eXp World Holdings, Inc. Q1 FY2026 earnings call

Overall Company Strategy and Core Platform Positioning

• The company rebranded its stock ticker to AGNT to emphasize its identity as a platform business built by and for real estate agents
• eXp has a unique four-part interconnected full stack operating model for agents that acts as a competitive moat: North America Realty multi-model offering, fast-growing International expansion, FrameVR virtual collaboration infrastructure, and SUCCESS personal development/culture layer
• All current investments (eXp Hub, AI Copilots, listing intelligence, App Store marketplace) are focused on helping agents build scalable, sustainable businesses that grow beyond individual ownership

Multi-Model Expansion via NextHome Acquisition

• The company closed the acquisition of the NextHome franchise model, enabling it to serve independent brokers and entire offices that previously could not join eXp's core cloud brokerage model without compromising the eXp model's value proposition
• NextHome will operate as a stand-alone brand to preserve its unique franchise offering, and existing NextHome leadership will remain in place to drive growth
• The acquisition brings synergies in shared technology purchasing, leveraging overlapping vendor preferences and high virtual penetration of NextHome's franchise network

SUCCESS Segment Transformation

• SUCCESS was retooled starting in July of the prior year, using the same successful playbook that was applied to the International segment in 2024
• Matthew and Kristen Ferry were hired to lead the scaled growth of SUCCESS, bringing deep expertise in sales coaching and operations
• SUCCESS acts as a unique differentiator for eXp, providing agents access to high-value coaching, content and events that would normally cost 5- or 6-figures, built directly into the eXp ecosystem
• The company holds the worldwide IP of influential personal development figure Jim Rohn, and plans to launch a new signature offering that combines classic personal development principles with modern neuroscience and psychology validation

Overall Financial Performance Q1

• Q1 gross profit hit $75.3 million; operating loss improved 15% year-over-year to $8.8 million from $10.4 million in the prior year, driven by 2025 operational streamlining
• Adjusted EBITDA was $4.1 million, above the midpoint of guidance and up 88% year-over-year
• Operating expenses came in at $84.1 million, within the guidance range; cash position grew 6% year-over-year to $122 million, maintaining a strong balance sheet

1. North America Realty: The company's largest revenue and profit generator, with Q1 revenue of $965.1 million and adjusted EBITDA of $10 million. Adjusted EBITDA grew 29% year-over-year following 2025 cost-saving initiatives. Operating expenses are being reduced through 2025 streamlining efforts. It contributes approximately 88% of total company revenue based on the disclosed Q1 figures. 2. International: The company's fastest-growing segment, with Q1 revenue growth of 27% year-over-year. The segment continues to invest in community-building activities, and no specific absolute financial figures for revenue or profit were disclosed. 3. SUCCESS (Media & Personal Development): This segment is undergoing operational retooling. Staffing was cut by ~60% over 9 months, and the entire business was replatformed. It has launched two revenue-generating offerings: SUCCESS certified Coaching (first cohort completed, second underway) and SUCCESS Events. Management targets net income profitability for SUCCESS by 2027. No Q1 absolute financial results were disclosed.

• Q2 2026 Guidance: Revenue expected in the range of $1.36 billion to $1.45 billion; operating expenses expected between $93 million and $97 million; adjusted EBITDA expected between $16 million and $21 million
• Full Year 2026 Guidance: Management reaffirmed (maintained) prior guidance, calling for full-year revenue of $4.85 billion to $5.15 billion, operating expenses of $325 million to $345 billion, and adjusted EBITDA of $50 million to $75 million
• NextHome's 2026 financial contribution is not included in the current full year guidance; management will reassess and update guidance after full integration of NextHome in Q2
• Management will re-evaluate the full year outlook at the 2026 midpoint given limited visibility into the second half of the year

• Growing macroeconomic uncertainty and a tightening macro environment have reduced visibility into performance in the second half of 2026, leading management to keep guidance unchanged rather than upgrade it despite strong Q1 performance
• A small sequential decline in agent Net Promoter Score (NPS) was observed in Q1, though management notes the score remains in the strong 70% range and the decline acted as an early warning system that allowed the team to identify and address issues

Q: Multiple cloud-based real estate platforms have acquired franchise models recently. Why did eXp acquire NextHome now, and does this open the door to more domestic brokerage consolidation? / A: eXp started negotiating this deal in September prior to other recent industry acquisitions, and it is already closed, unlike other announced but unclosed deals. Legacy franchise systems owned by new private equity/public owners are contracting 5-7% annually, creating a large pool of available agents and offices that want to switch. eXp intentionally acquired a young, growing, high-rated franchise rather than a shrinking legacy brand. Management will remain open to any accretive acquisition that builds shareholder value and market share, and the new multi-model chassis gives eXp optionality for future deals.

Q: What is NextHome's expected financial contribution to eXp's 2026 full year results, which you just reaffirmed? / A: NextHome is primarily a strategic addition to the eXp platform in the near term, so its financial contribution to full year 2026 consolidated results will be modest. It is not included in current guidance. Management will update guidance after full integration in Q2, and is focused on the long-term value from incremental agents, production, and high margins from the franchise model.

Q: How much will NextHome be integrated into eXp, and what additional capabilities does it bring beyond franchising? / A: NextHome will remain a stand-alone separate brand to preserve its distinct franchise offering. The acquisition includes an experienced NextHome leadership team, which is valuable in the people-driven, independent contractor real estate industry. There are synergies in combined technology purchasing due to overlapping vendor preferences and the fact that 42% of NextHome's franchise network is already virtual, matching eXp's model.

Q: Agent NPS stepped down slightly sequentially quarter-over-quarter — is there any concern to note? / A: NPS in the 70s is still considered strong, and management does not try to game the metric to reach artificially high scores as creator Fred Reichheld (who sits on eXp's board) advises. The small sequential decline is an example of the NPS metric working as an early warning system, allowing management to identify and address the issue quickly. It is not seen as a sign of material long-term concern.