This analyst likes Real Matters right now

ATB Capital Markets analyst Gavin Fairweather maintained an “Outperform” rating and C$8.00 target on Real Matters (Real Matters Stock Quote, Chart, News, Analysts, Financials TSX:REAL) after the company posted a second-quarter fiscal 2026 beat.

Real Matters reported net revenue of $13.6-million, up 34.8% year-over-year and ahead of Fairweather’s $12.9-million estimate. Adjusted EBITDA was $0.9-million, above his breakeven forecast and the company’s strongest consolidated bottom-line result in almost two years.

Fairweather said the beat was driven by stronger Title results, Appraisal outperformance and operating leverage, with 85% of incremental net revenue flowing through to EBITDA.

U.S. Title net revenue rose 176% to $3.3-million, helped by faster-than-expected ramping of its second Tier 1 customer, JPMorgan, other new logos and lower rates earlier in the quarter. U.S. Appraisal net revenue rose 18% to $8.6-million, ahead of his $8.0-million estimate, supported by refinance activity and a 33% increase in home equity.

The analyst said sales momentum remained strong, with seven new logos added in the quarter, including one of the largest U.S. servicers. After quarter-end, Real Matters added another Tier 1 lender and a Top 100 lender in U.S. Title.

“Title sales momentum has been impressive and given the building pool of high-rate mortgages we are confident in a significant ramp in volumes and profitability for REAL,” Fairweather said.

Fairweather lowered his fiscal 2026 estimates slightly because of higher rates and capacity additions, but left his 2027 and 2028 outlook largely unchanged. He expects Real Matters to generate Adjusted EBITDA of $5.4-million on revenue of $56.7-million in fiscal 2026, improving to $19.3-million on revenue of $74.6-million in fiscal 2027.

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