Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Offerpad (NYSE:OPAD) and the best and worst performers in the real estate services industry.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 12 real estate services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.9% above.
Luckily, real estate services stocks have performed well with share prices up 42.1% on average since the latest earnings results.
Offerpad (NYSE:OPAD)
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Offerpad reported revenues of $160.3 million, down 36.2% year on year. This print fell short of analysts’ expectations by 9.6%. Overall, it was a softer quarter for the company.
“We’re seeing strong validation of our model and the progress we’ve made,” said Brian Bair, Chairman and CEO of Offerpad.
Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 219% since reporting and currently trades at $3.84.
Read our full report on Offerpad here, it’s free for active Edge members.
Best Q2: The Real Brokerage (NASDAQ:REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $540.7 million, up 58.7% year on year, outperforming analysts’ expectations by 12.1%. The business had a stunning quarter with EPS in line with analysts’ estimates and an impressive beat of analysts’ revenue estimates.
The Real Brokerage scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $4.22.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: eXp World (NASDAQ:EXPI)
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $1.31 billion, up 1.1% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $10.80.
Read our full analysis of eXp World’s results here.
Marcus & Millichap (NYSE:MMI)
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Marcus & Millichap reported revenues of $172.3 million, up 8.8% year on year. This print beat analysts’ expectations by 5.3%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
The stock is down 12.8% since reporting and currently trades at $28.06.
Read our full, actionable report on Marcus & Millichap here, it’s free for active Edge members.
Newmark (NASDAQ:NMRK)
Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Newmark reported revenues of $759.1 million, up 19.9% year on year. This number topped analysts’ expectations by 10.7%. It was a very strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Newmark had the weakest full-year guidance update among its peers. The stock is up 15.7% since reporting and currently trades at $16.74.
Read our full, actionable report on Newmark here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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