Real Matters Reports Third Quarter Financial Results

Executive Summary

• Real Matters Inc. reported financial results for the third quarter ended June 30, 2025, showing a 22% sequential increase in consolidated revenues to $45.4 million, driven by seasonal upticks in U.S. Appraisal purchase mortgage volumes and double-digit growth across all segments.
• The company posted a net loss of $4.9 million for Q3 2025, a significant deterioration from the $1.7 million net income in Q3 2024, primarily attributed to a $5.6 million increase in net foreign exchange losses.
• Despite the net loss, Adjusted EBITDA turned positive at $0.3 million (up from a $1.9 million loss in Q2 2025), and the company launched four new clients while expanding its U.S. Title segment with a second Tier 1 lender.

Key Details

• Consolidated Revenue: $45.4 million for Q3 2025, representing a 22% increase sequentially from Q2 2025 ($37.3 million) and an 8% decrease year-over-year from Q3 2024 ($49.5 million).
• Adjusted EBITDA: $0.3 million for Q3 2025, compared to a loss of $1.9 million in Q2 2025 and $1.7 million in Q3 2024.
• Net Income/Loss: Net loss of $4.9 million for Q3 2025, compared to net income of $1.7 million in Q3 2024. The decline was primarily due to a $5.6 million increase in net foreign exchange losses.
• Net Revenue: $11.9 million for Q3 2025, up 18% sequentially and down 10% year-over-year.
• U.S. Appraisal Segment:
  • Revenue: $32.6 million (up 22% sequentially, down 13% year-over-year).
  • Adjusted EBITDA: $4.0 million.
  • Mortgage origination volumes were down 16% year-over-year due to lower purchase origination volumes.
• U.S. Title Segment:
  • Revenue: $2.8 million (up 23% sequentially, up 30% year-over-year).
  • Adjusted EBITDA: $(1.7) million.
  • Mortgage origination volumes were up 52% year-over-year due to net market share gains and higher refinance volumes.
• Canadian Segment:
  • Revenue: $10.0 million (up 19% sequentially, up 1% year-over-year).
  • Adjusted EBITDA: $1.3 million.
• Corporate Segment: Adjusted EBITDA loss of $(3.3) million.
• Balance Sheet: Cash and cash equivalents of $43.8 million with no outstanding debt as of June 30, 2025.
• Operational Updates: Launched four new clients in Q3; went live with a second Tier 1 lender in U.S. Title and added a new top-15 lender in U.S. Appraisal subsequent to quarter-end.

Notable Quotes

• “Consolidated revenues increased 22% sequentially in the third quarter to $45.4 million, in line with a seasonal uptick in U.S. Appraisal purchase mortgage market volumes and double-digit revenue growth in all three segments. We posted positive consolidated Adjusted EBITDA(A) of $0.3 million, up from a loss of $1.9 million in the second quarter of 2025,” said CEO Brian Lang.
• “The number of mortgages being originated at higher interest rates continues to rise, steadily expanding the pool of potential refinance candidates... This presents a significant opportunity for us once the rate environment begins to shift – and we are strategically positioned to capitalize on it.” — Brian Lang, CEO