Core Viewpoint - The U.S. housing market is currently struggling due to high interest rates, but a potential recovery is anticipated as rates begin to decline, presenting investment opportunities in companies like Douglas Elliman [1][2][6]. Company Overview - Douglas Elliman is the fifth-largest residential real estate brokerage in the U.S., with a history dating back to 1911, employing 6,600 agents across 113 offices, and specializing in high-end markets [3][4]. - The company is expanding into ultra-luxury markets in France and Monaco, indicating growth ambitions [4]. Financial Performance - In the first three quarters of 2025, Douglas Elliman generated $787.6 million in revenue, a 5% increase year-over-year, and is on track to surpass its 2024 sales total of $36.4 billion [5][10]. - The company reported a net loss of $53.3 million, a 24% reduction from the previous year's loss, but achieved adjusted EBITDA of $2.9 million, a positive swing from a loss of $12.3 million in the prior year [11]. Market Position and Valuation - Douglas Elliman's stock is trading at a price-to-sales (P/S) ratio of 0.2, significantly lower than its peak of 0.8 during the last housing boom in 2021, and cheaper than its main competitor, Compass, which has a P/S ratio of 0.7 [13]. - The stock has increased by 46% in 2025, suggesting potential for further growth given the company's financial stability and strategic investments [16]. Strategic Initiatives - The company launched Elliman Capital, an in-house mortgage platform, to assist buyers with financing, creating a new revenue stream [7]. - Douglas Elliman introduced an AI assistant, Elli AI, aimed at improving agent productivity and reducing operational costs, marking the beginning of a broader AI transformation [8].

Group 1 - eXp World Holdings experienced a significant stock increase of over 11% following a strong quarterly earnings report, outperforming the S&P 500 which only rose by 0.1% [1] - The company reported a 7% year-over-year revenue increase to $1.32 billion and achieved a net profit of almost $3.5 million ($0.02 per share), a turnaround from a loss of over $8.5 million in the previous year [2][3] - eXp exceeded analyst expectations, with projected revenue of $1.24 billion and non-GAAP per-share net income of $0.01, attributing its success to agent growth, productivity, and retention rates [3] Group 2 - Total transactions for eXp rose by 3% year-over-year, totaling 121,516, while overall sales volume increased by 7% to over $54 billion, indicating strong demand in the housing market [4][6] - The brokerage is effectively capitalizing on the high demand for homes in the country, contributing to its positive financial performance [6]

Core Insights - Nearly half of Americans (45%) are less likely to make major purchases due to the ongoing federal government shutdown, a significant increase from 21% in early October [1][2][8] - The shutdown has negatively impacted the financial situation of over a third of Americans, with 35% reporting they are worse off financially [7][9] Consumer Behavior - The percentage of Americans who are much less likely to make a major purchase has risen from 14% to 28% [2] - 21% of Americans are delaying major purchases, up from 17% in early October, while 15% have canceled plans altogether, an increase from 7% [5] - Just over half (51%) report no change in their likelihood of making a major purchase, down from 64% a month earlier [2][5] Economic Impact - The federal government shutdown, which began on October 1, is estimated by the Congressional Budget Office to potentially reduce the U.S. economy by up to $14 billion and slow growth by as much as two percentage points if it continues through the end of November [4] - Nearly half (46%) of Americans say the shutdown is having a negative impact on their lives, with 16% indicating a major negative impact [6] Financial Strain - Among those with monthly housing payments, 7% have missed a payment in the past three months, and 13% have been late [10] - 14% predict they will miss or be late on a housing payment in the next three months [10] - The most cited reason for missed or late payments is a decrease in income or income delays (34%) [13] Job Security Concerns - Approximately 33% of workers express concern about their job security, a figure that remains stable compared to previous surveys [15] - The majority (61%) of employed respondents feel confident about their job security, with 41% very confident [16]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $194 million, a 15% increase from $169 million in Q3 2024, marking the fifth consecutive quarter of year-over-year revenue growth [5][19] - Adjusted EBITDA for the quarter was $6.9 million compared to break-even in the prior year, indicating a notable return to profitability [26][27] - Net income for the quarter was $240,000, or $0.01 per share, compared to a net loss of $5.4 million, or $0.14 per share in the prior year [25][26] Business Line Data and Key Metrics Changes - Real estate brokerage commissions accounted for 84% of total revenue, or $162 million, a 14% year-over-year increase [19] - Private client transactions grew 24% in volume and 22% in transaction count, contributing 63% of brokerage revenue for the quarter [20] - Financing revenue grew 28% year-over-year to $26 million, driven by a 34% increase in transaction volume totaling $2.9 billion [22] Market Data and Key Metrics Changes - Transaction volume declined 2% to $8.4 billion, with nearly 1,600 transactions closed at an average commission rate of 1.9% [19] - The overall brokerage volume posted a 2% gain compared to a 17% increase in market volume, indicating a challenging comparison due to outsized growth in larger deals last year [9][19] - The market is still estimated to be 15%-20% below normal activity levels, with some regions closer to pre-pandemic trading velocities [46][47] Company Strategy and Development Direction - The company aims to expand market coverage through improved hiring and synergistic acquisitions, focusing on retail and industrial sectors for growth [16][17] - Continued investments in technology and talent retention are prioritized to enhance long-term competitiveness [25][40] - The auction division is gaining traction, accounting for an estimated 25% share of total commercial property auctions in the U.S. [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a new sales and financing cycle as the market resets, driven by expected interest rate reductions and improved lending conditions [14][15] - The company anticipates continued sequential improvement in business as transaction activity drivers improve, despite challenging comparisons to last year's exceptional fourth quarter [28][29] - Ongoing uncertainty around global macro conditions and inflation remains, but a more accommodative Fed is expected to drive transactional activity [28] Other Important Information - The company reported a $4 million legal reserve impacting net income, which management intends to appeal [25][26] - The balance sheet remains strong with no debt and $382 million in cash and marketable securities, reflecting a $49 million increase over the last quarter [27] Q&A Session Summary Question: Discussion on larger transaction segment dynamics - Management noted that while larger deals faced tough comparisons due to an outsized number last year, the business in the $20 million-$50 million range has remained steady [31][32] Question: Customer motivations and market alignment - Management observed increased motivation among private clients to sell due to loan maturities and operational issues, with improved price alignment in the market [35][36] Question: Auction business growth potential - The auction business is expected to grow significantly, leveraging specialized teams and pre-qualified bidders to enhance transaction efficiency [48][49] Question: Nature of litigation and future implications - Management clarified that the litigation matter is an outlier and not indicative of broader issues within the business, with strong grounds for appeal [52][53]

Q 1 2 0 2 5 Fin a n cial R e s ult s Vir t u al Fir e sid e C h a t M a y 6, 2 0 2 5 ///////// s l i d o . c o m e v e n t c o d e : # E X P I Q1 2025 Earnings Speakers WENDY FORSYTHE Chief Marketing Officer eXp Realty JESSE HILL Interim Chief Financial Officer eXp World Holdings LEO PAREJA CEO eXp Realty FELIX BRAVO Managing Director eXp International eXp World Holdings GLENN SANFORD Founder, Chairman & CEO ///////// Forward Looking Statements Within the meaning of the Private Securities Litigation Reform ...

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]

Core Insights - La Rosa Holdings Corp. has launched its annual GROWTH SUMMIT 2025, focusing on innovations in real estate technology and showcasing its proprietary agent-tech ecosystem [1][2] Company Developments - The summit features demonstrations of JAEME AI 2.0, an AI assistant designed to enhance agent efficiency and productivity [2][3] - Major upgrades to the technology stack include the launch of My Agent Account Version 4.0, which integrates transaction management to streamline processes [3] - The company has begun accepting Bitcoin and other cryptocurrencies as payment options, with plans to integrate blockchain technology for smarter contracts and secure transactions [3] Business Model and Operations - La Rosa Holdings provides flexible compensation options for agents, including a revenue-sharing model and a 100% commission structure [4] - The company operates 26 corporate-owned brokerage offices across several states and has recently expanded into Europe, starting with Spain [6] - La Rosa offers a range of services including residential and commercial real estate brokerage, franchising, education, coaching, and property management [5]

Core Insights - Flood-prone areas in the U.S. are experiencing a net outflow of residents for the first time since 2019, with high-flood-risk counties losing 29,027 more residents than they gained last year [1][2][4] Migration Trends - Major cities in coastal Florida, Texas, New York, and Louisiana are significant contributors to the national net outflow, with Miami-Dade County seeing the largest net outflow of 67,418 residents [2][3] - Harris County, TX (Houston) and Kings County, NY (Brooklyn) follow with net outflows of 31,165 and 28,158 respectively [2] - The trend of outflows has accelerated in some counties, notably Miami, which saw its net outflow increase from 50,637 in 2023 to 67,418 in 2024 [3] Factors Influencing Migration - High housing costs, climate risks, rising insurance premiums, and political factors are driving residents away from flood-prone areas [5][6] - In Miami, insurance premiums have surged, with homeowner's insurance rising from less than $2,000 to $6,700 in two years, and flood insurance increasing from around $400 to $1,250 [6] Local Impacts - Pinellas County, FL, experienced its first net outflow in many years, exacerbated by Hurricane Helene, which caused an estimated $93 million in damage [7][8] - Harris County faces multiple climate risks, including extreme heat, with 100% of homes at risk, contributing to the outflow of residents [9][10] Population Dynamics - Despite domestic outflows, many flood-prone areas continue to see overall population growth due to immigration, with Miami-Dade County's population increasing by 2.3% in 2024 [15][16] - The influx of immigrants has been affected by stricter immigration enforcement, which may impact future population trends in these areas [16] Comparative Analysis - Among the 310 high-flood-risk counties analyzed, 132 saw more people move out than in, while 178 experienced net inflows, particularly in Texas and Florida [12] - St. Johns County, FL, and Fort Bend County, TX, reported the largest net inflows of 11,661 and 10,467 respectively, indicating that affordability may play a role in migration patterns [13][14]

Anywhere Real Estate reported another quarter of muted growth despite its landmark sale to Compass. The parent company of Corcoran, Coldwell Banker, Century 21 and Sotheby’s International Realty posted a net loss of $13 million in the third quarter, a drop from its $7 million net gain from the same time last year. Revenue was up 6 percent to $1.6 billion. Anywhere slightly outpaced the market with transaction volume up 7 percent compared to last year, again driven by its luxury brand segment that grew 12 ...

Financial Data and Key Metrics Changes - Revenue in Q3 2025 increased by 23.6% year over year, reaching $1.85 billion, marking an all-time Q3 record for the company [6][23] - Adjusted EBITDA was $93.6 million, an increase of 80% from $52 million in the year-ago quarter, also representing a record level for any third-quarter period [7][27] - Free cash flow generated in Q3 was $73.6 million, a new record level for any third-quarter period, improving from $32.8 million in Q3 2024 [30][31] - GAAP net loss was $4.6 million compared to a loss of $1.7 million a year ago, but excluding deal-related expenses, net income would have been positive at $2.9 million [30] Business Line Data and Key Metrics Changes - Total transactions increased by 22%, with organic transactions up 7% year over year, significantly outpacing the overall market growth of 2% [6][23] - The company achieved a principal agent retention rate of 97.3% and added a record 851 principal agents in Q3 [7][8] - Title and escrow revenue reached record levels, with the attach rate continuing to improve year over year [5][8] Market Data and Key Metrics Changes - Market share increased to 5.6% in Q3, an increase of 83 basis points from the year-ago period [23] - Gross transaction value was $70.7 billion, reflecting a 22.5% increase from a year ago, driven by a 21.5% increase in total transactions and a 1% increase in average selling price [24] Company Strategy and Development Direction - The company is focused on a transformational merger with Anywhere Real Estate, expected to close in the second half of 2026, which is anticipated to enhance market presence and operational efficiencies [4][9] - The company aims to achieve over $300 million in net cost synergies from the merger, exceeding previous targets [15][16] - Investment in AI initiatives is a key focus, with the launch of Compass AI 2.0 expected to enhance agent productivity and operational efficiency [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to outgrow the market even post-merger, citing a strong pipeline of interested agents and a proactive approach to market changes [6][10] - The company remains committed to OPEX discipline, having reduced full-year OPEX guidance to $1 billion-$1.005 billion [32][33] - Management highlighted the positive impact of generative AI on lead generation and agent performance, positioning the company favorably in the evolving real estate landscape [19][20] Other Important Information - The company incurred $7.5 million in transaction expenses related to the Anywhere merger, which will continue to be reported separately [27] - Stock-based compensation expense was $60 million, in line with guidance, with expectations for similar levels in Q4 [29] Q&A Session Summary Question: Incremental $50 million-$75 million EBITDA - Management confirmed that the incremental EBITDA improvement is included in the guidance and will continue into the baseline for 2026 [34] Question: Uplift in Christie's attach rate - The uplift is attributed to integrating Christie's agents into the title business, enhancing collaboration and efficiency [36] Question: Integration with ChatGPT - The company has an integration with OpenAI and is seeing organic lead flow from ChatGPT, benefiting experienced agents [38][39] Question: Increasing number of agents - Confidence in adding 700-800 agents is based on a strong pipeline and positive market sentiment among real estate professionals [41][42] Question: OPEX management - The company is focused on operational efficiencies across various departments, including leveraging AI to improve productivity [60][62]