Review of Real Matters Inc.

FEB 13, 2025 - REAL has been in a prolonged industry downturn over the last two years due to the challenging macro backdrop of rising interest rates. That being said, the headwinds have already started to show some early signs of a reversal into tailwinds. Although it is still early days of the next cycle, management is well aware of positioning the company to get through tough times and ride the next wave of a cyclical upturn. Management has targeted an ambitious long-term operating model over the long term, which could create meaningful shareholder value if achieved. That being said, REAL is highly cyclical and volatile with limited visibility into future demand, REAL is a volatile name with some meaningful upside potential if management demonstrates execution. This is a high-risk name that investors need to size the position accordingly. We are maintaining our rating at “B-”.