Tamir, what is the biggest challenge post merger, and how are you addressing it?

Tamir Poleg: Yeah. Thank you for the question. Before addressing it, I want to acknowledge that we have many RE/MAX brokers and agents with us on the call today. And our brokers and agents are operating in an industry that is facing strong headwinds, and they are winning. They provide excellent service to their clients. They grow their market share in every market. They build great businesses even in this tough macro environment, and I am just proud to be in business with them. To the question I think that the biggest challenge is bringing together 2 very different organizations and making sure we move with the speed and urgency that this opportunity requires. REAL and RE/MAX have complementary strengths but they also have different operating models, cultures, and ways of doing things. Our job is not simply to put the 2 companies together. it is to take the best of both, simplify how we operate, and build a much stronger value proposition for agents and franchise owners. We have made significant progress in just 2 months, including actioning more than $40 million in annualized cost savings. But the more important work is ahead. it is modernizing technology. it is strengthening the franchise model and making it easier for real estate professionals who depend on us to build successful businesses. And we are approaching this with urgency, with clear accountability, and a willingness to challenge how things have historically been done.

Ravi Jani: Thanks, Tamir. The next question for you, as a founding member of Open Real Estate, how will this benefit Real and RE/MAX agents and franchisees And what is the expected impact listing exposure or data or ancillary revenue opportunities?

Tamir Poleg: Sure. So open real estate is an exciting, initiative. We joined open real estate because we believe the industry would benefit from a more open transparent, and competitive approach to how real estate data is distributed. As 1 of the largest real estate platforms in the world, think that it is important that we, REMAX Group, have a seat at the table in shaping how that ecosystem evolves. it is still very, very early and I do not want to get ahead of the initiative or speculate about specific products economics, or revenue opportunities, but strategically, we see the potential to create a more efficient marketplace that ultimately benefits agents, brokers, broker owners, and consumers, and that is why we are excited to be involved.

Ravi Jani: Great. Thanks, Tamir. Last question for Jenna.

Jenna Marie Rozenblat: Are you planning to offer all of the tech and ancillary services to other agents and new agents? As part of a package for signing up with Real RE/MAX Group. Sure. So what are the biggest opportunities in bringing these 2 together is expanding the tools and services available to our agents and broker owners. But we are not really thinking about this as a single bundled offering. On the tech side, we are planning to make Reason and LEO Pro available to the network in the coming months. We which will give many more broker owners and agents access to tools that can really help simplify their operations and help them grow their businesses. On the ancillary side, we are approaching each opportunity a little differently. For example, our Real Originate program is already open to agents from any brokerage who wants to become licensed mortgage loan officers and build additional revenue streams. In title, we recognize that many of our broker owners have established joint venture partnerships and so we are exploring ways to complement those existing relationships rather than distract them. We are already seeing opportunities on the consumer side. You know, LEO is now capturing mortgage leads through remax.com. Which is an early example of how we can leverage our digital reach to create additional opportunities across the ecosystem. So rather than creating or committing to 1 package, our focus is really on bringing these capabilities together thoughtfully with the flexibility for different business models and needs across our network.

Ravi Jani: Thanks, Jenna. We just received 1 last question, which I will take. There are industry estimates for 2027 purchase mortgage growth that are generally around flat. Real RE/MAX Group's estimate for existing home sales is down 5 to 10%, and then 3 to 4% on average home sale prices. there is a huge gap between industry estimates and what we are forecasting. Can you provide some sensitivity to your numbers around these industry growth scenarios? So thank you for the question, and I think we want to be prudent in our outlook and not plan for a recovery. So we have more visibility into our cost actions than into the top line and market environment. We believe that if the market were flat, as others are estimating, our adjusted EBITDA would likely be in the $200 million range But based on the macro assumptions we put out in our forecast, we are expecting the range of $175 million to $190 million that Tamir and I referenced earlier in the prepared remarks. So with that, I wanna thank everyone for joining us today for your continued interest and support. We are obviously excited about the opportunities ahead. And we are focused on executing against the priorities we have outlined today. With that, we look forward to updating you on our progress next quarter. Connor, I will turn it back over to you to conclude the call.

Operator: A replay of this call will be available on the Investor Relations section of our website within 24 hours. This concludes today's call. Thank you for attending. You may now disconnect.