Real estate technology company eXp World (NASDAQ: EXPI) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 6.9% year on year to $1.32 billion. Its non-GAAP profit of $0.07 per share was 13.2% below analysts’ consensus estimates.

Is now the time to buy EXPI? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

eXp World’s third quarter was marked by positive market reaction, as the company’s revenue exceeded Wall Street expectations despite adjusted earnings per share coming in below consensus. Management credited this performance to higher agent productivity and successful recruitment of large teams, even as total agent count declined year-over-year. CEO Leo Pareja emphasized that sales transactions per agent were up 5% year-over-year, and noted, “We are creating a stronger, more productive agent base.” International operations also contributed meaningfully, with revenue surpassing last year’s total just nine months into 2025, reflecting momentum in new markets and improved agent retention.

Looking forward, eXp World’s management is focused on leveraging technology and expanding its geographic footprint to drive growth. The company aims to further automate operations and roll out new AI-powered tools, while ramping up affiliate programs and international launches. CFO Jesse Hill underscored this strategy, stating, “Our ongoing priorities include further leveraging AI and automation to simplify operations, expanding our affiliate and partnership programs…and continuing to grow internationally with a disciplined scalable model.” Management also highlighted plans for commercial real estate expansion and the integration of new markets in Europe as part of its long-term vision.

Key Insights from Management’s Remarks

Management attributed Q3’s revenue growth to increased agent productivity and operational efficiency, with technology investments and international expansion also playing key roles.

• Agent productivity growth: Management reported a 5.4% year-over-year increase in sales transactions per agent, underscoring the effectiveness of training programs like eXp University and FastCAP in driving higher output among the agent base.

• Large team recruitment: The company attracted several high-profile teams, including those formerly affiliated with Keller Williams and other top brokerages. These teams tend to be more productive and contribute disproportionately to company-wide sales growth.

• International scaling: eXp opened operations in five new countries this year, including South Korea and Japan, and surpassed $100 million in international revenue for the first time. The company’s “new country launch playbook” has accelerated agent onboarding and transaction activity in newly entered markets.

• AI and automation initiatives: Management highlighted the deployment of AI-driven tools for contract management and back-office workflows, leading to a meaningful reduction in general and administrative expenses. These technology initiatives have also improved agent support and operational scalability.

• Affiliate program expansion: The company expanded offerings such as eXp Luxury and Land & Ranch, with expectations that these programs will further support margin expansion and differentiate eXp’s value proposition for agents and clients.

Drivers of Future Performance

Management expects future performance to be driven by continued technology innovation, international growth, and operational efficiency improvements.

• Technology-driven efficiency: The company plans to further invest in AI and automation to streamline back-office and transaction processes. Management believes these efforts will lower unit economics and enable scalable support for a growing agent base.

• International and commercial expansion: eXp is focused on launching operations in new European markets and expanding its commercial real estate presence internationally. Management views these moves as key to diversifying revenue and increasing the company’s global footprint.

• Affiliate and partnership growth: The company aims to accelerate the growth of affiliate programs such as sports and entertainment, while enhancing its digital community tools. These initiatives are expected to boost agent engagement and contribute to sustainable margin improvement.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the pace of adoption and impact of new AI-powered tools on agent productivity, (2) the effectiveness of international market launches and commercial real estate expansion, and (3) continued growth in affiliate programs such as eXp Luxury and Land & Ranch. Progress in reducing unit costs and driving engagement through digital community initiatives will also be key markers of execution.

eXp World currently trades at $10.44, up from $9.70 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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