Real Matters Financial Performance in Q3
Real Matters Inc. (TSX: REAL), a premier provider of network management services for the mortgage and insurance sectors, has shared its financial results for the third quarter. The performance reflects ongoing growth and adaptation within the market, despite volatility in the U.S. mortgage sector.
Revenue Growth and Adjusted EBITDA
In the third quarter, Real Matters reported consolidated revenues of $45.4 million, marking a 22% increase from the previous quarter. This growth aligns with a seasonal uptick in U.S. Appraisal purchase mortgage market volumes alongside robust revenue growth across all operational segments. The company achieved a positive consolidated Adjusted EBITDA of $0.3 million, a significant rise from a loss of $1.9 million in the second quarter.
Key Drivers of Revenue Increase
Brian Lang, CEO of Real Matters, stated, "We continue to onboard new clients across our various operational segments, notably performing exceptionally well on lender scorecards. After the quarter ended, we launched our second Tier 1 lender in U.S. Title and expanded our network by adding a top-15 lender in U.S. Appraisal."
Market Trends and Opportunities
The current mortgage landscape reveals a rising trend in originating mortgages at higher interest rates, expanding the potential pool of refinancing candidates. Nearly 12 million mortgages now exceed rates above 6%, with approximately 8 million surpassing 6.5%. These developments present significant opportunities for Real Matters once market conditions become more favorable.
Key Financial Highlights from Q3 2025
Summary of results:
- Revenue of $45.4 million, down 8% year-over-year due to shifts in U.S. Appraisal revenue.
- Adjusted EBITDA of $0.3 million compared to $1.7 million in Q3 2024.
- Net loss of $4.9 million, compared to $1.7 million profit in Q3 2024, primarily due to increased foreign exchange losses.
- Launched four new clients, further expanding market presence.
- U.S. Appraisal mortgage origination volumes saw a 16% decline year-over-year, primarily influenced by reduced purchase originations.
- U.S. Title mortgage origination volumes surged by 52% year-over-year, attributed to gaining market share and higher refinance activity.
- The company maintained cash and cash equivalents of $43.8 million, with no outstanding debt.
Operational Efficiency and Strategy Execution
Real Matters continues to prioritize operational efficiency while strategically positioning itself for upcoming market shifts. Enhancements in service delivery and client acquisition are pivotal in maintaining competitive advantage as the mortgage market evolves.
Conference Call Announcement
A conference call to discuss these results is scheduled for Thursday at 10:00 a.m. ET, featuring insights from the leadership team. Investors can expect a slide presentation detailing the financial metrics prior to the call.
Contact Information
For further inquiries, please reach out to:
Lyne Beauregard
Vice President, Investor Relations and Corporate Communications
Real Matters
Email: lbeauregard@realmatters.com
Phone: 416.994.5930
Frequently Asked Questions
1. What were the key highlights of Real Matters’ Q3 financial results?
Real Matters reported a consolidated revenue of $45.4 million, reflecting a 22% increase from the previous quarter, and a positive Adjusted EBITDA of $0.3 million.
2. What factors contributed to the revenue increase?
The increase in revenue was primarily driven by seasonal growth in U.S. Appraisal mortgage volumes and the performance of the U.S. Title segment.
3. How did market conditions affect Real Matters’ performance?
The rising interest rates led to a larger pool of potential refinance candidates, which Real Matters is strategically positioned to capitalize on.
4. What is the company’s outlook moving forward?
Real Matters is focused on enhancing market share while preparing for future growth opportunities as mortgage market volumes normalize.
5. How can investors access more information?
Investors can seek additional details from the upcoming conference call or by contacting Real Matters' Investor Relations directly.
