eXp(EXPI) - 2025 Q2 - Quarterly Results

eXp World Holdings Q2 2025 Financial Results Management Commentary 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] - International business is experiencing rapid growth with strong agent productivity, validating the platform's scalability[2] - 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] Q2 2025 Performance Highlights 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 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] - The company made its first $17.0 million installment payment for its $34.0 million antitrust litigation settlement during the quarter[5] Operational Highlights 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] - A cash dividend of $0.05 per share was declared for Q3 2025, to be paid on August 29, 2025[9] Consolidated Financial Statements 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) 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) 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) 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 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][13][15] 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 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] - 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]