Real Matters Q3 Financial Performance: Trends and Insights
Real Matters Reports Impressive Q3 Financial Results
(All amounts are expressed in millions of U.S. dollars, excluding per share amounts, unless otherwise stated.)
TORONTO – Real Matters Inc. (TSX: REAL), a leader in providing network management services for the mortgage and insurance sectors, has announced its financial results for the third quarter, showcasing a robust performance.
The company saw its consolidated revenues rise by 22% sequentially in this quarter, achieving a total of $45.4 million. This increase aligns with a seasonal surge in U.S. appraisal mortgage market volumes and positive growth in all operational segments. Notably, Real Matters managed to convert a previous loss into an adjusted EBITDA of $0.3 million, a significant milestone from the prior quarter's loss of $1.9 million.
CEO Brian Lang stated that the company successfully brought in new clients across its three segments and performed exceptionally well on lender scorecards. Furthermore, post-quarter operations included onboarding a major lender in the U.S. Title sector, demonstrating the firm’s continuous growth trajectory.
Financial Highlights for Q3 2025
The financial highlights for the third quarter are as follows:
- Revenue of $45.4 million, an 8% decrease year-over-year, primarily driven by lower U.S. Appraisal revenue.
- Adjusted EBITDA of $0.3 million, compared to $1.7 million in Q3 of the previous year.
- A net loss of $4.9 million, a sharp decline from a net income of $1.7 million year-over-year, attributed to a significant increase in net foreign exchange losses.
- Launched four new clients, reinforcing the company's market presence.
- U.S. Appraisal mortgage origination volumes decreased 16% year-over-year, attributed to declining purchase origination volumes.
- U.S. Title mortgage origination volumes surged by 52% year-over-year, driven by market share expansion and increased refinance origination volumes.
- Cash and cash equivalents stood at $43.8 million with no debt as of the quarter-end.
Operational Insights
Real Matters continued to expand its client acquisition strategy, launching new partnerships that broaden its service offerings. The company emphasizes the potential in the current mortgage landscape; approximately 12 million mortgages have interest rates above 6%, with about 8 million exceeding 6.5%. This presents a significant refinancing opportunity, positioning Real Matters strategically for future market fluctuations.
Despite facing some challenges, particularly in the U.S. Appraisal segment, the company's overall operational adjustments and market strategies have fortified its readiness to capture these opportunities.
Future Outlook and Market Strategy
The leadership team at Real Matters remains positive about the future. The company's strategy focuses on expanding market share and optimizing operations to scale rapidly when mortgage market volumes return to normal levels. This proactive approach positions them as a key player in both the mortgage and insurance sectors.
Real Matters is well-prepared and strategically positioned to take advantage of a market rebound, continuing to leverage its robust technology and established network of professionals.
Conference Call Announcement
A conference call is scheduled for 10:00 AM (ET) to discuss these results, hosted by CEO Brian Lang and CFO Rodrigo Pinto. Investors and analysts can expect insights into the company's performance, market trends, and strategy for upcoming quarters.
To participate, individuals are encouraged to pre-register online. Dial-in details will be sent via email upon registration.
Frequently Asked Questions
What were Real Matters' total revenues for Q3 2025?
The total revenues for Q3 2025 were $45.4 million.
What is the adjusted EBITDA reported by Real Matters for this quarter?
The company reported an adjusted EBITDA of $0.3 million for Q3 2025.
What factors contributed to Real Matters' net loss this quarter?
The net loss of $4.9 million was largely due to an increase in net foreign exchange losses.
How many new clients did Real Matters launch during this quarter?
Real Matters successfully launched four new clients this quarter.
How does Real Matters plan to approach the future market opportunities?
The company plans to expand its market share, optimize operations, and be prepared to scale as market volumes normalize.
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