Exp World Holdings ((EXPI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of eXp World Holdings painted a picture of a company navigating both growth and challenges. The sentiment was generally positive, with significant strides in international growth and technological advancements. However, the company is facing hurdles such as a decrease in agent count and gross margin. The focus on agent productivity and international expansion were highlighted as promising indicators for future growth.
Agent Growth and Retention
The company reported its second consecutive quarter of quarter-over-quarter agent growth, with sales transactions per agent increasing by 5% year-over-year. Notably, agent attrition improved by 13% globally and 18% in the U.S., signaling a positive trend in agent retention and productivity.
International Expansion Success
In 2025, eXp World Holdings successfully opened operations in five new countries and surpassed $100 million in revenue for the first time in a calendar year. International real estate transactions grew by an impressive 44% year-over-year, showcasing the company’s successful expansion efforts.
Technological Advancements
The company introduced AI-driven tools such as Doc AI for document review and launched the eXp Connect Hub to enhance collaboration. These technological advancements are aimed at streamlining operations and reducing costs, marking a significant step forward in the company’s digital transformation.
Financial Performance
In the third quarter, eXp World Holdings reported a revenue of $1.3 billion, marking a 7% increase year-over-year. The adjusted EBITDA remained positive at $17.7 million, and the company ended the quarter with a solid cash position of $112.8 million, reflecting financial stability.
Agent Count Decline
Despite a 1% increase quarter-over-quarter in 2025, the agent count was down 2% year-over-year, totaling 83,446. This decline highlights a challenge for the company as it seeks to expand its agent base.
Gross Margin Decline
The GAAP gross margin was reported at 6.5%, a decrease of 57 basis points from the third quarter of last year. This decline was attributed to more productive agents hitting their cap, impacting the overall gross margin.
Forward-Looking Guidance
Looking ahead, eXp World Holdings highlighted several strategic initiatives. The company reported a 5% year-over-year increase in sales transactions per agent and a 7% rise in the number of productive agents. International operations saw a 44% growth in real estate transactions and a 59% increase in sales volume. The FastATTRACT program, aimed at enhancing agents’ revenue share skills, was successfully piloted. Operational efficiency remains a priority, with G&A expenses reduced through AI-driven automation.
In conclusion, eXp World Holdings’ earnings call presented a mixed yet optimistic outlook. While challenges such as agent count and gross margin declines persist, the company’s focus on international expansion, technological advancements, and operational efficiency positions it well for future growth. Investors and stakeholders will be keenly watching how these strategies unfold in the coming quarters.