"As we have experienced in the past, economic and financial market uncertainties can create significant opportunity for the mortgage industry. Even minor decreases in interest rates like those we saw last fall can have a significant positive impact on origination volumes – especially from today's historical low volumes. With nearly 10 million outstanding mortgages with rates above 6%, and nearly 7 million mortgages above 6.5%, the pool of refinance candidates continues to grow," concluded Lang. "Solid execution of our strategy continues to broaden our client base and deepen our customer relationships, particularly in U.S. Title where we have significant runway for growth, which should allow us to better capitalize on market improvements and capture more volume."
Q2 2025 Summary
- Consolidated revenue of $37.3 million, down 11% year-over-year as increased volumes in our U.S. Title and Canadian segments were offset by lower year-over-year U.S. Appraisal addressable volumes
- Consolidated Adjusted EBITDA (A) of $(1.9) million compared with $0.7 million in Q2'24
- Net loss of $2.2 million, down from net income of $2.1 million in Q2'24
- Launched three new clients in Q2'25
- Real Matters' U.S. Appraisal mortgage origination volumes down 21% year-over-year mainly due to lower U.S. addressable purchase origination market volumes
- Real Matters' U.S. Title mortgage origination volumes up 32% year-over-year due to net market share gains with clients and higher refinance origination market volumes
- Cash and cash equivalents of $45.7 million and no outstanding debt as at March 31, 2025
Financial and Operational Summary
| | Quarter ended | | | | Six months ended | | % |
| | 2025 | | | 2025 | | | 2024 | | | 2024 | | | 2024 | | | % Change 1 | | | 2025 | | | 2024 | | | Change 1 |
| | Q2 | | Q1 | | Q4 | | Q3 | | Q2 | | Quarter
over
Quarter | Year
over
Year | | March 31 | March 31 | | Year
over
Year |
| Consolidated | | | | | | | | | | | | | | | | | | | | |
| Revenue | $ | 37.3 | | $ | 41.0 | | $ | 45.6 | | $ | 49.5 | | $ | 42.2 | | | -9 | % | -11 | % | | $ | 78.3 | | $ | 77.6 | | | 1 | % |
| Net Revenue (A) | $ | 10.1 | | $ | 10.9 | | $ | 12.0 | | $ | 13.1 | | $ | 11.5 | | | -7 | % | -13 | % | | $ | 20.9 | | $ | 21.2 | | | -1 | % |
| Adjusted EBITDA (A) | $ | (1.9 | ) | $ | (1.7 | ) | $ | 0.6 | | $ | 1.7 | | $ | 0.7 | | | -14 | % | -365 | % | | $ | (3.5 | ) | $ | (0.4 | ) | | -881 | % |
| Net (loss) income | $ | (2.2 | ) | $ | 2.3 | | $ | (0.2 | ) | $ | 1.7 | | $ | 2.1 | | | -197 | % | -207 | % | | $ | 0.1 | | $ | (1.5 | ) | | 104 | % |
| Net (loss) income per diluted share | $ | (0.03 | ) | $ | 0.03 | | $ | - | | $ | 0.02 | | $ | 0.03 | | | -200 | % | -200 | % | | $ | 0.00 | | $ | (0.02 | ) | | 100 | % |
| Adjusted Net (loss) income (A) | $ | (1.2 | ) | $ | (0.3 | ) | $ | 0.9 | | $ | 1.7 | | $ | 1.3 | | | -345 | % | -192 | % | | $ | (1.5 | ) | $ | 0.1 | | | -1600 | % |
| Adjusted Net (loss) income (A) per diluted share | $ | (0.02 | ) | $ | 0.00 | | $ | 0.01 | | $ | 0.02 | | $ | 0.02 | | | 0 | % | -200 | % | | $ | (0.02 | ) | $ | 0.00 | | | 0 | % |
| | | | | | | | | | | | | | | | | | | | |
| U.S. Appraisal segment | | | | | | | | | | | | | | | | | | | | |
| Revenue | $ | 26.7 | | $ | 29.4 | | $ | 33.8 | | $ | 37.5 | | $ | 32.6 | | | -9 | % | -18 | % | | $ | 56.0 | | $ | 59.3 | | | -6 | % |
| Net Revenue (A) | $ | 7.3 | | $ | 7.8 | | $ | 9.0 | | $ | 10.3 | | $ | 9.2 | | | -6 | % | -21 | % | | $ | 15.1 | | $ | 16.6 | | | -10 | % |
| Net Revenue (A) margin | | 27.3 | % | | 26.5 | % | | 26.7 | % | | 27.6 | % | | 28.3 | % | | | | | | 26.9 | % | | 28.1 | % | | |
| Adjusted EBITDA (A) | $ | 2.6 | | $ | 2.4 | | $ | 4.1 | | $ | 5.5 | | $ | 4.4 | | | 7 | % | -41 | % | | $ | 5.0 | | $ | 7.1 | | | -30 | % |
| Adjusted EBITDA (A) margin | | 35.4 | % | | 30.9 | % | | 45.2 | % | | 53.2 | % | | 47.9 | % | | | | | | 33.1 | % | | 42.5 | % | | |
| | | | | | | | | | | | | | | | | | | | |
| U.S. Title segment | | | | | | | | | | | | | | | | | | | | |
| Revenue | $ | 2.3 | | $ | 2.5 | | $ | 2.4 | | $ | 2.1 | | $ | 2.0 | | | -11 | % | 11 | % | | $ | 4.8 | | $ | 4.1 | | | 18 | % |
| Net Revenue (A) | $ | 1.2 | | $ | 1.4 | | $ | 1.2 | | $ | 0.9 | | $ | 0.9 | | | -13 | % | 32 | % | | $ | 2.5 | | $ | 1.9 | | | 36 | % |
| Net Revenue (A) margin | | 52.1 | % | | 53.4 | % | | 49.8 | % | | 43.6 | % | | 44.0 | % | | | | | | 52.8 | % | | 45.7 | % | | |
| Adjusted EBITDA (A) | $ | (2.1 | ) | $ | (1.8 | ) | $ | (1.6 | ) | $ | (1.9 | ) | $ | (1.7 | ) | | -18 | % | -28 | % | | $ | (3.9 | ) | $ | (3.3 | ) | | -20 | % |
| Adjusted EBITDA (A) margin | | -179.6 | % | | -132.3 | % | | -131.4 | % | | -209.8 | % | | -184.8 | % | | | | | | -154.3 | % | | -176.0 | % | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Canadian segment | | | | | | | | | | | | | | | | | | | | |
| Revenue | $ | 8.3 | | $ | 9.1 | | $ | 9.4 | | $ | 9.9 | | $ | 7.6 | | | -8 | % | 11 | % | | $ | 17.5 | | $ | 14.2 | | | 23 | % |
| Net Revenue (A) | $ | 1.6 | | $ | 1.7 | | $ | 1.8 | | $ | 1.9 | | $ | 1.4 | | | -8 | % | 11 | % | | $ | 3.3 | | $ | 2.7 | | | 24 | % |
| Net Revenue (A) margin | | 19.0 | % | | 18.9 | % | | 18.9 | % | | 19.0 | % | | 18.9 | % | | | | | | 19.0 | % | | 18.8 | % | | |
| Adjusted EBITDA (A) | $ | 1.0 | | $ | 1.1 | | $ | 1.2 | | $ | 1.3 | | $ | 0.9 | | | -8 | % | 17 | % | | $ | 2.2 | | $ | 1.6 | | | 37 | % |
| Adjusted EBITDA (A) margin | | 65.7 | % | | 66.1 | % | | 67.7 | % | | 69.3 | % | | 62.3 | % | | | | | | 65.9 | % | | 59.7 | % | | |
| | | | | | | | | | | | | | | | | | | | |
| Corporate segment | | | | | | | | | | | | | | | | | | | | |
| Adjusted EBITDA (A) | $ | (3.4 | ) | $ | (3.4 | ) | $ | (3.1 | ) | $ | (3.2 | ) | $ | (2.9 | ) | | 0 | % | -15 | % | | $ | (6.8 | ) | $ | (5.8 | ) | | -18 | % |
|
Note 1 – Percentage change is calculated based on figures disclosed in our MD&A which are rounded to the nearest thousands of dollars.
Conference Call and Webcast
A conference call to review the results will take place at 10:00 a.m. (ET) on Wednesday, April 30, 2025, hosted by Chief Executive Officer Brian Lang and Chief Financial Officer Rodrigo Pinto. An accompanying slide presentation will be posted to the Investor section of our website shortly before the call.
Conference call dial-in:
- Participants can dial-in to the conference call; however, pre-registration is required. To register, visit: https://register-conf.media-server.com/register/BIb410bf1804714fc98c4a22b2351db181 .
- Once registered, you will receive an email including dial-in details and a unique access code required to join the live call.
- Please ensure you have registered at least 10 minutes prior to the conference call start time.
To listen to the live webcast of the call:
The webcast will be archived and a transcript of the call will be available in the Investor section of our website following the call.
(A) Non-GAAP Measures
The non-GAAP measures used in this news release, including Net Revenue, Adjusted EBITDA and Adjusted Net Income do not have a standardized meaning prescribed by IFRS® Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed in the Company's MD&A for the three and six months ended March 31, 2025 under the heading "Non-GAAP measures", which is incorporated by reference in this Press Release and available on SEDAR+ at www.sedarplus.ca .
Real Matters financial results for the three and six months ended March 31, 2025 are included in the unaudited interim condensed consolidated financial statements and the accompanying MD&A, each of which are available on SEDAR+ at www.sedarplus.ca. In addition, supplemental information is available on our website at www.realmatters.com .
Net Revenue represents the difference between revenues and transaction costs. Net Revenue margin is calculated as Net Revenue divided by Revenues. The reconciling items between net income or loss and Net Revenue were as follows:
| | | | | | Quarter ended | | Six months ended |
| | Q2 2025 | | Q1 2025 | | Q4 2024 | | Q3 2024 | | Q2 2024 | | March 31,
2025 | March 31,
2024 |
| | | | | | | | | | | | | | | |
| Net (loss) income | $ | (2.2 | ) | $ | 2.3 | | $ | (0.2 | ) | $ | 1.7 | | $ | 2.1 | | | $ | 0.1 | | $ | (1.5 | ) |
| Operating expenses | | 12.1 | | | 12.7 | | | 12.6 | | | 11.8 | | | 11.2 | | | | 24.6 | | | 22.8 | |
| Amortization | | 0.7 | | | 0.7 | | | 0.8 | | | 0.8 | | | 0.8 | | | | 1.5 | | | 1.6 | |
| Restructuring expenses | | - | | | 0.4 | | | - | | | - | | | - | | | | 0.5 | | | - | |
| Interest expense | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | | 0.2 | | | 0.2 | |
| Interest income | | (0.5 | ) | | (0.5 | ) | | (0.5 | ) | | (0.5 | ) | | (0.4 | ) | | | (1.0 | ) | | (0.8 | ) |
| Net foreign exchange loss (gain) | | 0.2 | | | (6.1 | ) | | 1.3 | | | (0.9 | ) | | (2.2 | ) | | | (6.0 | ) | | (0.2 | ) |
| Loss (gain) on fair value | | | | | | | | | | | | | | | |
| of derivatives | | 0.6 | | | 1.7 | | | (1.9 | ) | | (0.1 | ) | | 0.1 | | | | 2.3 | | | (0.1 | ) |
| Income tax (recovery) expense | | (0.9 | ) | | (0.4 | ) | | (0.2 | ) | | 0.2 | | | (0.2 | ) | | | (1.3 | ) | | (0.8 | ) |
| Net Revenue | $ | 10.1 | | $ | 10.9 | | $ | 12.0 | | $ | 13.1 | | $ | 11.5 | | | $ | 20.9 | | $ | 21.2 | |
|
Adjusted EBITDA represents net income or loss before stock-based compensation expense, amortization, restructuring expenses, interest expense, interest income, net foreign exchange gain or loss, gain or loss on fair value of derivatives and income tax expense or recovery. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Net Revenue. The reconciling items between net income or loss and Adjusted EBITDA were as follows:
| | | | | | Quarter ended | | Six months ended |
| | Q2 2025 | | Q1 2025 | | Q4 2024 | | Q3 2024 | | Q2 2024 | | March 31,
2025 | March 31,
2024 |
| | | | | | | | | | | | | | | |
| Net (loss) income | $ | (2.2 | ) | $ | 2.3 | | $ | (0.2 | ) | $ | 1.7 | | $ | 2.1 | | | $ | 0.1 | | $ | (1.5 | ) |
| Stock-based compensation expense | | 0.1 | | | 0.1 | | | 1.2 | | | 0.4 | | | 0.4 | | | | 0.2 | | | 1.2 | |
| Amortization | | 0.7 | | | 0.7 | | | 0.8 | | | 0.8 | | | 0.8 | | | | 1.5 | | | 1.6 | |
| Restructuring expenses | | - | | | 0.4 | | | - | | | - | | | - | | | | 0.5 | | | - | |
| Interest expense | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | | 0.2 | | | 0.2 | |
| Interest income | | (0.5 | ) | | (0.5 | ) | | (0.5 | ) | | (0.5 | ) | | (0.4 | ) | | | (1.0 | ) | | (0.8 | ) |
| Net foreign exchange loss (gain) | | 0.2 | | | (6.1 | ) | | 1.3 | | | (0.9 | ) | | (2.2 | ) | | | (6.0 | ) | | (0.2 | ) |
| Loss (gain) on fair value | | | | | | | | | | | | | | | |
| of derivatives | | 0.6 | | | 1.7 | | | (1.9 | ) | | (0.1 | ) | | 0.1 | | | | 2.3 | | | (0.1 | ) |
| Income tax (recovery) expense | | (0.9 | ) | | (0.4 | ) | | (0.2 | ) | | 0.2 | | | (0.2 | ) | | | (1.3 | ) | | (0.8 | ) |
| Adjusted EBITDA | $ | (1.9 | ) | $ | (1.7 | ) | $ | 0.6 | | $ | 1.7 | | $ | 0.7 | | | $ | (3.5 | ) | $ | (0.4 | ) |
|
The reconciling items between net income or loss and Adjusted Net Income or Loss were as follows:
| | | | | | Quarter ended | | Six months ended |
| | Q2 2025 | | Q1 2025 | | Q4 2024 | | Q3 2024 | | Q2 2024 | | March 31,
2025 | March 31,
2024 |
| | | | | | | | | | | | | | | |
| Net (loss) income | $ | (2.2 | ) | $ | 2.3 | | $ | (0.2 | ) | $ | 1.7 | | $ | 2.1 | | | $ | 0.1 | | $ | (1.5 | ) |
| Stock-based compensation expense | | 0.1 | | | 0.1 | | | 1.2 | | | 0.4 | | | 0.4 | | | | 0.2 | | | 1.2 | |
| Amortization of intangibles | | 0.4 | | | 0.4 | | | 0.5 | | | 0.4 | | | 0.4 | | | | 0.8 | | | 0.8 | |
| Restructuring expenses | | - | | | 0.4 | | | - | | | - | | | - | | | | 0.5 | | | - | |
| Net foreign exchange loss (gain) | | 0.2 | | | (6.1 | ) | | 1.3 | | | (0.9 | ) | | (2.2 | ) | | | (6.0 | ) | | (0.2 | ) |
| Loss (gain) on fair value | | | | | | | | | | | | | | | |
| of derivatives | | 0.6 | | | 1.7 | | | (1.9 | ) | | (0.1 | ) | | 0.1 | | | | 2.3 | | | (0.1 | ) |
| Related tax effects | | (0.3 | ) | | 0.9 | | | - | | | 0.2 | | | 0.5 | | | | 0.6 | | | (0.1 | ) |
| Adjusted Net (Loss) Income | $ | (1.2 | ) | $ | (0.3 | ) | $ | 0.9 | | $ | 1.7 | | $ | 1.3 | | | $ | (1.5 | ) | $ | 0.1 | |
|
Forward-Looking Information
This Press Release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Words such as "could", "forecast", "target", "may", "will", "would", "expect", "anticipate", "estimate", "intend", "plan", "seek", "believe", "likely" and "predict" and variations of such words and similar expressions are intended to identify such forward-looking information, although not all forward-looking information contains these identifying words.
The forward-looking information in this Press Release includes statements which reflect the current expectations of management with respect to our business and the industry in which we operate and is based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes appropriate and reasonable in the circumstances. The forward-looking information reflects management's beliefs based on information currently available to management, including information obtained from third party sources, and should not be read as a guarantee of the occurrence or timing of any future events, performance or results.
The forward-looking information in this Press Release is subject to risks, uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. A comprehensive discussion of the factors which could cause results or events to differ from current expectations can be found in the "Risk Factors" section of our Annual Information Form for the year ended September 30, 2024, which is available on SEDAR+ at www.sedarplus.ca .
Readers are cautioned not to place undue reliance on the forward-looking information, which reflect our expectations only as of the date of this Press Release. Except as required by law, we do not undertake to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
About Real Matters
Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters' platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada. We are a leading independent provider of residential real estate appraisals to the mortgage market and a leading independent provider of title services in the U.S. Headquartered in Markham (ON), Real Matters has principal offices in Buffalo (NY) and Middletown (RI). Real Matters is listed on the Toronto Stock Exchange under the symbol REAL. For more information, visit www.realmatters.com.
For more information:
Lyne Beauregard
Vice President, Investor Relations and Corporate Communications
Real Matters
lbeauregard@realmatters.com
416.994.5930
