Glenn Sanford, founder and CEO, eXp
Illustration by Lanette Behiry/Adobe Stock

eXp reports strong revenue in lead-up to industry transition 

eXp showed growth in revenue and transactions as execs pitched the company’s value prop ahead of August 17 rules changes mandated by the NAR settlement.

August 1, 2024
3 minutes

During this week's quarterly earnings call, eXp executives signaled confidence in the company's value proposition. They also lauded eXp's position to succeed after the NAR settlement rule changes take effect August 17. 

The company reported $1.295 billion in revenue for the second quarter and net income of $11.8 million. Additionally, eXp's 87,000 agents closed 120,613 transactions in the second quarter. Transaction volume increased 7% year-over-year, to $51.9 billion.

eXp has made an effort to take a leading role through the release of its new buyer agency and listing agreement forms. Both have been praised by a prominent consumer watchdog group. An eXp executive recently told Real Estate News the company hopes others in the industry will use its forms. 

However, eXp expects some bumps as the industry navigates the transition. 

"I fully expect that in 6, 12, 18 months from now, as this messy middle plays out, folks are probably going to be fatigued from the breakage and the headaches with it," Leo Pareja, eXp Realty CEO, said during the call with investors. He added that he believes independent agents will look to "partner with an outfit" that understands and is prepped for the changes. 

When asked if eXp might revisit its compensation model to further enhance the attraction for agents, Pareja said the company is "constantly looking at it," but "would caution that you're making sure that you're not giving away the farm to creating a not-sustainable business model." Instead, Pareja pointed out eXp competitors — specifically those "who are trying to be us" — as creating an unsustainable business model. 

Key numbers

Revenue: $1.295 billion in the second quarter, up 5% from $943 million in the first quarter.

Cash and cash equivalents: $108.4 million cash and equivalents on hand at the end of the quarter, down slightly from $109.2 million at the end of March. The company said it repurchased approximately $48.2 million of common stock during the second quarter of 2024.

Net income/loss: Net income of $11.8 million in the second quarter, representing an improvement from a loss of $15.6 million in the first quarter. 

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $32.8 million in the second quarter, up from $11 million in the first quarter.

Transactions: 120,613 in the second quarter, which is up from 110,976 in the first quarter. The company also said its transaction volume increased 7% year-over-year, to $51.9 billion.

Agent count: 87,111 as of June 30, up from 85,780 at the end of the first quarter. The company noted it continued to "off-board less-productive agents" during the quarter.

Notable moves

Glenn Sanford, CEO of eXp World Holdings, defended his stock sales, adding that he is following a plan to sell 3-5% of his shares in any given year. 

"So obviously, it takes me a lot of years to sell," he explained. "I'm still by far the single largest shareholder. So it's not like I'm dumping shares, but it is creating a little bit of cash flow for me personally."

Pareja predicted the recent addition of the St. Louis-based Delhougne Realty Group would become eXp's "number one team, production-wise" for 2024. The firm remained focused on attracting other large, independent brokerages and highly productive individual agents and teams during the quarter, Pareja said. 

The company also lost its chief growth officer, Michael Valdes, to quickly growing competitor LPT Realty during the quarter, then added a new growth leader. Additionally, eXp announced it had joined the Fortune 1000 list of biggest companies by revenue. 

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