eXp World Holdings Inc. Releases 2025 Annual Report: A Year of Challenges and Strategic Growth
eXp World Holdings Inc. has unveiled its annual report for 2025, showcasing a mix of growth and challenges amidst a fluctuating real estate market. The company, known for its innovative cloud-based brokerage model, is continuously adapting its strategies to enhance operational efficiencies and empower agents.
1. Business Developments in 2025
Throughout the year, eXp World Holdings made significant strides in agent offerings while navigating through a challenging housing market. The U.S. housing market saw home sales remaining relatively flat, with a slight increase in home sale prices of 1.7%. Despite constrained inventory levels and decreased new housing construction, eXp's management remains optimistic about growth, attributing their resilience to a strong base of agents and a low-cost operational model.
Key Business Metrics
The stability of eXp’s agent network is evident in its Agent Net Promoter Score (aNPS), which remained consistent year-on-year. The company reported a 1% increase in real estate sales transactions, largely driven by growth in Canada and international markets. However, other real estate transactions, including leases and rentals, witnessed a decline due to shifts in market demand.
2. Financial Performance Overview
eXp World Holdings reported an increase in revenues for 2025, reaching approximately $4.77 billion, up from $4.56 billion in 2024. This growth was primarily fueled by higher home sale prices and an uptick in transactions, particularly in Canada and international markets. However, gross profits faced challenges, declining due to increased agent capping and lower fees.
Detailed Financial Statements
- Net Income: The company reported a net loss of $22.71 million for 2025, slightly higher than the previous year's loss of $21.26 million. Operating income also reflected a loss of $21.46 million, underscoring the impact of rising costs and increased legal expenses.
| Feb 2025 | Feb 2026 | |
|---|---|---|
Net Income | -21.26M | -22.71M |
Profit | -21.26M | -22.71M |
Net Income Discontinued | -4.47M | 0 |
Net Income Continuing | -16.78M | -22.71M |
Income Tax Expense | 1.07M | 2.48M |
Pretax Income | -15.71M | -20.23M |
Non-operating Income | 3.27M | 1.23M |
Operating Income | -18.99M | -21.46M |
Revenue | 4.56B | 4.77B |
Costs and Expenses | 4.58B | 4.79B |
Cost of Revenue | 0 | 4.43B |
Operating Expenses | 4.58B | 355.0M |
Impairment Expense | 4.93M | 0 |
Research & Development | 58.18M | 69.61M |
Selling, General & Administrative | 264.2M | 285.4M |
Other Operating Expenses | 4.25B | 0 |
Revenue by Segments
The company’s performance can be broken down into three key segments:
- North American Realty: Revenue grew by 3.27% to $4.62 billion, attributed to higher home sale prices despite a reduction in the agent base.
- International Realty: This segment saw a remarkable revenue increase of 67%, rising to $146.9 million, driven by increased transactions and the launch of new markets.
- Other Affiliated Services: In contrast, revenue plummeted by 53% to $2.87 million, primarily due to declines in SUCCESS® Magazine revenues.
3. Cash Flow and Capital Resources
As of December 31, 2025, eXp reported cash and cash equivalents totaling $124.2 million, reflecting a net change in cash of $12.87 million for the year. The company utilized its cash primarily for sustaining operations, enhancing agent productivity, and investing in technology. Additionally, eXp repurchased $56.2 million of its common stock and paid out $30.8 million in dividends, reflecting a commitment to returning value to shareholders.
| Feb 2025 | Feb 2026 | |
|---|---|---|
Net Change in Cash | -1.30M | 12.87M |
Effect of Exchange Rate Changes | -2.97M | 4.27M |
Net Cash from Operating Activities | 191.5M | 118.6M |
Operating Profit | -21.26M | -22.71M |
Adjustment to Operating Profit | 212.7M | 141.3M |
Net Cash from Investing Activities | -19.47M | -23.47M |
Business & Interest in Affiliates | 11.59M | 13.24M |
Productive Assets | 7.87M | 10.22M |
Net Cash from Financing Activities | -170.3M | -86.53M |
Dividends | 30.09M | 30.77M |
Equity Issuance/Repurchase | -139.1M | -55.76M |
Other Financing Activities | -1.16M | 0 |
4. Legal Proceedings and Future Outlook
eXp World Holdings is currently navigating through various legal proceedings, including ongoing antitrust litigation. The outcomes of these cases may significantly influence the company’s financial strategy and capital requirements moving forward.
Looking Ahead
Despite the challenges faced in 2025, eXp World Holdings remains strategically focused on enhancing agent offerings, expanding into new markets, and investing in innovative technologies. The management believes that these initiatives position the company for growth in a recovering housing market.
5. Conclusion
In summary, eXp World Holdings Inc. experienced a challenging year in 2025, marked by a stagnant housing market and rising operational costs that affected profitability. However, with a solid foundation of agents and a commitment to innovation, the company is poised for potential growth as market conditions improve. Stakeholders will be keenly watching how eXp navigates its current legal challenges and capitalizes on its strengths in the coming years.
