eXp World's Q2 Results Disappoint, Shares Plummet 15.4%

eXp World (EXPI) shares fell 15.4% after the company reported a Q2 net loss, missing analyst estimates by a significant margin. Revenue was in line with expectations at $1.3 billion, but operating expenses increased and key business metrics weakened. The company's cash position also weakened due to a $17 million payment for an antitrust litigation settlement. The stock is down 17.5% YTD and trading 36.7% below its 52-week high.

eXp World Holdings, Inc. (EXPI) reported its second quarter 2025 financial results on July 31, 2025, with the company's stock falling 15.4% following the announcement. The company reported a net loss of $(2.3) million, missing analyst estimates by a significant margin. Revenue for the period was in line with expectations at $1.3 billion, but operating expenses increased to $1.31 billion from $1.28 billion in the same period last year. Key business metrics such as agent count and real estate sales transactions also weakened, with agents decreasing by 5% to 82,704 and real estate sales transactions decreasing by 2% to 118,612 [1].

The company's cash position also weakened due to a $17 million payment for an antitrust litigation settlement during the quarter. As of June 30, 2025, cash and cash equivalents totaled $94.6 million, compared to $108.4 million as of June 30, 2024. The company's adjusted EBITDA for the quarter was $11.2 million, while adjusted operating cash flow was $13.4 million. The company distributed $32.6 million to shareholders, including $24.9 million of common stock repurchases and $7.7 million of cash dividends [1].

The company's stock is down 17.5% year-to-date (YTD) and trading 36.7% below its 52-week high. eXp World Holdings is the holding company for eXp Realty®, FrameVR.io, and SUCCESS® Enterprises, and is the largest independent real estate brokerage in the world, with over 82,000 agents across 28 countries. The company's agent-centric model and focus on innovation have driven its growth, but the latest results suggest that challenges remain in the real estate market and the company's ability to maintain its growth trajectory [1].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/EXPI/pressreleases/33791703/exp-world-holdings-reports-q2-2025-results/