Real Matters Reports Second Quarter Financial Results

TORONTO - Real Matters Inc. (TSX: REAL) ('Real Matters' or the 'Company'), a leading network management services platform for the mortgage and insurance industries, today announced its financial results for the second quarter ended March 31, 2024.

'We were very pleased to report positive consolidated Adjusted EBITDA(A) of $0.7 million and net income of $2.1 million in the second quarter as we outperformed the market on a sequential and year-over-year basis in U.S. Appraisal principally due to market share gains,' said Real Matters Chief Executive Officer Brian Lang. 'Consolidated revenues were up 19% quarter-over-quarter due to a 22% increase in U.S. Appraisal revenues and a 15% increase in Canadian segment revenues. U.S. Title revenues were flat quarter-over-quarter.'

'Through our network management model, we continued to improve U.S. Appraisal Net Revenue(A) margins which set a new record high of 28.3%, up 40 basis points from the first quarter. We also had strong operating leverage in the second quarter, particularly in our U.S. Appraisal segment where Adjusted EBITDA(A) margins increased 1,210 basis points quarter-over-quarter to 47.9%,' added Lang.

'While the mortgage market continues to face interest rate and affordability headwinds, our business model, focus on market share, and operating efficiency are delivering improved financial performance. We are well-positioned for growth when market conditions improve and the business scales back up,' concluded Lang.

Q2 2024 Highlights

Consolidated revenues of $42.2 million, up 19% quarter-over-quarter

Positive consolidated Adjusted EBITDA(A) of $0.7 million and net income of $2.1 million

Record-high U.S. Appraisal Net Revenue(A) margins of 28.3%, up 40 basis points quarter-over-quarter and up 70 basis points year-over-year

Year-over-year market share gains with 4 of our top 7 U.S. Appraisal clients

Quarter-over-quarter market share gains with Tier 1 lender and launched 2 new clients in U.S. Title

Year-over-year market share gains with 2 top clients and launched 2 new clients and 1 new channel in Canada

Cash and cash equivalents of $44.4 million and no outstanding debt

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, 2023, 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.

Contact:

Lyne Beauregard

Vice President

Tel: [phone]

Email: [e-mail]

(C) 2024 Electronic News Publishing, source ENP Newswire