eXp World Holdings Conference Call Summary Company Overview - eXp World Holdings operates as a cloud-based real estate brokerage, evolving into a global platform that integrates real estate brokerage, technology, and community [2][3] - The company has grown from 30-40 agents to approximately 83,000-84,000 agents across 28 countries over 16 years [2] Core Business Model - eXp differentiates itself from traditional brokerages by eliminating the bricks-and-mortar component, focusing on technology and community [3] - The company views itself as a technology platform that disrupts the legacy real estate brokerage model, similar to how Amazon and Netflix disrupted their respective industries [3] Operational Strategy - eXp emphasizes building collaboration and community through various platforms, including Frame VR, which is a metaverse platform for spatial computing [4] - The company has developed in-house AI technologies to enhance agent services and reduce costs [5] Agent Growth and Team Dynamics - Approximately 40% of new joiners in Q3 were team-based, which positively impacts revenue share dynamics and productivity [6][7] - Teams that complete over 21 transactions have a low churn rate of about 2% annually, indicating strong retention [8] - eXp has improved agent attrition by 18% year-over-year, attributed to various initiatives including eXp University, which provides free coaching and services [10][11] International Expansion - eXp has surpassed $100 million in international revenue, growing 68% year-over-year, with plans to launch in eight new countries by the end of the year [16][17] - The company has developed a repeatable playbook for entering new markets, focusing on leadership and market compatibility [18][19] - The cost to enter new markets has decreased significantly, from an estimated $500,000-$800,000 to about $100,000-$150,000 [19][20] Commercial Real Estate Strategy - eXp is expanding its commercial real estate footprint, leveraging its unique position as a national single brokerage with an enterprise CoStar contract [21][22] - The company aims to capture a significant share of the commercial real estate market, which is currently dominated by a few major players [21] Market Position and Competitive Landscape - eXp is positioned as a scale incumbent rather than a disruptor, with a focus on attracting entrepreneurial realtors rather than solo practitioners [28][30] - The company is well-capitalized and asset-light, allowing it to capitalize on market consolidation opportunities [31][32] Housing Market Insights - The current housing market is characterized by high competition and low transaction volumes, with a forecasted modest recovery [39][40] - eXp's agents are experiencing increased productivity, with top teams reporting a 15.8% revenue increase year-over-year [43] - The company emphasizes the importance of local market knowledge for agents to navigate the current housing landscape effectively [45] Financial Performance - eXp reported a modest decline in GAAP gross margin due to more agents hitting their cap, but views this as a positive sign of increased productivity [59] - The company has returned over $800 million to shareholders through buybacks and dividends, while also investing in technology and international expansion [66][67] Future Outlook - eXp aims to reach 50,000 agents in 50 countries by 2030, viewing this goal as conservative given the total addressable market [24][68] - The company is focused on improving operational efficiencies and leveraging AI to enhance its technology stack [63][81] Key Takeaways - eXp World Holdings is redefining the real estate brokerage model through technology and community engagement - The company is experiencing significant growth in both agent count and international revenue, with a strong focus on team-based structures - eXp is well-positioned to capitalize on market opportunities and navigate the challenges of the current housing market through strategic initiatives and operational efficiencies

BELLINGHAM, Wash., Nov. 13, 2025 (GLOBE NEWSWIRE) -- eXp Realty®, “the most agent-centric™ real estate brokerage on the planet,” and the core subsidiary of eXp World Holdings, Inc. (Nasdaq: EXPI), announced that CEO Leo Pareja was named to The 2025 MarketWatch 25, the outlet’s annual list celebrating influential leaders driving innovation and progress across industries. MarketWatch recognized Pareja for his leadership in redefining modern real estate through transparency, accessibility and empowerment. Sin ...

Group 1 - eXp World Holdings experienced a significant stock increase of over 11% following a strong quarterly earnings report, outperforming the S&P 500 which only rose by 0.1% [1] - The company reported a 7% year-over-year revenue increase to $1.32 billion and achieved a net profit of almost $3.5 million ($0.02 per share), a turnaround from a loss of over $8.5 million in the previous year [2][3] - eXp exceeded analyst expectations, with projected revenue of $1.24 billion and non-GAAP per-share net income of $0.01, attributing its success to agent growth, productivity, and retention rates [3] Group 2 - Total transactions for eXp rose by 3% year-over-year, totaling 121,516, while overall sales volume increased by 7% to over $54 billion, indicating strong demand in the housing market [4][6] - The brokerage is effectively capitalizing on the high demand for homes in the country, contributing to its positive financial performance [6]

Core Insights - eXp World Holdings (EXPI) reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.08 per share, and down from $0.05 per share a year ago, representing a -75.00% earnings surprise [1] - The company posted revenues of $1.32 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.26% and up from $1.23 billion year-over-year [2] - eXp World Holdings shares have declined approximately 12.7% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $1.11 billion, and for the current fiscal year, it is $0.12 on revenues of $4.62 billion [7] - The estimate revisions trend for eXp World Holdings was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Real Estate - Operations industry, to which eXp World Holdings belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company generated $1.3 billion in revenue for Q3 2025, representing a 7% increase compared to the same quarter last year, with real estate sales volume also up by 7% driven by increased home sales prices and agent productivity [27][28] - The agent count was 83,446, down 2% year-over-year but showed a 1% quarter-over-quarter increase [27] - GAAP gross margin was 6.5%, down 57 basis points year-over-year, while non-GAAP gross margin was 10.9% [28] - Adjusted EBITDA was $17.7 million, down year-over-year, attributed to compressed gross margins but offset by operational improvements [28] Business Line Data and Key Metrics Changes - The North America Realty segment generated $1.3 billion in revenue with an adjusted EBITDA of $23.1 million [29] - The International segment saw revenue growth of 68% year-over-year, driven by an increase in productive agents and transactions [29] - Other affiliated services contributed modest revenue with an adjusted EBITDA loss of $1.3 million [29] Market Data and Key Metrics Changes - International real estate transactions grew 44% year-over-year, with a 56% increase in productive agents and a 34% increase in productivity per person [24] - The company opened operations in five new countries in 2025, including Peru, Ecuador, Turkey, South Korea, and Japan, with active agents and transactions from day one [19][20] Company Strategy and Development Direction - The company aims to expand internationally with a vision of 50,000 agents in 50 countries by 2030, focusing on strong leadership and competitive value propositions [26] - The strategy includes leveraging AI and automation to improve operational efficiency and drive profitability [31] - The company is enhancing its value stack for agents through innovative tools and technology, as well as training and community support [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to capitalize on industry changes and consolidation, emphasizing the importance of being a platform for agents [40][41] - The focus remains on increasing operational efficiency and maintaining a strong balance sheet while exploring meaningful investment opportunities [31] Other Important Information - The company celebrated surpassing the $100 million revenue mark for the first time in a calendar year [23] - The introduction of new programs like FastAttract and AI Accelerator aims to enhance agent productivity and revenue share skills [10][18] Q&A Session Summary Question: How do you see the platform vision playing out now? - Management highlighted the evolution of the real estate business model towards a fully platform environment, positioning the company as a leader in this space [37][38] Question: What advantages does eXp have over other brokerages? - The company is now considered a larger incumbent with the ability to invest at scale, which positions it well amidst industry consolidation [40][41] Question: What do agents want most from eXp? - Agents seek innovative tools and technology for business growth, as well as training and community support [44][45] Question: How is eXp different from traditional brokerages in new countries? - The company offers competitive splits and the opportunity for agents to build their own brands, disrupting traditional employed models [46][47][48] Question: What growth metric stood out this quarter? - Agent productivity improved by 5.4% year-over-year, indicating the effectiveness of the company's strategy to attract and retain productive agents [50][51] Question: Can you provide an update on automation progress? - The company has made significant strides in reducing transaction processing costs through automation, with further opportunities for efficiency [63][64]

Q 1 2 0 2 5 Fin a n cial R e s ult s Vir t u al Fir e sid e C h a t M a y 6, 2 0 2 5 ///////// s l i d o . c o m e v e n t c o d e : # E X P I Q1 2025 Earnings Speakers WENDY FORSYTHE Chief Marketing Officer eXp Realty JESSE HILL Interim Chief Financial Officer eXp World Holdings LEO PAREJA CEO eXp Realty FELIX BRAVO Managing Director eXp International eXp World Holdings GLENN SANFORD Founder, Chairman & CEO ///////// Forward Looking Statements Within the meaning of the Private Securities Litigation Reform ...

Core Insights - eXp World Holdings, Inc. reported strong third-quarter results, highlighting the effectiveness of its agent-centric model and ongoing innovation in the real estate sector [2][8] - The company emphasizes its commitment to enhancing agent value and satisfaction, which is crucial for its growth and performance [2][8] Financial Highlights - Revenue increased by 7% to $1.3 billion compared to the same period last year [8] - Net income for the quarter was $3.5 million, translating to a net income per diluted share of $0.02 [8] - Total operating expenses rose to $1.3 billion from $1.2 billion, with adjusted operating costs increasing by 5% to $82.2 million [8][15] - Adjusted EBITDA was reported at $17.7 million [8] - Cash and cash equivalents stood at $112.8 million as of September 30, 2025 [8] Operational Highlights - The number of agents and brokers on the eXp Realty platform decreased by 2% to 83,446 [8] - Real estate sales transactions increased by 3% to 121,516, while sales volume rose by 7% to $54.1 billion [8] - The global agent Net Promoter Score (aNPS) was 75, slightly down from 76 in the previous year, indicating a focus on improving agent experience [8] Strategic Focus - The company aims to leverage technology, particularly AI, to enhance operational efficiency and differentiate itself in the evolving real estate landscape [2][8] - eXp World Holdings continues to position itself as a leading platform for real estate agents, emphasizing flexibility and comprehensive resources for agent success [2][8]

Revenue and Sales Performance - Revenues increased by 6.9% to $1,316,683 for the three months ended September 30, 2025, compared to $1,231,187 in the same period of 2024[115]. - Real estate sales transactions rose by 3.1% to 121,516 for the three months ended September 30, 2025, compared to 117,830 in the same period of 2024[111]. - Total revenues for Q3 2025 increased by $85.5 million (7%) to $1,316.7 million compared to $1,231.2 million in Q3 2024; for the nine months ended September 30, 2025, revenues rose by $110.9 million (3%) to $3,580.5 million from $3,469.5 million in 2024[119]. - Existing home sales transactions were at an annual rate of 4.06 million in September 2025, an increase of 4.1% from 3.90 million in September 2024[102]. Financial Metrics - Gross profit for the third quarter of 2025 was $86.2 million, down from $87.7 million in the third quarter of 2024[116]. - Operating income for the third quarter of 2025 was $4.0 million, compared to an operating loss of $8.3 million in the same period of 2024[117]. - Adjusted EBITDA for Q3 2025 was $17.7 million, down 26% from $23.9 million in Q3 2024; for the nine months ended September 30, 2025, it was $31.1 million, a decrease of 54% from $67.8 million in the same period of 2024[118]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $31,068,000, a decrease of 54.3% from $67,797,000 in the same period of 2024[138]. Expenses and Costs - Commissions and other agent-related costs for Q3 2025 increased by $86.9 million (8%) to $1,230.5 million, and for the nine months, they rose by $119.5 million (4%) to $3,325.5 million compared to the same periods in 2024[120]. - General and administrative expenses for Q3 2025 were $62.3 million, a 2% increase from $61.4 million in Q3 2024; for the nine months, they increased by $18.2 million (10%) to $203.3 million[121]. - Technology and development expenses rose by $3.5 million (25%) in Q3 2025 to $17.3 million, and for the nine months, they increased by $8.8 million (20%) to $52.2 million compared to 2024[122]. - Sales and marketing expenses decreased by $0.3 million (9%) in Q3 2025 to $2.5 million, and for the nine months, they decreased by $0.7 million (8%) to $8.2 million compared to the same periods in 2024[123]. Agent and Market Metrics - The agent net promoter score (aNPS) was 75 for the three months ended September 30, 2025, compared to 76 for the same period in 2024[106]. - The number of agents declined by 2% in the first nine months of 2025 compared to the same period in 2024, but the decline has slowed over the last few quarters[109]. - Real estate per transaction cost increased by 5.9% for the three months ended September 30, 2025, compared to the same period in 2024[113]. Cash Flow and Working Capital - Net working capital increased by $17.6 million to $99,670,000 as of September 30, 2025, compared to $82,119,000 as of December 31, 2024, due to increased revenue and related activity[143]. - Net cash provided by operating activities decreased by $73 million to $104,817,000 for the nine months ended September 30, 2025, compared to $177,800,000 in 2024[144]. - Cash used in investing activities increased to $20,492,000 for the nine months ended September 30, 2025, compared to $12,959,000 in 2024[145]. - Cash flows used in financing activities decreased by $69.6 million to $68,773,000 for the nine months ended September 30, 2025, due to lower stock repurchases[145]. Net Income and Other Financial Highlights - For the three months ended September 30, 2025, the company reported a net income of $3,497,000 compared to a net loss of $6,481,000 in the same period of 2024[138]. - The company has no known material cash requirements as of September 30, 2025, except for a remaining $17 million antitrust litigation settlement amount[141]. - The company intends to use available cash to pay the remaining $17 million antitrust litigation settlement amount[141]. - The company believes existing cash balances and expected cash flows will be sufficient to satisfy operating requirements for at least the next twelve months[142]. - Acquisitions have not materially impacted cash flow during the first nine months of 2025, but the company continues to seek opportunities for expansion[146]. Regional Performance - North American Realty revenues increased by $69.2 million (6%) in Q3 2025 to $1,275.9 million, and for the nine months, they rose by $67.0 million (2%) to $3,475.4 million compared to 2024[130]. - International Realty revenues surged by $16.5 million (68%) in Q3 2025 to $40.7 million, and for the nine months, they increased by $44.6 million (74%) to $104.7 million compared to the same periods in 2024[130]. - Adjusted Segment EBITDA for North American Realty decreased by $5.8 million (20%) in Q3 2025, and for the nine months, it decreased by $34.6 million (41%) compared to 2024[130]. Other Affiliated Services - Other Affiliated Services revenues decreased by 53% in both Q3 and the nine months of 2025 compared to the same periods in 2024, primarily due to lower SUCCESS® Magazine revenues[133].

Financial Performance - Revenue increased by 7% to $1.3 billion compared to the same period last year[6] - Net income for Q3 2025 was $3.5 million, with a net income per diluted share of $0.02[6] - Adjusted EBITDA for the quarter was $17.7 million[6] - The company reported a net loss of $9,818 for the nine months ended September 30, 2025, an improvement from a net loss of $11,762 in 2024[27] Operating Costs and Cash Flow - Adjusted operating costs were $82.2 million, reflecting a 5% increase driven by strategic investments[6] - Net cash provided by operating activities was $28.9 million[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $104,817, down 41.0% from $177,800 in 2024[27] - Adjusted operating cash flow for the three months ended September 30, 2025, was $45,430, a decrease of 30.6% compared to $65,435 in 2024[24] Real Estate Performance - Real estate sales transactions increased by 3% to 121,516 in Q3 2025[10] - Real estate sales volume rose by 7% to $54.1 billion in Q3 2025[10] Shareholder Returns - The company distributed $24.1 million to shareholders, including $16.4 million in stock repurchases and $7.7 million in cash dividends[10] - The company incurred $46,227 in common stock repurchases during the nine months ended September 30, 2025, compared to $116,281 in 2024[27] Assets and Liabilities - Total current assets increased to $323,148 as of September 30, 2025, from $267,972 as of December 31, 2024, representing a growth of 20.6%[26] - Accounts receivable, net of allowance for credit losses, rose to $123,766 as of September 30, 2025, compared to $87,692 in 2024, an increase of 41.0%[26] - Total liabilities increased to $223,478 as of September 30, 2025, from $185,853 as of December 31, 2024, reflecting a rise of 20.2%[26] - Cash and cash equivalents, along with restricted cash, totaled $186,381 at the end of the period, down from $195,740 in 2024[27] - Customer deposits increased to $73,465 as of September 30, 2025, compared to $55,660 in 2024, marking a rise of 32.0%[26] - The company’s total equity grew to $235,265 as of September 30, 2025, from $204,869 in 2024, an increase of 14.8%[26] Customer Satisfaction - The global agent Net Promoter Score (aNPS) was 75, down from 76 in the prior-year period[10]

Core Viewpoint - EXP WORLD HOLD INC (EXPI.US) has received an upgrade in its MSCI ESG rating from BBB to A as of October 24, 2025 [1] Group 1 - The upgrade reflects an improvement in the company's environmental, social, and governance practices [1]