eXp World Holdings Inc
NASDAQ:EXPI
eXp World Holdings Inc
In the rapidly reshaping landscape of real estate brokerage, eXp World Holdings Inc. has carved out a distinctive niche by embracing technological innovation at its core, effectively blurring the lines between a traditional real estate firm and a cutting-edge tech company. Born in 2009 amid economic turmoil, eXp Realty emerged as a bold experiment in deploying a cloud-based model for real estate transactions—a pioneering approach in an industry historically entrenched in face-to-face dealings. Spearheaded by Glenn Sanford, a former top-producing agent frustrated with conventional methods, the company abandoned the classic brick-and-mortar office settings in favor of a virtual platform. This pivot allowed it to scale with lesser overhead, attracting agents who appreciated the flexibility and the robust suite of technological tools available at their disposal, such as the immersive 3D virtual environment offered by eXp World, a virtual world for collaboration and professional development powered by Virbela.
The company's unique business model further distinguishes it in the industry. At its core, eXp Realty operates on a revenue-sharing scheme more akin to multi-level marketing than traditional brokerage models, drawing a substantial portion of its income by encouraging agents to recruit more agents, thereby expanding its network rapidly. Alongside this, its compensation structure empowers agents with the opportunity to earn stock in the publicly-traded parent company, creating additional financial incentives aligned with the company’s success. As eXp has expanded its footprint beyond North America to a global stage, it also accommodates its agents with a robust suite of productivity tools, training programs, and a powerful lead-generation system, all designed to enhance their income potential. This approach has not only driven impressive growth for eXp World Holdings but also positioned it as a transformative force in the real estate sector, keenly watched by industry incumbents and tech-savvy disruptors alike.
In the rapidly reshaping landscape of real estate brokerage, eXp World Holdings Inc. has carved out a distinctive niche by embracing technological innovation at its core, effectively blurring the lines between a traditional real estate firm and a cutting-edge tech company. Born in 2009 amid economic turmoil, eXp Realty emerged as a bold experiment in deploying a cloud-based model for real estate transactions—a pioneering approach in an industry historically entrenched in face-to-face dealings. Spearheaded by Glenn Sanford, a former top-producing agent frustrated with conventional methods, the company abandoned the classic brick-and-mortar office settings in favor of a virtual platform. This pivot allowed it to scale with lesser overhead, attracting agents who appreciated the flexibility and the robust suite of technological tools available at their disposal, such as the immersive 3D virtual environment offered by eXp World, a virtual world for collaboration and professional development powered by Virbela.
The company's unique business model further distinguishes it in the industry. At its core, eXp Realty operates on a revenue-sharing scheme more akin to multi-level marketing than traditional brokerage models, drawing a substantial portion of its income by encouraging agents to recruit more agents, thereby expanding its network rapidly. Alongside this, its compensation structure empowers agents with the opportunity to earn stock in the publicly-traded parent company, creating additional financial incentives aligned with the company’s success. As eXp has expanded its footprint beyond North America to a global stage, it also accommodates its agents with a robust suite of productivity tools, training programs, and a powerful lead-generation system, all designed to enhance their income potential. This approach has not only driven impressive growth for eXp World Holdings but also positioned it as a transformative force in the real estate sector, keenly watched by industry incumbents and tech-savvy disruptors alike.
Revenue Growth: eXp generated $4.8 billion in revenue for 2025, up 4% year-over-year, with Q4 revenue accelerating to $1.2 billion, up 9%.
International Expansion: International revenue rose 67% year-over-year to $147 million as the company launched 7 new markets.
Productivity & Retention: Agent productivity per person increased 6% in Q4 and 5% for the year, while worldwide attrition improved by 17% year-over-year and 23% in the US.
Cost & Margin Pressures: Operating loss for 2025 was $21.5 million, mainly due to gross margin compression and higher investments in technology. Adjusted EBITDA for the year was $33.2 million, down year-over-year.
2026 Guidance: Management expects 2026 revenue between $4.85 billion and $5.15 billion, and adjusted EBITDA between $50 million and $75 million, driven by investments in technology and operational efficiency.
Technology Investments: Significant investments in AI, automation, and a new agent-facing platform aim to drive future productivity and margin expansion.
Agent Count: The company ended 2025 with just over 83,000 agents, up slightly from last year, focusing on higher productivity rather than sheer count.
Buyback Activity: Share buybacks remain paused due to upcoming settlement payments, but management signaled openness to resuming buybacks as cash needs allow.
