eXp World Holdings Reports Slight Revenue Increase but Significant Operating Loss in Q2 2025

eXp World Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a slight increase in revenue but a significant operating loss compared to the same period last year. The company generated revenues of $1.31 billion for the three months ended June 30, 2025, a 1% increase from $1.30 billion in the same quarter of 2024. However, the operating loss for the quarter was $2.38 million, a stark contrast to the operating income of $18.54 million reported in the prior year. For the first half of 2025, revenues totaled $2.26 billion, up from $2.24 billion in the first half of 2024, while the net loss from continuing operations was $13.32 million, compared to a loss of $2.06 million in the same period last year.

The company's financial performance was impacted by rising operating expenses, which increased by 3% to $1.31 billion in the second quarter, primarily due to higher commissions and agent-related costs. General and administrative expenses rose significantly, up 21% year-over-year, reflecting increased employee-related costs and litigation expenses. eXp also reported a litigation contingency of $17 million related to a settlement from an antitrust lawsuit, which was partially paid during the quarter. The company’s cash and cash equivalents decreased to $94.55 million as of June 30, 2025, down from $113.61 million at the end of 2024.

In terms of operational metrics, eXp's agent count decreased to 82,704, down from 87,111 a year earlier, reflecting a strategic decision to off-board less productive agents. The company reported 118,612 real estate sales transactions in the second quarter, a slight decline from 120,613 in the same period of 2024. Despite the decrease in transaction volume, the average sales price of homes increased, contributing to the overall revenue growth. The company’s agent net promoter score (aNPS) improved to 77, indicating strong agent satisfaction despite the challenging market conditions.

Looking ahead, eXp World Holdings remains focused on expanding its market presence and enhancing its technology platform to support agents. The company is navigating a challenging real estate environment characterized by high mortgage rates and inflation, which have affected buyer demand and transaction volumes. eXp's management expressed confidence in its ability to adapt to these market conditions and continue to grow its agent network, emphasizing the importance of its revenue share plan in attracting and retaining productive agents. The company plans to leverage its cloud-based operations to maintain a competitive edge and improve operational efficiencies.