eXp World Holdings, Inc. Q4 FY2025 earnings call

• 2025 saw expansion into 7 countries, international revenue up 67% to $147 million. - Launched co-sponsorship program with great success, 14% of US and Canadian agents joined via co-sponsorship, those with cosponsor are 64% more productive and 19% less attrited. - Introduced commercial division in UK and programs for brand differentiation in specialization markets, membership up 48% year-over-year. - Prioritized education, launched AI-accelerated series and FastCAP program with nearly 20,000 agent registrations. - Ended 2025 with 83,060 agents worldwide, Q4 productivity up 6%, revenue up 9%, attrition improved 17% worldwide and 23% in US. - Attracted over 25 prominent teams in US and Canada generating over $5.5 billion in sales in 2024.

North America Realty segment is the largest revenue and profit generator, with Q4 revenue of $1.1 billion and full-year revenue of $4.6 billion. International segment is the fastest-growing, increasing nearly 51% in Q4 and 67% year-over-year in 2025 to $147 million. Operating expenses in Q4 increased mainly due to investments in eXpcon events and legal expenses in US, while SUCCESS segment had modest revenue with an operating loss of $6.2 million as it focused on retooling the platform.

• First quarter 2026 revenue expected in range of $960 million to $980 million, expenses $82 million to $86 million, adjusted EBITDA $2 million to $5 million. - Full year 2026 revenue expected in range of $4.85 billion to $5.15 billion, operating expenses $325 million to $345 million, adjusted EBITDA $50 million to $75 million. - Intend to stay financially flexible and invest where meaningful opportunities exist to support agents and enhance shareholder value.

• Mentioned to see SEC filings for specific risks affecting business performance and financial condition, including related to NAR litigation as there was a pause in buyback activity due to it with second tranche coming in summer 2026.

Q: Discuss agent count in Q4?

A: Historically have seasonality with agent dip from Q3 to Q4, prioritized productivity over count. Productivity per person increased, 40% of agents joined in 2025 were on teams, team members 78% more productive than solo agents. 63% of leaving agents left the industry. Global attrition improved 17%, US improved 23%.

Q: Metrics to measure success in 2026?

A: Productivity per person (PPP) which was 5.3 for year, productive agent retention, SG&A per unit as it relates to unit economics and EBITDA margin expansion.

Q: Role of Chief Brokerage Officer and priorities in 2026?

A: Built compliance infrastructure before crisis, offer consistent guidance, training and support through various means. Use agent advisory councils for feedback, serve 2 distinct agent populations, create conditions for sustainable growth with proactive regulatory navigation and agent voice.

Q: Technology-related improvements in 2025 and focus in 2026?

A: 2025 had AI Copilot integration in My eXp app for agents and expansion of Live global portal infrastructure. 2026 focus on expanding agent ecosystem, building on eXp Hub community platform, marketplace app store within hub, listing intelligence platform, and investing in data infrastructure for single threaded leadership framework.

Q: Fourth quarter revenue vs gross profit growth?

A: Revenues up 9%, gross profit flat, due to seasonality of higher capping in later part of year and attraction/retainment of more productive agents, margin compression partially offset by increased units. Outlook for 2026 similar trend with slight compression but offset by increased units and focus on unit economic improvement.

Q: Update on buyback?

A: Reduced buyback activity in 2025 due to NAR litigation first tranche, second tranche in summer 2026, maintaining $100 million cash threshold, evaluating buyback as strategic tool long term but considering cash needs and upcoming litigation tranche.

Q: Strategic initiatives for financial performance and shareholder value?

A: Separation from other companies via leveraging AI, streamlining expenses, providing tools and training to agents, being a platform business meeting agents where they are at, having API capabilities for top teams and simple UI for solo agents.

Q: Improve toolbox and technology for high-volume listing teams and legacy agents?

A: Launched pilot program in January through FastCAP program, integrating seller products into education platform, providing API capabilities for top teams and simple UI for solo agents, meeting agents where they are at with various support channels.