Core Insights - eXp Realty has officially launched operations in Ecuador, marking a significant step in its expansion across Latin America [1][2] - The initiative is led by Kléver Guanoluisa Torres, a prominent figure in Ecuador's real estate sector, who has nearly 30 years of experience [1][2] - The move is expected to empower agents through ownership, innovative tools, and a global network, enhancing their business opportunities [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 [3] - The company operates in 27 countries with nearly 81,000 agents, providing a cloud-based, agent-centric model that includes competitive commission structures and equity opportunities [3] Leadership and Vision - Kléver Torres is recognized as a leading figure in Ecuador's real estate industry, and his joining eXp signifies a shift among industry leaders towards models that empower agents [2] - Torres emphasizes that eXp offers essential elements for agent success, including leadership freedom, scalable tools, and a community for collective growth [2]

Core Insights - eXp Realty has officially launched operations in Ecuador, marking a significant step in its expansion across Latin America [1] - The expansion is led by Kléver Guanoluisa Torres, a prominent figure in Ecuador's real estate sector with nearly 30 years of experience [2][3] - eXp Realty's model focuses on empowering agents through ownership, innovation, and a global network, which is appealing to industry leaders [3][4] Company Overview - eXp Realty is the largest independent real estate brokerage globally, with over 81,000 agents across 27 countries [6] - The company operates a cloud-based, agent-centric brokerage model that offers competitive commission structures, equity ownership, and revenue share opportunities [4][6] - eXp Realty 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 Vision - Kléver Guanoluisa Torres is recognized for his leadership in the Ecuadorian real estate community and has trained over 2,000 agents across Latin America [2][3] - His transition to eXp Realty is seen as a commitment to enhancing the future of real estate professionals in Ecuador [3][4] - The company aims to provide agents with the necessary tools and community support to thrive in their careers [4]

BELLINGHAM, Wash., May 15, 2025 (GLOBE NEWSWIRE) -- Vija Williams, one of the most respected thought leaders and insiders in the real estate industry, is joining eXp Realty, marking a pivotal moment in her impressive 20+ year career. Currently the Head of Industry at PLACE and co-owner of Seattle-based Vija Real Estate, Williams is launching a bold new initiative at eXp: the UPGRADE community. “This is more than a move, it’s a mission,” said Williams. “I’m joining eXp Realty to build the UPGRADE community ...

Core Insights - eXp Realty has launched its Land & Ranch Division to cater to the increasing demand for rural, recreational, and agricultural properties, positioning itself as a leader in this niche market [1][3] - The new division aims to provide agents with advanced tools and resources to enhance their business operations and client experiences, setting a new industry standard [2][4] 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 81,000 agents across 26 international locations [5] - The company operates as a cloud-based, agent-centric brokerage, offering competitive commission splits, revenue sharing, equity ownership opportunities, and a global network for agents [5] Features of the Land & Ranch Division - The division offers a custom-branded identity package for agents, including brochures and signage, to help them establish expertise in the market [7] - Listings will receive luxury-level exposure through syndication across top-tier platforms and premium publications, enhancing visibility for agents [7] - The platform includes a comprehensive suite of tools such as unified dashboards, automated seller reports, and seamless integration with design tools to boost agent productivity [7] - Agents will benefit from a community of specialists through networking events, masterminds, and certification programs, fostering collaboration and referrals [7]

EXp World Holdings (EXPI) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of $0.05. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -140%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.03, delivering no surprise.Over the last four quarters, the company has not been able to surpass ...

Financial Data and Key Metrics Changes - The company generated $954.9 million in revenue for Q1 2025, reflecting a 4% increase in real estate sales volume driven by higher home sales prices and increased productivity in the international segment [44] - The agent count decreased to 81,904, but there was an increase in transactions per agent, indicating the retention of high-performing agents [44] - Non-GAAP gross margin was 13%, down 70 basis points year-over-year, while GAAP gross margin was 8%, down 30 basis points year-over-year [46][47] - Adjusted EBITDA was $2.2 million, down year-over-year due to margin compression and increased investments in the agent value stack [47] Business Line Data and Key Metrics Changes - North America Realty segment generated $923 million in revenue with an adjusted EBITDA of $7.7 million, remaining the largest revenue and profit generator [49] - International segment revenue increased by 103% year-over-year, with a significant narrowing of adjusted EBITDA loss, improving by 52% year-over-year [50] - The affiliated services segment, primarily success, showed modest revenue growth with an adjusted EBITDA loss of $1.5 million [50] Market Data and Key Metrics Changes - The company launched operations in Peru and Turkey, with plans for Egypt, aiming for 50,000 agents across 50 countries by 2030 [15][19] - The international expansion strategy has been refined to include localized marketing and partnerships, leading to successful launches and agent onboarding [16][19] Company Strategy and Development Direction - The company aims to build the most agent-centric real estate brokerage globally, focusing on interconnected platform business units [7][11] - Investments in technology and AI are emphasized, with a belief that returns will manifest in future periods [10][11] - The strategy includes a focus on high-income and emerging markets, utilizing self-managed regional teams for scalability [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough macroeconomic environment but expressed confidence in the company's ability to attract and retain high-performing agents [44][48] - The leadership team is actively reviewing expenses and building plans for more efficient operations in the latter half of 2025 [48][80] - The company is focused on leveraging AI and automation to enhance operational efficiency and reduce costs [78][80] Other Important Information - The company was recognized as the number one company in the U.S. by transactions for the third consecutive year and ranked 18th on USA Today's top workplaces list [30][31] - The introduction of the cosponsorship program aims to enhance agent collaboration and support, driving growth and connections among agents [27][75] Q&A Session Summary Question: Can you share more details on how eXp is leveraging AI now and what an enabled eXp platform might look like in the future? - The company has been pivoting towards rapid changes with AI, utilizing tools from OpenAI and Google Workspace to enhance operations and tech stack development [57][59] Question: What did you learn about opening new countries, and how do today's launches differ from a year ago? - The company has evolved its approach to international launches by focusing on local leadership, understanding market pain points, and leveraging technology for streamlined operations [64][66] Question: Can you dive deeper into the agent count trends? - The company continues to retain productive agents, with a focus on teams that are 67% more productive than individual agents, leading to improved agent attrition metrics [69][70] Question: What are agents saying about the cosponsored program? - Agents are excited about the cosponsor program, which fosters collaboration and connections, enhancing growth opportunities for both new and existing agents [73][75] Question: How should we think about operating expenses for the remainder of the year? - The company does not flex costs dramatically but can adjust spending in specific areas based on market conditions, focusing on efficiency and automation to improve unit economics [76][80]

Financial Data and Key Metrics Changes - The company generated $954.9 million in revenue for Q1 2025, a 4% increase in real estate sales volume driven by higher home sales prices and increased productivity in the international segment [43][54] - The agent count decreased to 81,904, but there was an increase in transactions per agent, indicating the retention of high-performing agents [43][54] - Non-GAAP gross margin was 13%, down 70 basis points year-over-year, while GAAP gross margin was 8%, down 30 basis points year-over-year [44][45] - Adjusted EBITDA was $2.2 million, down year-over-year due to margin compression and increased investments in the agent value stack [46][54] - Cash position improved by 6% year-over-year, ending the quarter with $115.7 million [48][54] Business Line Data and Key Metrics Changes - North America Realty segment generated $923 million in revenue with an adjusted EBITDA of $7.7 million, remaining the largest revenue and profit generator [48] - International segment revenue increased by 103% year-over-year, with a significant narrowing of adjusted EBITDA loss, improving by 52% year-over-year [49][54] - The affiliated services segment, primarily success, showed modest revenue growth with an adjusted EBITDA loss of $1.5 million [49] Market Data and Key Metrics Changes - The company launched operations in Peru and Turkey, with plans for Egypt, aiming for 50,000 agents across 50 countries by 2030 [14][18] - The international expansion strategy has been refined to include localized marketing and partnerships, leading to successful launches [15][18] Company Strategy and Development Direction - The company aims to build the most agent-centric real estate brokerage globally, focusing on a platform that integrates various business units [10][11] - Investments in technology and AI are prioritized to enhance productivity and operational efficiency, with a focus on long-term returns [9][10] - The company is adopting a self-managed, regionalized team structure to improve accountability and agility in international markets [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough macroeconomic environment but expressed confidence in the company's ability to attract and retain high-performing agents [43][54] - The leadership team is actively reviewing expenses and building plans for more efficient operations in the latter half of 2025 [47][80] - The company is focused on leveraging AI and automation to improve operational efficiencies and unit economics [78][79] Other Important Information - The company was named the number one real estate company in the U.S. by transactions for the third consecutive year [29] - The company received recognition as a top workplace by USA Today, ranking 18th based on employee feedback [30] Q&A Session Summary Question: How is eXp leveraging AI now and what might the enabled platform look like in the future? - The company has been pivoting towards rapid changes with AI, utilizing tools from OpenAI and Google Workspace to enhance operations and tech stack development [57][59][62] Question: What have been the learnings from opening new countries and how have launches changed? - The company has evolved its approach to international launches by focusing on local leadership, understanding market pain points, and leveraging technology for streamlined operations [64][66] Question: Can you elaborate on the agent count trends? - The company continues to retain productive agents, with a 22% improvement in agent attrition quarter-over-quarter, indicating a focus on high-performing teams [70][71] Question: What feedback are agents giving about the cosponsored program? - Agents are excited about the cosponsored program, which fosters collaboration and growth by connecting agents with varying levels of experience and resources [73][75] Question: How should we think about operating expenses for the remainder of the year? - The company does not flex its cost structure dramatically but is focused on efficiency and examining unit economics to find opportunities for cost savings [76][80]

BELLINGHAM, Wash., May 06, 2025 (GLOBE NEWSWIRE) -- eXp World Holdings, Inc. (Nasdaq: EXPI), “eXp” or the “Company”, “the most agent-centric™” real estate brokerage on the planet and the core subsidiary of eXp World Holdings, Inc., today announced financial results for the first quarter ended March 31, 2025. “We’re entering 2025 from a position of strength. eXp has built one of the most comprehensive, tech-enabled agent value stack in the industry – one that’s driving record International agent productivit ...

PART I – FINANCIAL INFORMATION This part presents the company's unaudited interim financial statements and management's analysis of financial performance and condition [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 quarter ended March 31, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Details the company's assets, liabilities, and equity at the end of the reporting period compared to the prior year-end Condensed Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $ 115,655 | $ 113,607 | | Restricted cash | $ 66,569 | $ 54,981 | | Accounts receivable, net | $ 104,045 | $ 87,692 | | TOTAL CURRENT ASSETS | $ 300,924 | $ 267,972 | | TOTAL ASSETS | $ 435,783 | $ 390,722 | | **LIABILITIES** | | | | Accounts payable | $ 10,109 | $ 10,478 | | Customer deposits | $ 67,345 | $ 55,660 | | Accrued expenses | $ 112,111 | $ 85,661 | | Litigation contingency | $ 34,000 | $ 34,000 | | TOTAL CURRENT LIABILITIES | $ 223,803 | $ 185,853 | | TOTAL LIABILITIES | $ 223,803 | $ 185,853 | | **EQUITY** | | | | TOTAL EQUITY | $ 211,980 | $ 204,869 | [Condensed Consolidated Statements of Comprehensive (Loss)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20(LOSS)) Summarizes revenues, expenses, and net loss for the reporting period compared to the prior year period Condensed Consolidated Statements of Comprehensive (Loss) (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :----------- | :----------- | | Revenues | $ 954,906 | $ 943,054 | | Total operating expenses | $ 965,282 | $ 961,228 | | Operating (loss) income | $ (10,376) | $ (18,174) | | (Loss) income before income tax expense | $ (9,353) | $ (17,135) | | Income tax (benefit) expense | $ 1,671 | $ (3,305) | | Net (loss) income | $ (11,024) | $ (15,639) | | Basic, net (loss) income per share | $ (0.07) | $ (0.10) | | Diluted, net (loss) income per share | $ (0.07) | $ (0.10) | | Comprehensive (loss) | $ (10,711) | $ (16,528) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY) Outlines the changes in stockholders' equity during the reporting period, including stock repurchases and dividends Condensed Consolidated Statements of Stockholders' Equity (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :-------------------------------- | :----------- | :----------- | | Treasury stock, beginning of period | $ (686,680) | $ (545,559) | | Repurchases of common stock | $ (4,982) | $ (33,032) | | Additional paid-in capital, end of period | $ 993,164 | $ 841,576 | | Net (loss) income | $ (11,024) | $ (15,639) | | Dividends declared and paid | $ (7,602) | $ (7,585) | | Total equity, end of period | $ 211,980 | $ 222,437 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Reports the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :---------------------------------------- | :----------- | :----------- | | Net (loss) income | $ (11,024) | $ (15,639) | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $ 39,838 | $ 60,654 | | NET CASH USED IN INVESTING ACTIVITIES | $ (14,247) | $ (5,245) | | NET CASH USED IN FINANCING ACTIVITIES | $ (12,284) | $ (40,809) | | Net change in cash, cash equivalents and restricted cash | $ 13,636 | $ 14,011 | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | $ 182,224 | $ 183,904 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of the accounting policies and specific items in the financial statements [1. Description of Business and Basis of Presentation](index=8&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) The company operates a diversified portfolio of service-oriented businesses focused on real estate brokerage operations - eXp World Holdings, Inc operates a diversified portfolio of service-oriented businesses, primarily focusing on expanding real estate brokerage operations through an advanced technology platform[25](index=25&type=chunk) - The company is managed as **three reportable segments**: North American Realty, International Realty, and Other Affiliated Services[29](index=29&type=chunk) [2. Summary of Significant Accounting Policies](index=8&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines the key accounting principles and estimates used in preparing the financial statements - The financial statements are prepared in accordance with **U.S. GAAP** for interim financial information and include accounts of eXp and its consolidated subsidiaries[26](index=26&type=chunk)[30](index=30&type=chunk) - Management makes estimates and assumptions for financial reporting, including **credit losses, legal contingencies, and revenue recognition**[33](index=33&type=chunk) Reconciliation of Cash, Cash Equivalents, and Restricted Cash (in thousands) | Metric | March 31, 2024 | December 31, 2024 | March 31, 2025 | | :---------------------- | :------------- | :---------------- | :------------- | | Cash and cash equivalents | $ 109,169 | $ 113,607 | $ 115,655 | | Restricted cash | $ 74,735 | $ 54,981 | $ 66,569 | | Total | $ 183,904 | $ 168,588 | $ 182,224 | [3. Expected Credit Losses](index=9&type=section&id=3.%20EXPECTED%20CREDIT%20LOSSES) Details the methodology for estimating current expected credit losses on receivables - The Company estimates current expected credit losses (CECL) using an **aging schedule method** for various receivable categories[37](index=37&type=chunk) Receivables and Expected Credit Losses (in thousands) | Category | March 31, 2025 (Receivables) | March 31, 2025 (ECL) | December 31, 2024 (Receivables) | December 31, 2024 (ECL) | | :------------------------------------- | :--------------------------- | :------------------- | :------------------------------ | :---------------------- | | Real estate property settlements | $ 97,775 | $ 24 | $ 82,300 | $ 34 | | Agent non-commission based fees & short-term advances | $ 8,461 | $ 2,170 | $ 6,980 | $ 1,555 | [4. Property and Equipment, Net](index=9&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT,%20NET) Presents the breakdown and changes in the company's property and equipment assets - Depreciation expense for the three months ended March 31, 2025, was **$1,945 thousand**, a decrease from $2,059 thousand in the same period of 2024[40](index=40&type=chunk) Property and Equipment, Net (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Computer hardware and software | $ 46,048 | $ 44,079 | | Furniture, fixture, and equipment | $ 2,205 | $ 2,205 | | Total depreciable property and equipment | $ 48,253 | $ 46,284 | | Less: accumulated depreciation | $ (37,220) | $ (35,262) | | Depreciable property and equipment, net | $ 11,033 | $ 11,022 | | Assets under development | $ 1,176 | $ 593 | | Property and equipment, net | $ 12,209 | $ 11,615 | [5. Goodwill and Intangible Assets](index=10&type=section&id=5.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Discloses the carrying amounts and changes in goodwill and other intangible assets - **Goodwill increased slightly to $17,263 thousand** as of March 31, 2025, from $17,226 thousand at December 31, 2024[41](index=41&type=chunk) - Amortization expense for definite-lived intangible assets was **$616 thousand** for the three months ended March 31, 2025, an increase from $340 thousand in the prior year period[43](index=43&type=chunk) Intangible Assets, Net (in thousands) | Category | March 31, 2025 (Net Carrying Amount) | December 31, 2024 (Net Carrying Amount) | | :---------------------- | :----------------------------------- | :-------------------------------------- | | Trade name | $ 1,026 | $ 1,099 | | Existing technology | $ 2,825 | $ 2,785 | | Non-competition agreements | $ 155 | $ 189 | | Customer relationships | $ 1,371 | $ 1,508 | | Licensing agreement | $ - | $ - | | Intellectual property | $ 874 | $ 875 | | Total intangible assets | $ 6,251 | $ 6,456 | [6. Stockholders' Equity](index=10&type=section&id=6.%20STOCKHOLDERS'%20EQUITY) Details components of stockholders' equity, including common stock programs and share repurchases - The Agent Equity Program (AEP) allows agents to receive 5% of commissions in common stock, with the **discount changed from 10% to 5%** as of March 1, 2024[45](index=45&type=chunk) - The Agent Growth Incentive Program (AGIP) awards common stock to agents based on attraction and performance benchmarks, with awards typically vesting after three years of service[47](index=47&type=chunk) - The Board approved an increase to the Stock Repurchase Program from $500.0 million to **$1.0 billion** in June 2023, with **$4,982 thousand** in shares repurchased in Q1 2025[54](index=54&type=chunk)[57](index=57&type=chunk) Common Stock Issued (Shares) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Balance, beginning of period | 195,028,207 | 183,606,708 | | Shares issued for stock options exercised | 56,412 | 211,158 | | Agent growth incentive stock-based compensation | 446,657 | 353,688 | | Agent equity stock-based compensation | 2,004,995 | 2,189,922 | | Balance, end of period | 197,536,271 | 186,361,476 | [7. Segment Information](index=14&type=section&id=7.%20SEGMENT%20INFORMATION) Provides financial data for the company's three reportable operating segments - The Company operates three reportable segments: **North American Realty, International Realty, and Other Affiliated Services**, with performance evaluated based on revenues and Adjusted Segment EBITDA[59](index=59&type=chunk)[60](index=60&type=chunk)[63](index=63&type=chunk) Segment Revenues (in thousands) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------ | :-------------------------------- | :-------------------------------- | | North American Realty | $ 923,048 | $ 927,137 | | International Realty | $ 31,657 | $ 15,596 | | Other Affiliated Services | $ 827 | $ 1,788 | | Consolidated revenues | $ 954,906 | $ 943,054 | Adjusted Segment EBITDA (in thousands) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------ | :-------------------------------- | :-------------------------------- | | North American Realty | $ 7,736 | $ 17,807 | | International Realty | $ (1,615) | $ (3,355) | | Other Affiliated Services | $ (1,455) | $ (767) | | Corporate expenses and other | $ (2,509) | $ (2,643) | | Consolidated Adjusted EBITDA | $ 2,157 | $ 11,042 | [8. Earnings Per Share](index=15&type=section&id=8.%20EARNINGS%20PER%20SHARE) Presents the calculation of basic and diluted earnings per share from continuing operations - Total outstanding shares of common stock excluded from diluted EPS computation due to anti-dilutive effect were **3,424,959 shares in Q1 2025** and 3,212,244 shares in Q1 2024[66](index=66&type=chunk) Earnings Per Share (Three Months Ended March 31, 2025 vs. 2024) | Metric | 2025 | 2024 | | :----------------------------------------- | :----------- | :----------- | | Net (loss) income from continuing operations | $ (11,024) | $ (13,830) | | Weighted average shares - basic | 154,738,167 | 154,740,334 | | Net (loss) income from continuing operations per share - basic | $ (0.07) | $ (0.09) | | Net (loss) income from continuing operations per share - diluted | $ (0.07) | $ (0.09) | [9. Income Taxes](index=16&type=section&id=9.%20INCOME%20TAXES) Explains the components of income tax expense and the effective tax rate - The effective tax rate differs from statutory rates primarily due to the **foreign and domestic mix of earnings and stock-based compensation**[67](index=67&type=chunk) Income Tax Expense (Benefit) and Effective Tax Rates | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Income tax (benefit) expense (in thousands) | $ 1,671 | $ (3,305) | | Effective tax rate | (17.9)% | 18.0% | [10. Fair Value Measurement](index=16&type=section&id=10.%20FAIR%20VALUE%20MEASUREMENT) Discloses the fair value of financial assets and liabilities categorized by valuation methodology - The Company holds money market funds, classified as **Level 1 assets**, with fair values of **$33,800 thousand** as of March 31, 2025[69](index=69&type=chunk) - In the first quarter of 2025, the Company acquired **$11,000 thousand of Level 3 assets** at fair value[71](index=71&type=chunk) [11. Commitments and Contingencies](index=17&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) Describes significant legal proceedings, commitments, and potential liabilities - The Company is subject to various legal actions, with a **$34,000 thousand litigation contingency accrual** recorded for a U.S. antitrust settlement[72](index=72&type=chunk)[73](index=73&type=chunk) - The U.S. antitrust settlement resolves claims nationwide against the Company and its agents, with the settlement amount to be deposited in installments[73](index=73&type=chunk)[74](index=74&type=chunk) - The Company continues to defend against a Canadian antitrust lawsuit and a derivative lawsuit, with **no accruals recorded** for these matters as of March 31, 2025[75](index=75&type=chunk)[76](index=76&type=chunk) [12. Subsequent Events](index=18&type=section&id=12.%20SUBSEQUENT%20EVENTS) Reports material events that occurred after the balance sheet date but before the financial statements were issued - On May 5, 2025, the Board declared a cash dividend of **$0.05 per share**, payable on June 4, 2025[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and key business drivers [Overview](index=18&type=section&id=OVERVIEW) Describes the company's cloud-based real estate brokerage model, agent-centric value proposition, and growth strategy - eXp World Holdings, Inc operates a cloud-based real estate brokerage offering an **agent-centric commission structure, revenue sharing, and agent equity opportunities**[80](index=80&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) - The **Sustainable Revenue Share Plan** is critical for attracting and retaining productive agents by providing supplementary income[85](index=85&type=chunk)[86](index=86&type=chunk) [Market Conditions and Industry Trends](index=19&type=section&id=MARKET%20CONDITIONS%20AND%20INDUSTRY%20TRENDS) Discusses the impact of macroeconomic factors and real estate market trends on the company's business - The business is highly dependent on home sales transactions and prices, influenced by **economic growth, interest rates, and consumer confidence**[87](index=87&type=chunk)[88](index=88&type=chunk) - Current challenging market conditions include rising inflation and **higher mortgage interest rates (6.7% in March 2025)**[89](index=89&type=chunk)[92](index=92&type=chunk) - Existing home sales transactions **decreased by 2.4%** to an annual rate of 4.0 million in March 2025, while the average price **increased by 2.7%** to $403,700[94](index=94&type=chunk) - Housing inventory **increased to 4.0 months** in March 2025 from 3.2 months in March 2024[91](index=91&type=chunk)[93](index=93&type=chunk) [Key Business Metrics](index=20&type=section&id=KEY%20BUSINESS%20METRICS) Presents and analyzes key performance indicators used to evaluate the business - **Agent NPS increased to 78** in Q1 2025 from 73 in Q1 2024, indicating improved agent satisfaction[99](index=99&type=chunk)[100](index=100&type=chunk) - **Agent count declined by 5%** in Q1 2025, primarily due to off-boarding less productive agents[102](index=102&type=chunk) - Real estate per transaction cost **increased by 13%** due to higher personnel, litigation, and technology costs[106](index=106&type=chunk) Key Business Metrics (Three Months Ended March 31, 2025 vs. 2024) | Metric | 2025 | 2024 | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | | Agent NPS | 78 | 73 | +6.8% | | Agent count | 81,904 | 85,780 | -4.5% | | Real estate sales transactions | 89,643 | 91,780 | -2.3% | | Real estate sales volume | $ 38,641,084 | $ 37,154,750 | +4.0% | | Other real estate transactions | 18,015 | 19,196 | -6.2% | | Real estate per transaction cost | $ 734 | $ 650 | +12.9% | | Revenues | $ 954,906 | $ 943,054 | +1.3% | | Operating (loss) | $ (10,376) | $ (18,174) | +42.9% | | Adjusted EBITDA | $ 2,157 | $ 11,042 | -80.5% | [Results of Operations](index=23&type=section&id=RESULTS%20OF%20OPERATIONS) Provides a detailed analysis of the company's financial results for the quarter - **Revenues increased 1%** due to higher home sales prices and increased international transactions[107](index=107&type=chunk)[111](index=111&type=chunk) - **Operating loss improved by 43% to ($10.4) million** in Q1 2025, primarily due to the absence of the $16 million litigation contingency accrual present in Q1 2024[108](index=108&type=chunk)[111](index=111&type=chunk) - **Adjusted EBITDA decreased by 80% to $2.2 million**, driven by increased agent commissions and higher operating costs[109](index=109&type=chunk)[111](index=111&type=chunk) Statement of Operations Data (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | :--------- | | Revenues | $ 954,906 | $ 943,054 | $ 11,852 | 1% | | Commissions and other agent-related costs | $ 878,771 | $ 864,746 | $ 14,025 | 2% | | General and administrative expenses | $ 66,871 | $ 62,582 | $ 4,289 | 7% | | Technology and development expenses | $ 16,805 | $ 14,761 | $ 2,044 | 14% | | Sales and marketing expenses | $ 2,835 | $ 3,139 | $ (304) | (10)% | | Litigation contingency | $ - | $ 16,000 | $ (16,000) | (100)% | | Operating (loss) income | $ (10,376) | $ (18,174) | $ 7,798 | 43% | | Net (loss) income | $ (11,024) | $ (15,639) | $ 4,615 | 30% | | Adjusted EBITDA | $ 2,157 | $ 11,042 | $ (8,885) | (80)% | [Business Segment Disclosures](index=25&type=section&id=BUSINESS%20SEGMENT%20DISCLOSURES) Analyzes the financial performance of each of the company's business segments - **North American Realty** revenues slightly decreased, and Adjusted EBITDA decreased by 57% due to lower sales volumes and increased costs[119](index=119&type=chunk) - **International Realty revenues surged by 103%**, and Adjusted International EBITDA improved by 52% due to increased transactions and better efficiencies[120](index=120&type=chunk) - **Other Affiliated Services revenues decreased by 54%** due to lower SUCCESS® Magazine revenues, leading to a 90% decrease in Adjusted EBITDA[121](index=121&type=chunk) [Non-U.S. GAAP Financial Measures](index=26&type=section&id=NON-U.S.%20GAAP%20FINANCIAL%20MEASURES) Defines and reconciles non-U.S. GAAP financial measures, such as Adjusted EBITDA, to their closest U.S. GAAP equivalents - **Adjusted EBITDA** is a non-U.S. GAAP measure used to evaluate core operating performance, excluding items like stock-based compensation and litigation contingency[122](index=122&type=chunk)[123](index=123&type=chunk) Reconciliation of Adjusted EBITDA to Net (Loss) Income from Continuing Operations (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) income from continuing operations | $ (11,024) | $ (13,830) | | Total other (income) expense, net | $ (1,023) | $ (1,039) | | Income tax (benefit) expense | $ 1,671 | $ (3,305) | | Depreciation and amortization | $ 2,561 | $ 2,399 | | Litigation contingency | $ - | $ 16,000 | | Stock-based compensation expense | $ 8,119 | $ 8,827 | | Stock option expense | $ 1,853 | $ 1,990 | | Adjusted EBITDA | $ 2,157 | $ 11,042 | [Liquidity and Capital Resources](index=26&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Assesses the company's ability to meet its short-term and long-term financial obligations - Primary liquidity sources are **cash and cash equivalents and cash flows from operations**, which are believed to be sufficient for the next twelve months[126](index=126&type=chunk)[129](index=129&type=chunk) - **Net working capital decreased by $5.0 million (6%)** to $77,121 thousand as of March 31, 2025[130](index=130&type=chunk) - **Net cash provided by operating activities decreased by $20.8 million** to $39,838 thousand in Q1 2025, driven by lower operating results[131](index=131&type=chunk) - Net cash used in investing activities increased to $14,247 thousand, while net cash used in financing activities **decreased by $28.5 million** due to lower stock repurchases[132](index=132&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Highlights the accounting policies and estimates that are most critical to the company's financial reporting - There were **no material changes** to the critical accounting policies or estimates as reflected in the 2024 Annual Report[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states there have been no material changes in the company's exposure to market risk since December 31, 2024 - **No material changes** in market risk exposure since December 31, 2024, with details available in the 2024 Annual Report[136](index=136&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025 - Management concluded that disclosure controls and procedures were **effective at the reasonable assurance level** as of March 31, 2025[138](index=138&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect internal control[139](index=139&type=chunk) PART II – OTHER INFORMATION This part contains disclosures on legal proceedings, risk factors, stock repurchases, and other required information [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 for details on legal proceedings and their potential material adverse effects - Legal proceedings are **inherently unpredictable** and could result in judgments, penalties, or settlements materially in excess of accrued amounts[141](index=141&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks affecting the company, including market dependence and significant stockholder influence - The company's profitability is closely tied to the **strength of the residential real estate market**, which is cyclical and affected by macroeconomic conditions[143](index=143&type=chunk) - Glenn Sanford and Penny Sanford beneficially own approximately **27.19% and 17.35% of the common stock**, respectively, allowing them to significantly influence management decisions[144](index=144&type=chunk) - The company's stock price has been and is **likely to remain volatile** due to various factors, including operating performance and market conditions[145](index=145&type=chunk)[147](index=147&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its $1.0 billion stock repurchase program - As of March 31, 2025, approximately **$284,128,314 remained authorized for repurchase** under the $1.0 billion stock repurchase program[148](index=148&type=chunk) Issuer Purchases of Equity Securities (Quarter Ended March 31, 2025) | Period | Total number of shares purchased | Average price paid per share | | :---------------- | :------------------------------- | :--------------------------- | | 1/1/2025-1/31/2025 | 132,475 | $ 11.29 | | 2/1/2025-2/28/2025 | 138,715 | $ 10.79 | | 3/1/2025-3/31/2025 | 201,129 | $ 9.91 | | Total | 472,319 | $ 10.66 | [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - **No defaults** upon senior securities occurred[149](index=149&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable**[150](index=150&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section reports no adoption or termination of Rule 10b5-1 trading arrangements by directors or officers - **No directors or officers** adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025[151](index=151&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents and certifications - The exhibits include the Restated Certificate of Incorporation and Bylaws, offer letter amendments, and various **Equity Incentive Plans**[153](index=153&type=chunk) - **Certifications from the CEO and Interim CFO** pursuant to Rule 13a-14(a) and 18 U.S.C. 1350 are also included[153](index=153&type=chunk)[154](index=154&type=chunk)

Exhibit 99.1 eXp World Holdings Reports Q1 2025 Results BELLINGHAM, Wash. — May 6, 2025 — eXp World Holdings, Inc. (Nasdaq: EXPI), "eXp" or the "Company", "the most agent-centric™" real estate brokerage on the planet and the core subsidiary of eXp World Holdings, Inc., today announced financial results for the first quarter ended March 31, 2025. "We're entering 2025 from a position of strength. eXp has built one of the most comprehensive, tech-enabled agent value stack in the industry – one that's driving r ...