AGNT, Inc. (AGNT)
SIC breadcrumb: Finance, Insurance, And Real Estate > Real Estate > SIC 6531 Real Estate Agents & Managers (For Others)
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1495932. Latest filing source: 0001104659-26-019145.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 4,772,311,000 | USD | 2025 | 2026-02-24 |
| Net income | -22,714,000 | USD | 2025 | 2026-02-24 |
| Assets | 442,480,000 | USD | 2025 | 2026-02-24 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001495932.json. Derived margins are computed from the extracted annual SEC facts.
| Metric | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 500,148,000 | 979,937,000 | 1,798,285,000 | 3,771,170,000 | 4,589,676,000 | 4,273,821,000 | 4,567,672,000 | 4,772,311,000 | |||
| Net income | -7,384,915 | -22,130,965 | -22,430,000 | -9,528,000 | 31,131,000 | 81,220,000 | 15,442,000 | -8,973,000 | -21,267,000 | -22,714,000 | |
| Operating income | -7,371,833 | -22,031,654 | -22,384,000 | -8,779,000 | 31,587,000 | 34,152,000 | 16,357,000 | 522,000 | -18,994,000 | -21,466,000 | |
| Gross profit | 319,924,000 | 342,395,000 | 333,578,000 | ||||||||
| Diluted EPS | -0.14 | -0.42 | -0.19 | -0.08 | 0.21 | 0.51 | 0.10 | -0.06 | -0.14 | -0.14 | |
| Assets | 6,104,047 | 14,637,131 | 55,846,028 | 96,452,000 | 242,187,000 | 413,826,000 | 381,682,000 | 385,668,000 | 390,722,000 | 442,480,000 | |
| Liabilities | 499,504 | 10,376,460 | 25,866,399 | 44,324,000 | 99,600,000 | 190,293,000 | 132,690,000 | 141,660,000 | 185,853,000 | 199,701,000 | |
| Stockholders' equity | 2,527,026 | 4,260,671 | 29,979,629 | 51,967,000 | 141,584,000 | 222,169,000 | 247,823,000 | 242,839,000 | 204,869,000 | 242,779,000 | |
| Cash and cash equivalents | 1,684,608 | 4,672,034 | 20,538,000 | 40,087,000 | 100,143,000 | 108,237,000 | 121,594,000 | 125,873,000 | 113,607,000 | 124,245,000 | |
| Net margin | -4.48% | -0.97% | 1.73% | 2.15% | 0.34% | -0.21% | -0.47% | -0.48% | |||
| Operating margin | -4.48% | -0.90% | 1.76% | 0.91% | 0.36% | 0.01% | -0.42% | -0.45% |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001495932.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 9,359,000 | 0.06 | reported discrete quarter | |
| 2022-Q3 | 2022-09-30 | 4,402,000 | 0.03 | reported discrete quarter | |
| 2022-Q4 | 2022-12-31 | -7,201,000 | derived Q4 = FY annual - nine-month YTD | ||
| 2023-Q1 | 2023-03-31 | 1,453,000 | 0.01 | reported discrete quarter | |
| 2023-Q2 | 2023-06-30 | 1,232,927,000 | 9,422,000 | 0.06 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,214,513,000 | 1,349,000 | 0.01 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 983,049,000 | -21,197,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 943,054,000 | -0.10 | reported discrete quarter | |
| 2024-Q2 | 2024-06-30 | 1,295,244,000 | 0.08 | reported discrete quarter | |
| 2024-Q3 | 2024-09-30 | 1,231,187,000 | -0.06 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 1,098,187,000 | derived Q4 = FY annual - nine-month YTD | ||
| 2025-Q1 | 2025-03-31 | 954,906,000 | -11,024,000 | -0.07 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,308,877,000 | -2,291,000 | -0.01 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,316,683,000 | 3,497,000 | 0.02 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,191,845,000 | -12,896,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 1,005,541,000 | -5,098,000 | -0.03 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001104659-26-058213.
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read together with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report and consolidated financial statements and related notes appearing in our 2025 Annual Report. This MD&A contains forward-looking statements. See the Cautionary Note Regarding Forward-Looking Statements at the beginning of this Quarterly Report for important information regarding such statements, including risks and uncertainties that could cause actual results to differ materially from those expressed or implied. We undertake no obligation to publicly update or revise any forward-looking statements except as may be required by law. All dollar amounts are in USD thousands except share amounts and per share data and as otherwise noted. OVERVIEW The Company operates a diversified portfolio of service-based businesses whose operations benefit substantially from utilizing our enabling technology platform. A substantial portion of our revenue is derived from commissions received by our residential real estate brokerages which provide a full suite of brokerage and adjacent services (such as mortgage, title, and content creation) to our real estate agents and brokers. Our real estate agents and brokers affiliate their real estate licenses with us and operate their businesses utilizing our cloud-based technology platform to enhance their real estate businesses and optimize efficiencies. On May 6, 2026, we expanded our portfolio through the acquisition of NextHome, representing our initial entry into the franchised real estate brokerage model. Through NextHome, we now also serve independent real estate professionals and brokerages who operate under the NextHome franchise system, broadening the range of affiliation models through which agents and brokers can access our ecosystem of services and support. Our enabling and innovative technology platform is a robust suite of cloud-based applications and software services tailored for our real estate agents, brokers, and professionals and targets business operations such as customer relationship management, marketing, client services, and brokerage functionalities. We succeed when our real estate professionals succeed, and we remain focused on being the most agent-centric business on the planet – built by agents, built for agents. MARKET CONDITIONS AND INDUSTRY TRENDS Our performance is closely tied to housing market activity, which is influenced by economic conditions such as employment, consumer confidence, mortgage availability, interest rates, and the balance of supply and demand. Periods of economic growth and lower interest rates generally support higher home sales activity, while rising rates, affordability constraints, increased unemployment, or broader economic slowdowns may reduce transaction volumes and pricing. Regulatory developments, geopolitical events, and shifts in consumer sentiment can also affect housing demand. In the first quarter of 2026, U.S. home sales declined 1% compared to the first quarter of 2025, and home sales prices increased 1.4%, according to the National Association of Realtors (“NAR”). Inventory levels remain constrained, at 4.1 months of supply, consistent with inventory levels in March 2025. These conditions may continue to limit transaction volumes in the near term. 15 Table of Contents Despite these challenges, we believe the Company is positioned for growth with a strong base of agents, an efficient cloud-based operating model, and low fixed costs. This structure allows us to adapt quickly to market changes while supporting long-term productivity and retention. Legal & Regulatory Environment See Part II, Item 1 of this Quarterly Report for a discussion of the current legal environment and how such environment could potentially impact our business, results of operations, cash flows or financial condition. KEY BUSINESS METRICS Management uses our results of operations, financial condition, cash flows, and key business metrics related to our business and industry to evaluate our performance and make strategic decisions. The following table outlines the key business metrics that we periodically review to track the Company’s performance: Three Months Ended March 31, 2026 2025 Performance: Agent NPS 67 78 Agent count 82,332 81,904 Real estate sales transactions 91,598 89,643 Real estate sales volume $ 40,747,782 $ 38,641,084 Other real estate transactions 18,820 18,015 Real estate per transaction cost $ 699 $ 734 Revenues $ 1,005,541 $ 954,906 Gross profit $ 75,347 $ 76,135 Operating income (loss) ($ 8,788) ($ 10,376) Consolidated adjusted EBITDA(1) $ 4,053 $ 2,157 (1) Consolidated adjusted EBITDA is a non-U.S. GAAP financial measure. For a definition, reconciliation to net income (loss), and discussion of why management believes this measure is useful, see “Non-U.S. GAAP Financial Measures”. Agent net promoter score (“aNPS”) The Company utilizes aNPS as a key metric to measure agent satisfaction. We believe an aNPS above 50 is indicative of excellent agent satisfaction. For the three months ended March 31, 2026, our aNPS was 67, compared to 78 for the same period in 2025. We remain committed to our agent-centric model by enhancing productivity and maintaining high levels of engagement across our global networks. Agent count We believe our ability to attract and retain a diverse and professional agent base is a key driver of our long-term success. While our total agent count has experienced recent declines amidst a challenging macroeconomic environment, we remain deeply focused on the retention and support of our agents and teams across all levels of production. The scale of our agent base remains subject to factors beyond our control, including elevated mortgage rates, suppressed transaction volumes, and evolving industry practices. Despite these headwinds, we continue to prioritize a comprehensive value proposition that supports agent productivity, operational efficiency, and long-term professional growth for our entire network. The number of agents increased in the first three months of 2026, compared to the same period in 2025. We remain committed to retaining our agents in the U.S., Canada, and internationally through the execution of our growth strategies and the end-to-end suite of services we offer our agents. Real estate sales transactions and volume Real estate sales transactions are based on the side (buyer or seller) of each real estate transaction and are recorded when our agents and brokers represent buyers or sellers in the purchase or sale, respectively, of a home. The number of real estate transactions is a key driver of our revenue and profitability. Transaction volume represents the total sales value for all transactions and is influenced by several market factors, including, but not limited to, the pricing and quality of our services and market conditions that affect home sales, such as macroeconomic factors, economic growth, or contraction, local inventory levels, mortgage interest rates, and seasonality. Our real estate sales transactions and volume typically fluctuate with changes in the market’s existing home sales transactions as reported by NAR; however, company-specific initiatives influence the transaction volume and productivity 16 Table of Contents of our agents. For the three months ended March 31, 2026, compared to the same period in 2025, our real estate sales transactions increased 2.2%. For the three months ended March 31, 2026, compared to the same period in 2025, transaction volume increased 5.5%. The improvements in transactions and volume are due to increased agent productivity and increased home sale prices. Other real estate transactions Other real estate transactions are recorded for leases, rentals and referrals that are undertaken by our agents and brokers. The increase in other real estate transactions for the three months ended March 31, 2026 compared to the same period in 2025. Real estate per transaction cost Real estate per transaction cost is measured as selling, general and administrative, sales and marketing and technology and development expenses resulting from our services that directly support our agents and brokers, divided by total transactions (real estate sales and other). Real estate per transaction cost decreased (5)% for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to operational efficiency gains from higher transaction units and reduced personnel expenses, employee stock compensation, and marketing expenses. Revenues Revenues represent the commission revenue earned by the Company for closed brokerage real estate transactions. The Company’s revenues increased 5% for the three months ended March 31, 2026, compared to same period in 2025, primarily due to higher home sales prices in North America, increased international production, and improved productivity in North America for the first quarter of 2026. Gross profit Gross profit in the first quarter of 2026 was $75.3 million compared to $76.1 million in the first quarter of 2025. Gross profit decreased in 2026 due to increased agent commissions, productivity awards, and other agent-related costs due to sales commission capping and lower fees from the reduced number of agents. Operating Income (Loss) Operating loss in the first quarter of 2026 was ($8.8) million compared to ($10.4) million in the first quarter of 2025. The decrease in the operating loss in 2026 reflects actions taken to reduce operating costs in the second half of 2025, partially offset by increased legal expenses in connection with the Company’s ongoing efforts to resolve legacy litigation matters, including the NAR settlement and other claims. Consolidated Adjusted EBITDA Management reviews consolidated adjusted EBITDA, which is a non-U.S. GAAP financial measure, to understand and evaluate our core operating performance. For the three months ended March 31, 2026, consolidated adjusted EBITDA increased by $1.9 million, compared to the same period in 2025. The increase in consolidated adjusted EBITDA reflects an improvement in operating results related to actions taken to reduce operating costs in 2025, which offset increased agent capping and lower agent fees. 17 Table of Contents RESULTS OF OPERATIONS The following table reflects the results of each of our operations during the three months ended March 31, 2026 and 2025: Three Months Ended Three Months Ended Change 2026 March 31, 2026 March 31, 2025 vs. 2025 Statement of Operations Data: Revenues $ 1,005,541 $ 954,906 5% Commissions and other agent-related costs 930,194 878,771 6% Gross profit 75,347 76,135 (1)% Operating expenses General and administrative expenses 64,213 66,871 (4)% Technology and development expenses 17,595 16,805 5% Sales and marketing expenses 2,327 2,835 (18)% Total operating expenses 84,135 86,511 (3)% Operating income (loss) (8,788) (10,376) 15% Other (income) expense Other (income) expense, net (268) (943) (72)% Equity in (income) losses of unconsolidated affiliates 130 (80) (263)% Total other (income) expense, net (138) (1,023) (87)% Income (loss) before income tax expense (8,650) (9,353) 8% Income tax (benefit) expense (3,552) 1,671 313% Net income (loss) (5,098) (11,024) 54% Commissions and Other Agent-Related Costs For the [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Part II, Item 8 of this Annual Report. This Item generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 are not included, and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. All dollar amounts presented below are in USD thousands except share amounts and per share data and as otherwise noted. 2025 Business Developments The Company announces new agent offerings, markets, and business updates at various times during the year. Significant announcements during the year ended December 31, 2025 included the following: First Quarter 2025: ● Announced expansion into Peru. Second Quarter 2025: ● Announced expansion into Ecuador and Türkiye. ● Launched Land and Ranch Division, empowering agents serving rural, recreational, and agricultural properties. ● Launched the Co-Sponsor Program, allowing agents to name both a Primary Sponsor and a Co-Sponsor. 21 Table of Contents ● Launched U.S. open-sourced Seller Advisory: Risks of Limited Market Exposure form. Third Quarter 2025: ● Announced expansion into Japan. ● Appointed Jesse Hill as Chief Financial Officer of eXp World Holdings, Inc. ● Launched CRM of Choice, allowing agents to choose from three leading customer relationship management platforms. Fourth Quarter 2025: ● Announced expansion into Romania and the Netherlands. ● Launched Sports and Entertainment Division, empowering agents serving clients in the sports and entertainment industries. ● Appointed Carrie Lysenko as Chief Technology Officer of eXp Realty and Holly Mabery as Chief Brokerage Officer of eXp Realty. ● Launched LYVVETM, the Company’s global property search platform aggregating listings and related data across multiple countries. Market Conditions and Industry Trends Our performance is closely tied to housing market activity, which is influenced by economic conditions such as employment, consumer confidence, mortgage availability, interest rates, and the balance of supply and demand. Periods of economic growth and lower interest rates generally support higher home sales activity, while rising rates, affordability constraints, or broader economic slowdowns may reduce transaction volumes and pricing. Regulatory developments, geopolitical events, and shifts in consumer sentiment can also affect housing demand. In 2025, U.S. home sales were relatively flat compared to 2024, and home sales prices increased 1.7%, according to the NAR. Inventory levels remain constrained, and new housing construction activity decreased during the year. These conditions may continue to limit transaction volumes in the near term. Despite these challenges, we believe the Company is positioned for growth with a strong base of agents, an efficient cloud-based operating model, and low fixed costs. This structure allows us to adapt quickly to market changes while supporting long-term productivity and retention. Key Business Metrics The following table outlines the key business metrics that we periodically review to track the Company’s performance: Year Ended December 31, 2025 2024 2023 Performance: Agent NPS 75 76 73 Agent count 83,060 82,980 87,515 Real estate sales transactions 440,163 434,165 422,772 Real estate sales volume(2) $ 194,038,232 $ 185,170,695 $ 169,202,948 Other real estate transactions 80,468 84,524 71,636 Real estate per transaction cost $ 624 $ 559 $ 573 Revenues(2) $ 4,772,311 $ 4,567,672 $ 4,273,821 Gross profit(2) $ 333,578 $ 342,395 $ 319,924 Operating income (loss)(2) ($ 21,466) ($ 18,994) $ 522 Consolidated adjusted EBITDA(1)(2) $ 33,172 $ 75,483 $ 65,328 (1) Consolidated adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income, or any other measures derived in accordance with U.S. GAAP. For a definition of consolidated adjusted EBITDA and a reconciliation of consolidated adjusted EBITDA to net income (loss), and a discussion of why we believe consolidated adjusted EBITDA is useful to investors, see “Non-U.S. GAAP Financial Measures”. (2) Dollar amounts are presented in thousands 22 Table of Contents Agent Net Promoter Score (“aNPS”) aNPS is a scale-based measure of customer satisfaction and an aNPS above 50 is considered excellent. aNPS plays a crucial role in attracting and retaining agents and teams. Despite the challenging market conditions, aNPS was relatively flat, when compared to the prior year, and the Company continues to provide enhancements to agent programs and offerings, including the Co-Sponsor Program, CRM of Choice, and the launch of new specialized divisions. Agent Count The number of agents was relatively flat in 2025 compared to 2024. The Company continues to attract and retain productive agents through the execution of its growth strategies and the end-to-end suite of services the Company offers its agents. Real Estate Sales Transactions and Sales Volume Real estate sales transactions are based on the side (buyer or seller) of each real estate transaction and are recorded when our agents and brokers represent buyers or sellers in the purchase or sale, respectively, of a home, from which the Company earns brokerage commissions and related fees. Transaction volume represents the total sales value for all transactions. Real estate sales transactions increased 1% during 2025 compared to 2024, primarily driven by increased sales transactions in Canada and in our international markets. Real estate sales volume increased 5% in 2025 compared to 2024 driven by increased sales prices in North America and in our international markets, and to a lesser extent, increased transactions. Other real estate transactions Other real estate transactions are recorded for leases, rentals and referrals that are undertaken by the Company’s agents and brokers. Other real estate transactions decreased during 2025 compared to 2024. The decrease in other real estate transactions was primarily driven by changes in the rental market, and shift in mix toward real estate sales. Real estate per transaction cost Real estate per transaction cost is measured as selling, general and administrative, sales and marketing and technology and development expenses in North American Realty and International Realty segments, divided by total transactions (real estate sales transactions and other real estate transactions). Real estate per transaction cost increased during 2025 compared to 2024, primarily due to employee-related, technology and legal expenses. Revenues Revenues represent the commission revenue earned by the Company for closed brokerage real estate transactions. Revenues increased during 2025 compared to 2024, primarily driven by increased home sale prices in the U.S., and increased sales transactions in Canada and international markets. Gross Profit Gross profit decreased in 2025 when compared to 2024, reflecting revenue growth, offset by increased agent capping and lower agent fees. Operating Income (Loss) Operating income (loss) increased in 2025, when compared to 2024, due to increased legal expenses and accruals, employee-related and other operating expenses, including expenses to support our continued technology improvements. Operating income (loss) in 2024 includes $34.0 million related to litigation contingency accrual and $4.9 million of impairment expense. Consolidated Adjusted EBITDA Management reviews consolidated adjusted EBITDA, which is a non-U.S. GAAP financial measure, to understand and evaluate our core operating performance. Consolidated adjusted EBITDA decreased by $42.3 million in 2025, compared to 2024. The decrease in consolidated adjusted EBITDA reflects a decrease in operating results related to increased agent capping and lower agent fees, as well as increased employee-related, technology and legal expenses, which more than offset increased revenues. 23 Table of Contents Consolidated Operating Performance Year Ended December 31, 2025 Year Ended December 31, 2024 Change 2025 vs. 2024 Statement of Operations Data: Revenues $ 4,772,311 $ 4,567,672 4% Commissions and other agent-related costs 4,438,733 4,225,277 5% Gross profit 333,578 342,395 (3)% Operating expenses General and administrative expenses 274,871 252,369 9% Technology and development expenses 69,618 58,182 20% Sales and marketing expenses 10,555 11,908 (11)% Impairment expense - 4,930 (100)% Litigation contingency - 34,000 (100)% Total operating expenses 355,044 361,389 (2)% Operating income (loss) (21,466) (18,994) (13)% Other (income) expense Other (income) expense, net (1,513) (4,445) 66% Equity in (income) losses of unconsolidated affiliates 281 1,168 (76)% Total other (income) expense, net (1,232) (3,277) 62% Income (loss) before income tax expense (20,234) (15,717) (29)% Income tax (benefit) expense 2,480 1,071 132% Net income (loss) from continuing operations (22,714) (16,788) (35)% Net income (loss) from discontinued operations - (4,479) 100% Net income (loss) (22,714) (21,267) (7)% Commissions and Other Agent-Related Costs Commissions and other agent-related costs increased 5% primarily because of the increase in real estate transactions and increased home sales prices, as well as increased agent capping. Commissions and other agent-related costs include sales commissions, revenue share and stock-based compensation paid to the Company’s agents. General and Administrative Expenses General and administrative expenses increased 9% due to increased employee-related expenses, including severance and increased legal expenses and accruals, and increased costs in agent-related seminars and conferences. General and administrative expenses include costs related to wages, employee stock compensation, and other general overhead expenses. Technology and Development Expenses Technology and development expenses increased 20%, primarily due to increased technology expenses related to continued improvements in our technology offerings to our agents. These expenses include employee-related costs and other expenses related to the maintenance and development of the technology used by both the Company’s agents and employees. Sales and Marketing Expenses Sales and marketing expenses decreased (11)% in 2025 compared to 2024 due to decreased lead capture and advertising expenses in the residential real estate market. Other (Income) Expense, Net Other (income) expense, net increased 62% primarily due to lower interest income and increased other expenses. Other (income) expense, net includes interest income earned on cash and cash equivalents, and (earnings) losses related to equity investments. Income Tax (Benefit) Expense The increase in income tax (benefit) expense was primarily attributable to the decrease in research and development (“R&D”) credit generation in the current year. Refer to Critical Accounting Policies and Estimates within the MD&A and Note 12 - Income Taxes to the consolidated financial statements included elsewhere in this Annual Report for further information. Segment Operating Performance The Company has three operating and reportable segments as follows: North American Realty, International Realty and Other Affiliated Services. We report corporate expenses, as further detailed below, as “Corporate expenses and other.” All segments 24 Table of Contents follow the same basis of presentation and accounting policies. See Note 2 - Summary of Significant Accounting Policies to the consolidated financial statements included elsewhere in this Annual Report for additional information about the Company’s significant accounting policies. See Note 10 – Segment Information to the consolidated financial statements included elsewhere in this Annual Report for additional information regarding the Company’s business segments. The following table reflects the results of each of the Company’s reportable segments for 2025 and 2024: December 31, 2025 December 31, 2024 Change 2025 vs. 2024 Statement of Operations Data: Revenues North American Realty $ 4,624,913 $ 4,478,293 3% International Realty 146,930 88,146 67% Other Affiliated Services 2,873 6,105 (53)% Corporate expenses and other (2,405) (4,872) 51% Total Consolidated Revenues $ 4,772,311 $ 4,567,672 4% Segment Adjusted EBITDA(1) North American Realty $ 59,753 $ 99,253 (40)% International Realty (9,933) (9,481) (5)% Other Affiliated Services (5,804) (4,876) (19)% Corporate expenses and other (10,844) (9,413) (15)% Total Segment Adjusted EBITDA(1) $ 33,172 $ 75,483 (56)% Operating Income (Loss) North American Realty $ 9,322 $ 16,468 (43)% International Realty (11,674) (10,492) (11)% Other Affiliated Services (6,153) (11,615) 47% Corporate expenses and other (12,961) (13,355) 3% Total Consolidated Operating Income (Loss) ($ 21,466) ($ 18,994) (13)% (1) Segment adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income, or any other measures derived in accordance with U.S. GAAP. For a definition of segment adjusted EBITDA and a reconciliation of segment adjusted EBITDA to net income, and a discussion of why we believe segment adjusted EBITDA is useful to investors, see “Non-U.S. GAAP Financial Measures”. Management evaluates the operating results of each of its reportable segments based upon revenue, Segment adjusted EBITDA and operating income (loss). Segment adjusted EBITDA is defined by us as net income before depreciation and amortization, interest expense, income taxes, stock compensation expense, stock option expense, and other items that are not core to the operating activities of the Company. The Company’s presentation of segment adjusted EBITDA may not be comparable to similar measures used by other companies. North American Realty revenue increased 3% during 2025 compared to 2024 primarily due to an increase in home sale prices in the U.S. and in overall real estate transactions in Canada, and improved agent productivity, partially offset by reductions in the Company’s agent base. North American Realty adjusted EBITDA as well as operating income (loss) decreased during 2025 compared to 2024 due to increased commissions and other agent-related costs as a result of increased capping and lower agent fees, as well as increased operating costs, including employee-related, technology and legal expenses. International Realty revenue increased 67% during 2025 compared to 2024 primarily due to increased real estate transactions driven by increased productivity in previously launched markets, as well as the strategic launch of several new markets during the year. International Realty adjusted EBITDA and operating income (loss) reflect the higher costs of entering new countries. Other Affiliated Services revenue decreased (53)% during 2025 compared to 2024 due to lower SUCCESS® Magazine revenues. Other Affiliated Services adjusted EBITDA decreased due to lower revenues and increased costs, including severance costs. Operating income (loss) in 2024 includes $4.9 million of impairment expenses. Corporate expenses and other contain the costs incurred to operate the corporate parent of eXp Realty. Liquidity and Capital Resources The Company believes that its existing balances of cash and cash equivalents and cash flows expected to be generated from its operations will be sufficient to satisfy its normal operating requirements for at least the next 12 months and beyond. As of December 31, 2025, the Company’s cash and cash equivalents totaled $124.2 million. Cash equivalents are comprised of financial 25 Table of Contents instruments with an original maturity of 90 days or less from the date of purchase, primarily money market funds. The Company currently does not hold any other marketable securities. We currently do not hold any bank debt, nor have we issued any debt instruments through public offerings or private placements. Operations Currently, the Company’s primary use of cash on hand is to sustain and grow its business operations, including, but not limited to, commission and revenue share payments to agents and brokers and cash outflows for operating expenses. During 2025, the Company utilized its cash on hand to support our agent productivity, growth initiatives and investment in technology, the first payment of the litigation contingency in the antitrust lawsuits settlement and to a lesser extent, for repurchases of its common stock and quarterly cash dividends. See Note 13 – Commitments and Contingencies to the consolidated financial statements included elsewhere in this Annual Report for further information related to the Company’s litigation. Share Repurchase Program The Company has an authorized share repurchase program which is currently approved by the Board up to $1.0 billion in aggregate. The program does not obligate the Company to acquire a minimum amount of shares. Additionally, during 2023, 2024, and 2025, the Company has paid quarterly cash dividends. As of December 31, 2025, the Company’s quarterly cash dividend was $0.05 per share. During 2025, the Company repurchased $56.2 million of its common stock and paid cash dividends of $30.8 million. There can be no assurance that future cash dividends will be declared by the Board or that the stock repurchase program will be sustained or proceed at historical levels. Legal Proceedings For information regarding the Company’s expected cash requirement related to settlement costs, see “Contingencies” under Note 13 – Commitments and Contingencies to the consolidated financial statements included elsewhere in this Annual Report. The Company’s future capital requirements will depend on many factors, including the outcome of pending antitrust litigation settlement, its level of investment in technology, its rate of growth into new markets and cash used to pay quarterly cash dividends and repurchase shares of the Company’s common stock. The Company’s capital requirements may be affected by factors which it cannot control such as the changes in the residential real estate market, interest rates and other monetary and fiscal policy changes to the manner in which it currently operates. In order to support and achieve the Company’s future growth plans, it may need or seek advantageously to obtain additional funding through equity or debt financing. Net Working Capital Net working capital is calculated as the Company’s total current assets less its total current liabilities. The following table presents the Company’s net working capital for the periods presented: December 31, 2025 December 31, 2024 Current assets $ 304,868 $ 267,972 Current liabilities (199,701) (185,853) Net working capital $ 105,167 $ 82,119 As of December 31, 2025, net working capital increased by $23.0 million, or 28%, compared to the prior year, primarily due to an increase in accounts receivable, due to the timing of revenue in December, partially offset by an increase in accrued expenses. Cash Flows The following table presents our cash flows for the periods presented: Year Ended December 31, 2025 2024 Net cash provided by operating activities $ 118,611 $ 191,514 Net cash used in investing activities (23,472) (19,470) Net cash used in financing activities (86,538) (170,377) Effect of changes in exchange rates on cash, cash equivalents and restricted cash 4,274 (2,972) Net change in cash, cash equivalents and restricted cash $ 12,875 ($ 1,305) For the year ended December 31, 2025, cash provided by operating activities decreased (38)% compared to the same period in 2024, primarily due to lower agent equity program participation, increased accounts receivable, net, due to the timing of revenue in December, as well as the first payment of $17 million related to the antitrust litigation accrual, partially offset by an increase in accrued expenses. For the year ended December 31, 2025, cash used in our investing activities increased 21% compared to the same period in 2024, primarily due to an increase in investments in unconsolidated subsidiaries. 26 Table of Contents For the year ended December 31, 2025, cash used in financing activities decreased by (49)%, compared to the same period in 2024, primarily related to lower repurchases of our common stock of ($84.9) million. Critical Accounting Policies and Estimates The preparation of financial statements in accordance with U.S. GAAP and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make certain judgments and assumptions and estimates that affect the amounts reported. The Company’s significant accounting policies are described in Note 2 – Summary of Significant Accounting Policies to the consolidated financial statements included elsewhere in this Annual Report. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Stock-based compensation The Company’s stock-based compensation is comprised of stock option awards and restricted stock unit grants to service providers, including, but not limited to, agents, employees, and directors. The Company accounts for stock-based compensation using a fair value method. Stock-based compensation awards are measured at the grant date fair value and the stock-based compensation cost is recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures. The Company reduces recorded stock-based compensation for forfeitures when they occur. Recognition of compensation cost for an award with a performance condition is based on the probable outcome of that performance condition being met. The Company estimates the share-based liability based on estimated performance probabilities using the Company’s most recent estimates on probable achievement of the performance measures. Also, the requisite service period at the grant date of performance awards is estimated based on the probable amount of time it will take to meet the performance metric. The value of the stock award is amortized over this period and recognized as stock-based compensation expense starting on the grant date. If factors change causing different assumptions to be made in future periods, estimated compensation expense may differ significantly from that recorded in the current period. See Note 9 – Stockholders’ Equity to the consolidated financial statements included elsewhere in this Annual Report, for more information regarding the assumptions used in estimating the fair value of the Company’s awards. Revenue recognition The Company generates a substantial portion of its revenue from its North American Realty and International Realty segments and generates a de minimis portion of its revenues from its Other Affiliated Services segment. North American Realty and International Realty The Company serves as a licensed broker in the areas in which it operates for the purpose of processing real estate transactions. The Company is contractually obligated to provide services for the fulfillment of transfers of real estate between buyers and sellers. The Company provides these services itself and controls the services necessary to legally represent the transfer of real estate. Correspondingly, the Company is defined as the principal. The Company, as principal, satisfies its obligation upon the closing of a real estate transaction. As principal and upon satisfaction of the Company’s obligation, the Company recognizes revenue in the gross amount of consideration to which the Company expects to be entitled. Revenue is derived from assisting homebuyers and sellers in listing, marketing, selling and finding real estate. Commissions earned on real estate transactions are recognized at the completion of a real estate transaction once the Company has satisfied its performance obligation. Agent-related fees are currently recorded as a reduction to commissions and other agent-related costs. At each reporting period, the Company estimates and accrues revenue for closed transactions for which it is entitled to, but have not yet received, a commission due to those transactions settling after the reporting period. The accrual for this estimated revenue was immaterial for the years ended December 31, 2025 and 2024. Business combinations Our growth strategy is primarily driven by organic initiatives; however, we regularly evaluate strategic acquisitions, partnerships, and other transactions that may accelerate our objectives, expand our capabilities, or create long-term shareholder value Fair value determinations require significant judgment and are sensitive to assumptions about revenue and income growth, terminal values, discount rates, industry indices, and market transactions. The Company uses cost, income, and market approaches in assigning values. Identifiable net assets, including contingent liabilities, are recognized at fair value at the acquisition date and may be adjusted within a one-year measurement period based on new information about conditions at that time. 27 Table of Contents Goodwill and intangibles recorded at acquisition-date fair values are subject to impairment risk if expected growth rates are not achieved or if market or macroeconomic conditions deteriorate. Income taxes We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. A valuation allowance against deferred tax assets would be established if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets are not expected to be realized. Our assumptions, judgments, and estimates relative to the value of our deferred tax assets take into account predictions of the amount and category of future taxable income. As of December 31, 2025, based on our assessment of the realizability of the net deferred tax assets, we reached the conclusion that some of our net deferred tax assets will most likely not be fully realized and therefore a total valuation allowance of $0.5 million was recorded. Although management believes that the judgment and estimates involved are reasonable and that the necessary provisions related to income taxes have been recorded, changes in circumstances or unexpected events could adversely affect our financial position, results of operations, and cash flows. See Note 12 – Income Taxes to the consolidated financial statements included elsewhere in this Annual Report for further information related to our income tax positions. Litigation The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, the outcomes of which are inherently uncertain. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. Resolution of legal matters in a manner inconsistent with management’s expectations could have a material impact on the Company’s financial condition and operating results. See Note 13 – Commitments and Contingencies to the consolidated financial statements included elsewhere in this Annual Report for further information related to the Company’s litigation. Non-U.S. GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use consolidated adjusted EBITDA and segment adjusted EBITDA, non-U.S. GAAP financial measures, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. We define the non-U.S. GAAP financial measure of consolidated adjusted EBITDA to mean net income, excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges, stock-based compensation expense and stock option expense and other items that are not core to the operating activities of the Company. Segment adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, stock compensation expense, stock option expense, and other items that are not core to the operating activities of the Company. We believe that consolidated adjusted EBITDA and segment adjusted EBITDA provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects and allows for greater transparency with respect to a key metric used by our management for financial and operational decision-making. We believe that segment adjusted EBITDA helps identify underlying trends in our business that otherwise could be masked by the effect of the expenses that we exclude in segment adjusted EBITDA. In particular, we believe the exclusion of stock and stock option expenses provides a useful supplemental measure in evaluating the performance of our underlying operations and provides better transparency into our results of operations. We are presenting the non-U.S. GAAP measures of consolidated adjusted EBITDA and segment adjusted EBITDA to assist investors in seeing our financial performance through the eyes of management and because we believe these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. Consolidated adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are several limitations related to the use of consolidated adjusted EBITDA and segment adjusted EBITDA compared to net income, the closest comparable U.S. GAAP measure. Some of these limitations are: ● Consolidated adjusted EBITDA and segment adjusted EBITDA exclude stock-based compensation expense related to our agent growth incentive program and stock option expense, which have been and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy; and 28 Table of Contents ● Consolidated adjusted EBITDA and segment adjusted EBITDA exclude certain recurring, non-cash charges such as depreciation of fixed assets, amortization of intangible assets and impairment charges related to these long-lived assets and, although these are non-cash charges, the assets being depreciated, amortized, or impaired may have to be replaced in the future. The following table presents a reconciliation of consolidated adjusted EBITDA to the most comparable U.S. GAAP financial measure, for each of the periods presented: Year Ended December 31, 2025 2024 2023 Net income (loss) from continuing operations ($ 22,714) ($ 16,788) $ 3,533 Total other (income) expense, net (1,232) (3,277) (2,995) Income tax (benefit) expense 2,480 1,071 (16) Depreciation and amortization 9,562 10,289 10,892 Impairment expense - 4,930 - Litigation contingency - 34,000 - Stock-based compensation expense (1) 38,610 37,285 43,178 Stock option expense 6,466 7,973 10,736 Consolidated adjusted EBITDA $ 33,172 $ 75,483 $ 65,328 (1) This includes agent growth incentive stock compensation expense and stock compensation expense related to business acquisitions. The primary driver for the decrease in consolidated adjusted EBITDA was a decrease in gross profit, primarily driven by increased agent capping as well as increased operating costs including employee-related, technology and legal expenses, partially offset by increased revenues.