The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Real Brokerage (NASDAQ: REAX) and the rest of the consumer discretionary - real estate services stocks fared in Q4.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models.

The 14 consumer discretionary - real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 14.2% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.9% since the latest earnings results.

Best Q4: 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 $505.1 million, up 44.1% year on year. This print exceeded analysts’ expectations by 7.6%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

“Real delivered strong fourth quarter results, with revenue increasing 44% year-over-year and closed transactions growing 38%,” said Tamir Poleg, Chairman and Chief Executive Officer.

The Real Brokerage pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.5% since reporting and currently trades at $2.37.

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

Marcus & Millichap (NYSE: MMI)

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Marcus & Millichap reported revenues of $244 million, up 1.6% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $25.43.

Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: eXp World (NASDAQ: EXPI)

Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

eXp World reported revenues of $1.19 billion, up 8.5% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 21.1% since the results and currently trades at $5.75.

Read our full analysis of eXp World’s results here.

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 $736 million, down 32.1% year on year. This number surpassed analysts’ expectations by 23.7%. Overall, it was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

Opendoor pulled off the biggest analyst estimates beat among its peers. The stock is up 5.3% since reporting and currently trades at $4.90.

Read our full, actionable report on Opendoor here, it’s free.

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 $2.91 billion, up 10.8% year on year. This print topped analysts’ expectations by 6.1%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.

The stock is down 9.6% since reporting and currently trades at $12.26.

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

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