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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
Earnings
Revenue of $1.3 billion was 3% above the estimate and 1% above consensus.
International Growth
The international segment generated $32 million of revenue this quarter, up 103% year-over-year.
Market Strategy
Industry migration towards cloud/virtual brokerages could accelerate, benefiting platforms like EXPI.
Negative Factors
Financial Performance
Adjusted EBITDA of $11.2 million was roughly $15 million below the estimate and consensus.
Market Conditions
The weak housing market continues to weigh on brokerage volumes, with just short of 90,000 transaction sides during the quarter.
Operational Challenges
Gross profit of $93 million was $4 million below the estimate and $5 million below consensus.
eXp World Holdings (EXPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.70B
Dividend Yield1.85%
Average Volume (3M)1.09M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth3.55%
EPS Growth-36.05%
CountryUS
Employees2,001
SectorReal Estate
Sector Strength55
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding157,232,320
10 Day Avg. Volume1,007,079
30 Day Avg. Volume1,092,125
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 Cap0.73
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda1.09K
Forecast
1Y Price Target
$12.00Price Target Upside13.96% 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: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for eXp World Holdings. While there were significant achievements in international expansion, agent productivity, and new program launches, challenges such as a decrease in overall agent count, lower adjusted EBITDA, and macroeconomic pressures in the U.S. real estate market were notable. The sentiment is balanced with strong highlights and notable lowlights.Q2-2025 Updates
Positive Updates
Sequential Growth in Agent Count
This quarter marked the first sequential growth in agent count since Q2 2024, with a 1% quarter-over-quarter increase, indicating that strategies to attract and retain agents are effective.
Increase in Agent Productivity
Sales transactions per agent are up 4% year-over-year, and the number of icon agents increased by 9% year-over-year.
Strong International Expansion
International operations expanded into three new countries: Peru, Turkey, and Ecuador, with significant agent onboarding and transaction activity shortly after launch.
Significant Program Launches
Launched three programs: CRM of Choice, co-sponsor program, and eXp Land & Ranch, all of which have been well-received and contributed to agent productivity and engagement.
Positive Response to eXpCon Events
eXpCon events in Montreal and Barcelona saw increased attendance, with Barcelona doubling in size year-over-year, highlighting strong global collaboration and culture.
Revenue Growth in International Segment
International revenue grew by 59% year-over-year, driven by a 9% increase in agents and improved productivity.
Negative Updates
Decrease in Overall Agent Count
Despite the sequential growth, the overall agent count is down 5% year-over-year.
Lower Adjusted EBITDA
Adjusted EBITDA decreased year-over-year, impacted by lower gross margin and strategic investments, including severance costs.
Impact of Antitrust Litigation Settlement
The company made a $17 million payment related to a $34 million antitrust litigation settlement, temporarily reducing cash reserves.
Challenges in U.S. Real Estate Market
Revised expectations for U.S. real estate transaction counts, now hoping for a flat year-over-year performance due to macroeconomic factors.
Company Guidance
In the second quarter of 2025, eXp World Holdings provided guidance that highlighted several positive metrics and strategic initiatives aimed at enhancing agent productivity and company growth. The agent count increased by 1% quarter-over-quarter, marking the first sequential rise since Q2 of 2024, with agent productivity up 4% year-over-year. The number of icon agents rose by 9%, and agent attrition decreased by 22% compared to the previous year. The company's new programs, including the co-sponsorship initiative and the CRM of Choice program, have been pivotal in attracting and retaining agents. Notably, nearly half of the new agents, 41%, were part of teams, which are 79% more productive than individual agents. International expansion was robust, with revenue growth of 59% year-over-year, driven by a 9% increase in global agents and successful market entries in Peru, Turkey, and Ecuador. Financially, eXp generated $1.3 billion in revenue despite a challenging macroeconomic environment, with a GAAP gross margin of 7.1% and an adjusted EBITDA of $11.2 million. The company remains committed to strategic investments and operational efficiencies to drive future growth and enhance long-term shareholder value.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
10.53
Price Trends
10.17
Positive
9.35
Positive
10.27
Positive
Market Momentum
0.17
Negative
51.80
Neutral
56.32
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 10.53 is above the 20-day moving average (MA) of 10.41, above the 50-day MA of 10.17, and above the 200-day MA of 10.27, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 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 35 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $306.99M | 20.01 | 2.21% | ― | -5.21% | ― | |
70 Outperform | $1.12B | ― | -31.81% | ― | 72.57% | 65.15% | |
67 Neutral | $1.70B | ― | -12.78% | 1.85% | 3.55% | -36.05% | |
63 Neutral | $7.06B | 13.77 | -0.50% | 7.05% | 4.08% | -25.24% | |
57 Neutral | $56.01M | ― | -50.22% | ― | 19.16% | 12.99% | |
55 Neutral | ― | ― | 5.11% | -29.67% | |||
53 Neutral | $3.27B | ― | -41.33% | ― | 14.07% | 27.59% |
* Real Estate Sector Average
Performance Comparison
EXPI
eXp World Holdings
10.53
-0.94
-8.20%
RMAX
Re/Max Holdings
9.09
-1.68
-15.60%
RDFN
Redfin
11.19
1.40
14.30%
FTHM
Fathom Holdings
2.03
-0.62
-23.40%
OPEN
Opendoor Technologies
5.09
3.17
165.10%
REAX
Real Brokerage
5.25
-0.58
-9.95%
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.