Family in new home
(Source: Adobe Stock)
  • Real Matters (TSX:REAL), a stock focused on mortgage and insurance network management, posted Q1 2025 results ended December 31, 2024, marked by a return to net income profitability
  • The quarter also saw the launch of five new clients and robust operating leverage in Canada, converting 90 per cent of incremental net revenue to adjusted EBITDA
  • Real Matters is a network management services provider for the mortgage lending and insurance industries
  • Real Matters stock is down by 5.39 per cent year-over-year and 53.24 per cent since 2020

Real Matters (TSX:REAL), a stock focused on mortgage and insurance network management, posted Q1 2025 results ended December 31, 2024, marked by a return to net income profitability, the launch of five new clients and robust operating leverage in Canada, converting 90 per cent of incremental net revenue to adjusted EBITDA during the quarter. Here’s a breakdown of key metrics:

  • Revenue reached US$41 million, up by 16 per cent year-over-year (YoY).
  • Consolidated net revenue (revenue minus transaction costs) came to US$10.9 million, up by 12 per cent YoY.
  • Adjusted EBITDA loss of US$1.7 million, up from a loss of US$1.1 million YoY.
  • Net income of US$2.3 million, up from a net loss of US$3.6 million YoY.
  • Cash and cash equivalents of US$49 million with no outstanding debt as of December 31, 2024.

The company has been net income profitable in four out of the past six quarters, as well as three out of the past five fiscal years, reflecting low mortgage originations because of high interest rates. As detailed in its fiscal 2024 financial results, management is optimistic about this trend reversing course.

Leadership insights

“We reported consolidated revenue of US$41 million in the first quarter, up 16 per cent YoY, and consolidated net revenue increased 12 per cent led by growth in all three segments. Refinance origination volumes in our U.S. Title segment were up 46 per cent YoY and net revenue margins increased by 610 basis points,” Brian Lang, Real Matters’ chief executive officer, said in a statement.

“There are now 8.8 million outstanding mortgages with interest rates above 6 per cent, which represents a sizeable pool of potential refinance candidates. We are encouraged by the market opportunity we saw as a result of a short-term rally in rates in September, adding to our conviction of the market potential for refinance going forward. As a result, we are seeing broad pipeline movement; we are confident that we will have new, active franchise title clients in the coming months,” Lang added.

“We have a strong balance sheet and we will continue to prudently manage our cost base to align with market conditions, ensuring we focus on growth as headwinds turn to tailwinds for our business. We are at a key inflection point for our title business,” Lang concluded.

About Real Matters

Real Matters is a network management services provider for the mortgage lending and insurance industries. The company’s clients include top-100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada.

Real Matters stock (TSX:REAL) opened with a loss of 1.52 per cent trading at C$6.50 per share. The stock is down by 5.39 per cent year-over-year and 53.24 per cent since 2020.

Join the discussion: Find out what everybody’s saying about this insurance and mortgage technology stock on the Real Matters Inc. Bullboard and check out Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo: Adobe Stock)


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