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1. Company Snapshot

1.a. Company Description

Real Matters Inc.provides technology and network management solutions to mortgage lending and insurance industries in Canada and the United States.It offers residential mortgage appraisals for purchase, refinance, and home equity and default transactions under the Solidifi brand to the mortgage lending industry; and insurance inspection services to property and casualty insurers under the iv3 brand.


The company also provides residential and commercial real estate title and closing services for refinance, purchase, short sale, and real estate owned transactions to financial institutions under the Solidifi brand; and offers services required to close a mortgage transaction, including title search, curative, closing and escrow services, and title policy issuance, as well as other title services, such as capital markets services.In addition, it provides access to its software platforms to other title insurance agencies and mortgage lenders for a subscription fee.The company was formerly known as Solidifi Inc.


and changed its name to Real Matters Inc.in July 2010.Real Matters Inc.


was incorporated in 2004 and is headquartered in Markham, Canada.

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1.b. Last Insights on REAL

Real Matters Inc.'s recent performance was negatively impacted by a dip in net revenue and adjusted EBITDA, as reported in its Q4 2025 earnings call. Despite this, the company showcased resilience with strong US title growth and strategic client expansions. The company's fair value estimate has been revised, with analysts decreasing their price target from CA$8.36 to CA$8.16, reflecting caution in the face of shifting forecasts. Additionally, the company will announce its Q1 2026 financial results on January 29, 2026.

1.c. Company Highlights

2. Real Matters' Fiscal 2025 Earnings: A Mixed Bag

Real Matters reported consolidated revenues of $170 million for fiscal 2025, with its U.S. Title and Canadian segments achieving double-digit year-over-year growth in both revenue and net revenue. However, the company's U.S. Appraisal revenues were lower, mainly due to a purchase market operating at its lowest level in decades. The consolidated net revenue decreased modestly to $45 million from $46 million in fiscal 2024. The company's adjusted EBITDA loss was $3.2 million compared with positive adjusted EBITDA of $1.9 million in fiscal 2024. The actual EPS came out at '-0.02786' relative to estimates at '-0.00309', a significant miss.

Publication Date: Nov -30

📋 Highlights
  • Consolidated Revenues: Fiscal 2025 reported $170 million in revenues, with U.S. Title and Canadian segments achieving double-digit growth in revenue and net revenue.
  • Adjusted EBITDA Decline: Fiscal 2025 saw a $3.2 million loss compared to $1.9 million positive in 2024, driven by U.S. Appraisal market challenges and lower purchase mortgage volumes.
  • U.S. Title Performance: Revenue increased 21%, driven by a 41% rise in refinance origination, with net revenue margins soaring 680 bps to 53.1%.
  • Canadian Segment Strength: Revenue grew 12% YoY, with net revenue up 11%, maintaining strong margins of 18.8% despite market headwinds.
  • 2026 Growth Potential: Brian Lang highlighted 30% higher refinance candidates (12M+ mortgages) and potential volume from Mr. Cooper’s acquisition, signaling optimism for title and servicing growth.

Segmental Performance

The U.S. Appraisal segment recorded revenues of $121.8 million, down 7% from fiscal 2024, primarily due to a lower addressable market for purchase mortgage originations. However, the segment recorded positive adjusted EBITDA of $13 million, with net revenue margins of 26.3% within the target operating model range. In contrast, the U.S. Title segment achieved a 21% increase in revenue, primarily due to a 41% increase in refinance origination revenues. Net revenue margins increased by 680 basis points from fiscal 2024 to 53.1%, and net revenue was up 39%. The Canadian segment also performed well, with revenue up 12% year-over-year from higher market volumes and net market share gains.

Outlook and Valuation

Brian Lang expressed confidence in the company's sales pipeline, citing increased activity and a faster pace of deal movement compared to the previous year. Analysts estimate next year's revenue growth at 23.3%, driven by pent-up demand in an increasingly stable market environment. With a P/S Ratio of 2.06 and an EV/EBITDA of -82.28, the market is pricing in significant growth expectations. The company's ROE is -4.42%, and the ROIC is -4.08%, indicating that the company is currently not generating returns on its investments. However, with a strong balance sheet, no debt, and cash of $40 million at September 30, 2025, the company is well-positioned to capitalize on growth opportunities.

Growth Prospects

The company's U.S. Title segment is expected to continue its growth trajectory, driven by the ramp-up of a new Tier 1 customer, which has seen a 2x year-over-year increase in title business. The acquisition of Mr. Cooper by Rocket is also expected to drive volume growth, particularly in servicing. With a larger pool of refinance candidates, up 30%, and a focus on affordability, the company is optimistic about its growth prospects in fiscal 2026.

3. NewsRoom

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Real Matters Shareholders OK Director Slate, Deloitte as Auditor, 7% Evergreen Equity Plan at AGM

Feb -07

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Real Matters Announces Election of Directors

Feb -05

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Real Matters Q1 Earnings Call Highlights

Jan -30

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Real Matters Inc (RLLMF) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

Jan -29

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Real Matters Reports First Quarter Financial Results

Jan -29

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What Could Be Shifting The Story Behind Real Matters (TSX:REAL)?

Jan -22

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Real Matters to Announce First Quarter Fiscal 2026 Financial Results on January 29, 2026

Jan -06

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Real Matters to Hold Virtual Annual and Special Meeting on February 5, 2026

Jan -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.48%)

6. Segments

Appraisal

Expected Growth: 8.5%

Real Matters Inc.'s 8.5% growth is driven by increasing demand for digital appraisal solutions, expansion into new markets, and strategic partnerships. The company's technology-enabled platform and data analytics capabilities also contribute to its growth, as they improve efficiency and accuracy in the appraisal process.

Title - Mortgage Origination

Expected Growth: 8.5%

Real Matters Inc.'s 8.5% mortgage origination growth is driven by increasing demand for digital mortgage solutions, expansion into new markets, and strategic partnerships. Additionally, the company's proprietary technology and data analytics capabilities enable lenders to streamline the origination process, reducing costs and improving efficiency.

Insurance Inspection

Expected Growth: 7.3%

Real Matters Inc.'s 7.3% growth in Insurance Inspection is driven by increasing demand for digital solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investment in AI-powered technology and data analytics has improved operational efficiency, reduced costs, and enhanced customer experience, contributing to its growth momentum.

Title - Diversified

Expected Growth: 8.9%

Real Matters Inc.'s diversified segment growth of 8.9% is driven by increasing demand for title insurance and settlement services, expansion into new markets, and strategic acquisitions. Additionally, the company's investments in technology and process improvements have enhanced operational efficiency, contributing to top-line growth.

7. Detailed Products

Real Estate Appraisal

Real Matters provides appraisal management services to lenders, helping them to make informed decisions about property values.

Title and Closing

Real Matters offers title insurance and closing services to facilitate a smooth and secure real estate transaction process.

Data Analytics

Real Matters provides data analytics services to help lenders and investors make informed decisions about real estate investments.

Valuation Management

Real Matters offers valuation management services to help lenders and investors manage their valuation processes efficiently.

8. Real Matters Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Real Matters Inc. is medium due to the presence of alternative service providers in the industry.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple service providers, giving customers the power to negotiate prices and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the industry, including regulatory requirements and capital investments.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the industry, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.55%
Debt Cost 7.41%
Equity Weight 96.45%
Equity Cost 7.50%
WACC 7.50%
Leverage 3.68%

11. Quality Control: Real Matters Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Waldencast

A-Score: 4.0/10

Value: 9.6

Growth: 2.6

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 1.3

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Real Matters

A-Score: 3.9/10

Value: 7.4

Growth: 2.0

Quality: 3.6

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

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MeridianLink

A-Score: 3.7/10

Value: 4.2

Growth: 4.6

Quality: 3.5

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

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PDF Solutions

A-Score: 3.5/10

Value: 2.8

Growth: 5.4

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 3.7

1-Year Total Return ->

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Model N

A-Score: 3.3/10

Value: 2.4

Growth: 4.8

Quality: 3.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Future FinTech

A-Score: 3.2/10

Value: 10.0

Growth: 2.6

Quality: 6.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.16$

Current Price

6.16$

Potential

-0.00%

Expected Cash-Flows