Core Insights - eXp World reported Q2 2025 revenue of $1.31 billion, slightly above analyst estimates, but EPS fell to $(0.01), missing expectations of $0.10 [1][2] - The company experienced modest revenue growth of 0.8% year-over-year, but profitability declined significantly due to increased operational costs and a net loss of $2.3 million [5][6] Financial Performance - Revenue (GAAP) for Q2 2025 was $1.31 billion, compared to $1.30 billion in Q2 2024, reflecting a 0.8% increase [2] - EPS (GAAP) was $(0.01), down from $0.08 in Q2 2024, marking a 112.5% decline [2] - Adjusted EBITDA fell 65.9% year-over-year to $11.2 million from $32.8 million [2][5] - Adjusted operating costs increased by 20% to $95.0 million due to investments in technology and operational streamlining [5] Business Model and Strategy - eXp World operates as a cloud-based real estate brokerage, focusing on technology to connect agents globally, which allows for scalability and cost benefits [3] - The company is concentrating on five key areas: technology platform development, international expansion, agent-centric programs, regulatory compliance, and sustainability [4] Operational Metrics - The number of agents and brokers decreased by 5% to 82,704, while total real estate transactions fell by 2% to 118,612 [6] - Despite lower agent counts, real estate sales volume increased by 1% to $52.5 billion, indicating higher productivity per agent [6] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased from $108.4 million to $94.6 million due to a $17.0 million antitrust settlement and increased operational costs [7][10] - Adjusted operating cash flow dropped 77.8% year-over-year to $13.4 million [7][10] - Total assets rose to $481.2 million, with equity at $218.4 million as of June 30, 2025 [11] Future Outlook - Management did not provide specific financial guidance but emphasized long-term growth through technology and international expansion [12] - Key trends to monitor include agent productivity, cost management, and performance in international markets [13]

Company Performance - eXp World Holdings (EXPI) reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.12 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -50.00% [1] - The company posted revenues of $1.31 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.78%, compared to revenues of $1.3 billion a year ago [2] - Over the last four quarters, eXp World Holdings has not surpassed consensus EPS estimates, and it has topped consensus revenue estimates two times [2] Stock Outlook - eXp World Holdings shares have lost about 5.8% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the coming quarter is $0.09 on $1.21 billion in revenues, and for the current fiscal year, it is $0.22 on $4.53 billion in revenues [7] - The estimate revisions trend for eXp World Holdings was unfavorable ahead of 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 in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Data and Key Metrics Changes - The company generated $1.3 billion in revenue for Q2 2025, reflecting a 59% year-over-year growth driven by a 9% increase in agents globally and improved agent productivity [24][28] - Non-GAAP gross margin was 12%, while GAAP gross margin decreased by 40 basis points to 7.1% due to more productive agents reaching their cap [29] - Adjusted EBITDA was $11.2 million, down year-over-year, influenced by lower gross margins and strategic investments [29] Business Line Data and Key Metrics Changes - The North America Realty segment generated $1.3 billion in revenue with an adjusted EBITDA of $19.8 million, while international revenue grew 59% year-over-year [30][31] - The number of agents decreased by 5% year-over-year to 82,704, but there was a 1% quarter-over-quarter increase [29] Market Data and Key Metrics Changes - The company saw a 1% year-over-year increase in real estate sales volume, attributed to rising home sales prices and increased agent productivity, despite a 2% decrease in sales transactions [28] Company Strategy and Development Direction - The company is focused on attracting productive agents and enhancing its value proposition, with a goal to grow its agent base to 50,000 across 50 countries by 2030 [27][28] - New programs launched include a CRM of choice program, a cosponsor program, and an eXp land and ranch program, aimed at increasing agent productivity and retention [11][12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the U.S. real estate market, anticipating flat transaction counts year-over-year due to macroeconomic conditions [52] - The company is adapting to the current market downturn by focusing on attracting high-performing agents and enhancing its operational efficiency [54][85] Other Important Information - The company hosted significant in-person events, including eXp Con in Barcelona, which saw a 175% increase in registrants year-over-year, emphasizing the importance of agent connections and culture [26][19] - The company is leveraging AI and automation to enhance productivity and streamline operations, with a focus on integrating advanced tools into its platform [34][35] Q&A Session Summary Question: Can you describe how agents are leveraging success to grow their business? - The company has integrated additional content and courses into Success Plus, providing agents with valuable resources for personal development and real estate training [46][47] Question: What are your thoughts on the U.S. real estate market? - Management is cautiously optimistic, expecting flat transaction counts and focusing on attracting productive agents despite macroeconomic challenges [52][54] Question: How important are eXp's in-person events for attracting and retaining agents? - In-person events are crucial for building relationships and culture, with a significant percentage of guests attending events ultimately joining the company [56][59] Question: What is your main focus managing international growth? - The focus is on growing a base of productive agents and ensuring they have the necessary resources to succeed, with a recent successful launch in Japan [61][62] Question: Can you discuss what's impacting the second quarter gross margin? - The gross margin was impacted by more productive agents reaching their cap, which is welcomed as it enhances agent retention and stickiness [64][66]

Core Viewpoint - eXp World Holdings, Inc. continues to demonstrate resilience and growth in a dynamic real estate environment, driven by its agent-first model and commitment to innovation, with a focus on expanding its international business and enhancing the SUCCESS brand [2][8]. Financial Highlights - Revenue increased by 1% to $1.3 billion compared to the same period last year [8]. - The company reported a net loss of $(2.3) million, translating to a net loss per diluted share of $(0.01) [8]. - Total operating expenses rose to $1.31 billion from $1.28 billion, with adjusted operating costs increasing by 20% to $95.0 million [8]. - Adjusted EBITDA was reported at $11.2 million [8]. - Cash and cash equivalents totaled $94.6 million as of June 30, 2025, down from $108.4 million a year earlier [8]. - The company distributed $32.6 million to shareholders, including $24.9 million in common stock repurchases and $7.7 million in cash dividends [8]. Operational Highlights - eXp Realty has over 82,000 agents across 28 countries, making it the largest independent real estate brokerage globally [7]. - The global agent Net Promoter Score (aNPS) increased to 77, up from 76 in the prior-year period, indicating improved agent satisfaction [8]. - The number of agents and brokers on the eXp Realty platform decreased by 5% to 82,704 as of June 30, 2025 [8]. - Real estate sales transactions decreased by 2% to 118,612 in the second quarter of 2025, while real estate sales volume increased by 1% to $52.5 billion [8]. Strategic Focus - The company is committed to enhancing the agent value stack and ongoing programs like the co-sponsor initiative to attract top agents and teams [2]. - Glenn Sanford, the Founder and CEO, is shifting focus to SUCCESS® Enterprises to expand its brand and drive value for agents and shareholders [2].

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the period ended June 30, 2025, reporting Q2 revenues of **$1.31 billion** (1% increase) but a net loss of **$2.3 million** (vs. **$12.4 million** net income in Q2 2024), driven by increased operating expenses, with total assets growing to **$481.2 million** and cash from operations decreasing to **$75.9 million** due to a **$17 million** litigation payment [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$481.2 million** from **$390.7 million** at year-end 2024, primarily driven by accounts receivable and restricted cash, while total liabilities grew to **$262.9 million** from **$185.9 million**, and total equity saw a modest increase to **$218.4 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $344,957 | $267,972 | | **Total Assets** | **$481,246** | **$390,722** | | **Total Current Liabilities** | $262,880 | $185,853 | | **Total Liabilities** | **$262,880** | **$185,853** | | **Total Equity** | **$218,366** | **$204,869** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a net loss of **$2.3 million** for Q2 2025, a significant downturn from **$12.4 million** net income in Q2 2024, with the six-month net loss widening to **$13.3 million** from **$3.3 million** year-over-year, driven by higher operating expenses outpacing slight 1% revenue growth Statement of Comprehensive Income (Loss) Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,308,877 | $1,295,244 | $2,263,783 | $2,238,298 | | **Operating (Loss) Income** | ($2,376) | $18,537 | ($12,752) | $363 | | **Net (Loss) Income** | ($2,291) | $12,383 | ($13,315) | ($3,256) | | **Diluted EPS** | ($0.01) | $0.08 | ($0.09) | ($0.02) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities significantly decreased to **$75.9 million** from **$131.8 million** in the prior year, primarily due to a **$17.0 million** litigation payment, lower net income, and working capital changes, while cash used in financing activities decreased to **$44.8 million** from **$96.5 million** Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $75,926 | $131,801 | | **Net Cash Used in Investing Activities** | ($17,207) | ($10,369) | | **Net Cash Used in Financing Activities** | ($44,766) | ($96,458) | | **Net Change in Cash** | $16,346 | $23,628 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment structure (North American Realty, International Realty, Other Affiliated Services), agent programs, and significant legal matters, including a **$34.0 million** antitrust litigation settlement with a **$17.0 million** installment paid, and a **$0.05** per share quarterly cash dividend declared - The company operates and manages three reportable segments: North American Realty, International Realty, and Other Affiliated Services[30](index=30&type=chunk) - The company entered into a settlement for antitrust litigation for a total of **$34.0 million**. The first installment of **$17.0 million** was paid during the quarter ended June 30, 2025, with the remaining **$17.0 million** recorded as a litigation contingency accrual[77](index=77&type=chunk) - On July 24, 2025, the Board declared a quarterly cash dividend of **$0.05** per share, payable on August 29, 2025[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q2 2025 performance, noting 1% revenue growth despite a challenging real estate market, but profitability declined with an operating loss of **$2.4 million** and Adjusted EBITDA falling to **$11.2 million** from **$32.8 million** due to higher operating costs and agent-related expenses - The company's strategy is to grow organically by increasing its independent agent and broker network, supported by its cloud-based technology platform and Revenue Share Plan[89](index=89&type=chunk)[90](index=90&type=chunk) - Macroeconomic conditions, including high inflation and mortgage rates, have contributed to a slowdown in the U.S. residential real estate market, impacting the company's business[92](index=92&type=chunk)[94](index=94&type=chunk) Key Business Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Agent Count | 82,704 | 87,111 | -5% | | Real Estate Sales Transactions | 118,612 | 120,613 | -1.7% | | Real Estate Sales Volume | $52.5B | $51.9B | +1% | | Adjusted EBITDA | $11.2M | $32.8M | -66% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) For Q2 2025, revenues increased 1% to **$1.31 billion** due to higher home prices and international growth, but rising costs, including a 2% increase in commissions, 21% in general and administrative expenses (with **$6.0 million** in severance), and 22% in technology expenses, led to an operating loss of **$2.4 million** Change in Operating Expenses (Q2 2025 vs. Q2 2024) | Expense Category | Change ($ in thousands) | Change (%) | | :--- | :--- | :--- | | Commissions and other agent-related costs | $18,555 | 2% | | General and administrative expenses | $12,916 | 21% | | Technology and development expenses | $3,245 | 22% | | Sales and marketing expenses | ($170) | -6% | - The company incurred approximately **$6.0 million** in expenses during the quarter for strategic investments and severance to streamline operations and align costs with revenue trends[121](index=121&type=chunk) [Business Segment Disclosures](index=31&type=section&id=Business%20Segment%20Disclosures) In Q2 2025, North American Realty revenues were flat but Adjusted EBITDA fell **49%** to **$19.8 million**, International Realty revenues grew **59%** to **$32.3 million** but its Adjusted EBITDA loss widened to **$3.9 million**, and Other Affiliated Services saw a **52%** revenue decline and a larger Adjusted EBITDA loss Segment Performance (Q2 2025 vs Q2 2024, in thousands) | Segment | Revenue (Q2 2025) | Revenue Change | Adjusted EBITDA (Q2 2025) | Adjusted EBITDA Change | | :--- | :--- | :--- | :--- | :--- | | **North American Realty** | $1,276,487 | 0% | $19,784 | -49% | | **International Realty** | $32,293 | +59% | ($3,859) | -62% | | **Other Affiliated Services** | $708 | -52% | ($2,291) | -132% | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash on hand and operations, with net working capital stable at **$82.1 million** as of June 30, 2025, though cash from operations decreased to **$75.9 million** from **$131.8 million** due to a **$17 million** litigation payment, but existing cash is deemed sufficient for the next twelve months - Net cash provided by operating activities decreased by **$55.9 million** in the first six months of 2025 compared to 2024, primarily driven by a **$17 million** litigation payment, lower operating results, and a decrease in customer deposits[143](index=143&type=chunk) - Net cash used in financing activities decreased by **$51.7 million**, primarily due to lower stock repurchases in the first half of 2025 compared to the same period in 2024[144](index=144&type=chunk) - The company believes existing cash balances and expected cash flows from operations will be sufficient to satisfy operating requirements for at least the next twelve months[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes in its market risk exposures, which primarily relate to interest rates and foreign currency exchange rates, since the end of the fiscal year 2024 - There have been no material changes in the Company's exposures to market risk, including interest rate and foreign currency exchange rate risks, since December 31, 2024[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were concluded to be effective as of June 30, 2025. Additionally, no material changes to the company's internal control over financial reporting were identified during the quarter - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[151](index=151&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[152](index=152&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the financial statements for details on legal matters, primarily the **$34 million** antitrust litigation settlement that received preliminary court approval, with the company warning that litigation is inherently unpredictable and adverse outcomes could materially impact its financial condition - The company incorporates by reference the information on legal proceedings from Note 11 of the financial statements[153](index=153&type=chunk) - The company warns that litigation is unpredictable and could result in judgments, penalties, or settlements with liability materially in excess of accrued amounts, potentially having a material adverse effect on financial condition[154](index=154&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company outlines key risk factors, including dependency on the cyclical residential real estate market facing high interest rates, significant industry-wide changes from antitrust lawsuits and the NAR settlement impacting agent compensation, and substantial stock ownership concentration by the CEO and another major stockholder, contributing to potential stock price volatility - Profitability is tied to the residential real estate market, which is subject to macroeconomic conditions like interest rates, inflation, and consumer confidence. The market has been adversely affected by high interest rates and declining affordability in 2024 and 2025[156](index=156&type=chunk)[157](index=157&type=chunk) - Antitrust lawsuits and the NAR settlement are forcing changes to industry business practices, particularly regarding commission sharing, which could significantly impact the brokerage landscape and the company's financial results[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - The Chairman/CEO, Glenn Sanford, and a significant stockholder, Penny Sanford, beneficially own approximately **27.19%** and **17.35%** of the company's stock, respectively, giving them significant influence over corporate matters[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **2,850,130** shares of common stock at an average price of **$8.74** per share, totaling approximately **$24.9 million**, with approximately **$259.5 million** remaining available under its authorized **$1.0 billion** stock repurchase program as of June 30, 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 815,487 | $9.12 | | May 2025 | 926,787 | $8.09 | | June 2025 | 1,107,856 | $9.00 | | **Total** | **2,850,130** | **$8.74** | [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company discloses that on June 9, 2025, Randall Miles, the Vice Chair of the Board, adopted a Rule 10b5-1 trading arrangement. The plan allows for the sale of up to **240,000** shares of the company's common stock and was set to run through June 30, 2025 - On June 9, 2025, Randall Miles, Vice Chair of the Board, adopted a Rule 10b5-1 trading plan to sell up to **240,000** shares of common stock through June 30, 2025[175](index=175&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q. These include the CEO and CFO certifications required by the Sarbanes-Oxley Act, a description of compensation terms for the CFO, and the Inline XBRL interactive data files - The exhibits filed with the report include CEO and CFO certifications (**31.1**, **31.2**, **32.1**, **32.2**) and Inline XBRL data files (**101** series)[178](index=178&type=chunk)

eXp World Holdings Q2 2025 Financial Results [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights the company's resilience in a dynamic real estate market, attributing its momentum to an agent-centric model and strategic investments - The company's momentum is fueled by its agent-first model and investments in the agent value stack to attract productive agents[2](index=2&type=chunk) - International business is experiencing rapid growth with strong agent productivity, validating the platform's scalability[2](index=2&type=chunk) - There is a new strategic focus on SUCCESS® Enterprises, with the goal of expanding the brand and making it a core driver of value[2](index=2&type=chunk) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) In Q2 2025, eXp World Holdings saw a 1% increase in revenue to $1.3 billion but recorded a net loss of $2.3 million, with operational metrics showing mixed trends [Consolidated Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Financial%20Highlights) The company's revenue grew by 1% year-over-year to $1.3 billion, but it swung to a net loss of $(2.3) million, with adjusted EBITDA at $11.2 million Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.3 billion | $1.3 billion | +1% | | Net (Loss) Income | $(2.3) million | $12.4 million (income) | - | | Adjusted EBITDA | $11.2 million | $32.8 million | -65.8% | | Cash and Cash Equivalents | $94.6 million | $108.4 million | -12.7% | - Adjusted operating costs (excluding commissions) rose **20%** to **$95.0 million**, driven by strategic investments and severance[5](index=5&type=chunk) - The company made its first **$17.0 million** installment payment for its **$34.0 million** antitrust litigation settlement during the quarter[5](index=5&type=chunk) [Operational Highlights](index=2&type=section&id=Second%20Quarter%202025%20Operational%20Highlights) Operational results for Q2 2025 show mixed trends, with real estate sales volume increasing by 1% to $52.5 billion despite slight decreases in agent count and transaction volume Q2 2025 Key Operational Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Agent & Broker Count | 82,704 | ~87,057 | -5% | | Real Estate Transactions | 118,612 | ~121,033 | -2% | | Real Estate Sales Volume | $52.5 billion | ~$52.0 billion | +1% | | Agent Net Promoter Score (aNPS) | 77 | 76 | +1 pt | - The company distributed **$32.6 million** to shareholders, comprising **$24.9 million** in stock repurchases and **$7.7 million** in cash dividends[9](index=9&type=chunk) - A cash dividend of **$0.05 per share** was declared for Q3 2025, to be paid on August 29, 2025[9](index=9&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The unaudited consolidated financial statements detail the company's performance, showing a net loss for Q2 2025 and changes in assets, liabilities, and cash flows [Statements of Operations (Unaudited)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, the company reported revenues of $1.31 billion, but an increase in operating expenses led to a net loss of $(2.3) million Q2 2025 Income Statement Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $1,308,877 | $1,295,244 | | Total operating expenses | $1,311,253 | $1,276,707 | | Operating (loss) income | $(2,376) | $18,537 | | Net (loss) income | $(2,291) | $12,383 | | Diluted (loss) income per share | $(0.01) | $0.08 | [Balance Sheets (Unaudited)](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, the company's balance sheet shows total assets of $481.2 million and total liabilities of $262.9 million, with total equity increasing to $218.4 million Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $94,551 | $113,607 | | Total Current Assets | $344,957 | $267,972 | | TOTAL ASSETS | $481,246 | $390,722 | | TOTAL LIABILITIES | $262,880 | $185,853 | | TOTAL EQUITY | $218,366 | $204,869 | [Statements of Cash Flows (Unaudited)](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities was $75.9 million, with significant cash used in financing activities for stock repurchases and dividends Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $75,926 | $131,801 | | Net Cash Used in Investing Activities | $(17,207) | $(10,369) | | Net Cash Used in Financing Activities | $(44,766) | $(96,458) | | **Net change in cash** | **$16,346** | **$23,628** | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Operating Cash Flow to provide a clearer view of underlying business trends by excluding certain items - The company uses non-GAAP measures to enhance understanding of financial performance by excluding certain expenses like stock-based compensation, amortization, and litigation costs to identify underlying business trends[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) Q2 Non-GAAP Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income | $(2,291) | $11,766 | | **Adjusted EBITDA** | **$11,201** | **$32,814** | | Net Cash from Operating Activities | $36,088 | $71,147 | | **Adjusted Operating Cash Flow** | **$13,429** | **$60,440** | [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This section contains a standard safe harbor statement, warning that forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially - The press release includes forward-looking statements concerning international expansion, revenue growth, dividends, and agent growth[17](index=17&type=chunk) - These statements are subject to risks such as real estate market fluctuations, agent retention, and regulatory changes, which could cause actual results to differ materially[17](index=17&type=chunk)

Core Viewpoint - eXp Realty has officially entered the Japanese market, marking its fourth international expansion in 2025, following Peru, Turkey, and Ecuador, aiming to enhance its influence in the Asia-Pacific region and achieve its goal of 50,000 agents outside the U.S. by 2030 [1][2]. Group 1: Company Expansion - eXp Realty is the largest independent real estate brokerage globally, with nearly 81,000 agents across 28 countries [4]. - The company’s entry into Japan is seen as a significant move to disrupt the traditional real estate brokerage model, which has been characterized by limited growth opportunities for agents [1][2]. - A welcome event is scheduled for October 2, 2025, in Tokyo, where company leadership will share their vision and the significance of this expansion for agents [1]. Group 2: Leadership and Market Strategy - Ken Tanaka, a well-respected figure in the Japanese real estate market, will lead the new market initiative, bringing decades of experience and a deep understanding of local market dynamics [2]. - The company aims to provide a platform that emphasizes freedom, innovation, and growth for agents, allowing them to build their businesses in their own way [2]. Group 3: Unique Advantages - eXp Realty offers a scalable business model that supports independent agents in running efficient, high-performance businesses while also enabling the formation of large international teams [2]. - The company provides attractive commission structures, revenue sharing, and equity opportunities, which are designed to maximize agent earnings [5].

Core Insights - eXp Realty has officially expanded into Japan, marking its fourth international launch of the year after Peru, Türkiye, and Ecuador [1] - The company aims to enhance the economic model for agents in Japan, addressing structural issues in the existing brokerage system [2][5] - eXp's expansion aligns with its 2030 goal of reaching 50,000 agents outside the U.S., leveraging a scalable business model [3] Company Overview - eXp Realty is the largest independent real estate brokerage globally, with nearly 81,000 agents across 28 countries [7] - The company operates as a cloud-based, agent-centric brokerage, offering competitive commission splits, revenue share, and equity ownership opportunities [7][10] - eXp Realty provides a global network for agents, facilitating referrals and collaboration across multiple countries [10] Leadership and Market Strategy - Ken Tanaka, a seasoned professional in Japan's real estate sector, will lead the new market, focusing on modernizing the business environment for agents [4] - The company plans to host a live welcome event in Tokyo on October 2, 2025, to introduce its vision and model to local agents [2] Unique Selling Proposition - eXp Realty differentiates itself by offering agents the ability to build businesses on their own terms, promoting freedom, innovation, and growth [5] - The company emphasizes a commission structure designed to maximize agent earnings, alongside revenue share and equity opportunities [10]

Core Points - eXp World Holdings, Inc. will report its second quarter 2025 financial results on July 31, 2025 [1][3] - A virtual fireside chat and investor Q&A will be held on the same day at 2 p.m. PT / 5 p.m. ET [2][3] - The investor Q&A is open to all interested parties, and questions can be submitted in advance [1][2] Company Overview - eXp World Holdings, Inc. is the holding company for eXp Realty® and SUCCESS® Enterprises [2] - eXp Realty is the largest independent real estate brokerage globally, with nearly 81,000 agents across 27 countries [2] - The company operates as a cloud-based, agent-centric brokerage, offering industry-leading commission splits, revenue share, and equity ownership opportunities [2] - SUCCESS® Enterprises, associated with SUCCESS® magazine, provides resources for personal and professional development [2]

Core Insights - eXp Realty has welcomed Tammy Register, a prominent real estate leader from North Carolina, along with her 15-agent team and five operational staff, marking a significant addition to the company [2][3] - The Tammy Register Team achieved over $88 million in sales volume across 316 transactions in 2024, showcasing their strong performance in the real estate market [2] - eXp Realty is recognized as the largest independent real estate brokerage globally, with over 81,000 agents across 27 countries, emphasizing its expansive reach and agent-centric model [6] Company Overview - eXp Realty operates as a cloud-based brokerage, providing agents with industry-leading commission splits, revenue share, equity ownership opportunities, and a global network to support business growth [6] - The company is a subsidiary of eXp World Holdings, Inc., which also includes SUCCESS® Enterprises, a brand focused on personal and professional development [6][7] Leadership and Culture - Tammy Register's decision to join eXp Realty was influenced by the company's collaborative culture and innovative systems, which she believes will facilitate her team's growth and success [4][5] - The leadership at eXp Realty, represented by CEO Leo Pareja, values leaders like Tammy who are committed to excellence and collaboration, indicating a focus on building a legacy within the company [4]