eXp World Holdings 2025 Q2 Earnings Misses Targets as Net Income Plummets 118.5%

eXp World Holdings (EXPI) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Despite a 1% increase in revenue, EXPI missed expectations, reporting a net loss of $2.3 million compared to a profit last year. The company maintained its guidance, focusing on international expansion and agent opportunities. This quarter, EXPI declared a dividend of $0.05 per share, demonstrating a commitment to shareholder returns amid challenging market conditions.

Revenue

The total revenue for eXp World Holdings in the second quarter of 2025 rose by 1.1% to $1.31 billion, compared to $1.30 billion in the previous year’s Q2. North American Realty generated $1.28 billion in revenue, while International Realty contributed $32.29 million. Other Affiliated Services added $708,000, and after segment eliminations of $611,000, the consolidated revenue stood at $1.31 billion.

Earnings/Net Income

eXp World Holdings transitioned from a profit of $0.08 per share in 2024 Q2 to a loss of $0.01 per share in 2025 Q2, marking a 112.5% negative change. The company also reported a net loss of $2.29 million, showing a 118.5% deterioration from the net income of $12.38 million in the same period last year. This reflects poorly on the EPS performance.

Price Action

The stock price of eXp World Holdings edged up 0.37% during the latest trading day, fell 1.46% over the past week, and surged 18.46% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing eXp World Holdings shares 30 days after revenue parity on the financial report release date has yielded moderate returns over the past three years. However, it has underperformed the market, achieving an 8.39% return compared to the benchmark's 85.57% return. Despite avoiding losses during volatile periods with a maximum drawdown of 0%, the strategy is characterized by high volatility at 73.92%, indicating significant price fluctuations. The Sharpe ratio stands at 0.02, suggesting a low risk-adjusted return, and reflects the challenges faced in achieving consistent growth amid market instability.

CEO Commentary

"We're fueled by our agent-first model and continuous investments in the agent value stack," stated Leo Pareja, CEO of eXp Realty. He emphasized the company's innovative initiatives like the co-sponsor program, which are attracting top industry talent and driving growth. Glenn Sanford, Founder and CEO of eXp World Holdings, highlighted the resilience of the company in the challenging real estate landscape, supported by the rapid expansion of its international business. Sanford expressed confidence in unlocking new potential within SUCCESS® Enterprises, aiming to reinvigorate it as a core value driver for agents and shareholders.

Guidance

The company projects continued growth, focusing on enhancing agent opportunities and expanding internationally. It aims to maintain momentum through strategic investments, particularly in SUCCESS® Enterprises, with plans for further development. Commitment to innovation and agent satisfaction remains central to their strategy, reflecting confidence in scalable operations and potential for increased agent productivity.

Additional News

eXp World Holdings has recently appointed Jesse Hill as Chief Financial Officer, effective immediately, marking a significant change in its executive leadership. Additionally, the company expanded its global footprint by entering the Japanese market, enhancing its presence in the Asia Pacific region. In efforts to support its agents, eXp Realty has empowered agents with the freedom to choose their CRM systems, advancing technological autonomy and business independence. These strategic moves demonstrate eXp’s dedication to innovation and global growth.