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eXp World Holdings Inc (EXPI)
NASDAQ:EXPI
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eXp World Holdings
(NASDAQ:EXPI)
Rating:67Neutral
Price Target:―
Positive Factors
Agent Growth
Proprietary checks indicate U.S. agent count has started to grow again, reversing a six-quarter decline.
International Expansion
The international segment generated $32 million of revenue, marking a 103% increase year-over-year.
Revenue Performance
Revenue of $1.3 billion surpassed the estimate by 3% and consensus by 1%, reflecting strong financial performance.
Negative Factors
Adjusted EBITDA
Adjusted EBITDA of $11.2 million was approximately $15 million below both the estimate and consensus.
Gross Profit
Gross profit of $93 million fell short by $4 million against the estimate and $5 million below consensus.
Housing Market
The weak housing market continues to affect brokerage volumes, with just under 90,000 transaction sides during the quarter.
eXp World Holdings (EXPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.59B
Dividend Yield1.98%
Average Volume (3M)1.02M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth3.55%
EPS Growth-36.05%
CountryUS
Employees2,001
SectorReal Estate
Sector Strength54
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding157,232,320
10 Day Avg. Volume1,195,331
30 Day Avg. Volume1,018,506
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)8.63
Price to Sales (P/S)0.39
P/FCF Ratio9.56
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda1.09K
Forecast
1Y Price Target
$12.00Price Target Upside14.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
eXp World Holdings Business Overview & Revenue Model
Company DescriptioneXp World Holdings, Inc. (EXPI) is a technology-driven real estate company headquartered in the United States. It operates one of the fastest-growing real estate brokerage firms in the world, eXp Realty, which utilizes a cloud-based platform to offer a wide range of residential real estate services. The company also develops and operates Virbela, a virtual world platform that supports remote work and collaboration, and Success Enterprises, which provides personal development content and coaching. eXp World Holdings is known for its innovative approach to real estate, leveraging technology to enhance the buying, selling, and leasing processes for both agents and clients.
How the Company Makes MoneyeXp World Holdings primarily generates revenue through its real estate brokerage operations under eXp Realty. The company earns commissions from real estate transactions conducted by its network of independent agents. These commissions are shared between the company and the agents, with eXp Realty retaining a portion as its revenue. Additionally, eXp World Holdings benefits from its virtual world platform, Virbela, which provides software solutions for remote collaboration, contributing to its revenue through licensing and subscription fees. The company also generates income from Success Enterprises by offering personal development programs and coaching services. eXp's innovative revenue-sharing model and stock compensation plan for agents, which incentivizes growth and productivity, further enhances its earnings potential.
eXp World Holdings Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -2.60%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced picture with significant achievements in agent growth, successful program launches, and international expansion. However, challenges such as decreased agent count year-over-year, increased operating expenses, and declining gross margin were notable concerns. The sentiment reflects a mix of positive strides and ongoing challenges.Q2-2025 Updates
Positive Updates
Agent Growth and Retention
First quarter since Q2 2024 with sequential quarter-over-quarter growth in agent count. 31% fewer agents left eXp vs. a year ago in the U.S. Sales transactions per agent up 4% year-over-year.
Successful Program Launches
Launch of CRM of Choice, cosponsor program, and eXp Land & Ranch, with positive reception. Over 100 agents joined Land & Ranch division since April launch.
International Expansion
Expansion into three new countries: Peru, Turkey, and Ecuador, with record starts. Plan to enter Egypt, Japan, and South Korea. 59% year-over-year revenue growth in international markets.
In-Person Event Success
Regional rallies and eXpCon events in Canada and Barcelona had strong attendance and positive feedback. International event in Barcelona doubled in size year-over-year.
Strategic Investments in Technology
Investment in AI and automation to support productivity and efficiency, including OpenAI and custom GPTs. Cosponsorship program close to 100% automation.
Negative Updates
Decreased Agent Count
Agent count decreased by 5% year-over-year, though there was a 1% quarter-over-quarter increase.
Gross Margin Decline
GAAP gross margin fell to 7.1%, a 40 basis point decrease from the previous year, due to more productive agents reaching their cap.
Operating Expenses Increase
Operating expenses grew by 20% in the quarter, including $6 million in strategic investments and severance costs.
Continued Loss in International Segment
Adjusted EBITDA loss increased due to opening new markets and hosting concurrent events.
Company Guidance
During the second quarter of 2025, eXp World Holdings demonstrated substantial progress across multiple metrics despite a challenging macroeconomic environment. The company reported a revenue of $1.3 billion, with real estate sales volume up by 1% year-over-year, driven by increased home sales prices and agent productivity. The agent count was at 82,704, marking a 5% year-over-year decrease but achieving a 1% sequential quarterly growth. Notably, sales transactions per agent rose by 4% year-over-year, and the number of icon agents increased by 9%. In terms of retention, there was a significant 22% reduction in agent turnover compared to the previous year. Additionally, international operations experienced a remarkable 59% revenue growth, attributed to a 9% increase in the global agent base and enhanced agent productivity. eXp's strategic investments in technology and AI, as well as new program launches, contributed to these positive trends, underscoring the company's robust platform and value proposition.eXp World Holdings Financial Statement Overview
Summary
eXp World Holdings shows strong revenue growth and a stable balance sheet with no debt leverage. However, consistent net losses and declining profitability margins challenge its financial performance. The company maintains a healthy cash flow position, but recent declines in free cash flow growth may indicate future cash constraints if not addressed.Income Statement
The company shows significant revenue growth over the years, with a compound annual growth rate (CAGR) from 2019 to 2024, indicating strong market expansion. However, profitability margins such as Gross Profit Margin and Net Profit Margin are concerning, with negative figures in recent years, reflecting operational challenges and net losses.65
Positive
Balance Sheet
The balance sheet indicates a strong equity base with no significant debt, resulting in a favorable debt-to-equity ratio of 0. This provides financial stability and low leverage risk. However, the declining stockholders' equity and net losses may affect the return on equity in the long term.75
Positive
Cash Flow
The company's cash flow position is robust, with consistent positive free cash flow and operating cash flow exceeding net income, indicating efficient cash generation. Nevertheless, declining free cash flow in the most recent year suggests potential challenges in sustaining this performance.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.59B | 4.57B | 4.28B | 4.60B | 3.77B | 1.80B |
| Gross Profit | 335.30M | 342.39M | 324.05M | 366.90M | 296.03M | 159.61M |
| EBITDA | 1.13M | 30.23M | 3.63M | 15.25M | 40.40M | 35.58M |
| Net Income | -31.33M | -21.27M | -8.97M | 15.44M | 81.22M | 31.13M |
Balance Sheet | ||||||
| Total Assets | 481.25M | 390.72M | 385.67M | 381.68M | 413.83M | 242.19M |
| Cash, Cash Equivalents and Short-Term Investments | 184.93M | 113.61M | 126.86M | 121.59M | 108.24M | 100.14M |
| Total Debt | 14.00K | 0.00 | 10.00K | 869.00K | 1.08M | 820.00K |
| Total Liabilities | 262.88M | 185.85M | 141.66M | 132.69M | 190.29M | 99.60M |
| Stockholders Equity | 218.37M | 204.87M | 242.84M | 247.82M | 222.17M | 141.58M |
Cash Flow | ||||||
| Free Cash Flow | 125.70M | 185.03M | 201.17M | 198.48M | 233.47M | 113.22M |
| Operating Cash Flow | 135.64M | 191.51M | 209.13M | 210.53M | 246.89M | 119.66M |
| Investing Cash Flow | -26.31M | -19.47M | -13.50M | -22.46M | -18.92M | -16.96M |
| Financing Cash Flow | -118.69M | -170.38M | -184.09M | -204.51M | -179.92M | -21.89M |
eXp World Holdings Technical Analysis
Positive
10.50
Price Trends
9.79
Positive
9.28
Positive
10.50
Positive
Market Momentum
0.08
Positive
54.44
Neutral
60.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPI, the sentiment is Positive. The current price of 10.5 is above the 20-day moving average (MA) of 10.46, above the 50-day MA of 9.79, and above the 200-day MA of 10.50, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 60.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPI.
eXp World Holdings Risk Analysis
eXp World Holdings disclosed 34 risk factors in its most recent earnings report. eXp World Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eXp World Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $888.72M | ― | -31.81% | ― | 72.57% | 65.15% | |
67 Neutral | $1.59B | ― | -12.78% | 1.98% | 3.55% | -36.05% | |
67 Neutral | $280.60M | 18.90 | 2.21% | ― | -5.21% | ― | |
63 Neutral | $6.82B | 13.21 | -0.71% | 7.17% | 3.67% | -27.43% | |
57 Neutral | $1.82B | ― | -41.33% | ― | 14.07% | 27.59% | |
55 Neutral | $1.43B | ― | 199.35% | ― | 5.11% | -29.67% | |
54 Neutral | $40.54M | ― | -50.22% | ― | 19.16% | 12.99% |
* Real Estate Sector Average
Performance Comparison
EXPI
eXp World Holdings
10.50
-1.63
-13.44%
RMAX
Re/Max Holdings
8.90
-1.24
-12.23%
RDFN
Redfin
11.19
3.59
47.24%
FTHM
Fathom Holdings
1.30
-1.02
-43.97%
OPEN
Opendoor Technologies
2.42
0.62
34.44%
REAX
Real Brokerage
4.50
-1.60
-26.23%
eXp World Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
eXp World Holdings Appoints Jesse Hill as Interim CFO
Neutral
Mar 17, 2025
On March 17, 2025, eXp World Holdings announced the appointment of Jesse Hill as Interim Chief Financial Officer, effective April 1, 2025. Hill, who has been with the company in various financial leadership roles, will take over from Kent Cheng, who will transition to an advisory role. Hill’s appointment is part of eXp’s strategic focus on enhancing operational efficiency and delivering high returns on agent-centric investments. The company continues its search for a permanent CFO while emphasizing its strong market position and growth potential.
DividendsBusiness Operations and StrategyFinancial Disclosures
eXp World Holdings Declares Dividend Amid Revenue Increase
Neutral
Feb 20, 2025
On February 14, 2025, eXp World Holdings declared a cash dividend of $0.05 per share, payable on March 19, 2025. The company reported a revenue increase of 7% to $4.6 billion for the full year 2024, with a net loss of $21.3 million. Despite challenges, including a 5% decrease in agents, eXp achieved a 9% increase in transaction volume to $185.2 billion and maintained strong agent satisfaction. The company’s focus on innovation and strategic agent acquisitions, such as the Utah Life Real Estate Group, underlines its commitment to growth and agent success.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.