07:49 AM EDT, 08/01/2024 (MT Newswires) -- Real Matters Inc. ( RLLMF ) , a network management services platform for the mortgage and insurance industries, that saw its shares jump more than 5% on the TSX yesterday, on Thursday met forecast earnings and beat forecast revenues for the third quarter, as it moved to establish a target operating model.

REAL reported consolidated revenues of US$49.5 million, up 17% quarter-over-quarter and 8% year over year. It beat a consensus forecast at Capital IQ of $47.93 million.

It had adjusted net income per diluted share of $0.02, which met forecast.

"Consolidated Adjusted EBITDA increased 132% quarter-over-quarter to US$1.7 million and we outpaced the market in the third quarter on a year-over-year basis, principally as a result of higher volumes and strong operating leverage in our U.S. Appraisal and Canadian segments," said Chief Executive Officer Brian Lang, in a statement.

He added: "We maintained strong Net Revenue margins in our U.S. Appraisal segment and increased our Canadian segment Net Revenue margin to a near-record high 19%."

REAL is establishing a simplified target operating model "that is not time-bound", with the same Net Revenue and Adjusted EBITDA margin target ranges that were outlined in its fiscal 2025 targets, contingent on mortgage origination volumes.

Lang said: "Our strategy has been to position our business to thrive in the peaks and to withstand valleys of the cyclical mortgage market. What remains outside our control is the inherent uncertainty in calling interest rates and corresponding mortgage market volumes during any given period.

"Today, more than 24% of outstanding mortgages in the U.S. have an interest rate above 5%, and the pool of refinance candidates continues to build. We remain confident that the U.S. mortgage origination market represents a significant opportunity for our business and our operations are well positioned for a market recovery."