eXp World Holdings, Inc.

eXp World Holdings, Inc. operates a diversified portfolio of service-oriented businesses, primarily focused on real estate brokerage operations, integrated through an advanced enabling technology platform. The company's strategic focus is to expand its real estate brokerage by offering a differentiated value proposition to agents, including industry-leading economics, ownership opportunities, and access to tools and services for professional growth. A core element of its value proposition is a commitment to cooperation, transparency, and consumer-centric practices, which it considers essential for a healthy real estate marketplace and for attracting and retaining professional agents. The company's clients are primarily residential homeowners and homebuyers served through its network of independent agents and brokers.

The company's real estate brokerage business competes with local, regional, national, and international residential real estate brokerages for home sales and to attract and retain agents, teams, brokers, and consumers. eXp competes primarily on the basis of its service, culture, collaboration, and utilization of cloud-based systems and technologies that reduce costs while providing professional development and opportunities for agents to generate business and participate in company growth. The company believes it is the only global cloud-based real estate brokerage with massive scale, allowing it to enter new markets quickly and flexibly with reduced investment and cost compared to traditional brokerages. It also believes its compensation and incentive programs for attracting and retaining productive agents are among the most compelling in the industry.

The core business model involves serving as a licensed broker for residential and commercial real estate transactions, earning commissions, and then paying a portion of these commissions to its real estate agents and brokers. The company's innovative cloud-based brokerage model aims to reduce costs for agents and brokers, offering low entry fees, stock ownership opportunities, and a revenue-sharing plan where agents can earn commissions from transactions by agents they have attracted. Revenue is primarily transactional, derived from commissions on real estate transactions, with a de minimis portion from Other Affiliated Services.

The company operates through three reportable segments: North American Realty, International Realty, and Other Affiliated Services. The North American Realty segment includes residential and commercial brokerage, lead generation, and related support services in the United States and Canada, and, as of the first quarter of 2025, FrameVR.io, the company's proprietary, web-accessible 3D immersive technology platform. This segment represented 96.9% ⁴ of total consolidated revenues in 2025. The International Realty segment covers brokerage operations and support services across 27 countries ⁵ in the Americas, Europe, the Middle East, Asia-Pacific, and South Africa, accounting for 3.1% ⁶ of total consolidated revenues in 2025. Both segments generate revenue primarily from commissions on residential real estate transactions. The Other Affiliated Services segment includes SUCCESS® magazine and related media properties, which provide training, classes, resources, and tools for professional development.

For the fiscal year ended December 31, 2025, total revenues were $4,772,311 thousand ⁷, an increase of 4% ⁸ from $4,567,672 thousand ⁹ in 2024. Gross profit decreased by 3% ¹⁰ to $333,578 thousand ¹¹ in 2025 from $342,395 thousand ¹² in 2024. Operating loss increased by 13% ¹³ to ($21,466) thousand ¹⁴ in 2025 from ($18,994) thousand ¹⁵ in 2024. Net income (loss) from continuing operations was ($22,714) thousand ¹⁶ in 2025, compared to ($16,788) thousand ¹⁷ in 2024. Diluted EPS from continuing operations was ($0.14) ¹⁸ in 2025, compared to ($0.11) ¹⁹ in 2024. Consolidated adjusted EBITDA decreased by $42.3 million ²⁰ to $33,172 thousand ²¹ in 2025 from $75,483 thousand ²² in 2024. As of December 31, 2025, cash and cash equivalents totaled $124,245 thousand ²³. The company reported no bank debt.

Year-over-year, North American Realty revenue increased 3% ²⁴ to $4,624,913 thousand ²⁵ in 2025, primarily due to increased home sale prices in the U.S. and overall real estate transactions in Canada, and improved agent productivity, partially offset by reductions in the agent base. International Realty revenue increased 67% ²⁶ to $146,930 thousand ²⁷ in 2025, driven by increased real estate transactions and productivity in previously launched markets, as well as strategic new market launches. Other Affiliated Services revenue decreased (53)% ²⁸ to $2,873 thousand ²⁹ due to lower SUCCESS® Magazine revenues. Gross profit decreased due to increased agent capping and lower agent fees. Operating income (loss) in 2025 was negatively impacted by increased legal expenses and accruals, employee-related costs, and technology improvement expenses.

During 2025, the company announced several significant operational developments. In the first quarter, it expanded into Peru. The second quarter saw expansion into Ecuador and Türkiye, the launch of the Land and Ranch Division for agents specializing in rural, recreational, and agricultural properties, the introduction of the Co-Sponsor Program allowing agents to designate both a primary and co-sponsor, and the release of a U.S. open-sourced Seller Advisory: Risks of Limited Market Exposure form. In the third quarter, the company expanded into Japan, appointed Jesse Hill as Chief Financial Officer, and launched its CRM of Choice initiative, offering agents three leading customer relationship management platforms. The fourth quarter included expansion into Romania and the Netherlands, the launch of the Sports and Entertainment Division for agents serving clients in sports and entertainment, the appointment of Carrie Lysenko as Chief Technology Officer of eXp Realty and Holly Mabery as Chief Brokerage Officer of eXp Realty, and the launch of LYVVE™, a global property search platform.

Management believes that its existing balances of cash and cash equivalents and cash flows expected to be generated from its operations will be sufficient to satisfy its normal operating requirements for at least the next 12 months and beyond. The Board currently intends to continue paying quarterly dividends, with a cash dividend of $0.05 ³⁰ per common share approved on February 10, 2026 ³¹, expected to be paid on March 27, 2026 ³² to stockholders of record on March 9, 2026 ³³.

The company is positioned for growth with a strong base of agents, an efficient cloud-based operating model, and low fixed costs, which allows it to adapt quickly to market changes while supporting long-term productivity and retention. The company continues to increase its investment in the development of its own cloud-based technology and transaction processing platforms and further expand its technological products and service offerings. It continues to create process efficiencies and provide its agents and brokers with technologies designed to facilitate transactions in an efficient and consumer-friendly way. The company's operational model and growth strategies necessitate proprietary technologies and, at times, require considering existing and emerging technology companies for acquisition, partnerships, and other collaborative relationships.

The company is actively investing and intends to continue to invest resources in developing new technology, services, products, and other offerings complementary to its brokerage business. New business initiatives are inherently risky and may involve unproven business strategies and markets with which the company has limited or no prior development or operating experience. Risks from these new initiatives include potential defects in design, ongoing development and maintenance of technologies, reliance on inadequate or unavailable data or user inputs, failure to design products and services more effectively or affordably than competitors, and failure to scale businesses as they grow.

The company's planned capital allocation includes continued investment in technology and growth initiatives. During 2025, the company utilized cash on hand to support agent productivity, growth initiatives, and investment in technology. The company has an authorized share repurchase program approved by the Board up to $1.0 billion ³⁴ in aggregate, though it does not obligate the company to acquire a minimum amount of shares. In 2025, the company repurchased $56.2 million ³⁵ of its common stock and paid cash dividends of $30.8 million ³⁶.

The company's international operations are subject to risks not generally experienced by its U.S. operations, including fluctuations in foreign currency exchange rates, foreign exchange controls, limitations on fund repatriation, exposure to local economic conditions, laws, and regulations, political instability, and employment laws differing from U.S. laws. There is also diminished ability to legally enforce contractual rights and use trademarks in foreign countries, difficulties in registering and protecting intellectual property, restrictions on obtaining and retaining licenses, withholding and other taxes on cross-border transactions, compliance with anti-corruption laws, and regional data protection and privacy laws like GDPR.

The company's business results are materially influenced by the strength of the U.S. residential real estate sector and overall economic conditions, including economic slowdowns, increased unemployment, higher interest rates (such as those during 2024 and 2025), increased costs of obtaining mortgages, and changes in consumer attitudes. Fluctuations in housing inventory levels, whether excessive or insufficient, can negatively impact the business. Material decreases in the average brokerage commission rate due to changes in regulation, litigation (including pending antitrust litigation and industry practice changes), competitive brokerage models, or increased adoption of discount brokers could materially adversely affect financial results. The introduction and integration of emerging technologies, including artificial intelligence, presents operational, compliance, and reputational risks related to reliability, accuracy, data privacy, and bias, and could impact the company's competitive position. The company's operating results are subject to seasonality, with historically lower revenues during fall and winter seasons. Climate-related physical impacts, regulatory changes, and disclosure obligations could increase costs, reduce transaction activity, and expose the company to liability or reputational harm. The company faces significant risk if it fails to attract, retain, and incentivize qualified real estate professionals, especially given intense competition and industry changes like NAR policy revisions and antitrust settlements. Loss of current executive officers or other key management could significantly harm the business. Security breaches, interruptions, delays, and failures in systems and operations, including cybersecurity incidents, could disrupt business, result in loss of critical and confidential information, and adversely impact reputation. The company may be unable to utilize a portion of its net operating loss or research tax credit carryforwards, which may adversely affect profitability, and could be subject to changes in tax laws and regulations. The company may struggle to manage growth efficiently, and failure to scale operations or integrate acquisitions and joint ventures could negatively impact performance. The company is subject to various legal proceedings and claims, including antitrust litigation where it agreed to a settlement payment of $34.0 million ³⁷, and derivative litigation alleging fiduciary duty breaches. Adverse outcomes in litigation and regulatory actions against other companies in the industry could also impact financial results. The company faces significant risk to its brand and revenue if it fails to maintain compliance with federal, state, county, and foreign governmental authorities, or private associations and governing boards, particularly concerning worker classification and network marketing regulations.

Management's message to shareholders emphasizes the company's strategic focus on expanding its real estate brokerage operations by delivering a differentiated value proposition to agents, centered on industry-leading economics, ownership opportunities, and access to tools and services that support long-term professional growth. They highlight a commitment to cooperation, transparency, and consumer-centric practices as essential to a healthy, open real estate marketplace and a key differentiator in attracting and retaining professional agents. The company believes its existing cash and cash equivalents, along with expected cash flows from operations, will be sufficient to meet normal operating requirements for at least the next 12 months and beyond. The Board has approved a cash dividend of $0.05 ³⁸ per common share, payable on March 27, 2026 ³⁹, to stockholders of record on March 9, 2026 ⁴⁰. Key strategic priorities include continued investment in technology and agent-facing tools, such as the CRM of Choice initiative and the launch of LYVVE™, and the expansion of its real estate brokerage into new international markets and specialized divisions like the Land and Ranch Division and the Sports and Entertainment Division.