Exp World NASDAQ: AGNT reported improved first-quarter profitability metrics and reiterated its full-year 2026 outlook, while management emphasized its recent NextHome acquisition, international growth and investments in agent-focused technology and personal development offerings.
Jesse Hill, CFO of eXp World Holdings, said first-quarter activity led more agents to reach their cap, contributing to gross profit of $75.3 million. The company posted an operating loss of $8.8 million, improving 15% from a loss of $10.4 million a year earlier. Hill said the improvement was “primarily driven by improvements we made to streamline our operations in 2025.”
Adjusted EBITDA was $4.1 million in the quarter, above the midpoint of the company’s guidance range of $2 million to $5 million and up 88% from Q1 2025. Operating expenses were $84.1 million, which Hill said was at the midpoint of guidance. The company ended the quarter with $122 million in cash, up 6% year over year.
North America Remains Largest Segment; International Grows Fastest
Hill said North America Realty remained the company’s largest revenue and profit generator, with $965.1 million in first-quarter revenue and $10 million in adjusted EBITDA, a 29% year-over-year increase. He attributed the improvement in part to cost-saving initiatives put in place last year.
International continued to be the company’s fastest-growing segment, increasing 27% in the first quarter. Hill said eXp continued investing in community-building activities, including eXpcon Cape Town. The company also continued to reduce operating expenses in North America Realty and other affiliated services as it realized the benefits of its streamlining initiatives.
Company Reiterates 2026 Outlook Amid Macro Uncertainty
For the second quarter, Hill said the company expects revenue of $1.36 billion to $1.45 billion, expenses of $93 million to $97 million and adjusted EBITDA of $16 million to $21 million.
For the full year 2026, eXp reiterated guidance for 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.
Hill said management is encouraged by the company’s performance entering the second quarter but remains cautious because of “growing uncertainty and tightening macroeconomic environment” and reduced visibility into the second half of the year. He said the company plans to reassess its outlook at the midpoint of the year while staying financially flexible and investing where it sees opportunities to support agents, strengthen its technology platform and enhance long-term shareholder value.
NextHome Acquisition Adds Franchise Model
Management spent a significant portion of the call discussing the addition of NextHome, which executives described as giving eXp a second operating model alongside its core cloud brokerage.
Leo Pareja, CEO of eXp Realty, said adding NextHome allows the company to attract independent brokers and franchises coming off franchise agreements, including operators that may not have previously fit within eXp’s cloud brokerage model. Pareja described the acquisition as “a complete new lane and a green shoot opportunity.”
Hill said the franchise model can provide “predictable recurring revenue” through multiyear contracts and typically carries higher gross margins. He described NextHome as asset-light and aligned with eXp’s broader model, with limited corporate overhead and potential margin expansion as it scales.
Asked by Tom White, an analyst at D.A. Davidson, about the financial contribution from NextHome, Hill said the near-term impact would be modest relative to consolidated results and is not currently included in full-year guidance. He said the company will evaluate the acquisition more fully during the second quarter.
Pareja said NextHome will continue to operate as a standalone brand, with “no changes to the NextHome brand.” He also pointed to potential technology purchasing synergies and noted similarities between the companies, including that NextHome is 42% virtual and many of its franchisees use shared office spaces.
Management Highlights SUCCESS, FrameVR and Ticker Change
Glenn, who spoke during the call, said the company has been retooling SUCCESS since last July, including reducing staffing by about 60% and re-platforming the business. He said Matthew and Kristen Ferry joined at the end of the quarter to help lead SUCCESS, describing Matthew Ferry as a respected sales and life coach and Kristen Ferry as an operational leader.
Glenn said SUCCESS Certified Coaching has completed its first cohort and started a second cohort, and he expects SUCCESS Coaching to move SUCCESS into net income by 2027. He also said the company launched SUCCESS Events, which is generating revenue, and described the platform as “a bit like the Zillow of personal development.”
Glenn also discussed the company’s recent ticker change to AGNT, saying it was “not cosmetic” but reflected that eXp is “a platform business built by agents, built for agents.” He described four connected offerings: eXp North America, international operations, FrameVR and SUCCESS.
In response to a question about personal development, Glenn said real estate is fundamentally powered by agents’ skills, mindset and ability to operate effectively. He said eXp has historically viewed personal development as central to its model and that SUCCESS gives agents broader access to related content and resources.
Agent Satisfaction Remains in Focus
Responding to a question from Stephen Sheldon of William Blair about a sequential step down in agent NPS, Pareja said scores in the 70s are still considered good and that the metric helps management identify issues in real time. He said the company views NPS as a “fire or smoke detector system” and uses it to act on areas requiring attention.
The call concluded with management directing investors to eXp World Holdings’ investor site for the replay and latest presentation.
About Exp World NASDAQ: AGNT
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.
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