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.
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eXp World (EXPI) Q3 CY2025 Highlights:
- Revenue: $1.32 billion vs analyst estimates of $1.24 billion (6.9% year-on-year growth, 5.9% beat)
- Adjusted EPS: $0.07 vs analyst expectations of $0.08 (13.2% miss)
- Adjusted EBITDA: $17.71 million vs analyst estimates of $16.25 million (1.3% margin, 9% beat)
- Operating Margin: 0.3%, in line with the same quarter last year
- Agents and Brokers: 83,446, down 1,803 year on year
- Market Capitalization: $1.72 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From eXp World’s Q3 Earnings Call
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Thomas White (D.A. Davidson) asked about the sustainability of the lower general and administrative expenses. CFO Jesse Hill explained these reductions result from streamlined back-office operations and AI adoption, and said, “This is our new base in Q3.”
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Thomas White (D.A. Davidson) inquired about the drivers of team growth and technology’s role in attracting high-performing teams. CEO Leo Pareja highlighted intentional investments in onboarding, technology tools, and training programs like eXp University that offset costs for teams and drive productivity.
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Stephen Sheldon (William Blair) requested an update on automation’s impact on transaction processing costs. Hill noted the introduction of Doc AI for contract review, which reduced costs per transaction and highlighted continued opportunities for further efficiency gains in 2026.
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Audience question focused on AI’s role in removing redundant tasks for agents. Founder Glenn Sanford described AI-driven tools for contract management and the development of personalized digital hubs, enabling agents to collaborate and streamline workflows.
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Audience question addressed international AI adoption. Managing Director Felix Bravo explained that AI-enabled microsites and transaction tools have improved agent experiences and integration across markets, supporting rapid international growth.
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 $10.96, up from $9.70 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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