Looking back on real estate services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Offerpad (NYSE: OPAD) and its peers.

Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.

The 12 real estate services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 0.8% below.

In light of this news, share prices of the companies have held steady as they are up 4.6% on average since the latest earnings results.

Weakest Q3: Offerpad (NYSE: OPAD)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Offerpad reported revenues of $132.7 million, down 36.2% year on year. This print fell short of analysts’ expectations by 5.1%. Overall, it was a disappointing quarter for the company with a miss of analysts’ homes purchased estimates.

“We’ve spent the past several quarters strengthening the foundation of our business and expanding our reach through asset-light services,” said Brian Bair, Chairman and CEO of Offerpad.

Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 18.6% since reporting and currently trades at $1.89.

Read our full report on Offerpad here, it’s free for active Edge members.

Best Q3: The Real Brokerage (NASDAQ: REAX)

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

The Real Brokerage reported revenues of $568.5 million, up 52.6% year on year, outperforming analysts’ expectations by 6.5%. The business had a stunning quarter with EPS in line with analysts’ estimates and an impressive beat of analysts’ EBITDA estimates.

The Real Brokerage delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $3.94.

Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free for active Edge members.

Opendoor (NASDAQ: OPEN)

Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Opendoor reported revenues of $915 million, down 33.6% year on year, exceeding analysts’ expectations by 7.8%. Still, it was a slower quarter as it posted a miss of analysts’ homes purchased estimates and a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 22% since the results and currently trades at $7.67.

Read our full analysis of Opendoor’s results here.

Cushman & Wakefield (NYSE: CWK)

With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.

Cushman & Wakefield reported revenues of $2.61 billion, up 11.2% year on year. This number beat analysts’ expectations by 7.9%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 2.6% since reporting and currently trades at $16.10.

Read our full, actionable report on Cushman & Wakefield here, it’s free for active Edge members.

RE/MAX (NYSE: RMAX)

Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.

RE/MAX reported revenues of $73.25 million, down 6.7% year on year. This result missed analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 2% since reporting and currently trades at $8.11.

Read our full, actionable report on RE/MAX here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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