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eXp World Holdings Inc (EXPI)
NASDAQ:EXPI
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eXp World Holdings
(NASDAQ:EXPI)
67Neutral
Positive Factors
Earnings Performance
EXp reported fourth-quarter results that exceeded top- and bottom-line expectations.
Revenue Growth
The international segment generated $32 million of revenue, up 103% year-over-year.
Strategic Recruitment
Management announced two sizable and high-producing teams that it has brought over from Keller Williams, increasing the focus on team recruitment strategy.
Negative Factors
Agent Count Decline
Total agent count declined by about 2,269 sequentially, which was much lower than the agent count estimate for the quarter.
Housing Market Challenges
The weak housing market continues to weigh on brokerage volumes, with just short of 90,000 transaction sides during the quarter.
Market Outlook
The housing market may remain sluggish over the next 18-36 months.
eXp World Holdings (EXPI) vs. S&P 500 (SPY)
Market Cap
$1.25B
Dividend Yield2.5%
Average Volume (3M)1.40M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth6.69%
EPS Growth-137.52%
CountryUS
Employees2,001
SectorReal Estate
Sector Strength67
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.07
Shares Outstanding156,169,130
10 Day Avg. Volume1,670,746
30 Day Avg. Volume1,402,646
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)5.58
Price to Sales (P/S)0.00
P/FCF Ratio6.34
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda17.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
eXp World Holdings Business Overview & Revenue Model
Company DescriptioneXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company facilitates buyers to search real-time property listings and sellers to list their properties through its various platforms; and offers buyers and sellers with access to a network of professionals, consumer-centric agents, and brokers. It is also involved in building 3D virtual worlds for work, education, and events; and focused on agent website and consumer real estate portal technology. In addition, the company operates SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, podcasts, digital training courses, and affiliated social media accounts across platforms. Further, it provides marketing, training, and other support services to its brokers and agents through proprietary technology enabled services, as well as technology and support services contracted to third parties. eXp World Holdings, Inc. operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Portugal, France, Mexico, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, and Germany. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is based in Bellingham, Washington.
How the Company Makes MoneyeXp World Holdings primarily generates revenue through its real estate brokerage operations under eXp Realty. The company earns commissions from real estate transactions conducted by its network of independent agents. These commissions are shared between the company and the agents, with eXp Realty retaining a portion as its revenue. Additionally, eXp World Holdings benefits from its virtual world platform, Virbela, which provides software solutions for remote collaboration, contributing to its revenue through licensing and subscription fees. The company also generates income from Success Enterprises by offering personal development programs and coaching services. eXp's innovative revenue-sharing model and stock compensation plan for agents, which incentivizes growth and productivity, further enhances its earnings potential.
eXp World Holdings Financial Statement Overview
Summary
eXp World Holdings shows strong revenue growth and a stable balance sheet with no debt leverage. However, consistent net losses and declining profitability margins challenge its financial performance. The company maintains a healthy cash flow position, but recent declines in free cash flow growth may indicate future cash constraints if not addressed.Income Statement
The company shows significant revenue growth over the years, with a compound annual growth rate (CAGR) from 2019 to 2024, indicating strong market expansion. However, profitability margins such as Gross Profit Margin and Net Profit Margin are concerning, with negative figures in recent years, reflecting operational challenges and net losses.65
Positive
Balance Sheet
The balance sheet indicates a strong equity base with no significant debt, resulting in a favorable debt-to-equity ratio of 0. This provides financial stability and low leverage risk. However, the declining stockholders' equity and net losses may affect the return on equity in the long term.75
Positive
Cash Flow
The company's cash flow position is robust, with consistent positive free cash flow and operating cash flow exceeding net income, indicating efficient cash generation. Nevertheless, declining free cash flow in the most recent year suggests potential challenges in sustaining this performance.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.57B | 4.28B | 4.60B | 3.77B | 1.80B | Gross Profit |
| 342.39M | 324.05M | 366.90M | 296.03M | 159.61M | EBIT |
| -18.99M | -16.46M | 5.41M | 34.15M | 31.59M | EBITDA |
| 30.23M | 3.63M | 15.25M | 40.40M | 35.58M | Net Income Common Stockholders |
| -21.27M | -8.97M | 15.44M | 81.22M | 31.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 113.61M | 126.86M | 121.59M | 108.24M | 100.14M | Total Assets |
| 390.72M | 385.67M | 381.68M | 413.83M | 242.19M | Total Debt |
| 0.00 | 10.00K | 869.00K | 1.08M | 820.00K | Net Debt |
| -113.61M | -126.85M | -120.72M | -107.16M | -99.32M | Total Liabilities |
| 185.85M | 141.66M | 132.69M | 190.29M | 99.60M | Stockholders Equity |
| 204.87M | 242.84M | 247.82M | 222.17M | 141.58M |
| Cash Flow | Free Cash Flow | |||
| 185.03M | 201.17M | 198.48M | 233.47M | 113.22M | Operating Cash Flow |
| 191.51M | 209.13M | 210.53M | 246.89M | 119.66M | Investing Cash Flow |
| -19.47M | -13.50M | -22.46M | -18.92M | -16.96M | Financing Cash Flow |
| -170.38M | -184.09M | -204.51M | -179.92M | -21.89M |
eXp World Holdings Technical Analysis
Negative
8.00
Price Trends
9.16
Negative
10.08
Negative
11.56
Negative
Market Momentum
-0.42
Positive
40.05
Neutral
45.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPI, the sentiment is Negative. The current price of 8 is below the 20-day moving average (MA) of 8.45, below the 50-day MA of 9.16, and below the 200-day MA of 11.56, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 45.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXPI.
eXp World Holdings Risk Analysis
eXp World Holdings disclosed 34 risk factors in its most recent earnings report. eXp World Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eXp World Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $883.32M | ― | -52.95% | ― | 83.50% | 8.45% | |
67 Neutral | $1.25B | ― | -6.44% | 2.50% | 6.69% | -137.52% | |
61 Neutral | $309.57M | 17.92 | 2.01% | ― | -4.61% | ― | |
60 Neutral | $2.82B | 10.29 | 0.39% | 8508.26% | 5.90% | -17.41% | |
52 Neutral | $1.33B | ― | 199.35% | ― | 5.11% | -29.67% | |
50 Neutral | $32.22M | ― | -44.60% | ― | 5.80% | 30.19% | |
45 Neutral | $571.67M | ― | -47.67% | ― | 2.36% | -23.60% |
* Real Estate Sector Average
Performance Comparison
EXPI
eXp World Holdings
8.00
-4.27
-34.80%
RMAX
Re/Max Holdings
7.77
-1.83
-19.06%
RDFN
Redfin
10.35
3.24
45.57%
FTHM
Fathom Holdings
1.16
-0.58
-33.33%
OPEN
Opendoor Technologies
0.78
-1.64
-67.77%
REAX
Real Brokerage
4.33
-0.72
-14.26%
eXp World Holdings Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -7.73%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While international expansion and increased agent productivity are strong positives, challenges such as gross margin compression and decreased adjusted EBITDA indicate areas of concern. The company is investing heavily in AI and technology to drive future growth, which shows promise for long-term improvement.Q1-2025 Updates
Positive Updates
International Revenue Surge
International revenue was up 103% year-over-year, marking the strongest quarter ever across all metrics for the international segment.
Record Agent Net Promoter Score
Agent NPS hit a record for Q1 at 78, up from 73 in the prior year, indicating strong agent satisfaction.
Successful New Market Launches
Launched operations in Peru and Türkiye, and preparing for launches in Egypt, Japan, and Ecuador.
High Cash Reserves
Ended the quarter with a strong cash position of $115.7 million, up 6% year-over-year.
Increased Agent Productivity
Sales volume per transaction increased by 6% year-over-year, driven by a 4% increase in volume and a 2% increase in agent productivity.
Negative Updates
Gross Margin Compression
Non-GAAP gross margin was 13%, down 70 basis points from the prior year, and GAAP gross margin was 8%, down 30 basis points.
Decreased Adjusted EBITDA
Adjusted EBITDA was $2.2 million, down year-over-year, due to margin compression and increased investments in technology.
Agent Count Decline
Lower agent count at 81,904, though transactions per agent increased, indicating a departure of lower-producing agents.
Company Guidance
In the recent earnings call, eXp World Holdings provided several key metrics and insights into its first quarter of 2025. The company reported a revenue of $954.9 million, with a 4% increase in real estate sales volume, driven by higher home sales prices and increased productivity in the international segment. Despite a lower overall agent count at 81,904, there was an uptick in transactions per agent. The North America Realty segment generated $923 million in revenue, while the International segment experienced a 103% year-over-year revenue increase, attributed to strong market expansions in countries like Peru and Türkiye. The adjusted EBITDA stood at $2.2 million, reflecting the impact of gross margin compression and increased investments in technology. The company's cash position remained robust, ending the quarter with $115.7 million. eXp's international expansion strategy is laser-focused on reaching 50,000 agents across 50 countries by 2030, with recent launches in Peru and Türkiye and upcoming launches planned in Egypt, Japan, and Ecuador. The company also emphasized its commitment to leveraging AI for operational efficiencies and enhancing its platform to support agent productivity.eXp World Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
eXp World Holdings Appoints Jesse Hill as Interim CFO
Neutral
Mar 17, 2025
On March 17, 2025, eXp World Holdings announced the appointment of Jesse Hill as Interim Chief Financial Officer, effective April 1, 2025. Hill, who has been with the company in various financial leadership roles, will take over from Kent Cheng, who will transition to an advisory role. Hill’s appointment is part of eXp’s strategic focus on enhancing operational efficiency and delivering high returns on agent-centric investments. The company continues its search for a permanent CFO while emphasizing its strong market position and growth potential.
DividendsBusiness Operations and StrategyFinancial Disclosures
eXp World Holdings Declares Dividend Amid Revenue Increase
Neutral
Feb 20, 2025
On February 14, 2025, eXp World Holdings declared a cash dividend of $0.05 per share, payable on March 19, 2025. The company reported a revenue increase of 7% to $4.6 billion for the full year 2024, with a net loss of $21.3 million. Despite challenges, including a 5% decrease in agents, eXp achieved a 9% increase in transaction volume to $185.2 billion and maintained strong agent satisfaction. The company’s focus on innovation and strategic agent acquisitions, such as the Utah Life Real Estate Group, underlines its commitment to growth and agent success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.