eXp improves agent count after a year marked by attrition
CEO Leo Pareja said it was “a great indication” that eXp’s recruiting and retention strategies are working. Revenue was up slightly in Q2 as losses improved.
After a year of falling agent counts, eXp managed to reverse that trend in the second quarter — a sign that the brokerage could begin capturing more market share once home sales pick up.
Agent count was 82,704 at the end of June, the company announced during its July 31 earnings call. While down 5% from a year ago, it represents a net gain of 800 agents from Q1 and the first quarterly growth in a year, said eXp Realty CEO Leo Pareja.
"This is a great indication that our strategies and programs we've created to attract and retain agents are working," Pareja told investors.
The company has been especially focused on attracting teams by offering more incentives and bolstering its sponsorship programs, including a new Co-Sponsor initiative launched in May. During the call, Pareja highlighted several recent recruiting wins.
As for eXp's financials, revenue met expectations, inching up 1% to $1.3 billion, and losses improved over the previous quarter.
What eXp had to say
When asked about the state of the real estate market, Pareja said he would consider it "a win" if national transactions were flat in 2025 compared to the previous year. The latest existing home sales data showed the pace of sales lagging behind 2024 — which itself was the slowest year in three decades.
Pareja also expressed concern about the recently passed federal budget, which is expected to add trillions of dollars to the long-term national debt.
"We can very comfortably bet on the fact that the 10-year treasury is not coming down, meaning that we don't really expect a [mortgage] interest rate reprieve," Pareja said. "And so at this point, we're continuing to really focus on production, meaning attracting the most productive agents."
Key numbers
Revenue: $1.3 billion, up 1% compared to a year ago.
Cash and cash equivalents: $94.6 million at the end of June, down from $113.6 million at the end of December. Much of the decline was attributed to a $17 million payment toward eXp's $34 million settlement in the commissions cases, a deal that continues to hit snags.
Net income/loss: A loss of $2.3 million for Q2, an improvement over eXp's $11 million loss in Q1, but down from a net gain of $11.8 million a year ago.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $11.2 million in Q2, down from $32.8 million a year ago.
Transactions: 118,612 in Q2, down 1% compared to a year ago.
Agent count: 82,704 at the end of June, up from the 81,904 at the end of March, but down 5% year-over-year.
Notable moves
During the earnings call, eXp Founder Glenn Sanford spoke at length about his plans to grow SUCCESS magazine and its media operations. Sanford recently took over as publisher of the self-improvement magazine, saying he believes agents are leveraging it to grow their businesses. eXp bought the 127-year-old publication five years ago.
The company also highlighted the latest teams to join the brokerage: Palm Realty Boutique, which generated $750 million from the sale of 370 units last year, and Heller The Home Seller Team led by Chris Heller, which has sold more than 100 homes annually for the past three decades.
In the second quarter, eXp also notched several recruiting wins, including large teams from Arizona and Nebraska, the 80-agent Neal & Neal Team and the 45-agent team led by YouTuber and influencer Kyler Ferris.