eXp’s next act: ‘Maximum optionality’ for agents and brokers says Leo Pareja

“Our first quarter results exceeded our revenue expectations as agent productivity continues to increase,” said Leo Pareja, CEO of eXp Realty. eXp World Holdings reported strong first quarter results as the company continued to emphasize agent productivity and operational efficiency — while moving to broaden its business model through the acquisition of national franchise brand NextHome. The company reported first quarter revenue of $1 billion, up 5% year-over-year from $954.9 million, while adjusted EBITDA rose 88% to $4.1 million. Operating expenses declined 3% to $84.1 million, reflecting cost-cutting measures implemented over the past year. Real estate sales volume increased 5% to $40.7 billion — while transaction sides climbed 2% to 91,598. Agent count on the eXp Realty platform grew 1% year-over-year to 82,332 agents and brokers as of March 31. “We have always been a company built by agents, built for agents, and this quarter we’ve taken a meaningful step in broadening that mission,” says Pareja. “The addition of NextHome creates maximum optionality across our platform. “This multi-model approach serves the full spectrum of real estate entrepreneurs on a single, unified global platform that empowers every agent to grow their business on their own terms.” Chief Financial Officer Jesse Hill said the company’s profitability improvements were driven in part by streamlining efforts initiated in 2025. “More recently, we executed the strategic NextHome acquisition using cash on hand and zero debt,” he said. “Moving forward, we remain committed to maintaining our financial discipline, with an acute focus on continued operational efficiency and cost management.” The acquisition of NextHome marks a significant strategic shift for eXp, which built its brand around a cloud-based brokerage model. The addition of a franchise platform gives the company access to brokerages and agents that may not have previously aligned with eXp’s structure, leaders said. NextHome has more than 500 franchisees across the United States and will continue operating its franchise brand within the eXp ecosystem. During the earnings call, Pareja described the acquisition as a way to broaden the company’s appeal to independent brokerages, franchise operators and larger office structures looking for alternatives in a changing industry landscape. “We have over 87,000 agents,” Pareja said. “We hope to attract more top tier franchisees, as many of them woke up in the last 12 months owned by a new entity that may not be reflective of their views on the industry when it comes to consumers and transparency. Previously, we missed out on attracting indies and entire offices suited for the franchise model, but now we can welcome them.” He said eXp already sees momentum from brokers exploring alternatives to traditional franchise systems — pointing to the addition of a California broker operating in California’s Gold Coast region. Hill said the franchise structure also provides a different financial profile from eXp’s traditional brokerage operations. “Franchise offers very predictable, recurring revenue over the multi-year terms and the contracts,” he said. “Then, they typically have higher gross margins, as well, especially NextHome. (It’s a) very asset light, very aligned to the eXp model, even though we’re slightly different in the offering between franchise and brokerage.” eXp World Holdings founder and CEO Glenn Sanford framed the acquisition as part of a broader effort to position eXp as a diversified operating platform for agents and brokers. “With the acquisition of NextHome, eXp World Holdings has evolved into a borderless, multi-model leader,” Sanford said. “This strategic move, punctuated by our new ticker ‘AGNT,’ reflects our position as a forward-thinking operating platform built to power the modern agent. By integrating a best-in-class franchise vehicle into our technology-driven ecosystem, we are providing the infrastructure for agent entrepreneurs to scale without the traditional friction of brick-and-mortar overhead.” Sanford added that the acquisition strengthens the company’s long-term resilience by diversifying the types of businesses and agents it can support. “This evolution makes our entire network more valuable for everyone, creating a more durable organization designed to thrive throughout any market cycle,” he said. Executives repeatedly emphasized the idea of “optionality” during the call — arguing that the addition of a franchise model allows eXp to serve agents ranging from solo producers to teams, independent brokerages and franchise operators. Pareja said the company deliberately targeted a growing franchise organization rather than a legacy brand experiencing contraction. “We specifically went for a young, growing, well recognized, highly rated franchise system,” Pareja said. “I see this opportunity where these companies that are legacy players, that are now owned by new ownership, are seeing contraction, and that created a massive opportunity for us.” Executives also highlighted continued gains in agent productivity and retention among top-performing agents. According to the company, agents on teams are 78% more productive than individual agents — while 41% of new agents joining eXp during the quarter were affiliated with teams. Pareja said retention remains strongest among high-producing agents. “We continue to see high retention rates among the most productive agents, with attrition in the low- to mid-single digits with agents with over eight transactions a year,” he said. “For agents with transactions over eight transactions per year, the more productive an agent is, the less likely they are to leave. “Of the nonproductive agents that left eXp in the first quarter, 66% of them left the industry altogether.” The company projected second-quarter revenue between $1.36 billion and $1.45 billion and reaffirmed its full-year outlook of $4.85 billion to $5.15 billion in revenue. Executives acknowledged continued macroeconomic uncertainty but said company plans remain focused on disciplined growth, technology investments and multi-model recruiting opportunities. “The more that we can expose agents to how to think better and how to operate better, it just raises, for lack of a better term, the consciousness of the entire organization,” said Sanford. “[It does that] in a way where we’re again more aligned, more connected [and have a] shared vocabulary and shared ways of doing things that just kind of reinforce themselves. “For me, I always think about the fact that eXp, really, has been historically a personal development company that just happens to sell real estate.”