Exp World (NASDAQ:AGNT), formerly eXp World Holdings, reported second-quarter revenue of $1.4 billion, up 11% from a year earlier, as higher agent productivity and transaction growth helped the real estate platform deliver record quarterly revenue despite what executives described as a difficult housing backdrop.
The company, which operates eXp Realty and franchise brand NextHome, said it ended the quarter with 87,338 agents, a 6% year-over-year increase. Real estate sale transactions rose 12% to more than 132,000, while transactions per agent increased 6% to 5.5. Sales volume increased 15%, according to Chief Financial Officer Jesse Hill.
Profitability improves as technology investments scale
Gross profit rose 7% year over year to $98.8 million. The company posted operating income of $1.6 million, compared with an operating loss in the second quarter of 2025. Adjusted EBITDA totaled $25.7 million, exceeding the company’s guidance range of $17 million to $21 million and rising 129% from the prior-year period.
Operating expenses were $97.2 million, or $200,000 above the high end of the company’s guidance range. Hill said expenses included approximately $8 million of one-time legal costs, while elevated legal costs are expected to continue through the second half of the year and are reflected in updated guidance.
Cash on the balance sheet totaled $111.2 million at quarter-end, up 18% year over year.
North American Realty remained the company’s largest business, reporting $1.4 billion in revenue, up 10%, and $30.7 million in Adjusted EBITDA, up 55%. International revenue grew 44% to $46.4 million. The international segment’s operating loss narrowed 57% to $1.8 million, while its Adjusted EBITDA loss improved 66% to $1.3 million.
NextHome expands multi-model strategy
Management emphasized the strategic role of NextHome, which was acquired to complement eXp Realty’s cloud-based brokerage model with a franchise offering. The acquisition added approximately 4,900 agents, while eXp Realty’s legacy business added slightly more than 100 agents organically during the quarter, Hill said.
Because NextHome is a franchise operation, its financial contribution is reported differently than eXp Realty’s traditional brokerage revenue, which is recorded at gross commission income. Hill said NextHome’s contribution was modest and represented less than 10% of the company across revenue, expenses and key metrics, but it is included in the company’s updated outlook.
Pareja said the company sees an opportunity to recruit franchise operators and agents as franchise agreements come due, citing what he called the “financialization” of real estate through private-equity and public-company acquisitions. He estimated that about 400,000 agents could be affiliated with franchises that may no longer align with their preferences over the next several years.
“NextHome is a complementary growth engine that unlocks multi-model reach across distinct market segments,” Pareja said.
AI tools target agent workflow and internal efficiency
Executives also highlighted the company’s investment in an AI-focused technology platform. AGNT OS, which operates the Hub for eXp Realty agents, combines tools including group chats, SkySlope, training, marketplace services and other business functions into a single platform.
Pareja said DocAI, the company’s document-review assistant, has reviewed more than 5 million documents and validated 22,000 daily uploads at a score of 100%. Task center automation increased files handled per transaction analyst by 19% year over year, while the company’s AI-enhanced customer support tools now resolve a majority of incoming chats automatically.
Other tools include CARLO for advertising and signage compliance, Broker Assistant for policy and procedure support, and FastCAP, an agent-development tool whose role-play accelerator was used more than 2,800 times during the quarter.
In international markets, the company is building Nexus, an operating system that includes transaction management, property search, customer relationship management, valuation and marketing tools. Founder, CEO and Chairman Glenn Sanford said the international platform was developed by a small team using AI tooling and is designed to operate across roughly 27 countries.
Sanford said the company opened eight countries last year and continues to target operations in 50 countries by 2030. He added that some international markets have become profitable, even as the company continues investing in new country launches.
Outlook reflects softer housing expectations
For the third quarter, AGNT expects revenue of $1.35 billion to $1.45 billion, operating expenses of $85 million to $90 million and Adjusted EBITDA of $17 million to $22 million.
For full-year 2026, the company maintained its revenue outlook of $4.85 billion to $5.15 billion. It now expects operating expenses of $355 million to $365 million and tightened its Adjusted EBITDA outlook to $50 million to $60 million.
Pareja said management expects housing activity to soften into year-end amid sticky inflation, geopolitical uncertainty, bond-market pressure and elevated interest rates. He pointed to the 10-year Treasury yield reaching roughly 4.7% and the Federal Reserve maintaining its federal funds target range at 3.5% to 3.75%.
“We’re controlling the controllable,” Pareja said, citing agent productivity, technology investments, operating efficiency and balance-sheet discipline.
About Exp World (NASDAQ:AGNT)
eXp World Holdings, Inc (NASDAQ: EXPI) is a cloud-based real estate company that operates a global brokerage model through its eXp Realty subsidiary. Founded in 2009 by industry veteran Glenn Sanford and headquartered in Bellingham, Washington, the company leverages a virtual business environment to connect and support real estate professionals. eXp Realty’s technology-driven platform enables licensed agents to list, show and manage residential property transactions without the overhead of traditional brick-and-mortar offices.
At the core of eXp World’s offering is its proprietary virtual campus, which provides real-time training, collaboration and networking via an immersive online environment.
