The Real Brokerage Inc. is a foreign private issuer headquartered in British Columbia, Canada, with its common shares listed on the Nasdaq Capital Market under the symbol "REAX." The company filed its annual report on Form 40-F with the SEC, complying with the multi-jurisdictional disclosure system (MJDS) adopted by the SEC for foreign private issuers. The report includes audited financial statements, an annual information form, and management's discussion and analysis for the fiscal year ended December 31, 2025.
Key data and highlights:
- As of December 31, 2025, the company has 210,478,399 outstanding shares.
- The report contains forward-looking statements regarding the company's capital structure, working capital, business plans, growth targets, ancillary services (One RealTitle, One Real Mortgage, Real Wallet), real estate industry trends, technology development (Real Wallet, HeyLeo, LeoCoPilot), future opportunities, capital expenditure, and service demand fundamentals.
Risks and uncertainties mentioned:
- Macroeconomic conditions affecting the residential real estate market.
- Slowdown in real estate markets where the company operates.
- Operational and financial risks related to the company's activities.
- Foreign currency exchange rate fluctuations and interest rate changes.
- Inflation and higher interest rate environments.
- Reduced availability or increased cost of mortgage financing.
- Increased competition in the mortgage industry.
- Inability to execute growth strategies for ancillary services.
- Nonrecurring costs affecting earnings.
- Industry antitrust litigation risks.
- Reduction in commission rates and gross commission income.
- New laws or regulatory changes.
- Agent retention and growth challenges.
- Intellectual property regulatory frameworks.
- Compliance with regulatory bodies.
- Competitive pressures.
- Insurance coverage adequacy.
- Weather and natural disaster impacts.
- Company culture maintenance.
- Public health issues like major epidemics.
- Negative publicity effects.
The company has no off-balance sheet arrangements and confirms compliance with NASDAQ corporate governance standards, except for certain quorum and proxy solicitation requirements. The report also includes information on the company's code of ethics, audit committee composition, and external auditor fees.
The company undertakes to provide representatives to respond to SEC inquiries and furnish requested information promptly. Additional information is available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov).
