After weighing industry-wide offers, the Victorica Group returns to eXp for its culture and long-term vision. BELLINGHAM, Wash., Aug. 25, 2025 (GLOBE NEWSWIRE) -- eXp Realty®, “the most agent-centric™ real estate brokerage on the planet”™ and the core subsidiary of eXp World Holdings, Inc. (Nasdaq: EXPI), today announced the return of the Victorica Group, a mega real estate team recognized as the #1 Team in SA-NAHREP. With a network of over 100 agents that closed 900+ units in 2024, a Mega Team of 30 agent ...

Core Insights - The article highlights that economic pressures and high costs are suppressing spring home sales in the U.S. real estate market [1] - An increase in new listings is noted, allowing some buyers to secure better deals [1] Group 1: Economic Impact - Economic tensions are affecting consumer confidence and purchasing power, leading to a slowdown in home sales [1] - High costs associated with home buying are further contributing to the decline in sales activity [1] Group 2: Market Dynamics - The number of new listings is on the rise, indicating a potential shift in market conditions [1] - Some buyers are benefiting from the increased inventory, which is providing them with more options and negotiating power [1]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $145 million, a 12% increase compared to $129 million in the prior year quarter [17] - Adjusted EBITDA was negative $8.7 million, reflecting a 13% improvement over the previous year [6][21] - The company reported a net loss of $4.4 million or $0.11 per share, an improvement from a net loss of $10 million or $0.26 per share in the prior year [21] Business Line Data and Key Metrics Changes - Brokerage revenue accounted for 85% of total revenue, amounting to $124 million, which is a 13% year-over-year increase [17] - Private client transactions represented 63% of revenue, totaling $78 million, compared to 67% and $73 million last year [18] - Financing revenue grew 26% to $18 million, driven by a 16% increase in volume and a 12% increase in the average commission rate [19] Market Data and Key Metrics Changes - The first quarter saw an 18% growth in transaction volume, totaling $6.7 billion across 1,175 transactions [17] - The average transaction size increased to $5.7 million from $5.1 million a year ago, indicating a shift towards middle and larger transactions [18] - The company noted that the private client segment faced challenges due to tightened underwriting and a lingering bid-ask spread [8] Company Strategy and Development Direction - The company is focused on strategic investments in technology, talent acquisition, and expanding its brand to navigate market disruptions [10][12] - Management emphasized the importance of recruiting experienced professionals and teams to mitigate turnover and enhance market coverage [15] - The company is exploring potential strategic acquisitions in core and adjacent business lines to drive growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding a sustained market recovery, citing strong economic fundamentals and low unemployment as potential catalysts [10][11] - The company anticipates a continued recovery in transactional activity for the year, albeit at a moderated pace until there is greater clarity on trade and tax policies [25] - Management highlighted ongoing investments in systems and talent as positioning the company well for future growth [26] Other Important Information - The company declared a semiannual dividend of $0.25 per share, totaling approximately $10 million [24] - The company has repurchased nearly 174,000 shares for $5.4 million, with $66 million remaining on the current share repurchase authorization [24] Q&A Session Summary Question: Insights on client sentiment regarding different product types - Management noted consistent enthusiasm for retail properties, with improvements in both multi-tenant and single-tenant demand [28] - Multifamily properties are experiencing a bifurcation, with smaller multifamily transactions facing challenges while larger multifamily transactions are more active [29] Question: Geographical distinctions based on recent tariff announcements - Management observed consistent trends across the country, with growth markets like Georgia, Florida, and Texas attracting investor interest due to migration [31] Question: Rating of Southern California among markets - Management indicated that California is showing signs of recovery, with increased capital interest despite local political issues [33] Question: Foreign investment sentiment - Management stated that foreign investments have not significantly impacted the commercial real estate market, with private capital remaining a small portion of their business [35] Question: Appetite for further stock repurchases - Management confirmed ongoing stock repurchases and emphasized a balanced capital allocation strategy that includes returning capital to shareholders and investing in technology [38]

Core Insights - eXp Realty welcomes Feisal Ramjee, a leading expert in new construction, to its network of agents, enhancing its capabilities in the real estate market [1][4] - Ramjee has a strong track record, leading sales for 30 new homes in 2025 and another 30 in development for 2026, showcasing his expertise in the new construction sector [2][4] - His annual sales volume ranges between $60 million and $88 million, indicating a significant contribution to eXp Realty's growth [3] 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 nearly 83,000 agents across 26 international locations [5] - The company operates as a cloud-based, agent-centric brokerage, offering competitive commission splits, revenue sharing, and equity ownership opportunities to its agents [5] Strategic Moves - Ramjee's transition to eXp Realty is aimed at gaining financial flexibility and expanding into new markets, particularly Arizona, leveraging eXp's referral network [4] - The company supports Ramjee's vision of mentoring future agents and building a sustainable income stream through revenue sharing, aligning with its growth strategy [4]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1,200,000,000, representing a 7% increase year-over-year [15] - Operating EBITDA was approximately breakeven, with a negative $1,000,000, an improvement of $12,000,000 or 92% compared to the previous year [15] - Free cash flow for Q1 was negative $130,000,000, showing a $15,000,000 year-over-year improvement [16] Business Line Data and Key Metrics Changes - The Anywhere Brands business generated $97,000,000 in operating EBITDA, an increase of $7,000,000 due to higher transaction volume and lower expenses [17] - The Anywhere Advisors segment had an operating EBITDA of negative $47,000,000, improving by $12,000,000 year-over-year driven by higher revenue and lower operating costs [17] - The Integrated Services segment reported an operating EBITDA of negative $18,000,000, down $3,000,000 from Q1 2024, despite a revenue increase of $7,000,000 [18] Market Data and Key Metrics Changes - The company experienced a 6% volume increase, significantly outperforming the National Association of Realtors' (NAR) 3% volume growth [8] - Luxury segment volume was up 16% year-over-year, with luxury listings increasing by 12% [9][10] - April volumes were relatively flat compared to Q1, attributed to market and macroeconomic volatility [8] Company Strategy and Development Direction - The company launched "Reimagine 25" to transform operations and enhance customer experiences through technology [9] - The focus remains on expanding luxury leadership and enhancing the integrated business model covering all aspects of real estate transactions [5][6] - The company aims to achieve $100,000,000 in cost savings for 2025, with $14,000,000 already realized in Q1 [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging housing market and emphasized the importance of broad distribution of listings for customer benefit [14][34] - The company anticipates operating EBITDA for the full year to be around $350,000,000, with the housing market being a significant variable [23] - Management noted that luxury continues to outperform, with positive trends in volume and pricing despite broader market volatility [100] Other Important Information - The company is actively pursuing AI initiatives to enhance productivity and operational efficiency [12] - There is a commitment to transparency and consumer choice in listing distribution, which management believes will benefit long-term business sustainability [14][34] Q&A Session Summary Question: Insights on clear cooperation policy and its impact on investors - Management emphasized the importance of broad listing distribution for achieving the best prices for sellers and maintaining customer trust [29][34] Question: Commentary on commission rates and market dynamics - Management noted a slight decline in commission rates, attributed to both buy-side and list-side pressures, with luxury segments experiencing more significant changes [36][39] Question: Performance of integrated services segment and investment impacts - Management acknowledged investments in technology and agent recruitment as factors affecting the integrated services segment, with expectations for improved performance in the latter half of the year [69][70] Question: Trends in luxury market and seller behavior - Management reported that luxury listings continue to perform well, with no significant changes in days on market or cancellation rates observed in April [98][100]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $240 million, up 44% compared to $166 million last year, with adjusted EBITDA of $18 million and net income of $8.5 million [5][18] - For the full year, revenue grew 8% to approximately $696 million, with a net loss of $12.4 million, significantly improved from a net loss of $34 million last year [5][24] - Adjusted EBITDA for the full year was $9.4 million, compared to a negative $19.6 million in the prior year [24] Business Line Data and Key Metrics Changes - Brokerage revenue increased 40% in the fourth quarter, with transaction count up 23% and volume growth of 41% [5][6] - Financing revenue nearly doubled in the fourth quarter to $31 million, a 97% increase year-over-year [20][21] - The core private client business contributed 59% of brokerage revenue in the fourth quarter, down from 66% the previous year [19][20] Market Data and Key Metrics Changes - The company closed 7,800 transactions with a total volume of $43.6 billion for the year, reflecting gains of 414% in transaction count [10] - Average transaction size increased to approximately $7 million in the fourth quarter, up from $6.2 million a year ago [19] - The ten-year treasury yield dropped to a low of 3.6% in September, which contributed to increased market activity [8] Company Strategy and Development Direction - The company aims to increase investor outreach and client contact while focusing on individual producer productivity [15][16] - Investments in technology, including AI, are being made to enhance underwriting and support processes [15][39] - The company is pursuing strategic acquisitions and partnerships to extend market penetration and enhance service offerings [16][38] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rate volatility remains a significant challenge for closing deals [11] - There is cautious optimism for incremental growth in transactions, driven by situational distress and realistic pricing [12] - The company expects first-quarter revenue to follow seasonal trends and be sequentially lower than Q4 [25][26] Other Important Information - The company has a strong balance sheet with no debt and $394 million in cash and marketable securities [24][17] - A semi-annual dividend of $0.25 per share was declared, amounting to approximately $10 million [25] Q&A Session Summary Question: Can you discuss the different transaction size buckets for commission revenue? - Management highlighted a trend of increased capital in larger transactions, driven by institutional investors and entrepreneurial private investors [30][31] Question: What impact have the recent fires in Greater LA had on multifamily transactions? - Management noted that insurance costs have increased and that there is pressure on operating costs, affecting market sentiment and inventory availability [33][34] Question: Any updates on external growth opportunities or strategic initiatives? - Management indicated ongoing discussions for potential acquisitions but noted valuation concerns as a barrier [37][38] Question: How does the company balance capital allocation between share repurchase and dividends? - Management stated that capital allocation decisions are made opportunistically, with a focus on long-term growth investments [41][42]