As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including Marcus & Millichap (NYSE: MMI) 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% on average since the latest earnings results.

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 $193.9 million, up 15.1% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with EPS in line with analysts’ estimates and a solid beat of analysts’ EBITDA estimates.

Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $28.11.

Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results 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 a solid beat of analysts’ EBITDA estimates.

The Real Brokerage pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.9% since reporting. It currently trades at $4.03.

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.

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, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a miss of analysts’ homes purchased estimates and a miss of analysts’ homes sold estimates.

Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.7% since the results and currently trades at $1.98.

Read our full analysis of Offerpad’s results here.

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 $1.32 billion, up 6.9% year on year. This result beat analysts’ expectations by 5.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ transactions estimates.

The stock is up 6.1% since reporting and currently trades at $10.71.

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

JLL (NYSE: JLL)

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.

JLL reported revenues of $6.51 billion, up 10.9% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ Capital Markets revenue estimates but a miss of analysts’ Work Dynamics revenue estimates.

The stock is up 10.8% since reporting and currently trades at $331.36.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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