The RealReal-Real Matters Reports Second Quarter Financial Results

Core Viewpoint - Real Matters Inc. reported a decline in consolidated net revenue for Q2 2025, primarily due to a decrease in the U.S. purchase mortgage origination market, while maintaining operational efficiency and achieving growth in its U.S. Title segment [2][5]. Financial Summary - Consolidated revenue for Q2 2025 was $37.3 million, down 11% year-over-year [4][5]. - Net revenue for Q2 2025 was$ 10.1 million, a decrease of 7% compared to Q2 2024 [4][5]. - Adjusted EBITDA for Q2 2025 was $(1.9) million, compared to$ 0.7 million in Q2 2024 [4][5]. - The company reported a net loss of $2.2 million in Q2 2025, down from a net income of$ 2.1 million in Q2 2024 [4][5]. Segment Performance - U.S. Appraisal segment revenue was $26.7 million, down 9% year-over-year, with a net revenue margin of 27.3%, up 80 basis points sequentially [6]. - U.S. Title segment revenue increased by 32% year-over-year, driven by market share gains and higher refinance origination volumes [2][5]. - Canadian segment revenue was$ 8.3 million, down 8% year-over-year, but net revenue increased by 24% [6]. Market Conditions - The U.S. purchase mortgage origination market experienced a double-digit decline, impacting overall revenue [2]. - The company highlighted the potential for growth in the refinance market, with nearly 10 million outstanding mortgages above 6% interest rates [2][5]. Cash Position - As of March 31, 2025, Real Matters had $45.7 million in cash and no outstanding debt, positioning the company well for current market conditions [2][5].