eXp World Holdings 2025 Q1 Earnings Mixed Results as Net Loss Narrows by 29.5%

eXp World Holdings (EXPI) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company posted a 1% increase in revenue to $954.9 million, slightly missing analyst expectations. Despite the revenue growth, eXp World Holdings recorded a net loss of $11.0 million, equating to $0.07 per share, which aligned with market expectations. The firm maintained guidance for 2025, focusing on enhancing its agent-centric model through increased investment in technology and training. Management remains committed to international expansion and anticipates ongoing revenue growth driven by these strategic initiatives.

Revenue
eXp World Holdings reported a total revenue increase of 1.3% to $954.91 million for Q1 2025, compared to $943.05 million in Q1 2024. The North American Realty division contributed significantly with $923.05 million, while International Realty added $31.66 million. Other Affiliated Services brought in $827,000. Segment eliminations accounted for a reduction of $626,000, resulting in consolidated revenues of $954.91 million.

Earnings/Net Income
eXp World Holdings reduced its losses to $0.07 per share in Q1 2025, improving by 30% from a loss of $0.10 per share in Q1 2024. The net loss was narrowed to $11.02 million, a 29.5% reduction from the $15.64 million net loss in the previous year, indicating a positive trend towards profitability.

Price Action
The stock price of eXp World Holdings has edged down 1.42% during the latest trading day, has dropped 3.34% during the most recent full trading week, and has dropped 5.25% month-to-date.

Post-Earnings Price Action Review
Investors utilizing the strategy of purchasing eXp World Holdings' shares following a quarter-over-quarter revenue increase and holding for 30 days saw a 44.32% return. However, this performance underperformed the benchmark by 38.80%. The strategy's compound annual growth rate was 7.70%, with a maximum drawdown of -8.91%, reflecting moderate returns and risk. This approach suggests potential volatility in the stock, where returns may not consistently align with broader market gains. The Sharpe ratio of 0.77 points to a balance between risk and reward, but investors should remain cautious, considering the recent fluctuations in the stock price and the mixed financial outcomes in the latest earnings report.

CEO Commentary
eXp World Holdings, Inc. Founder, Chairman, and CEO Glenn Sanford emphasized the company's strong entry into 2025, highlighting its comprehensive, tech-enabled agent value stack that drives record international agent productivity. The company doubled its international revenue year-over-year and expanded into Peru and Türkiye, reinforcing its agent-first model. Sanford stated that eXp's strategy is rooted in agent success, with plans to enhance technology, training, and support to help agents close more deals and build wealth. Leo Pareja, CEO of eXp Realty, noted the company's commitment to transparency and competition, introducing new tools and income pathways for agents.

Guidance
eXp World Holdings expects to continue enhancing its agent-centric model with increased investment in technology and training in 2025. The company aims to further elevate agent success and productivity while expanding its international presence. Management anticipates ongoing revenue growth driven by these strategic initiatives and emphasizes its commitment to leading the real estate industry in consumer transparency and competition.

Additional News
Recently, eXp World Holdings announced significant changes in its executive team, with Glenn Sanford, the Founder, Chairman, and CEO, maintaining his leadership position, while Leo Pareja takes over as the CEO of eXp Realty, signaling a strategic shift towards enhancing transparency and competition within the real estate industry. Furthermore, the company declared a cash dividend of $0.05 per share for Q1 2025, to be paid on June 4, 2025, demonstrating a commitment to returning value to shareholders. Additionally, eXp World Holdings conducted common stock repurchases totaling $5.0 million, reflecting an effort to stabilize stock prices and support shareholder value.