eXp World Holdings: Agent-Centric Model Drives Sustainable Growth in a Tech-Driven Real Estate Landscape

In an industry increasingly defined by technological disruption, eXp World Holdings (EXP) has positioned itself as a pioneer in leveraging artificial intelligence (AI) to redefine real estate operations. The company's Q3 2025 results underscore its commitment to an agent-centric model, blending cutting-edge automation with strategic financial discipline to drive long-term value creation. By examining its AI-driven operational efficiencies, global agent retention dynamics, and non-GAAP financial performance, this analysis evaluates how EXP is navigating a competitive landscape while maintaining its growth trajectory.

AI as a Catalyst for Operational Efficiency

eXp World Holdings has embedded AI into the core of its business model, with Q3 2025 marking a pivotal phase in its automation strategy. According to a report by the company's earnings call transcript, CEO Glenn Sanford emphasized that AI copilots and digital community tools are streamlining workflows and enhancing collaboration among agents, as noted in the Investing.com transcript. These tools are not merely supplementary but foundational, with AI now integrated into back-office operations and product workflows. For instance, the introduction of Doc AI reduced the cost per transaction from $621 in Q2 to $523 in Q3, a 15.7% decline, as noted in the Investing.com transcript. Such granular efficiency gains are critical in an industry where margins are often razor-thin.

The impact of these initiatives is quantifiable: agent productivity, measured as sales transactions per agent, improved by 5.4% year-over-year, as noted in the Investing.com transcript. This metric reflects not just higher output but also a more engaged workforce, as automation alleviates administrative burdens. Sanford's leadership commentary highlights a strategic focus on "building scalable, sustainable businesses for agents," a vision that aligns AI adoption with long-term retention goals, as noted in the Investing.com transcript.

Global Agent Retention: Balancing Growth and Challenges

While EXP's agent-centric model has historically driven loyalty, Q3 2025 revealed mixed signals. The company reported a Net Promoter Score (aNPS) of 75, down slightly from 76 in Q3 2024, as reported in the Yahoo Finance report. Simultaneously, the number of agents and brokers on the eXp Realty platform declined by 2%, ending the quarter at 83,446, as reported in the Yahoo Finance report. This dip raises questions about the sustainability of its growth in a market where competition for top talent is intensifying.

However, the broader context suggests resilience. EXP's focus on AI-driven efficiency-such as the $2 million annualized cost reduction in SUCCESS Enterprises-demonstrates a commitment to reinvesting savings into agent support systems, as noted in the Investing.com transcript. By reducing operational friction, the company aims to offset attrition pressures and maintain its appeal to independent agents. The challenge lies in scaling these innovations without diluting the personalized experience that defines its model.

Financial Metrics: Profitability and Prudence

From a financial standpoint, EXP's Q3 2025 results highlight a delicate balance between growth and cost management. Adjusted EBITDA reached $17.7 million, a figure that, while lower than the $20.3 million in Q3 2024, reflects a 5% increase in adjusted operating costs to $82.2 million, as reported in the Yahoo Finance report. This rise in expenses underscores the upfront investment required to deploy AI at scale. Yet, the 7% revenue growth to $1.3 billion indicates that these expenditures are translating into top-line resilience, as reported in the Yahoo Finance report.

The company's non-GAAP metrics tell a story of cautious optimism. While adjusted EBITDA margins contracted slightly, the year-over-year productivity gains and cost-per-transaction reductions suggest that these investments are laying the groundwork for future profitability. EXP's ability to maintain revenue growth amid rising costs positions it as a company that prioritizes long-term value over short-term margins-a strategy that appeals to investors with a multi-year horizon.

Conclusion: A Model for the Future?

eXp World Holdings' Q3 2025 results illustrate a company at a crossroads. Its AI-driven operational efficiencies and agent productivity gains are impressive, yet the slight dip in agent numbers and aNPS signals the need for continued innovation. Financially, the company's non-GAAP performance demonstrates disciplined execution, even as it navigates the costs of technological transformation. For investors, the key question is whether EXP can sustain its agent-centric ethos while scaling AI initiatives to outpace competitors. If the company can maintain its focus on scalable automation and agent satisfaction, it may well emerge as a leader in the next phase of real estate's digital evolution.