The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Real Brokerage (NASDAQ: REAX) and the rest of the consumer discretionary - real estate services stocks fared in Q1.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models.

The 14 consumer discretionary - real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 6.7% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $465.6 million, up 31.5% year on year. This print fell short of analysts’ expectations by 3.4%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates.

“Real delivered another quarter of significant growth, with revenue increasing 32% year-over-year, demonstrating the continued strength of our platform and agent value proposition,” said Tamir Poleg, Chairman and Chief Executive Officer.

Interestingly, the stock is up 4.5% since reporting and currently trades at $2.19.

Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.

Best Q1: Howard Hughes Holdings (NYSE: HHH)

Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE: HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.

Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year, outperforming analysts’ expectations by 20.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

Howard Hughes Holdings delivered the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $72.16.

Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: RE/MAX (NYSE: RMAX)

Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.

RE/MAX reported revenues of $70.23 million, down 5.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.

Interestingly, the stock is up 1.9% since the results and currently trades at $11.28.

Read our full analysis of RE/MAX’s results here.

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 $80.08 million, down 50.2% year on year. This print lagged analysts’ expectations by 7.2%. It was a softer quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ EBITDA estimates.

Offerpad had the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth in the group. The stock is down 34% since reporting and currently trades at $5.21.

Read our full, actionable report on Offerpad here, it’s free.

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 $6.39 billion, up 11.1% year on year. This result surpassed analysts’ expectations by 6.6%. It was a very strong quarter as it also logged a beat of analysts’ EPS and EBITDA estimates.

The stock is flat since reporting and currently trades at $335.63.

Read our full, actionable report on JLL here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.