eXp(US:EXPI)2025-11-06 21:05Revenue 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].