Core Insights - eXp Realty has welcomed The Impact Group, a prominent real estate team from Colorado, into its global network, enhancing its agent-centric model [2][3] - The Impact Group achieved $305 million in sales across 429 units in 2024, ranking first in the Denver Metro Association of Realtors for two consecutive years [2][3] - The collaboration aims to leverage eXp's extensive network and innovative strategies to improve competitive positioning and client service in a changing market [3] Company Overview - eXp World Holdings, Inc. is the parent company of eXp Realty and SUCCESS Enterprises, operating as a cloud-based, agent-centric brokerage with over 82,000 agents in 28 countries [4] - eXp Realty offers industry-leading commission splits, revenue share, equity ownership opportunities, and a global network to empower agents [4] - SUCCESS Enterprises, part of the eXp ecosystem, provides resources for personal and professional development to enhance agents' skills and business growth [4]

Core Insights - eXp Realty has welcomed Amy Tapp and her 45-person team, who closed $80 million across 350 transactions in 2024, into its global network [2][3] - Tapp's transition from her independent brokerage to eXp is aimed at enhancing collaboration, leveraging advanced technology, and providing growth opportunities for her team [3][4] - eXp Realty is recognized as the largest independent real estate brokerage globally, with over 82,000 agents across 28 countries, offering industry-leading commission splits and equity ownership opportunities [6] Company Developments - Amy Tapp, a prominent real estate leader in Lubbock, founded Amy Tapp Realty in 2012 and has extensive experience in residential, luxury, land, and investment properties [3][4] - The partnership with eXp allows Tapp to focus on mentoring her agents and expanding her business reach beyond Lubbock, while benefiting from eXp's resources and collaborative culture [4][5] - eXp Realty's model emphasizes agent empowerment through a cloud-based platform, enabling agents to build successful businesses [6][7]

Core Insights - eXp Realty has welcomed the K2 Omni Group, the 1 Zillow Seller Team in the Nation as of June 2024, into its network, indicating a strategic expansion move for eXp Realty [2][4] Company Overview - eXp Realty is a cloud-based, agent-centric brokerage and a subsidiary of eXp World Holdings, Inc., which operates globally with over 82,000 agents across 28 countries [9] - The company offers industry-leading commission splits, revenue share, equity ownership opportunities, and a global network to empower agents [9] K2 Omni Group Profile - Founded by Kiki and Kristina Salcido, Nathan Armstrong, and Berenice Holden, K2 Omni Group achieved $105 million in sales volume and completed 313 transactions in 2024 with only 22 agents [3] - The team has expanded to 56 agents and 12 support staff, with a presence in multiple markets including Albuquerque, Santa Fe, Las Cruces, Boston, Dallas-Fort Worth, Phoenix, and Tampa/Orlando [3][4] Growth and Innovation - K2 Omni Group has demonstrated significant growth and innovation since its inception, transitioning from Simply Real Estate, which was recognized for its people-first culture [4] - The rebranding to K2 Omni Group in 2024 aimed to create a national platform with larger ambitions [4] Strategic Advantages - The partnership with eXp Realty is seen as a multiplier for K2 Omni Group, providing scalable systems, compensation structures, and national reach [7] - K2 Omni Group plans to leverage eXp Realty's global platform to accelerate their expansion while maintaining their culture and service [6][8] Community Engagement - The partners of K2 Omni Group are actively involved in community initiatives, including co-founding a nonprofit dog rescue and launching a local grocery store [5]

Core Insights - eXp Realty celebrates the formation of Whissel Beer Group, a significant merger of two successful production teams led by industry leaders Kyle Whissel and Daniel Beer [1][2] - The merger is described as one of the largest in real estate history, aligning with eXp Realty's mission to be the most agent-centric brokerage [2] - Whissel Beer Group launches with 160 agents, over 60 staff, and five offices, aiming to create an innovative and scalable company [2][6] Company Overview - Whissel Beer Group is a super team formed by merging Whissel Realty Group and Daniel Beer's team, focusing on empowering agents to enhance client service and business growth [3][4] - The leadership team includes Kyle Whissel (CEO), Daniel Beer (President), and Chris VanderValk (COO), who is instrumental in the merger process [4][5] - The new operational structure is designed to eliminate roadblocks, allowing agents to concentrate on sales and client success [5] Performance Metrics - In 2024, the combined teams achieved nearly $1 billion in sales volume, ranking among the top-producing teams in the nation [3] - Over their careers, the teams have sold more than 9,000 homes, totaling over $7 billion in sales volume [3] - Whissel Beer Group is projecting significant growth in 2025, with plans to expand across California and eventually regionally and nationally [3] Industry Context - eXp Realty is the largest independent real estate brokerage globally, with over 82,000 agents across 28 countries, emphasizing a cloud-based, agent-centric model [7] - The company offers industry-leading commission splits, revenue share, and equity ownership opportunities, fostering a supportive environment for agents [7] - SUCCESS® Enterprises, part of the eXp ecosystem, provides resources for personal and professional development, enhancing agents' skills and business growth [8]

Core Insights - The Victorica Group has returned to eXp Realty after exploring offers from various brokerages, citing alignment with eXp's culture and long-term vision as key factors in their decision [4][6] - The Victorica Group is recognized as the 1 Team in SA-NAHREP, with over 100 agents and a significant production record of 900+ units closed in 2024, totaling over $103 million in sales volume [3][5] - eXp Realty emphasizes a culture that fosters collaboration and innovation, which is increasingly appealing to teams prioritizing long-term growth over short-term gains [5][6] Company Overview - eXp Realty is the largest independent real estate brokerage globally, with over 82,000 agents across 28 countries, offering industry-leading commission splits, revenue share, and equity ownership opportunities [7] - The company operates as a cloud-based, agent-centric brokerage, providing a global network that empowers agents to build successful businesses [7] - eXp World Holdings, Inc. is the parent company of eXp Realty and SUCCESS® Enterprises, which has been a trusted name in personal and professional development since 1897 [7]

Core Insights - eXp Realty has welcomed top-producing Southern California agent Vivian Lesny to its global network, highlighting its commitment to agent-centric growth and community engagement [1][3] - Lesny achieved over $70 million in sales in 2024 and has a strong track record with more than 88 transactions in a single year, ranking highly among NAHREP's Top Latino Agents [1][3] - The company emphasizes its unique capped commission model and community support as key differentiators that attract high-performing agents like Lesny [4][5] Company Overview - eXp World Holdings, Inc. is the parent company of eXp Realty and SUCCESS® Enterprises, operating as a cloud-based brokerage with over 82,000 agents across 28 countries [6] - eXp Realty is recognized as the largest independent real estate brokerage globally, offering agents competitive commission splits, revenue sharing, and equity ownership opportunities [6] - SUCCESS® Enterprises provides agents with resources for personal and professional development, enhancing their skills and business growth [7]

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].