eXp revenue up as it looks to excel in a down market
Anticipating a slow recovery, company leaders said they’re focused on efficiency and agent productivity. Revenue rose 7% in 2024, but net losses were also up.
After posting solid end-of-year numbers, eXp said it's anticipating an extended downturn in the housing market — but taking the necessary steps to get through it.
The company reported $1.1 billion in revenue for the fourth quarter, a 12% jump compared to a year ago. For the year, revenue totaled $4.6 billion, up 7% from 2023, but net losses were also higher.
During a Feb. 20 earnings call, eXp Realty CEO Leo Pareja said the company will focus on ways to bolster its position as it rides out the down market.
"This is not a two-quarter situation we're going to be in… I'm feeling that we're going to be in this low transaction count for the foreseeable future, like a couple of years," Pareja said.
Earlier this week, KW Co-Founder Gary Keller made a similar prediction, telling agents it will likely take another two years to get out of this low-sales "trough."
Investing in tech, recruiting and international expansion
To prepare for that longer-than-expected slowdown, Founder Glenn Sanford said eXp has been looking at technology investments that can improve efficiency, and ways to continue recruiting and retaining productive agents.
Sanford acknowledged that agent count declined by 5% in 2024, but he said last year's strategy of removing inactive agents means the brokerage now has a higher number of productive agents.
"There's still a lot of agents who weren't selling that much that are still somewhat churning out, but on a net productive basis I think our numbers are continuing to trend up," Sanford said.
The company, which is currently in 27 countries, will also continue its international push. Last April, Sanford said eXp's "real goals are not domestic" and pointed to the brokerage's rapid growth in several global markets. He said eXp plans to have offices in more than 60 countries in the next five years.
In after-hours trading, eXp's stock jumped 11% to around $12.60 a share.
Eliminate Clear Cooperation? That's a hard no
During the investor call, Pareja was asked to sum up his stance on the Clear Cooperation Policy and the movement toward more private listings, and he made his opinion clear: "I think the other side of the argument is a selfish, self-fulfilling profit-driven thing and not the best thing for consumers," Pareja said.
Those who are pushing for the repeal of the CCP are "inviting a class-action lawsuit by sellers who get hurt in this very concentrated effort and maybe a visit from the Department of Justice," he added.
If the CCP becomes fragmented, Pareja believes eXp would have an advantage given its large number of agents — but "I don't think it's the best thing for the consumer, so I'm really hopeful that we can have sound minds come to reasonable outcomes here," Pareja said.
Key numbers
Revenue: $1.1 billion in the fourth quarter, up 12% year-over-year. For the full year, revenue was $4.6 billion, up 7% compared to 2023.
Cash and cash equivalents: $113.6 million at the end of December, down from $125.9 million at the end of 2023.
Net income/loss: A loss of $21.3 million for 2024, including a loss of $9.5 million in the fourth quarter. That's significantly more than the company's net loss of just under $9 million in 2023.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $75.5 million for 2024, with $7.7 million in the fourth quarter.
Transactions: 434,165 transactions in 2024, a 3% increase from 2023. For the fourth quarter, the company had 103,942 transactions, up 6% year-over-year.
Agent count: 82,980 at the end of 2024, down 5% year-over-year. The company cited the exit of non-productive agents as the main factor.
Notable moves
The company has already landed several high-volume teams in the first two months of the year, including Florida's Living Vogue Real Estate led by Mark Coppens and Matt Hickey; Spring Bengtzen's Utah Life Real Estate Group and Abel Gilbert's ONEPATH Realty in Miami; and The New Jersey Life team, led by Justin Kiliszek. Those additions bring a total of more than 250 new agents to eXp.
In January, eXp World Holdings Founder and CEO Glenn Sanford was recognized as the No. 2 most powerful leader in residential real estate on the annual SP 200 ranking of industry leaders.
Meanwhile, the brokerage's settlement in the commissions cases remains in limbo, with the legal back-and-forth continuing and approval far from certain.