Exp World Q4 Earnings Call Highlights

24 Feb 2026, 23:11 by Scott Moore · The Cerbat Gem

Executives at Exp World (NASDAQ:EXPI) used the company’s fourth-quarter and full-year 2025 earnings fireside chat to emphasize accelerating international growth, improving agent productivity and retention, and a multi-year push to modernize operations with AI and automation. Management also provided initial guidance for the first quarter and full year of 2026, calling for revenue growth and higher adjusted EBITDA as prior investments begin to translate into margin expansion.

International expansion and agent programs

CEO Leo Pareja said 2025 included expansion into seven new countries, helping drive international revenue up 67% year-over-year to $147 million. He also highlighted new initiatives intended to improve agent attraction and productivity, including a co-sponsorship program that allows agents to have two sponsors.

Pareja said co-sponsorship has occurred across 28 countries since launch. In the U.S. and Canada, he said 14% of agents who joined after rollout did so with a co-sponsor. According to Pareja, agents who joined with a co-sponsor were 64% more productive than those without one and had a 19% lower attrition rate.

The company also introduced a commercial division in the U.K. and programs designed to help agents differentiate in specialization markets such as land and ranch and sports entertainment, alongside its existing luxury offering. Pareja said these specialization programs posted a combined membership increase of 48% year-over-year in 2025.

Productivity and retention: “Productivity drives retention”

Management repeatedly linked productivity gains to improving agent retention. Pareja said the company ended 2025 with 83,060 agents worldwide, up slightly from the prior year, and pointed to a 6% year-over-year increase in productivity and a 9% year-over-year increase in revenue in the fourth quarter.

He also cited improved attrition trends, noting worldwide agent attrition improved 17% year-over-year in the fourth quarter, with a 23% year-over-year improvement in the U.S. He said these results came amid an industry contraction, referencing NAR data showing 4% of U.S. realtors exited their membership base in 2025. Pareja said eXp’s U.S. residential business experienced net attrition in 2025 but “outperformed NAR attrition rates by 25%.”

Management stressed that departing agents skew toward lower-producing cohorts. Pareja said 63% of non-productive agents who leave eXp exit the industry altogether. He also said teams are a strategic focus because agents on teams are 78% more productive than individual agents, and 40% of new agents joining in the fourth quarter were on teams. He added that the company brought on more than 25 prominent teams in the U.S. and Canada that generated over $5.5 billion in sales in 2024 at their prior brokerages.

Financial results: revenue growth, margin pressure, and cash

CFO Jesse explained that consolidated productivity per person (PPP) was 5.3 for the year, while volume ramped through the year, accelerating to 8% in the fourth quarter and 5% for the full year. The higher PPP contributed to a 6% increase in sales transactions in the fourth quarter to 110,000 transactions, and more than 440,000 sales transactions in 2025.

On the income statement, the company reported:

2025 revenue of $4.8 billion, up 4% year-over-year; Q4 revenue of $1.2 billion, up 9% year-over-year.
Gross profit of $333.6 million for 2025, which management said reflected investments to attract and retain agents and increased productivity, including more agents reaching their cap.
Operating loss of $21.5 million for 2025 and $12.7 million for the quarter, which was down year-over-year, driven primarily by gross margin compression and higher investments in computer and software, partially offset by operational efficiencies.
Adjusted EBITDA of $33.2 million for 2025 and $2.1 million for Q4, positive but down year-over-year due to margin compression, partially offset by streamlined operations.
Cash of $124.2 million at year-end.

By segment, Jesse said North America Realty remained the largest revenue and profit generator, with Q4 revenue of $1.1 billion and full-year revenue of $4.6 billion. International revenue rose nearly 51% in Q4 and 67% for the full year. Operating expenses increased in Q4 due to continued investments in eXpcon events and increased legal expenses in the U.S., while other affiliated services operating expenses declined as the company streamlined SUCCESS operations. SUCCESS posted an operating loss of $6.2 million as the company retooled the platform.

In response to an analyst question about Q4 revenue growth outpacing gross profit growth, Jesse said the dynamic reflected both seasonal capping patterns in the back half of the year and the company’s continued attraction and retention of more productive agents and teams, which he said has applied pressure to gross margin percentage. He said the company’s 2026 outlook assumes a similar trend to 2025, with “slight compression” offset partially by increased units, while focusing on unit economics to expand EBITDA margins.

Technology and AI strategy

CEO Glenn described 2025 as a year of rebuilding key parts of the platform to enable scaling. He said the replatforming work in international helped deliver seven new country launches, 67% international revenue growth to $147 million, and a 37% reduction in launch costs compared with earlier international expansion efforts. Glenn also said he joined SUCCESS as managing director in mid-2025 with a mandate to rebuild the platform, including replatforming SUCCESS.com and relaunching coaching certification.

Glenn said lessons from that effort helped shape the eXp Hub, described as a “workplace replacement.” He also outlined a “single-threaded leader framework,” an AI-assisted operating model pairing leaders with focused accountability and AI-assisted engineering, which he said is being piloted with some international country leaders.

Chief Technology Officer Carrie highlighted product development priorities centered on “personalization and productivity,” including AI Copilot integration of the Mira business assistant in the My eXp app and “Liv,” a global portal infrastructure aimed at reducing reliance on third-party portals, particularly internationally. She said the company will continue building the eXp Hub community platform, noting 13% of the agent base was already participating in the early months after launch. She also discussed a Marketplace App Store within the Hub, a listing intelligence platform for lead and data access in the U.S. and Canada, and investments in data infrastructure and shared knowledge repositories to support modernization and analytics.

2026 outlook, regulatory focus, and capital allocation

Management provided initial guidance for 2026. For the first quarter, the company expects revenue of $960 million to $980 million, expenses of $82 million to $86 million, and adjusted EBITDA of $2 million to $5 million. For the full year 2026, it expects revenue of $4.85 billion to $5.15 billion, operating expenses of $325 million to $345 million, and adjusted EBITDA of $50 million to $75 million. Jesse said the company intends to remain financially flexible and may invest where it sees meaningful opportunities to support agents and strengthen the platform.

Holly Mabery, recently promoted to Chief Brokerage Officer, said the company is leaning into compliance and guidance as agents face what she called an “overwhelming” environment, citing NAR settlement fallout, RESPA scrutiny, TCPA enforcement, and state-by-state legislative change. She said eXp built compliance infrastructure “before the crisis,” offering guidance through state meetings, eXp University, and on-demand content, and referenced tools such as the eXp Broker Assistant “Carla” and a comprehensive advertising review tool.

On share repurchases, Jesse said reduced buyback activity in 2025 was primarily driven by NAR litigation, noting a first tranche was paid in summer 2025 and a second tranche is expected in summer 2026. He said the company wanted to maintain an internal $100 million cash threshold and ended 2025 with about $124 million in cash. Jesse said buybacks remain a long-term capital allocation tool, but management is evaluating near-term cash needs ahead of the second litigation tranche.

About Exp World (NASDAQ:EXPI)

eXp World Holdings, Inc (NASDAQ: EXPI) is a cloud-based real estate company that operates a global brokerage model through its eXp Realty subsidiary. Founded in 2009 by industry veteran Glenn Sanford and headquartered in Bellingham, Washington, the company leverages a virtual business environment to connect and support real estate professionals. eXp Realty’s technology-driven platform enables licensed agents to list, show and manage residential property transactions without the overhead of traditional brick-and-mortar offices.

At the core of eXp World’s offering is its proprietary virtual campus, which provides real-time training, collaboration and networking via an immersive online environment.