Financial Data and Key Metrics Changes - The company generated $1.3 billion in revenue for Q2 2025, reflecting a 59% year-over-year growth driven by a 9% increase in agents globally and improved agent productivity [24][28] - Non-GAAP gross margin was 12%, while GAAP gross margin decreased by 40 basis points to 7.1% due to more productive agents reaching their cap [29] - Adjusted EBITDA was $11.2 million, down year-over-year, influenced by lower gross margins and strategic investments [29] Business Line Data and Key Metrics Changes - The North America Realty segment generated $1.3 billion in revenue with an adjusted EBITDA of $19.8 million, while international revenue grew 59% year-over-year [30][31] - The number of agents decreased by 5% year-over-year to 82,704, but there was a 1% quarter-over-quarter increase [29] Market Data and Key Metrics Changes - The company saw a 1% year-over-year increase in real estate sales volume, attributed to rising home sales prices and increased agent productivity, despite a 2% decrease in sales transactions [28] Company Strategy and Development Direction - The company is focused on attracting productive agents and enhancing its value proposition, with a goal to grow its agent base to 50,000 across 50 countries by 2030 [27][28] - New programs launched include a CRM of choice program, a cosponsor program, and an eXp land and ranch program, aimed at increasing agent productivity and retention [11][12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the U.S. real estate market, anticipating flat transaction counts year-over-year due to macroeconomic conditions [52] - The company is adapting to the current market downturn by focusing on attracting high-performing agents and enhancing its operational efficiency [54][85] Other Important Information - The company hosted significant in-person events, including eXp Con in Barcelona, which saw a 175% increase in registrants year-over-year, emphasizing the importance of agent connections and culture [26][19] - The company is leveraging AI and automation to enhance productivity and streamline operations, with a focus on integrating advanced tools into its platform [34][35] Q&A Session Summary Question: Can you describe how agents are leveraging success to grow their business? - The company has integrated additional content and courses into Success Plus, providing agents with valuable resources for personal development and real estate training [46][47] Question: What are your thoughts on the U.S. real estate market? - Management is cautiously optimistic, expecting flat transaction counts and focusing on attracting productive agents despite macroeconomic challenges [52][54] Question: How important are eXp's in-person events for attracting and retaining agents? - In-person events are crucial for building relationships and culture, with a significant percentage of guests attending events ultimately joining the company [56][59] Question: What is your main focus managing international growth? - The focus is on growing a base of productive agents and ensuring they have the necessary resources to succeed, with a recent successful launch in Japan [61][62] Question: Can you discuss what's impacting the second quarter gross margin? - The gross margin was impacted by more productive agents reaching their cap, which is welcomed as it enhances agent retention and stickiness [64][66]