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]

Financial Performance - Q1 2025 revenue reached $954.9 million, a 1% increase year-over-year[132] - Non-GAAP gross margin was 13%, a decrease of 70 basis points year-over-year[132] - Adjusted EBITDA was $2.2 million, an 80% decrease year-over-year[132] - Cash and equivalents totaled $115.7 million, a 6% increase year-over-year[132] - The company reported a net loss of $(11024) thousand[174] Operational Metrics - The agent count was 81,904, a 5% decrease year-over-year[132] - Real estate sales volume was $38.6 billion, a 4% increase year-over-year[132] - Real estate sales transactions numbered 89.6K, a 2% decrease year-over-year[132] Segment Results - North American Realty revenue was $923.0 million, a 0% variance year-over-year, with an adjusted EBITDA of $7.7 million, a -57% variance year-over-year[136] - International Realty revenue was $31.7 million, a 103% increase year-over-year, with an adjusted EBITDA of $(1.6) million, a 52% variance year-over-year[136] International Expansion - The company is focused on reaching 50,000 international agents in 50 countries by 2030 through strategic launches and leadership investments[28] - Peru and Türkiye were launched in March and April 2025, respectively[32, 39]

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]

Core Insights - eXp Realty held its annual conference, eXpcon Miami, attracting over 4,500 attendees and showcasing its commitment to agent-led education and advanced technology [3][5] - The conference emphasized empowering agents with innovative tools and featured significant announcements aimed at enhancing competitive advantages in the real estate market [4][6] Group 1: Major Announcements - Launch of Mira, a new AI technology platform designed to streamline agent operations and improve client experiences [7] - Introduction of eXp Sports & Entertainment division, aimed at serving high-profile clients [7] - Announcement of the FREE 8-week NeXt Agent AI Accelerator Series by eXp University, providing automation blueprints from top experts [7] - Confirmation of new international markets including Netherlands, Luxembourg, and Romania, highlighting eXp's global expansion strategy [7] - Upcoming eXpcon 2026 events planned in Cape Town, Vancouver, Paris, and Salt Lake City, promising enhanced experiences [7] Group 2: Company Overview - eXp World Holdings, Inc. is the parent company of eXp Realty and SUCCESS Enterprises, with eXp Realty being the largest independent real estate brokerage globally, boasting over 82,000 agents across 29 countries [8] - eXp Realty operates as a cloud-based, agent-centric brokerage, offering industry-leading commission splits, revenue share, and equity ownership opportunities [8]

Core Insights - eXp Realty has launched the eXp University AI Accelerator Series, a free training program aimed at helping agents integrate AI and automation into their businesses [2][3] - The program will run for eight weeks starting October 28th and will feature 11 top AI trainers [3][5] - The initiative is designed to provide agents with a competitive advantage in a rapidly evolving market by mastering technology [4][7] Program Details - The AI Accelerator Series will consist of nine live sessions focusing on practical systems for agents to delegate tasks and enhance productivity [5] - Key areas of training include AI delegation, social media marketing, automation, CRM optimization, and lead generation [6] - The program emphasizes actionable strategies rather than theoretical knowledge, aiming to drive immediate business results [5][6] Company Background - eXp Realty is a cloud-based, agent-centric brokerage with over 82,000 agents across 29 countries, offering industry-leading commission splits and revenue share opportunities [8] - The company is a subsidiary of eXp World Holdings, Inc., which also includes SUCCESS® Enterprises, a name recognized in personal and professional development since 1897 [8]

Core Insights - eXp Realty has launched eXp Sports & Entertainment, a new division aimed at enhancing real estate services for high-profile clients in the sports and entertainment sectors [2][4] - The new division provides agents with specialized certification, exclusive branding, and a global network tailored to the unique needs of clients in professional sports and entertainment [3][5] Company Overview - eXp World Holdings, Inc. is the parent company of eXp Realty and SUCCESS Enterprises, with eXp Realty being the largest independent real estate brokerage globally, boasting over 82,000 agents across 29 countries [8] - The company operates as a cloud-based, agent-centric brokerage, offering competitive commission splits, revenue sharing, and equity ownership opportunities [8] Division Features - eXp Sports & Entertainment equips certified agents with branding assets, marketing materials, and a global network to cater to high-profile clientele [5][6] - The division includes a Sports & Entertainment Certification Course, providing agents with credentials that enhance their expertise in high-profile real estate [6] - Members benefit from continuous education, networking opportunities, and access to a curated global network of professionals, including athlete advisors and entertainment attorneys [6]