Q2 2025 eXp World Holdings Inc Earnings Call

July 31, 2025

2025 earnings Fireside chat via live stream and remembers on the web frame.

My name is Denise Garcia and I manage Investor Relations for <unk> World Holdings today, we will begin our earnings Fireside chat with remarks from Leo Pereira CEO of EXE royalty Wendy's foresight CMO of Exa royalty Felix Bravo managing director International.

<unk> Jessie Hill, Chief Financial Officer of <unk> World Holdings, and Glenn Sanford founder Chairman and CEO of Seaworld Holdings. Following our prepared remarks, we will open the call to a Q&A session with our speakers, let's begin with a review of the forward looking statements.

Good afternoon.

Yeah.

So I chat via live stream and remembers on the web frame.

Good quarter.

Solid earnings.

Via live stream and I remember versus on the web frame.

My name is Denise Garcia and I manage Investor Relations for E X T World Holdings today, we will begin our earnings Fireside chat with remarks from Leo Pereira CEO of Exa royalty Wendy's foresight CMO of Exa royalty Felix Bravo managing director of <unk>.

Yeah.

My name is Denise Garcia manage investor.

There will be a number of forward looking statements made today.

Today, we will begin the fireside chat with your question.

That should be considered in conjunction with the cautionary statements contained in the company's SEC filings.

Neil correct.

Yeah.

Ladies foresight PMO.

National Jessie Hill, Chief Financial Officer of E X T World Holdings, and Glenn Sanford founder Chairman and CEO of EXE World Holdings, following our prepared remarks.

LTE Felix management.

<unk> looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most recently filed annual report on Form 10-K, and quarterly reports on Form 10-Q for a discussion of specific risks that may affect our business performance and financial.

Okay.

Hey, Glenn.

Andrew Chairman and C E. DHT holdings following our prepared remarks, we will open the call to a Q&A session with our speakers, let's begin with a review of the forward looking statements.

Condition.

We assume no obligation to update or revise any forward looking statements or information.

There will be a number of forward looking statements made today.

That should be considered in conjunction with the cautionary statements contained in the company's SEC filings.

As a reminder, today's call is being recorded and a replay will also be made available an EXE world Holdings' Dot com.

Forward looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most recently filed annual report on Form 10-K, and quarterly reports on Form 10-Q for a discussion of specific risks that may affect our business performance and finance.

Now for a few logistics and we will get started.

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Condition.

We assume no obligation to update or revise any forward looking statements or information as a reminder, today's call is being recorded and a replay will also be made available on ESG World Holdings' Dot com.

Should you wish to ask a question during our presentation you can enter your questions by scanning the QR code presented on the screen with your mobile phone or go to slide out dotcom and typing the event code E X P. I from there you can submit a question or vote up an existing question by giving a thumbs up for that question to be asked this screening will remain.

Now for a few logistics and we will get started.

<unk> up on the right hand side of the stage.

Now I will turn to fireside chat over to our speakers before opening the call to questions. Leo you may begin.

Thanks, Denise I would like to start off by noting some positive trends amongst DXP agents in our base. This quarter. This quarter marked our first quarter. Since Q2 of 2024 that we saw sequential quarter over quarter growth in our agent count. This is a great indication that our strategies and programs, we've created to attract and retain agents are working.

Should you wish to ask a question during our presentation you can enter your questions by scanning the QR code presented on this screen with your mobile phone or go to slide O Dot com and typing the event code E X P. I from there you can submit a question or vote up an existing question by giving a thumbs up for that question to be.

Not only have we been able to attract and retain great agents, we've created stronger more productive agent base during this market downturn.

Sales transactions per agent are up 4% year over year.

The number of icon agents is up 9% year over year, and we've had 22% fewer agents leave in Q2 this year versus last year.

And we continue to shed our most unproductive agents, 57% of non productive agents that left DXP.

Left the industry in Q2.

Let's talk more about retention on this next slide.

In the U S. The majority of departing agents continue to be in the low producing cohort.

And we retain the highest most producing agent cohorts, which are multiple less likely to churn than low producing agents.

Our strategy to attract teams is working and helping drive the increase in agent productivity.

Nearly half at 41% of new agents E X P were members of teams in the second quarter age.

Agents on teams or 79% more productive than individual ages.

Increased agent retention a trend we began to see in Q1 of this year.

Is what has helped drive our quarter over quarter agent growth in the U S.

And we have 31% fewer agents leave ESP versus a year ago a quarter in the U S. I'd like to highlight some of the notable teams that helped us get there on the next slide.

Leo Pareja: The 1% of new agents to EXP were members of teams in the second quarter. Agents on teams are 79% more productive than individual agents. Increased agent retention, a trend we began to see in Q1 of this year, is what has helped drive our quarter-over-quarter agent growth in the US. And we had 31% fewer agents leave EXP versus a year ago, a quarter in the US. I'd like to highlight some of the notable teams that helped us get there. On the next slide, starting with Shane and Clint Neal from the Neal team in San Antonio, a top three Keller Williams teams for 2024 in both units and GCI, where they operate across all niches of residential real estate, including luxury and land and ranch, which Wendy will discuss in a moment. We also welcome the Move team in Edmonton, Alberta, and Canada.

Starting with Shane and Clinton Neil from the Neil team in San Antonio a top three Keller Williams teams for 2024 in both units and GCI, where they operate across all niches of residential real estate, including luxury and landed wrench, which Wendy will discuss in a moment. We also welcome the moving in Edmonton, Alberta in Canada.

Were members of teams in the second quarter.

Agents on teacher, 79% more productive than individual ages.

Increased agent retention a trend we began to see in Q1 of this year.

Is what has helped drive our quarter over quarter agent growth in the U S.

And we have 31% fewer agents leave ESP versus a year ago a quarter in the U S. I'd like to highlight some of the notable teams that helped us get there on the next slide.

The move to marked a historic moment for us at DXP as they were our first official co sponsorship co sponsored team in Canada as mentioned our strategy to attract agents and teams with innovative programs as working and Wendy will also provide an update on co sponsorship program in her remarks.

Starting with Shane and Clinton Neil from the Neil team in San Antonio a top three Keller Williams teams for 'twenty, 'twenty, four and both units and GCI, where they operate across all niches of residential real estate, including luxury Atlanta, wrench, which Wendy will discuss in a moment. We also welcomed the moving in Edmonton, Alberta in Canada.

The E. R. S group in Omaha, Nebraska is a great example of the flexibility you XP platform, enabling entrepreneurs to realize their vision.

<unk> is building a platform to connect homeowners and tenants with every service they need and real estate ecosystem on Exa cloud based model that offers perfect foundation to scale nationally, while tapping into our network of forward thinking agents and brokers.

Leo Pareja: The Move team marked a historic moment for us at EXP as they were our first official co-sponsorship team in Canada. As mentioned, our strategy to attract agents and teams with innovative programs is working, and Wendy will also provide an update on co-sponsorship program in her remarks. The ERS Group in Omaha, Nebraska, is a great example of the flexibility of the EXP platform enabling entrepreneurs to realize their vision. ERS is building a platform to connect homeowners and tenants with every service they need and real estate ecosystem on EXP's cloud-based model that offers a perfect foundation to scale nationally while tapping into a network of forward-thinking agents and brokers. On the next slide, we join the Kumla Group from Scottsdale, Arizona. Scott and his team joined us in Arizona under the leadership of Joshua Smith, his longtime mentor.

On the next slide we joined the cooler group in Scottsdale, Arizona.

Scott and his team joined us in Arizona under the leadership of Joshua Smith as longtime mentor and as part of ESP. He now gets to the benefit from my chart and other folks that he partnered with formerly coming from my home group and long Beach, California, We welcomed extensive genesee absorbing associates, who came to get speed to increase their production and.

The E. R. S group in Omaha, Nebraska is a great example of the flexibility you XP platform, enabling entrepreneurs to realize their vision.

We're attracted to the strong infrastructure, all the tools and autonomy, we give them to scale their business.

And some of you may recognize Youtube star Kyler Faris, who is coming back he was formerly with US several years ago, where he went independent to grow as brand.

On the next slide we joined the cooler grew from Scottsdale, Arizona.

Scott and his team joined us in Arizona under the leadership of Josh Smith as longtime mentor and as part of ESP. He now gets to the benefit from my chart and other folks that he partnered with formerly coming from my home group and long Beach, California, We welcomed extension Genesee absorbing associates, who came to speak to increase their production.

And just realize that the value proposition was too great not to be affiliated with us.

Leo Pareja: And as part of EXP, he now gets to the benefit from Mike Charard and other folks that he partnered with, formerly coming from my home group. In Long Beach, California, we welcome Costancia, Genesis, and Zurban Associates, who came to EXP to increase their production and were attracted to the strong infrastructure, all the tools, and autonomy we give them to scale their business. And some of you may recognize YouTube star Kyler Fares, who is coming back. He was formerly with us several years ago where he went independent to grow his brand and just realized that the value proposition was too great not to be affiliated with us. And he was also one of our first folks to take advantage of the co-sponsorship program that officially launched May 1st and has been wildly successful.

And he was also one of our first folks to take advantage of the co sponsorship program officially launched May 1st and has been wildly successful on that note I'll turn it over to Wendy foresight, our chief market officer to share more details about that program and others driving our success Wendy.

We're attracted to the strong infrastructure, all the tools and autonomy, we give them to scale their business.

And some of you may recognize Youtube star Kyler Faris, who is coming back he was formerly with US several years ago, where he went independent to grow as brand.

Thanks lay out in Q2, we saw three significant program launches to add value in our ever growing value stack. The launch of our CRM and choice program. The launch of our co sponsor program and the launch of E. F E land and ranch. So let me share some of the detail.

And just realize that the value proposition was too great not to be affiliated with us.

And he was also one of our first focus to take advantage of the co sponsorship program officially launched May 1st and has been wildly successful on that note I'll turn it over to Wendy foresight, our chief marketing officer to share more details about that program and others driving our success Wendy.

At each of these programs I'll start with our co sponsored program.

Leo Pareja: On that note, I'll turn it over to Wendy Forsythe, our Chief Market Officer, to share more details about that program and others driving our success. Wendy?

The launch of the Cosponsor program allows the power of two here ESP, sparking growth and collaboration and bringing attraction to a whole new level. This program has been met with great success.

Wendy Forsythe: Thanks, Leo. In Q2, we saw three significant program launches to add value in our ever-growing value stack: the launch of our CRM of Choice program, the launch of our Co-Sponsor program, and the launch of EXP Land and Ranch. So let me share some of the details of each of these programs. I'll start with our Co-Sponsor program. The launch of the Co-Sponsor program allows the power of two here at EXP, sparking growth and collaboration and bringing attraction to a whole new level. This program has been met with great success. Since launching the program, we have seen co-sponsors happen across 22 countries globally, showing the great collaboration amongst our agents in countries all over the globe. The next program we launched this quarter was our CRM of Choice.

Thanks lay out in Q2, we saw three significant program license to add value in our ever growing value stack. The launch of our CRM a choice program aligns with our co sponsor program and the launch of E. S. P land and ranch so let.

Launching the program, we have seen co sponsors happened across 22 countries globally shelling the great collaboration amongst our agent in countries all over the globe.

Sure some of the details of each of these programs.

Start with our co sponsored program.

Okay.

Onto the Cosponsor program allows the power of two here yes.

The next program, we launched this quarter with our CRM of choice.

Sparking growth in collaboration and bringing attraction to a whole new level. This program has been met with great success since launching the program. We have seen co sponsors hopping across 22 countries globally selling the great collaboration amongst our age.

Our M is the backbone of agents businesses.

And it is a very personal part of what powers, an agent's business and we are able now to give our agents the opportunity to choose between one of three or three CRM for their business and agents have received this choice very positively and are now able to select.

And in countries all over the globe.

Either bolt trail close orlovsky to power their CRM in their business.

The next program, we launched this quarter with our CRM of choice.

Wendy Forsythe: CRM is the backbone of agents' businesses, and it is a very personal part of what powers an agent's business. And we are able now to give our agents the opportunity to choose between one of three CRMs for their business. And agents have received this choice very positively and are now able to select either Boldtrail, Close, or Lofty to power their CRM in their business. And this has been a real game changer for our agents as they make this selection and power their CRMs and their sphere of influences with this tool that fits their needs in their business every single day. The last program we launched this quarter in our toolbox for our agents has been the long-awaited launch of our EXP Land and Ranch program.

And this has been a.

CRM is the backbone of agents businesses and it is a very personal part of what powers an agent business and we are able now to give our agents the opportunity to choose between one of three or three CRM for their business and agents have received this.

Real game changer for our agents as they make the selection and power there.

CRM and their sphere of influence is with this tool that fits their needs in their business every single day.

The last program, we launched this quarter in our toolbox for our agents has been the long awaited launch of our E. F E land and Ranch program Landon Ranch is an important niche market in our business and our E. S. P agents have received the launch of Landon Ranch very.

Choice very positively and are now able to select either bolt trail close orlovsky to power their CRM in their business and this has been a.

Real game changer for our agents as they make this selection and power there.

<unk> in fact since our launch in April we had over 100 agents.

CRM and their sphere of influence is with this tool that fits their needs in their business every single day.

Join the land and Ranch Division and we have a long list already waiting to to join the land and ranch agents. Welcome. We are so happy that you are ready and able to support land ranch consumers across the country.

The last program, we launched this quarter in our toolbox for our agents has been the long awaited launch of our ESP land and Ranch program. Landon Ranch is an important niche market in our business and our ESP agents have received the launch of land and ranch very.

Wendy Forsythe: Land and Ranch is an important niche market in our business, and our EXP agents have received the launch of Land and Ranch very positively. In fact, since our launch in April, we have had over 100 agents join the Land and Ranch division, and we have a long list already waiting to join. So Land and Ranch agents, welcome. We are so happy that you are ready and able to support Land and Ranch consumers across the country. Moving along to programs that we launched earlier in the year, and in fact, the Canva program was launched last year, but we're just finishing our full second quarter of Canva. And our EXP agents, you guys are Canva power users, ending our second full quarter of Canva, and it is amazing the usage of Canva.

Moving along to programs that we launched earlier in the year and in fact, the camera program was launched last year, but we're just finishing our full second quarter of Canada.

In fact since our launch in April we have had over 100 agents law, Joanna land and Ranch Division and we have a long list already waiting to to join the land and ranch agents. Welcome. We are so happy that you are ready and able.

And our ESP agents you guys are handler power users ending our second full quarter of <unk> and it is amazing the usage of Canada.

Published over 500000 designs at the end of Q2 2025, a five times increase in design usage going from just under two designs per user to almost nine designs per user and you are designing faster decreasing your.

Well to support land ranch consumers across the country.

Moving along to programs that we launched earlier in the year and in fact, the camera program was launched last year, but we're just finishing our full second quarter of camber.

And our ESB agents you guys are handler power users ending our second full quarter of canvas and it is amazing to usage of Canada.

Time to create a design from 24 minutes down to nine minutes.

The power of brand is such an important component in driving all of our businesses in Canada is such an important tool in creating that brand and we're certainly seeing that adoption from all of our E X P agents and can that is at the center of that adoption.

Wendy Forsythe: You published over 500,000 designs at the end of Q2 2025, a five-time increase in design usage, going from just under two designs per user to almost nine designs per user. And you are designing faster, decreasing your time to create a design from 24 minutes down to nine minutes. The power of brand is such an important component in driving all of our businesses, and Canva is such an important tool in creating that brand. And we're certainly seeing that adoption from all of our EXP agents, and Canva is at the center of that adoption. So kudos to all of you for your adoption and implementation of Canva as an important part of our toolbox. One of the things that is at the center of our culture is in-person events. And during Q2, we executed on several key in-person events.

We published over 500000 designs at the end of two.

2020.

Five times increase in design usage going from just under two designs per user to almost nine designs per user and are designing faster decreasing your time to create a design from 24 minutes down to nine minutes.

So kudos to all of you for your adoption and implementation of camber as an important part of our toolbox.

One of the things that is at the center of our culture is in person events and during Q2, we executed on several key in person events one of the ones that is a really.

The power of brand is such an important component in driving all of our businesses and Canada is such an important tool in creating that brand and we're certainly seeing that adoption from all of our ESP agents and can that is at the center of that adoption.

Just such a tree is our regional rallies, which are events that we put on in conjunction in partnership with our agents. These events are actually agent led a bag and our agent led regional rallies were phenomenal. This year, we had over 4000.

So kudos to all of you for your adoption and implementation of <unk> as an important part of our toolbox.

One of the things that is at the center of our culture is in person events and during Q2, we executed on several key in person events.

Agents Menzies events across the country in 19 different locations.

We received really high remarks, so thank you to all of our agent organizers or these events and everyone who came out and attended these events. It was phenomenal to see the energy and the excitement and the connection and all of the learning and sharing that happens.

Wendy Forsythe: One of the ones that is really just such a treat is our regional rallies, which are events that we put on in conjunction and in partnership with our agents. These events are actually agent-led events, and our agent-led regional rallies were phenomenal this year. We had over 4,000 agents attendees events across the country in 19 different locations, and we received really high remarks. So thank you to all of our agent organizers for these events and everyone who came out and attended these events. It was phenomenal to see the energy and the excitement and the connection and all of the learning and sharing that happened at these events across the country. In addition to our regional rallies, we also had two of the three of our major EXPCon events happen in Q2, the first of which happened in April, which was EXPCon in Montreal, Canada.

One of the ones that is a really.

Just such a treat is our regional rallies, which are events that we put on in conjunction in partnership with our agents. These events are actually agent led offense and our agent led regional rallies were phenomenal. This year, we had over four.

These events across the country.

In addition to our regional rallies. We also had two of the three of our major ESP.

<unk> thousand agents and these events across the country in 19 different locations and we received really high remarks. So thank you to all of our agent organizers for these events and everyone who came out and attended these events. It was phenomenal to see the energy and the.

DXP con events happen in Q2, the first of which happened in April which was ESP con in Montreal, Canada, a tremendous event that had E X P agents not only from Canada, but from across the globe in attendance was larger than our ESP Khan Cantor.

Excitement and the connection and all of the learning and sharing that happens at these events across the country.

The event in 2024, so always great to see growth at our events and received very high marks for culture, and education and all of the things that we want to have happen at these events. So thank you to everyone who attended that event the second of our.

In addition to our regional rallies. We also had two of the three of our major ESP.

XP kind of events happened in Q2, the first of which happened in April which was ESP con in Montreal, Canada.

Wendy Forsythe: A tremendous event that had EXP agents not only from Canada but from across the globe in attendance, was larger than our EXPCon Canada event in 2024. So always great to see growth at our event and received very high marks for culture and education and all of the things that we want to have happen at these events. So thank you to everyone who attended that event. The second of our EXPCon events that happened this quarter was our EXPCon event in Barcelona, and this is our EXPCon International event. This event doubled in size year over year. We had over 550 EXP agents from over 18 different countries in attendance, and the event was just phenomenal. It happened just in June, and we received tremendous feedback on this event, and it truly did show to us just the amazing collaboration.

A tremendous event that had E X P agents not only from Canada, but from across the globe in attendance was larger than our ESP on Canada event in 2024, so always great to see growth at our events and received very high marks for them.

<unk> kind of events that happened this quarter was our ESP con event in Barcelona, and this is our ESP Con international event.

This event doubled in size year over year, we had over 550 E X P agents from over 18 different countries in attendance and the event was just phenomenal. It happened just in June and we received tremendous feedback on this event and it truly.

Culture, and education, and all of the things that we want to have happen.

These events. So thank you to everyone who attended that event the second of our ESP kind of events that happened. This quarter was our ESP kind event in Barcelona, and this is our ESP Con international event.

He did show to ask just the amazing collaboration and B.

The thing that I think we all took away from this event is that real estate is truly happening globally and we as ESP are collaborating on a global stage. So it really was an exciting event to be a part of and I think that we all share in the sentiment that we came away from this event.

Those who attended and even though that didn't attend really energized about the opportunities that we have globally and we're so excited about that and that Tees us up perfectly to hand, the stage over to Felix Bravo to talk to us, but all the things that are happening at DXP.

He did show to us just be amazing collaboration and B.

Wendy Forsythe: And the thing that I think we all took away from this event is that real estate is truly happening globally, and we as EXP are collaborating on a global stage. So it really was an exciting event to be a part of, and I think that we all share in the sentiment that we came away from this event, those who attended and even those that didn't attend, really energized about the opportunities that we have globally, and we're so excited about that. And that tees us up perfectly to hand the stage over to Felix Bravo to talk to us about all the things that are happening at EXP International. So Felix, over to you.

The thing that I think we all took away from this event is that real estate is truly happening globally and we as EXE are collaborating on a global stage. So it really was an exciting event to be a part of and I think that we all share in the sentiment that we came away from this event.

International the Felix over to you.

Thanks, Wendy and thank you to everyone joining us today I'm excited to share the progress we've made on our international growth strategy. So far in 2025, and also just to share a bit about what's to come so let's dive right into it on the next slide.

We've had a strong start to the year successfully launching operations in three new countries, Peru, and Turkey. Both opened up in Q1, and most recently Ecuador launched in Q2, all three markets got off to a record starts with our new country launch strategy, Peru onboard at over 100 agents in their first 14 days of open Ecuador onboard.

International So felix over to you.

Jesse Hill: Thanks, Wendy, and thank you to everyone joining us today. I'm excited to share the progress we've made on our international growth strategy so far in 2025 and also just to share a bit about what's to come. So let's dive right into it on the next slide. We've had a strong start to the year, successfully launching operations in three new countries. Peru and Turkey both opened up in Q1, and most recently, Ecuador launched in Q2. All three markets got off to record starts with our new country launch strategy. Peru onboarded over 100 agents in their first 14 days of open. Ecuador onboarded over 100 agents before the actual launch event, and Turkey had over 30 agents just days after launch. More importantly than agent count, though, all three new markets delivered production and transactions in their first month being open.

At over 100 agents before the actual launch events in Turkey had over 30 agents just days after launch.

More importantly, the agent count, though all three new markets delivered production and transactions in their first month being open.

We've had a strong start to the year successfully launching operations in three new countries, Peru, and Turkey. Both opened up in Q1, and most recently Ecuador launched in Q2, all three markets got off to a record starts with a new country. One strategy Guru on boarded over 100 agents in their first 14 days of open Ecuador onboard.

With each new market, we are getting more efficient.

To open faster, requiring fewer resources and operating with increasingly productive teams right out of the gate.

Looking ahead, we're not slowing down our roadmap for the second half of 2025 includes planned entries into Egypt, and Japan, which we had announced previously we also recently announced that DXP Con international in Barcelona, our latest market South Korea.

At over 100 agents before the actual launch events in Turkey had over 30 agents just days after launch.

More importantly, the agent count, though all three new markets delivered production and transactions in their first month being opened.

These markets represent exciting opportunities for us to extend the <unk> model globally and showcase the demand for an agent centric model that focuses on agents building their business, regardless of what size that may be I will share. Some additional highlights from Q2 on the next slide.

Jesse Hill: With each new market, we're getting more efficient. We're learning to open faster, requiring fewer resources, and operating with increasingly productive teams right out of the gate. Looking ahead, we're not slowing down. Our roadmap for the second half of 2025 includes planned entries into Egypt and Japan, which we had announced previously. We also recently announced at EXPCon International in Barcelona, our latest market, South Korea. These markets represent exciting opportunities for us to extend the EXP model globally and showcase the demand for an agent-centric model that focuses on agents building their business, regardless of what size that may be. I'll share some additional highlights from Q2 on the next slide. The second quarter continued our strong momentum. We delivered 59% year-over-year revenue growth. This was driven by a 9% increase in agents globally, along with improved agent productivity.

With each new market, we are getting more efficient.

Turning to open faster, requiring fewer resources and operating with increasingly productive teams right out of the gate.

The second quarter continued our strong momentum we delivered 59% year over year revenue growth. This was driven by a 9% increase in agents globally, along with improved agent productivity.

Over the last 12 months, we have doubled down on attracting productive agents throughout all of our international markets. We have a two year minimum experience requirement for agents to join and we are continuing to evolve our value proposition at local and international levels to give agents the tools they need to grow their business, regardless of how regulated or in.

These markets represent exciting opportunities for us to extend the ESP model globally and showcase the demand for an agent centric model that focuses on agents building their business, regardless of what size that maybe I'll share. Some additional highlights from Q2 on the next slide.

The second quarter continued our strong momentum we delivered 59% year over year revenue growth. This was driven by a 9% increase in agents globally, along with improved agent productivity.

Formerly market may be we continue to drive professionalism in our industry worldwide.

Community building continues to be a priority for us.

As Wendy said, we hosted some major events one of them being DXP Con Barcelona, just now in June which saw 175% increase in registrants year over year, but we also hosted the annual ESP UK agent conference in Birmingham, which brought our agents together to connect and growth.

Jesse Hill: Over the last 12 months, we have doubled down on attracting productive agents throughout all of our international markets. We have a two-year minimum experience requirement for agents to join, and we are continuing to evolve our value proposition at local and international levels to give agents the tools they need to grow their business. Regardless of how regulated or informal a market may be, we continue to drive professionalism in our industry worldwide. Community building continues to be a priority for us. As Wendy said, we hosted some major events, one of them being EXPCon Barcelona just now in June, which saw a 175% increase in registrants year over year. But we also hosted the annual EXP UK Agent Conference in Birmingham, which brought our agents together to connect and grow.

We had the opportunity to be there in person and we got to celebrate with all of our U K agents that DXP U K is now officially the number one state agency in the U K in terms of listings and sales. These.

Formerly market may be we continue to drive professionalism in our industry worldwide.

Community building continues to be a priority for us.

These events are a critical part of cultivating the strong agent culture, but such DXP apart.

As <unk> said, we hosted some prevents one of them being DXP Con Barcelona, just now in June which saw 175, 5% increase in registrants year over year, but we also hosted the annual ESP UK agent conference in Birmingham, which brought our agents together to connect and growth.

As we move into the second half of 2025, we remain fully on track with our international market expansion strategy. Our long term goal is to grow our agent base to 50000 agents across 50 countries by 2030.

Jesse Hill: We had the opportunity to be there in person, and we got to celebrate with all of our UK agents that EXP UK is now officially the number one estate agency in the UK in terms of listings and sales. These events are a critical part of cultivating the strong agent culture that sets EXP apart. As we move into the second half of 2025, we remain fully on track with our international market expansion strategy. Our long-term goal is to grow our agent base to 50,000 agents across 50 countries by 2030. To get there, we're taking a tailored market-specific approach. We're focusing both on high-income regions and emerging markets and empowering our autonomous local teams that are aligned with our global vision. This approach ensures that we scale globally while adapting our model and value proposition at a local level.

We had the opportunity to be there in person and we got to celebrate with all of our U K agents that DXP U K is now officially the number one state agencies. The U K in terms of listings and sales. These.

To get there, we're taking a tailored market specific approach.

Focusing both on high income regions and emerging markets and empowering our autonomous local teams that are aligned with our global vision.

These events are a critical part of cultivating the strong agent culture that sets DXP apart.

Approach ensures that we scaled globally, while adapting our model and value proposition at a local level. This has been a key differentiator for us that continues to deliver results.

With that I'll hand, it over to Jesse who will walk you through our second quarter financial highlights Jesse.

To get there, we're taking a tailored market specific approach.

Thank you Felix it's nice to see international continue to be on track with its long term strategy.

Focusing both on high income regions and emerging markets and empowering our autonomous local teams that are aligned with our global vision.

And now I'll walk us through our second quarter consolidated operational and financial highlights beginning on the next slide.

Starting with revenue, we generated $1 $3 billion in the second quarter and a continued tough macroeconomic environment.

This approach ensures that we scaled globally, while adapting our model and value proposition at a local level. This has been a key differentiator for us that continues to deliver results.

Jesse Hill: This has been a key differentiator for us that continues to deliver results. With that, I'll hand it over to Jesse, who will walk you through our second quarter financial highlights. Jesse.

Real estate sales volume was up 1% year over year in the second quarter, driven by an increase in home sales prices and increased agent productivity.

With that I'll hand, it over to Jesse who will walk you through our second quarter financial highlights Jesse.

Set by a 2% year over year decrease in sales transactions.

Felix Bravo: Thank you, Felix. It's nice to see International continue to be on track with its long-term strategy. And now I'll walk us through our second quarter consolidated operational and financial highlights beginning on the next slide. Starting with revenue, we generated $1.3 billion in the second quarter in a continued tough macroeconomic environment. Real estate sales volume was up 1% year over year in the second quarter, driven by an increase in home sales prices and increased agent productivity, offset by a 2% year-over-year decrease in sales transactions. Agent count was 82,704, a 5% year-over-year decrease, but as Leo mentioned, a 1% quarter-over-quarter increase sequentially this year. And we continue to see an increase in transactions per agent, which indicates that we are attracting and retaining highly productive agents.

Thank you Felix and start to see international continue to be on track with its long term strategy.

Isn't count was 82007 O for a 5% year over year decrease, but as Leo mentioned, a 1% quarter over quarter increase sequentially. This year and we continue to see an increase in transactions per agent, which indicates that we are attracting and retaining highly productive agents.

And now I'll walk us through our second quarter consolidated operational and financial highlights beginning on the next slide.

Starting with revenue, we generated $1 $3 billion in the second quarter and a continued tough macroeconomic environment.

Our non-GAAP gross margin that's comparable to other brokerages gross margin, which excludes stock comp and revenue share was 12%.

Real estate sales volume was up 1% year over year in the second quarter, driven by an increase in home sales prices and increased agent productivity.

While our GAAP gross margin was seven 1% down 40 basis points from Q2 of last year.

By a 2% year over year decrease in transactions.

Predominantly as a result of more productive agents, reaching their cap.

Current count was 82007 O for a 5% year over year decrease, but as Leo mentioned, a 1% quarter over quarter increase sequentially. This year and we continue to see an increase in transactions per agent, which indicates that we are attracting and retaining highly productive agents.

Adjusted EBITDA of $11 2 million continues to be positive, but down year over year, partially driven by the lower gross margin and it was also impacted by strategic investments and decisions that we made in Q2 to streamline operations, including severance and other employee related costs.

Felix Bravo: Our non-GAAP gross margin, that's comparable to other brokerages' gross margin, which excludes stock comp and revenue share, was 12%, while our GAAP gross margin was 7.1%, down 40 basis points from Q2 of last year, predominantly as a result of more productive agents reaching their cap. Adjusted EBITDA of 11.2 million continues to be positive but down year over year, partially driven by the lower gross margin, and it was also impacted by strategic investments and decisions that we made in Q2 to streamline operations, including severance and other employee-related costs. We ended the quarter with 94.6 million in cash. This reflects our first payment of $17 million related to the 34 million antitrust litigation settlement, which we received preliminary approval on in May. We expect to make our second and final payment of $17 million in Q2 of 2026, subject to final court approval.

Our non-GAAP gross margin that's comparable to other brokerages gross margin, which excludes stock comp and revenue share 12%, while our GAAP gross margin was seven 1% down 40 basis points from Q2 of last year.

We ended the quarter with $94 6 million in cash.

This reflects our first payment of $17 million related to the $34 million antitrust litigation settlement, which we received preliminary approval on in May.

Predominantly as a result of more productive agents, reaching their cap.

We expect to make our second and final payment of $17 million in Q2 of 2026 subject to final court approval.

Adjusted EBITDA of $11 2 million continues to be positive, but down year over year, partially driven by lower gross margin and it was also impacted by strategic investments and decisions that we've made in Q2 to streamline operations, including severance and other employee related costs.

On the next slide I will highlight our financial results by segment for the quarter.

The North America royalty segment continues to be the largest revenue and profit generator for the company.

We ended the quarter with $94 6 million cash.

North America revenue was $1 3 billion for the quarter with adjusted EBITDA of $19 8 million.

This reflects our first payment of $17 million related to the 34 million antitrust litigation settlement, which we received preliminary.

As I noted last quarter, we are showing operating loss or income by segment. As this is one additional view that we utilize internally as a leadership team and we wanted to include that to add additional transparency for analysts and investors.

In May <unk>.

Spectrum like our second.

At $17 million in Q2 of 2000 subs.

Subject to final court approval.

Felix Bravo: On the next slide, I will highlight our financial results by segment for the quarter. The North America Realty segment continues to be the largest revenue and profit generator for the company. North America revenue was 1.3 billion for the quarter, with adjusted EBITDA of 19.8 million. As I noted last quarter, we are showing operating loss or income by segment, as this is one additional view that we utilize internally as a leadership team, and we wanted to include that to add additional transparency for our analysts and investors. North America operating income was 7.1 million, including impacts from the 5 million of strategic investments and severance to streamline operations. As I mentioned last quarter, we expect to have more efficient operations in the back half of 2025.

On the next slide I will.

North America operating income was $7 1 million, including impacts from the $5 million of strategic investments and severance to streamline operations.

Highlights of our financial.

For the quarter.

The North America Realty continues to be the largest revenue and profit generator for the company.

As I mentioned last quarter, we expect to have more efficient operations in the back half of 2025.

North America revenue was $1 3 billion for the quarter with adjusted EBITDA of $19 8 million.

International continues to scale with revenue growing 59% year over year, driven by an increase in productive agents and partially offset by some timing and impacts in the U K that I mentioned in Q1.

As I noted last quarter, we are showing operating loss or income by segment. As this is one additional view that we utilize internally as a leadership team and we wanted to include.

Adjusted EBITDA loss increased primarily as a result of opening new markets and hosting two concurrent events, including XD Com Barcelona that Felix mentioned in his remarks.

Okay.

And investors.

North America operating income was $7 $1 million, including impacts from the 5 million of strategic investments and severance to streamline operations.

Other affiliated services, which is primarily success contributed modest revenue and adjusted EBITDA loss of $2 3 million.

As I mentioned last quarter, we expect to have more efficient operations in the back half of 2025.

Felix Bravo: International continues to scale, with revenue growing 59% year over year, driven by an increase in productive agents and partially offset by some timing and impacts in the UK that I mentioned in Q1. Adjusted EBITDA loss increased primarily as a result of opening new markets and hosting two concurrent events, including EXPCon Barcelona that Felix mentioned in his remarks. Other affiliated services, which is primarily success, contributed modest revenue and adjusted EBITDA loss of 2.3 million. On the next slide, we'll take a look at some of the investments we are making as a part of our capital allocation strategy. As we navigate the year, we remain focused on responsible capital stewardship, prioritizing both investment in the long-term strength of our business and returning value to our shareholders, many of whom are agents.

International continues to scale with revenue growing 59% year over year, driven by an increase in productive agents and partially offset by some timing impacts in the U K that I mentioned in Q1.

On the next slide we will take a look at some of the investments we are making as a part of our capital allocation strategy.

As we navigate the year, we remain focused on responsible capital stewardship prioritizing both investment in the long term strength of our business and returning value to our shareholders many of whom are agents.

Adjusted EBITDA loss increased primarily as a result of opening new markets and hosting two concurrent events, including E Comm Barcelona Felix mentioned in his remarks.

As I mentioned earlier, we paid the first $17 million installment related to the $34 million NAR settlement. This quarter. This temporary brought our cash balance below our preferred threshold of $100 million.

Other affiliated services, which is primarily success contributed a modest revenue and adjusted EBITDA loss of $2 3 million.

On the next slide we will take a look at some of the investments, we're making it a part of our capital allocation strategy.

Excluding that payment, we target to maintain cash reserves around that level to preserve financial flexibility and readiness for strategic opportunities.

Now, let me walk you through our broader capital allocation philosophy, and how we reinvest in the business to drive growth productivity and enhance long term shareholder value.

Felix Bravo: As I mentioned earlier, we paid the first $17 million installment related to the $34 million NAR settlement this quarter. This temporarily brought our cash balance below our preferred threshold of 100 million. Excluding that payment, we target to maintain cash reserves around that level to preserve financial flexibility and readiness for strategic opportunities. Now let me walk you through our broader capital allocation philosophy and how we reinvest in the business to drive growth, productivity, and enhance long-term shareholder value. We're consistently making targeted investments to strengthen our core business and differentiate our value proposition. We previously launched a partnership with Canva to give agents powerful marketing tools. Wendy highlighted in her remarks the enthusiastic uptake of that platform, and it's one of several examples listed here of how we listen to our agents and deliver what they need to succeed.

As I mentioned earlier, we paid the first $17 million installment related to the 34 million dollar NAR settlement. This quarter. This temporary brought our cash balance below our preferred threshold of $100 million.

Okay.

We're consistently making targeted investments to strengthen our core business and differentiate our value proposition.

We previously launched a partnership with camber to give agents powerful marketing tools when the highlighted in her remarks, the enthusiastic uptake of that platform and it's one of several examples listed here of how we listen to our agents and deliver what they need to succeed.

Excluding that payment we target to maintain maintain cash reserves around that level to preserve financial flexibility and readiness for strategic opportunities.

Now, let me walk you through our broader capital allocation philosophy, and how we reinvest in the business to drive growth productivity and enhance long term shareholder value.

As a tech Ford company, we're enhancing our stack with leading platforms such as open AI Slack Oracle.

Just to name a few and these arent software subscriptions they are strategic tools that deepen our productivity and scale.

We're consistently making targeted investments to strengthen our core business and differentiate our value proposition.

Continuing with AI and automation and this is an area that we are especially bullish on.

We previously launched a partnership with camber to give agents powerful marketing tools Wendy highlighted in her remarks, the enthusiastic uptake of that platform and it's one of several examples listed here of how we listen to our agents and deliver what they need to succeed.

Our AI investments are designed to support both front end productivity and backend efficiency.

A few examples would be building custom G. P teas, which we've introduced at the local level to help both agents and staff boost their productivity through automation.

Felix Bravo: As a tech forward company, we're enhancing our stack with leading platforms such as OpenAI, Slack, Oracle, just to name a few. And these aren't software subscriptions. They are strategic tools that deepen our productivity and scale. Continuing with AI and automation, and this is an area that we are especially bullish on, our AI investments are designed to support both front-end productivity and back-end efficiency. A few examples would be building custom GPTs, which we've introduced at the local level to help both agents and staff boost their productivity through automation. Internally, we're leveraging AI applications such as Cursor, Windsurf, Levable to write approximately 50% of our code today. Our engineers are then able to adapt and integrate this code into our tools, speeding up the development while maintaining quality.

As a tech Ford company, we're enhancing our stack with leading platforms such as opening slack Oracle.

Internally, we're leveraging AI applications, such as cursor windsurf lovable to write approximately 50% of our code today are.

Just to name a few and these arent software subscriptions they are strategic tool deepen our productivity and scale.

Our engineers are then able to adapt and integrate this code into our tools speeding up the development, while maintaining quality.

Continuing with AI and automation and this is an area that we are especially bullish on.

Our AI investments are designed to support both front end productivity and backend efficiency.

And finally, the recently introduced co sponsored program is now running at close to 100% automation. Another Great example of how we're scaling intelligently.

A few examples would be building custom gpt's, which we've introduced at the local level to help both agents and staff boost their productivity through automation.

Our focus here is clear use AI to empower people drive faster response times and better support and ultimately more sales and productivity.

Internally, we're leveraging AI applications, such as cursor windsurf lovable to write approximately 50% of our coach today.

On the inorganic growth side, we're also making calculated investments in companies aligned with our mission such as fixed or AI and <unk> to further strengthen our ecosystem and our agent capabilities.

Our engineers are then able to adapt and integrate this code into our tools speeding up the development, while maintaining quality.

Felix Bravo: And finally, the recently introduced Co-Sponsor program is now running at close to 100% automation, another great example of how we're scaling intelligently. Our focus here is clear: use AI to empower people, drive faster response times, better support, and ultimately more sales and productivity. On the inorganic growth side, we're also making calculated investments in companies aligned with our mission, such as Fixer AI and CISO, to further strengthen our ecosystem and our agent capabilities. And finally, let's discuss returning capital to shareholders, which of course includes many of our agents. And we do this via strategically buying back shares and also issuing a dividend. The dividend is a differentiator in our space. For example, agents earning stock awards are eligible to receive the dividend on that stock, which is a tremendous value add.

And finally, the recently introduced co sponsored program is now running at close to 100% automation. Another Great example of how we're scaling intelligently.

And finally, let's discuss returning capital to shareholders, which of course includes many of our agents and we do this via strategically buying back shares and also issuing a dividend.

Our focus here is clear use AI to empower people drive faster response times and better support and ultimately more sales and productivity.

The dividend is a differentiator in our space for example agents earnings stock awards are eligible to receive the dividend on that stock, which has a tremendous value add.

On the inorganic side, we're also making calculated investments in companies aligned with our mission such as fixed or AI and <unk> to further strengthen our ecosystem and our agent capabilities.

In short, we have a disciplined and strategic capital allocation strategy, one that balances reinvesting for growth and innovation, while returning capital to shareholders.

We believe this approach positions us to create long term shareholder value support our agents and maintain the financial strength that has always been a hallmark of DXP.

And finally, let's discuss returning capital to shareholders, which of course includes many of our agents and we do this we are strategically buying back shares and also the dividend.

With that I'll turn it over the call to Glenn who will take us through his areas of focus at the World Holdings level before we open up the call to questions.

The dividend is a differentiator in our space for example agents, earning stock awards are eligible to receive the dividend on that stock, which has a tremendous value add.

Glen.

Hey, thanks, Thanks Jessy.

Felix Bravo: In short, we have a disciplined and strategic capital allocation strategy, one that balances reinvesting for growth and innovation while returning capital to shareholders. We believe this approach positions us to create long-term shareholder value, support our agents, and maintain the financial strength that has always been a hallmark of EXP. With that, I'll turn over the call to Glenn, who will take us through his areas of focus at the World Holdings level before we open up the call to questions. Glenn?

In short, we are disciplined and strategic capital allocation strategy, one that balances reinvesting for growth and innovation, while returning capital to shareholders.

Thanks.

Thanks, everyone.

On stage today with.

With me as well.

We've got such an amazing leadership team and we continue to build the most Egypt centric real estate platform, we've talked about being brokerage, but really it's a platform on the planet.

We believe this approach positions us to create long term shareholder value support our agents and maintain the financial strength that it has always been a hallmark of DXP.

With that I'll turn it over the call to Glenn who will take us through his areas of focus at the World Holdings level before we open up the call to questions.

Over the over the past 12 months.

I've been primarily focused on.

Glen.

On helping really the international team.

Glenn Sanford: Hey, thanks. Thanks, Jesse, and thanks everyone on stage today with me as well. We've got such an amazing leadership team, and we continue to build the most agent-centric real estate platform. We talk about being brokers, but really it's a platform on the planet. Over the past 12 months, I've been primarily focused on helping really the international team unblock, put things in place, and you'll probably even hear maybe even some of the Q&A on some of the countries that are literally in launch as we speak during this call and some of the things that are really coming before the end of the year. So we've got a lot of good stuff happening. We've built, while I was involved with the International, and now of course Felix is now leading the charge there, but we really got a number of country-by-country playbooks in place.

Hey, thanks, Thanks Jessy.

Unblock put things in place.

Thanks, everyone.

On stage today with.

You'll probably even here maybe even some of the Q&A on some of the countries that are literally in launch as we speak during this call.

With me as well.

We've got such an amazing leadership team.

I need to build the most Egypt centric real estate.

And some of the things that are coming before the end of the year. So we've got a lot of a lot of good stuff happening.

What form and we've talked about being brokerage, but really the platform on the planet.

Bill.

Well I was involved with the international and now of course.

Over the over the past 12 months.

I have been primarily focused.

Felix is now.

Helping really be international team.

Leading the charge there, but we really.

<unk> got a number of hill country by country Playbooks in place.

On block put things in place.

We launched obviously a number of new countries supported them deeply and now it is a virtuous flywheel of new countries opening and we're super excited about that.

Youll, probably even here, maybe even some of the Q&A on some of the countries that are literally in launch as we speak during this call.

And some of the things that are coming before the end of the year. So we've got a lot of a lot of good stuff happening.

Strong foundation in place.

And as a result, I'm shifting my focus over to another strategic platform and that's what I've talked about on many past earnings calls.

Bill.

Well I was involved with the international and now of course.

Felix is now leading the charge there, but we really.

And that's success enterprises.

<unk> got a number of your country by country Playbooks in place.

As you know.

Glenn Sanford: We launched obviously a number of new countries, supported them deeply, and now it is a virtuous flywheel of new countries opening, and we're super excited about that. So the strong foundation in place, and as a result, I'm shifting my focus over to another strategic platform, and that's one I've talked about on many past earnings calls, and that's Success Enterprises. As you know, Success is really the owner of the longest running personal development brand that exists. It's really kind of the glue to the personal development industry. There's about $50 million or $50 billion a year industry. It's growing pretty rapidly, and we've had all of the major players in that space be a part of it. So super excited about that. We really think about a lot of things. And so I'm actually rejoining as publisher and managing director of the enterprise.

Success.

We launched obviously the number of new countries supported them deeply and now it is a virtuous flywheel of new countries opening and we're super excited about that so the strong foundation in place.

Is really be.

Owner of Av.

The longest running personal development brand that exists, it's really kind of the glue to the personal development industry, there's about $50 million or $50 billion of your industry very cool that's growing pretty rapidly.

And as a result, I'm shifting my focus over to another strategic platform and that's what I've talked about on many past earnings calls.

We've got all of the.

Major players in that space be a part of it so super excited about that.

And that's success enterprises.

We really think about a lot of a lot of things and so I'm actually rejoining as publisher and managing director of the <unk> of the enterprise.

As you know.

Success.

Is really the big.

Owner of Av.

The longest running personal development brand that exists, it's really kind of the glue to the personal development industry, there's about $50 million or $50 billion to your industry very cool that's growing pretty rapidly.

I'll be primarily working one I'll be working on.

On the whole ecosystem, but I'm gonna be especially focused on what I'm passionate.

Passionate about which is to really bring in AI driven reinvention of two success plus and that's a community.

We've got all of the.

Major players in that space be a part of it so super excited about that Hum.

Where we want that piece of success plus to be.

We really think about a lot of a lot of things and so I'm actually rejoining as publisher and managing director of the <unk> of the enterprise.

Something we're.

If you're interested in the personal government, you'll want to have a success plus membership and we really want to think about it almost in the context of.

Glenn Sanford: I'll be primarily working, well, one, I'll be working on the whole ecosystem, but I'm going to be especially focused on what I'm passionate about, which is to really bring an AI-driven reinvention to Success Plus. And that's a community where we want that piece of Success Plus to be something where if you're interested in personal development, you'll want to have a Success Plus membership. And we really want to think about it almost in the context of Amazon Prime, in that if you're interested in personal development, you would be crazy not to have a Success Plus subscription and get access to all of the resources that we have there. So we're talking about AI-personalized coaching and courses and content and digital libraries of both the classics and the magazines and lots of live masterminds and other things. So it's a big industry.

I'll be primarily working one I'll be working on.

Of your Amazon Prime.

On the whole ecosystem, but I'm gonna be especially focused on what I'm passionate.

And in that if you're interested in personal development it would be crazy not to have a success plus subscription.

Passionate about which is to really bring in AI driven reinvention of two success plus and that's a community.

And get access to all of the resources that we have there. So we're talking about AI personalized coaching and courses and content and.

Where we want that piece of success plus to be.

Digital libraries of both the classics.

Something we're.

If you're interested in the personal government, you'll want to have a success plus membership and we really want to think about it almost in the context of.

The magazines and lots of like Master minds, and other things. So you know.

It's a big industry.

Success has played a significant role since its foundation of 127 years ago, We're operating like a 127 year old startup a lot of things going on in the back end we're actually.

Of your Amazon Prime Yoga and that if you're interested in personal development. It would be crazy not to have a success plus subscription.

And get access to all of the resources that we have there. So we're talking about AI personalized coaching and courses and content and.

Relaunched the a success.

Frame space similar to what we're doing here today in the auditorium, which is bringing the team together and in a unique and engaging way. So we're really excited about that you're bringing a lot of the playbooks again that we operated with.

Digital libraries of both the classics.

The magazines and lots of like Master minds and other things so.

It's a big industry.

Glenn Sanford: Success has played a significant role since its foundation 127 years ago. We're operating like a 127-year-old startup, a lot of things going on in the back end. We actually have relaunched a Success Frame space similar to what we're doing here today in the auditorium, which is bringing the team together in a unique and engaging way. So we're really excited about that, bringing a lot of the playbooks again that we operated with in the formation of EXP, the repositioning of International last year, and now doing that with Success. So over the next 90 days, if you want, jump into Success Plus, become a member, shameless plug there, help us generate a little bit more revenue. But more importantly, observe the things that we're going to be doing over the next 90 days.

<unk> success has played a significant role since its foundation of 127 years ago, We're operating like a 127 year old startup a lot of things going on in the back end we're actually.

In the formation of E X P b.

The Ah <unk>.

Repositioning of international last year, and now doing that with with success. So over the next 90 days.

Our relaunched the success free.

If you want jumped into success plus become a member.

<unk> frame space.

Similar to what we're doing here today in the auditorium, which is bringing the team together and in a unique and engaging way. So we're really excited about that you're bringing a lot of the playbooks again that we operated with.

Jim was parked there.

Help us generate a little bit more revenue, but more importantly.

You will observe the things that we're gonna be doing over the next 90 days, there's a lot of cool stuff that we've already put into motion that we're going to be deploying in the success plus community and we'd love to support.

In the formation of <unk> P M.

The.

Anybody who's an entrepreneur solar printer interest in their career or interest and just becoming a better human being and for us that's.

Repositioning of international last year, and now doing that with with success. So over the next 90 days.

Really exciting and I'm really honored to be.

If you want jumped into success plus become a member.

Shameless plug there.

Working on that over the next.

Help us generate a little bit more revenue, but more importantly.

Year or so.

But with that.

You will observe the things that we're gonna be doing over the next 90 days, there's a lot of cool stuff that we've already put into ocean that we're going to be deploying in the success plus community and we'd love to support.

Let me turn it back over to Denise to facilitate our Q&A session. Thank you.

Glenn Sanford: There's a lot of cool stuff that we've already put into motion that we're going to be deploying in the Success Plus community. And we'd love to support anybody who's an entrepreneur, solopreneur, interested in their career, or interested in just becoming a better human being. And for us, that's really exciting, and I'm really honored to be working on that over the next year or so. But with that, let me turn it back over to Denise to facilitate our Q&A session. Thank you.

Sure. Thanks Glenn.

First of all I'll kick it off with a question for you before we open up the call to questions from the audience and when our analysts. So maybe Glen can you describe how agents specifically are leveraging success to grow their business.

Anybody who's an entrepreneur solar printer interest in their career or interest and just becoming a better human being and for us that's really exciting and I'm really honored to be.

Yeah. So thanks.

For the question first we bought the magazine almost five years ago and when we bought it because we were also the single biggest customer success magazine with our distribution of the magazine to all grades and that's big.

Working on that over the next.

The next year or so.

But with that.

Let me turn it back over to Denise to facilitate our Q&A session. Thank you.

Sure.

Denise Garcia: Sure. Thanks, Glenn. First, I'll kick it off with a question for you before we open up the call to questions from the audience and our analysts. So maybe Glenn, can you describe how agents specifically are leveraging Success to grow their business?

Glenn first of all I'll kick it off with a question for you before we open up the call to questions from the audience and when our analysts. So maybe Glen can you describe how Asia, specifically are leveraging success to grow their business.

Because of our focus on personal development sales skill training and.

Overall, I'm, just helping people goal setting et cetera, and the magazine has represented that since the 18 hundreds when the magazine was was first founded.

Yeah. So thanks for.

Glenn Sanford: Yeah, so thanks, Denise, for the question. First, we bought the magazine almost five years ago, and we bought it because we were also the single biggest customer of Success Magazine with our distribution of the magazine to all of our agents. And that's because of our focus on personal development, sales skill training, and just overall just helping people with goal setting, et cetera. And the magazine has represented that since the 1800s when the magazine was first founded. We have built a lot of additional content and courses into Success Plus that all of our agents get for free. It's included with EXP, along with they continue to get the magazine and now a digital magazine. We've got one that's coming up.

For the question first.

We have built a lot of additional content and courses into successful so all regions.

We bought the magazine almost five years ago, and when we bought it because we were also the single biggest customer success magazine with our distribution of the magazine to all grades and that's because of our focus on personal development sales.

Corporates included with their with with the XP along with the continued to get the magazine and now with digital magazine.

We've got one that's coming up.

Training and just overall.

I want to talk.

Talk about it per se, but I think even if they're going to go a lot of value of this next one that's coming out.

No just helping people goal setting et cetera, and the magazine has represented that since the 18 hundreds when the magazine was first founded.

But we have like a lot of our real estate content I know the team worked hard over the last couple of years to actually.

We have built a lot of additional content and courses into successful so over even skip.

We do a I think it's a 16 lesson.

If rates included with their.

16 modules.

On real estate.

The X P along with the they continue to get the magazine and now with digital magazine.

Training by John Schupbach, and there was like a 133 lessons.

We've got one that's coming up.

Glenn Sanford: I don't want to talk about it per se, but I think our agents are going to get a lot of value of this next one that's coming out. But we have a lot of real estate content. I know the team worked hard over the last couple of years to actually do a, I think it's a 16 lesson, 16 modules on real estate training by John Cheplak. And there's like 133 lessons in this. And this is in addition to the amazing training that we have inside of EXP. This is a deep dive with one of the most recognized trainers today in real estate that we worked with John to build that entire value stack. And there's a lot of great stuff from prospecting, how to build your business, follow-up, sales meetings, coaching, training, the whole nine yards.

Anna to talk.

Yes.

And this is in addition to the amazing training that we have inside of E. X P. This is a deep dive with one of the most recognized trainers.

Talk about it per se, but I think even if they're going to get a lot of valuable expertise.

But we have like a lot of our real estate content I know the team worked hard over the last couple of years to actually do a.

In real estate debt.

I think it's a 16 lesson.

We worked with the with John to build that entire.

16 modules.

Value stack and there's a lot of great stuff from prospecting how to build your business follow up sales meetings coaching training the whole nine yards.

On real estate.

Training by.

By John Schupbach, and there was like a 133 lessons.

We've got a lot of other all the past magazines digital physical.

And this and this is in addition to the.

Amazing training that we have inside of ESP.

You've got available.

We've just launched the first.

This is a deep dive with one of the most recognized.

G P T into that community.

<unk> today in real estate.

Actually earlier today, we just put.

An announcement out around.

We worked with the with John to build that entire valley.

Some additional AI resources, specifically around Jim Rone, that's now part of that community and we've got a number of other projects that we're actually launching in very short order.

Value stack and there's a lot of great stuff from prospecting how to build your business follow up sales coaching training the whole nine yards.

Glenn Sanford: We've got a lot of other, all the past magazines, digital, physical, we've got available. We've just launched our first GPT into that community. Actually, earlier today, we just put an announcement out around some additional AI resources, specifically around Jim Rohn, that's now part of that community. And we've got a number of other projects that we're actually launching in very short order around that. You may have heard some music coming in. We're leveraging AI to build actually music that is directed to the personal development of human beings. And so if you think about it, you know success begins with what you listen to and read and pay attention to at the beginning of each and every day. It doesn't matter where you're at in life.

We've got you know a lot of other all the past magazines digital physical.

Around that you may have heard some music coming in.

We're leveraging AI to build actually music that is.

Got available.

We've just launched our first.

Hum.

G P T into that community.

Two the personal development of human beings and so if you think about it.

Actually earlier today, we just put a I.

An announcement out around.

Our success begins with what you listen to and read and pay attention to at the beginning of each and every day it doesn't matter where you're at in life and the more that you can focus on your purpose and your mission the less distracting all the other things that take place around you and in the world.

Some additional AI resources, specifically around Jim Rone, that's now part of that community and we've got a number of other projects that we're actually launching in very short order.

Around that you may have heard some music coming in.

We're leveraging AI to build are actually using that as a.

Impact you so.

One of the things I'm thinking about specifically is how to help people get more focused on what their true mission and purposes and with that I want to pull people through that.

Hum directed to the personal development of human beings and so do you think about it.

That journey.

Just to help them be more effective whatever they wanted to real estate or otherwise.

That's great. Thanks. The next question is for Leo Leo what are your thoughts on the U S.

Glenn Sanford: And the more that you can focus on your purpose and your mission, the less distracting all the other things that take place around you and in the world impact you. So one of the things I'm thinking about specifically is how to help people get more focused on what their true mission and purpose is. And with that, I want to pull people through that journey just to help them be more effective in whatever they want to do, real estate or otherwise.

Yes real estate market.

It's distracting all the other things that take place around you and in the world.

Yes. So if you guys track, what I've said to the media and nor on other calls going into 2025 O us cautiously optimistic with hopefully a 10% bump in transaction counts and obviously, we've revised that really mirroring Fannie and the other macro.

Impact you so oh.

One of the things I'm thinking about specifically is how to help people get more focused on what their true mission and purposes and with that I want to pull people through that.

Forecasting for the back half of the year I think we'd all call. It a win if we were flat year over year as a country from a transaction count.

That journey.

Just help them be more effective whatever they want to do real estate or otherwise.

Plus or minus is variable and I think post the big beautiful Bill, adding five trillion dollars of long term national debt.

Denise Garcia: That's great. Thanks. The next question is for Leo. Leo, what are your thoughts on the US real estate market?

That's great. Thanks. The next question is for Leo Leo what are your thoughts on the U S real estate market.

Very comfortably bet on the fact that the 10 year Treasury is now coming down meaning that we don't really expect interest rate reprieve much at all and so it.

Felix Bravo: Yeah, so if you guys track what I've said to the media and/or on other calls going into 2025, I was cautiously optimistic with hopefully a 10% bump in transaction counts. And obviously, we've revised that, really mirroring Fannie and the other macro forecasting for the back half of the year. I think we'd all call it a win if we were flat year over year as a country from a transaction count with a plus or minus variable. And I think post the Big Beautiful Bill adding $5 trillion of 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 interest rate reprieves much at all.

It kind of points back to the strength of our model and our ability to adjust whether we have to.

Forecasting for the back half of the year I think we'd all call. It a win if we were flat year over year as a country from a transaction count with a.

Streamline and adjust up or down and be able to have a scaled.

Variable revenue.

Plus or minus is variable and I think post the big beautiful Bill, adding five trillion dollars of long term national debt.

To match and so.

At this point, we're continuing to really focus on production, meaning attracting the most productive agents.

<unk>.

Very comfortably bet on the fact that the 10 year treasuries are now coming down meaning that we don't really expect interest rate reprieve.

And also moving up even in the parts that were not as well known for so it didn't make the slide because we literally announced it a couple of hours ago, but Bret dobrinski from southern California, eight independent boutique.

At all and so.

Felix Bravo: And so it kind of points back to the strength of our model and our ability to adjust, whether we have to streamline and adjust up or down and be able to have a scaled variable revenue expense to match. And so at this point, we're continuing to really focus on production, meaning attracting the most productive agents and also moving up even in the parts that we're not as well known for. So it didn't make the slide because we literally announced it a couple of hours ago. But Brett Zurbynski from Southern California, an independent boutique luxury powerhouse. So for context for everybody, 90 members in his brokerage, it's $750 million in sales on 370 units for 2024. That's an average price point of north of $2 million. That's higher than just about every luxury brokerage out there that specifically focuses on luxury and more than 4x hours.

It kind of points back to the strength of our model and our ability to adjust whether we have to.

Streamline and adjust up or down and be able to have a scaled.

Luxury powerhouse so for context for everybody 90 members and as brokerage, it's $750 million and sales of 370 units.

Variable revenue.

To match and so.

At this point, we're continuing to really focus on production, meaning attracting the most productive agents.

For 2024, that's an average price point of north of $2 million that's higher than.

Just about every luxury.

And also moving up even in the parts that were not as well known for so it didn't make the slides, we literally announced a couple of hours ago, but Bret dobrinski from southern California, eight independent boutique.

Brokerage out there that specifically focuses on luxury and.

More than four X hours.

Yesterday, we announced Chris.

Chris Hello, the home seller, formerly the CEO of <unk>, and just a staple of San Diego real estate.

Luxury powerhouse so for context for everybody 90 members and as brokerage, it's $750 million and sales of 370 units.

Moved over to our brokerage as well.

Don't over 100 units have been very high price points and the San Diego market. So even as we see some other companies retracting.

With.

And average price point of north of $2 million, that's higher than just.

And the speed at which people are joining and we're continuing to win in the segments that you've heard us talk about.

Just about <unk>.

Brokerage out there that specifically focuses on luxury and.

More than four X hours.

No.

Independence team.

Felix Bravo: And yesterday, we announced Chris Heller, the home seller, formerly the CEO of Keller Williams and just a staple of San Diego real estate, moved over to our brokerage as well, consistently doing over 100 units at a very high price point in the San Diego market. So even as we see some other companies retracting in the speed at which people are joining them, we're continuing to win in the segments that you've heard us and me talk about. Independents, team mergers, mega team leaders, and solo producers continue to choose us. And it's a testament as some of the teams I mentioned earlier in my conversation, we're having conversations with every single company. Not one of these leaders he or she are picking us in a vacuum. They're interviewing all of our competitive models and ultimately choosing us.

Yesterday, we announced Chris.

<unk> Mega team leaders and solar producers continue to choose us.

Chris Hello, the home seller, formerly the CEO of Keller Williams, and just a staple of San Diego real estate.

It's a testament as.

Some of the team as I mentioned earlier my conversation, we're having conversations with every single one of these leaders.

Moved over to our brokerage as well.

Don't over 100 units at a very high price points and the San Diego market. So even as we see some other companies retracting.

He or she are picking us in a vacuum they're into reviewing all of our competitive models.

Ultimately choosing us.

And the speed at which people are joining to them, we're continuing to win in the segments that you've heard us talk about.

Great. Thanks, Dan Let me know.

Wendy Wendy can you talk about how important asp's in person events are on attracting and also retaining our agents.

No.

Independence team.

Cambridge is mega team leaders and solar producers continue to choose us.

Yes, absolutely I mean, we talk all the time that we are in a relationship business and Bayliss stage and that relationship business is art of how we connect and how we build called share with one another as much as it is how we do that with our clients with our buyers.

It is a testament as.

Some of the team as I mentioned earlier my conversation, we're having conversations with everything.

Some of these.

<unk> are picking us in a vacuum they're interviewing all of our competitive models.

Ultimately choosing us.

And sellers are.

Great. Thanks, Neil let.

Denise Garcia: Great. Thanks, Leo. Moving to Wendy. Wendy, can you talk about how important EXP's in-person events are on attracting and also retaining our agents?

Our events are the backbone of our culture that we're hosting those events in attending those events were connecting with one another we're building those relationships and we're seeing.

Let me know Wendy Wendy can you talk about how important <unk> in person events are on attracting and also maintaining our agents.

Yes, absolutely I mean, we talk all the time that we are in a relationship business and Baylor stake and that relationship business is art of how we connect and how we build called share with one another as much as it is how we do that with our clients with our buyers.

Wendy Forsythe: Yes, absolutely. I mean, we talk all the time that we are in a relationship business in real estate. And that relationship business is part of how we connect and how we build culture with one another as much as it is how we do that with our clients, with our buyers and sellers. So our events are the backbone of our culture. So when we're hosting those events and attending those events, we're connecting with one another. We're building those relationships. And we're seeing referrals happening with one another. We're seeing collaborations on ideas that each of you take back to your individual businesses and implement. We're seeing our co-sponsor pairings happening. We're seeing all kinds of ways that businesses grow because of those in-person connections that happen at the events.

Referrals happening with one another we're seeing collaborations on ideas that each of you take back to our individual businesses and implement we're seeing.

Our co sponsor pairings happening, we're seeing all kinds of ways that businesses grow because of those in person connections that happened at the event.

So our events are the backbone of our culture.

We're hosting those events in attending those events were connecting with one another we're building those relationships.

They are an important part of how our overall value proposition comes to life in those in person connection one of the things that we do track that is an interesting statistic is many times, we open up the events.

We're seeing.

It's happening with one another we're seeing collaborations on ideas that each of you take back to our individual businesses.

From that we're seeing.

Our co sponsor pairings happening, we're seeing all kinds.

Wow, our DXP agents to bring gas.

I guess one of the great ways to experience culture and understand culture is to come to an event. So that somebody who has maybe thinking of joining <unk>.

Ways that businesses grow because of those in person connections that happened at the event. So they are an important part of how our overall value proposition comes to life in those in person connection one of the things that we do track that is an interesting.

Wendy Forsythe: So they are an important part of how our overall value proposition comes to life in those in-person connections. One of the things that we do track that is an interesting statistic is many times we open up the events to allow our EXP agents to bring guests. Because one of the great ways to experience culture and understand culture is to come to an event so that somebody who is maybe thinking of joining EXP comes to one of our events as a guest and gets that opportunity to experience the things that we talk about and the things that we message in our marketing as we talk about our value proposition and about our brand. And those attendees who come as guests, when we track that in 2024, 68% of them actually ended up joining us as agents.

Q1 of <unk> as a gas and get that opportunity to experience the things that we talk about and things that we message in our market and as we talk about our value proposition and about our brand.

Statistic is many times, we open up the events.

Those attendees, who come as gas when we track that in 2024, 68% of them actually ended up joining us as agents, so bringing a gas to an E X P event is a tremendous attraction opportunity so for any of you listening.

Wow, our DXP agents to bring gas.

Yes, one of the great ways to experience culture and understand culture is to come to an event. So that somebody who has maybe thinking of joining <unk> I missed one of our events as a gas and get that opportunity to experience the things that we talk about anything.

Who are thinking of our next event, particularly our <unk> event in Miami, that's coming up in October and Windows Explorer explorer passes are available bring in explorer.

With that we message in our market as we talk about our value proposition and about our brands and those attendees who come as gas when we track that in 2024, 68% of them actually ended up joining us as agents, so bringing a gas.

D G E X P con in Miami, it's a great attraction opportunity.

Alright, Thanks, Wendy and one for Felix Felix What's your main focus managing international outside of the business and financial metrics that we usually see at earnings.

Wendy Forsythe: So bringing a guest to an EXP event is a tremendous attraction opportunity. So for any of you listening who are thinking of our next event, particularly our EXPCon event in Miami that's coming up in October, when those Explorer passes are available, bring an Explorer to EXPCon in Miami. It's a great attraction opportunity.

<unk> E X P event is a tremendous attraction opportunity. So for any of you listening who are thinking of our next event, particularly our ESP time event in Miami, that's coming up in October when those export explorer passes are available bring in explorer to XD.

Thanks Denise.

Our main focus internationally really beyond that is.

<unk> been to grow our base.

Agents, ensuring that those agents everything they need both at the local level local scale.

To be successful and grow their business and so we've taken a look throughout.

<unk>, two <unk> and Miami, it's a great attraction opportunity.

Throughout the entire portfolio and we have implemented two year minimum requirements to join internationally. We are also taking the stance of off boarding agents, who are unproductive or were not aligned to the business model. So that has led to some large results.

Alright, Thanks, Wendy and one for Felix Felix What's your main focus managing international outside of the business and financial metrics that we usually see at earnings.

Denise Garcia: Great. Thanks, Wendy. And one for Felix. Felix, what's your main focus managing international outside of the business and financial metrics that we usually see at earnings?

Felix Bravo: Yeah, thanks, Denise. Our main focus internationally, really beyond that, is still then to grow a base of productive agents and ensuring that those agents have everything they need both at their local level but on a global scale to be successful and grow their business. And so we've taken a look throughout the entire portfolio, and we have implemented two-year minimum requirements to join internationally. We have also taken the stance of offboarding agents who are unproductive or who are not aligned to the business model. And so that has led to some large results, and the growth that we have seen from bringing in top talent and how top talent continues to attract like-minded individuals has shown those results.

Yes, thanks Denise.

Main focus internationally really beyond that is.

The growth that we have seen from bringing in top talent.

It's still been to grow our base.

<unk> continues to attract.

Ensuring that those agents everything they need both at the local level.

Likeminded individuals as is shown those results and so a real time update that I'm actually really excited to share with you guys is that this week, we've officially onboarding. Our first cohort of agents in Japan, which is extremely exciting and not only are these agents live in the system, but they already have transactions flowing through just days after we use.

<unk> scale.

Be successful and grow their business and so we've taken a look.

Throughout the entire portfolio and we have implemented two year minimum requirements to join internationally. We are also taking off boarding agents, who are unproductive or were not aligned to the business model. So that has led to some large results and.

Onboarding, our first agents. So it's a huge testament to the strength of our model into our local leadership team and country launches that we've done right with Peru, Turkey, Ecuador.

The growth that we have seen from bringing in top talent.

<unk> continues to attract.

Likeminded individuals as is shown those results and so a real time update that I'm actually really excited to share with you guys is that this week, we've officially onboarding. Our first cohort of agents in Japan, which is extremely exciting and not only are these agents lies in the system, but they already have transactions flowing through just days after we.

Not just in our most successful launches because of the amount of agents with mambo date or time to launch with the efficiency of them, but truly because of the amount of transactions. We're walking in with day, one and the amount of productive agents who are joining so we're extremely excited about everything we're doing on the sides of the house at the moment and we're being very intentional.

Felix Bravo: And so a real-time update that I'm actually really excited to share with you guys is that this week we've officially onboarded our first cohort of agents in Japan, which is extremely exciting. And not only are these agents live in the system, but they already have transactions flowing through just days after we onboarded our first agents. And so it's a huge testament to the strength of our model and to our local leadership team. And these past country launches that we've done, right, with Peru, Turkey, Ecuador, they've not just been our most successful launches because of the amount of agents we've onboarded or time to launch or the efficiency of them, but truly because of the amount of transactions we're walking in with day one and the amount of productive agents who are joining.

Onboarding, our first agents and so it's a huge testament to the strength of our model into our local leadership team and country launches that we've done right with Peru, Turkey, Ecuador.

Our growth, it's not just growth for the sake of.

Being the largest growing it is truly about the right kind of growth and assessing market. Some leaders that makes sense that are aligned with our mission and vision.

Not just in our most successful launches because of the amount of stages, we've onboard or time to launch with the efficiency of them, but truly because of the amount of transactions. We're walking in with day, one and the amount of productive agents who are joining so we're extremely excited about everything we're doing on this side of the house at the moment and we're being very intentional.

To help us create the most agent centric real estate brokerage Robyn.

Thanks Jesse.

Jessie the last question for you.

Can you discuss what's impacting the second quarter gross margin and maybe where you see margins going longer term.

Felix Bravo: So we're extremely excited about everything we're doing on this side of the house at the moment, and we're being very intentional about our growth. It's not just growth for the sake of being the largest or for growing. It is truly about the right kind of growth and assessing markets and leaders that make sense, that are aligned with our mission and vision to help us create the most agent-centric real estate brokerage around the world.

Yes. Thank you for the question Denise.

Our growth, it's not just growth for the sake of.

So Leo mentioned in his remarks, we saw a 4% year over year increase in sales transactions in the second quarter.

Being the largest growing it is truly about the right kind of growth and assessing markets and leaders that makes sense that are aligned with our mission and vision.

And when that happens.

I'll have more productive agents and that generally the arithmetic on that means that more agents will cap.

To help us create the most agent centric real estate brokerage Robyn.

But theres a couple of things here to unpack I would say the first part is this really is core to our model right. It's one of the original differentiators that that Glenn brought to the space the ability to cap. So it's actually something that we welcome and celebrate when it occurs and the other part of this as it creates agent retention and stickiness alright, because because.

Denise Garcia: Perfect. Thanks, Felix. Jesse, the last question for you. Can you discuss what's impacting the second quarter gross margin and maybe where you see margins going longer term?

Thanks Jesse.

Jesse the last question for you.

Can you discuss what's impacting the second quarter gross margin and maybe where you see margins going longer term.

Yes. Thank you for the question Denise.

Jesse Hill: Yes, thank you for the question, Denise. So Leo mentioned in his remarks, we saw a 4% year-over-year increase in sales transactions in the second quarter. And when that happens, we have more productive agents. And that generally, the arithmetic on that means that more agents will cap. But there's a couple of things here to unpack. I would say the first part is this really is core to our model, right? It's one of the original differentiators that Glenn brought to the space, the ability to cap. So it's actually something that we welcome and celebrate when it occurs. And the other part of this is it creates agent retention and stickiness, right? Because of this value prop in our model that's not really across the industry. And so it's really something that we welcome, even though it brings down the margin percentage.

So Leo mentioned in his remarks, we saw a 4% year over year increase in sales transactions in the second quarter.

This value prop and our model, that's not really across the industry and so it's really something that we welcome even though it brings down the margin percentage and then another thing to consider you asked about the longer term view.

And when that happens.

We have more productive agents and that generally the arithmetic on that means that more agents will cap.

We do have affiliate programs and Wendy spoke to several of them, but I'll call out ESP luxury landed ranch revenues or several.

And while they contribute modest revenue today, we expect these to continue to grow over time and certainly when the macroeconomics.

Of this value prop and our model, that's not really across the industry and so it's really something that we welcome even though it brings down the margin percentage and then another thing to consider you asked about the longer term view.

Begins to improve and the overall real estate industry continues to grow we expect these programs to drive incremental margin overtime.

Jesse Hill: And then another thing to consider, you asked about the longer-term view. We do have affiliate programs, and Wendy spoke to several of them, but I'll call out EXP Luxury, Land and Ranch, Revenos. There's several. And while they contribute modest revenue today, we expect these to continue to grow over time. And certainly when the macroeconomics begins to improve and the overall real estate industry continues to grow, we expect these programs to drive incremental margin over time. And so that's kind of where we land with the impacts to capping on margin. It's something that we expect and actually celebrate with our agents. And then we think about margin as the different affiliate programs and things like that that we can add over time.

And so that's you know that's kind of where are we where we land with with the impacts of capping on margin, it's something that we expect and actually celebrate with our agents and then we think about margin as the different affiliate programs and things like that that we can add over time.

We do have affiliate programs and Wendy spoke to several of them, but I'll call out XP luxury landed ranch revenues are several and while they contribute modest revenue today. We expect these to continue to grow over time and certainly when the macroeconomics.

Got it.

Thanks, Jessie now I'll open the call up to questions first of all I'll start with our analysts are joining us on the stage here and Tom White at D. A Davidson. If you have question needs to go ahead.

Begins to improve and the overall real estate industry continues to grow we expect these programs to drive incremental margin over time.

Great Hi, everyone. Thanks for taking the question.

And so that's you know that's kind of where are we where we land with with the impacts to capping on margin, it's something that we expect and actually celebrate with our agents and then we think about margin as the different affiliate programs and things like that that we can add over time.

Couple if I could I guess I'm tempted to start an agent count just because it grew sequentially for the first time in a while but I actually wanted to just ask about operating expenses.

Last quarter, you guys talked about some of the opportunities for efficient sort of better efficiencies, there, particularly kind of given the just the housing market backdrop, but.

Denise Garcia: Got it. Thanks, Jesse. Now I'll open the call up to questions. First, I'll start with our analysts joining us on the stage here. Tom White at DA Davidson, if you have a question, you can go ahead.

Got it thanks, Jesse now I'll open the call up to questions first of all I'll start with our analysts joining us on the stage here.

Opex I think grew 20% in the quarter and picked up quite a bit sequentially. So I don't know is there anything one time in that in that second quarter Opex number.

Right at D. A Davidson if you have question, Yes go ahead.

Great Hi, everyone. Thanks for taking the question.

Tom White: Great. Hi, everyone. Thanks for taking the question. A couple, if I could. I'm tempted to start on agent count just because it grew sequentially for the first time in a while. But I actually want to just ask about operating expenses. I think last quarter you guys talked about some of the opportunities for efficiency, sort of better efficiencies there, particularly kind of given just the housing market backdrop. But you know OPEX, I think, grew 20% in the quarter and ticked up quite a bit sequentially. So I don't know. Is there anything one time in that second quarter OPEX number? And can you maybe help us sort of how to think or quantify what OPEX should look like kind of over the next several quarters? And then I have a follow-up.

And can you can you maybe help us.

Couple if I could.

I'm tempted to start an agent count just because it grew sequentially for the first time.

Sort of how to think or quantify what opex should look like kind of over the next several quarters and then I have a follow up.

In a while but I actually wanted to just ask about operating expenses.

I think last quarter, you guys talked about some of the opportunities for efficient sort of better efficiencies, there, particularly kind of given the just the housing market backdrop, but opex I think grew 20% in the quarter and picked up quite a bit sequentially. So I don't know was there anything one time in that in that second quarter Opex number.

Sure thing I can I can take that one so.

So we did have some one times in Q2, and we call that out in the 10-Q, but just high level, we incurred approximately $6 million in expenses related to strategic investments and some severance to streamline our operations.

And so Tom.

Really where are these actions were part of a broader effort right. We spoke to it at a high level in Q1, and we continued to execute in Q2 to realign the companys cost structure with the current macroeconomic environment, where our revenues at today, but also being driven by what we're trying to drive in the back office with automation and efficiency.

And can you can you maybe help us sort out.

How to think or quantify what opex should look like kind of over the next several quarters and then I have a follow up.

Sure thing I can I can take that one.

Jesse Hill: Sure thing. I can take that one. So we did have some one-times in Q2, and we call that out in the 10Q. But just high level, we incurred approximately $6 million in expenses related to strategic investments and some severance to streamline our operations. And so, Tom, you know these really were these actions were part of a broader effort, right? We spoke to it at the high level in Q1, and we continued to execute in Q2 to realign the company's cost structure with the current macroeconomic environment where our revenue is at today, but also being driven by what we're trying to drive in the back office with automation and efficiency. So short answer, 6 million one time. And then the remainder of that gap, you said 20% up.

So we did have some one times in Q2, and we called that out in the 10-Q, but just high level, we incurred approximately $6 million in expenses related to strategic investments and some severance to streamline our operations.

So short answer 6 million one time and then the remainder of that gap you said 20, 20% up there that's sort of the follow on of some of the expenses that we did see creeping up over time that we spoke to in Q1 that were building towards in Q2. So now that we've taken these actions we do expect favorable operating expenses.

And so Tom.

Really were.

Actions were part of a broader effort right we spoke to it at the high level in Q1, and we continued to execute in Q2 to realign the companys cost structure with the current macroeconomic environment, where our revenues at today, but also being driven by what we're trying to drive in the back office with automation and efficiency.

In the back half of the year and you should see that flow through in our unit economics.

Okay.

The $6 million I mean, I don't think you guys.

Short answer 6 million, one time and then the remainder of that gap you said 20, 20% up there that's sort of the follow on of some of the expenses that we did see creeping up over time that we spoke to in Q1 that were building towards in Q2. So now that we've taken these actions we do expect favorable operating expenses in the back.

Added back.

If it was sort of one time, which I don't think I saw it added back to adjusted EBITDA is that correct that is correct.

Jesse Hill: That's sort of the follow-on of some of the expenses that we did see creeping up over time that we spoke to in Q1 that we were building towards in Q2. So now that we've taken these actions, we do expect favorable operating expenses in the back half of the year. And you should see that flow through in our unit economics.

Okay.

Yeah.

Okay and then.

Maybe just a can you talk about like over the next couple of years, let's say.

Half of the year and you should see that flow through in our unit economics.

You know.

Talk about like you touched on some of the drivers of potential gross margin expansion just now Jesse.

Okay.

Tom White: Okay. The 6 million, I mean, I don't think you guys added back. If it was sort of one-time issue, I don't think I saw it added back to adjusted EBITDA. Is that correct?

The $6 million I mean, I don't think you guys.

Added back.

You Didnt mentioned in international but I guess can you just.

If it was sort of onetime ish I don't think I saw it added back to adjusted EBITDA is that correct that is correct.

Is is meaningful margin expansion either gross margin expansion operating margin expansion is that like a kind of a goal of the management teams like I don't know is that is that something that investors should.

Jesse Hill: That is correct.

Tom White: Okay. Okay. And then maybe just can you talk about like over the next couple of years, let's say, you know talk about like you touched on some of the drivers of potential gross margin expansion just now, Jesse. You didn't mention international, but I guess can you just is meaningful margin expansion, either gross margin expansion or operating margin expansion, is that like a kind of a goal of the management teams? Like I don't know. Is that something that investors should sort of think about? Like how big of a priority is margin expansion, I guess, at this point in the company's kind of evolution?

Okay.

Yeah.

Okay and then.

Yeah.

Maybe just a can you talk about like over the next couple of years, let's say.

So sort of think about like how big of a priority is margin expansion I guess at this point in the in the companies.

No.

You didn't talk about like you touched on some of the drivers of potential gross margin expansion just now Jesse.

Kind of evolution.

Sure I have some thoughts I can opine there on there I'd I'd ask maybe Leo or Glenn if you want to start off from from the business perspective on opportunities there.

You didn't mention or international but I guess can you. Just is is meaningful margin expansion either gross margin expansion operating margin expansion is that like a kind of a goal of the management teams like I don't know is that is that something that investors should.

Well I think the.

Yeah, I think Oh, yeah, I'll just touch on I mean, there there's always been this question of margin.

<unk> and.

And we like to focus on on.

On gross margin as a as an aggregate number because we think that's actually the better number to focus on partially because as <unk>.

Sort of think about like how big of a priority is margin expansion I guess at this point in the in the companies.

Kind of evolution.

Yeah.

Jesse Hill: Sure. I have some thoughts I can opine on there. I'd ask maybe Leo or Glenn if you want to start off from the business perspective on opportunities there.

Sure I have some thoughts I can opine there on there.

Agents cap large team showing and other oh.

Oh, sorry.

From a business perspective on opportunities there.

And if it pushes our margin percentage down even though our gross margins grow over time and of course, then the flip side of it is is that we.

Glenn Sanford: I think the, yeah, I think I'll just touch on, I mean, there's always been this question of margin percentage. And we like to focus on gross margin as an aggregate number because we think that's actually the better number to focus on, partially because as agents cap, large teams join and other where it pushes our margin percentage down, even though our gross margins grow over time. And of course, then the flip side of it is that we're seeing a lot of efficiencies relative to things like transaction workflow management internally. And then what doesn't show up as well is some of the investments that we're making to make sure that we continue to be the most attractive real estate brokerage around. So we keep on working on, and some of that shows up in international. We're obviously investing quite a bit there.

I think the yeah, I think Oh, yeah, I'll just touch on I mean, there there's always been this a question of margin.

Percentage and we like to focus on.

We're seeing a lot of efficiencies relative to things like transaction workflow management.

On gross margin as a as an aggregate number because we think that's actually the better number to focus on.

And internally.

And then what doesn't show up as well.

Partially because as <unk>.

Well it is.

Agents cap large team showing and other oh.

Some of the investments that we're making to make sure that we continue to be the most attractive real estate brokerage around so we keep on working on some of that shows up in international we're obviously investing quite a bit there.

Okay.

It pushes our margin percentage down even though our gross margins grow over time and of course, then the flip side of it is is that we.

But we owe any any other color you got on that.

We're seeing a lot of efficiencies relative to things like transaction workflow management.

Yes, Tom.

So first of all on your call out of sequential growth.

Over the quarter.

<unk>.

And internally.

It is the the results of the effort and you were very correct.

And then what doesn't show up as well.

Well it is.

I saw you write it up we are scrambling to make sure we had an accident, we published anything but.

Some of the investments that we're making to make sure that we continue to be the most attractive real estate brokerage around so we keep on working on that and some of that shows up in international we're obviously investing quite a bit there.

But that.

That is the result of the investments in both training education systems processes as we see the company as a total platform and really we're seeing this downturn.

Glenn Sanford: But Leo, any other color you've got on that?

But we owe any any other color you got on that.

In the business right because of the downturn does not.

Felix Bravo: Yeah, Tom. So first of all, on your call out of sequential growth quarter, that is the results of the effort. And you were very correct when I saw you write it up. We were scrambling to make sure we hadn't accidentally published anything. But that is the result of the investment in both training, education systems, processes, as we see the company as a total platform. And really, we're seeing this downturn in the business, right? Because the downturn is not financial crisis-wise, like '08, where prices were coming down. But we internally in the industry are very much in a downturn from a transactional standpoint. But we're seeing this as an opportunity to expand value proposition as we continue to add top-performing teams. I do think that's going to give us the positive result you will be looking for in the future.

Yeah.

So first of all on your call out of sequential growth.

Financial crisis wise, like Oh, wait where prices were coming down, but we internally in the industry are very much in a downturn from a transactional standpoint, but we are seeing this as an opportunity to expand value proposition as we continue to add top performing teams I do think that's going to give us. The positive result, you will be looking for.

Third quarter debt.

You know that.

Is the the results of the effort and you were very correct.

I saw you write it up we were scrambling to make sure we had an accident, we published anything but.

But that.

That is the result of the investments in both training education systems processes as we see the company as a total platform and really we're seeing this downturn.

In the future, but we're thinking of more of how do we capitalize on this moment continued to expand the value proposition and make our platform stickier.

Okay, Great I appreciate that maybe just one quick follow up on.

In the business right because of the downturn does not.

Financial crisis wise, like Oh, wait where prices were coming down, but we internally in the industry are very much of a downturn from a transactional standpoint, but we're seeing this as an opportunity to expand value proposition as we continue to add top performing teams I do think that's going to give us the partners that you will be looking for.

The idea of the value prop can you just maybe update us on how you how you view your stock as kind of part of that value prop.

In terms of retaining or attracting agents like how important is it for you know the start to actually go up.

You know through that agent value proposition and then I'll jump back in the queue. Thanks.

In the future, but we're thinking of more of how do we capitalize on this moment continued to expand the value proposition and make our platform stickier.

Felix Bravo: But we're thinking of more of how do we capitalize on this moment, continue to expand the value proposition, and make our platform stickier.

Glen did you want to take the owners do you want me to go sure all picked up.

<unk>.

I think we we know that it does play a little bit of a role but the.

Okay, Great I appreciate that maybe just one quick follow up on.

Tom White: Okay, great. I appreciate that. Maybe just one quick follow-up on the idea of the value prop. Can you just maybe update us on how you view your stock as kind of part of that value prop in terms of retaining or attracting agents? Like how important is it for the stock to actually go up through that agent value prop lens? And then I'll jump back in the queue. Thanks.

The idea of the value prop can you just maybe update us on how you how you view your stock as kind of part of that value prop.

But it's not a you know I think most agents are here for the full basket of goods and they also recognize that the stock goes up and down and that it's not just a.

In terms of retaining or attracting agents like how important is it for you.

The start to actually go up.

Because it's going to go up I mean, we still have.

You know through that agent value prop and then I'll jump back in the queue. Thanks.

Good percentage of regions or participating in the stock comp plan, even when the stock could come down a lot of a lot of agents stayed in it because they sort of are playing the long game, which is the way. We think is the right way to play the game.

Glen did you want to take the owners do you want me to I'm sure I'll take that.

Felix Bravo: Glenn, did you want to take that one or do you want me to go?

Glenn Sanford: Sure, I'll take that. I think we know that it does play a little bit of a role, but it's not a, you know, I think most agents are here for the full basket of goods, and they also recognize that the stock goes up and down and that it's not just a, you know, that it's going to go up. I mean, we still have a good percentage of our agents that are participating in the stock comp plan. Even when the stock had come down, a lot of agents stayed in it because they sort of are playing the long game, which is the way we think is the right way to play the game. But I think the overall value prop, if the stock wasn't part of the mix, I think we've got to the point where EXP stands on its own merits.

Yeah.

I think we we know that it does play a little bit of a role but it.

But I think the overall value prop if you if the stock wasn't part of the mix.

But it's not a you know.

I think most agents are here for.

The full basket of goods and they also recognize that the stock goes up and down and that it's not just a.

I think we've got to the point, where E X P stands on its own merits I think when you use it early on because it really does differentiate we have no plans of removing it. So it's not like there is there was any any any.

Because it is going to go up I mean, we still have.

Good percentage of regions or participating in the stock comp plan.

Any interest in removing up because we think it does.

Even when the stock could come down a lot of a lot of agents stayed in it because they sort of are playing the long game, which is the way. We think is the right way to play the game.

Bring bring our agents closer to us as a management team.

To the values of the.

Of what shareholders look for as well so it allows us to be fully aligned with them.

But I think the overall value prop if you if the stock wasn't part of the mix.

But I don't think it's the primary reason why they join us or even though it is but it is a nice reason to.

We've got to the point, where E X P stands on its own merits. So I think we use it early on because it really does differentiate we have no plans of removing it. So it's not like there is there was any any.

Glenn Sanford: I think we used it early on because it really does differentiate. We have no plans of removing it. So it's not like there's any interest in removing it because we think it does bring our agents closer to us as a management team, to the values of what shareholders look for as well. So it allows us to be fully aligned with them. But I don't think it's the primary reason why they join us, or even us, but it is a nice reason to join us.

Join us.

Thank you.

Thanks, Tom and Matt <unk> at William Blair, Sir also joining us on stage. If you have a question you can go ahead.

Any interest in removing up because we think it does.

Uh huh.

Bring our agents closer to us as a management team.

Thank you Denise everyone you have Matt <unk> on for Stephen Sheldon. Thank you for the questions.

To the values of the.

On the International front, you just launched in Japan, and I think you're aiming for 50000 international agents by 2030. So given that can you just remind us of where you stand as far as current international agent Count goes and how youre thinking about the cadence of adding those new international agents over the next five years.

Of what shareholders look for as well so it allows us to be fully aligned with them.

But I don't think it's the primary reason why they join us or even us but it is a nice reason.

To join Us.

Thank you.

Tom White: Thank you.

Denise Garcia: Thanks, Tom. And Matt Fylock at William Blair, you're also joining us on stage. If you have a question, you can go ahead.

Thanks, Tom and Matt <unk> at William Blair, you for all for joining us on stage. If you have a question you can go ahead.

You work toward that 50000 agent target.

Yes, I'm happy to answer that.

Matt Fylock: Thank you, Denise. Hey, everyone. You have Matt Fylock on for Stephen Sheldon. Thank you for the questions. On the international front, you just launched in Japan, and I think you're aiming for 50,000 international agents by 2030. So given that, can you just remind us of where you stand as far as current international agent count goes and how you're thinking about the cadence of adding those new international agents over the next five years as you work toward that 50,000 agent target?

Thank you Denise everyone you have Matt <unk> on for Stephen Sheldon. Thank you for the questions.

The way that we're looking at the growth is like I said really focused on productive agent count and when we assess different markets.

On the International front, you just launched in Japan, and I think you're aiming for 50000 international agents by 2030. So given that can you just remind us of where you stand as far as current international agent Count goes and how you're thinking about the cadence of adding those new international agents over the next five years.

We found with our new country playbook that works is.

The market is scale too to all types of different countries with different types of regulations and rules different sizes.

We realize that our model can be adapted to serve agents at a local level when we partner it with strong leadership with an emphasis on helping agents get more productive so local training local tools local systems, and then add that with the global scale of our business has.

As you work toward that 50000 agent target.

Yes, I'm happy to answer that.

Felix Bravo: Yeah, I'm happy to answer that. So the way that we're looking at the growth is, like I said, really focused on productive agent count. And when we assess different markets, what we found with our new country playbook that works is the market has scaled to all types of different countries with different types of regulations and rules, different sizes. We realized that our model can be adapted to serve agents at a local level when we partner it with strong leadership with an emphasis on helping agents get more productive. So local training, local tools, local systems, and then add that with the global scale that our business has. And that becomes a really attractive and competitive value proposition and business model in just about any country. So international right now is at approximately 5,000 agents, and we're continuing to grow and scale.

The way that we're looking at the growth is like I said really focused on productive agent count and when we assess different markets. What we found with our new country playbook that works is the.

And that becomes a really attractive and competitive value proposition and business model and just about any country. So international right. Now is at approximately 5000 agents and we're continuing to grow and scale and so as we look forward over the next five years, we continue with our heads down on our mission of continuing to improve the business through.

The market is scale too to all types of different countries with different types of regulations and rules different sizes.

We've realized that our model can be adapted to serve agents at a local level when we partner it with strong leadership with an emphasis on helping agents get more productive so local training local tools local systems, and then add that with the global scale of our business has.

Adding productive agents and scaling to countries with strong leadership and strong demand.

The way we have over this past 12 months.

Got it and then related to that is there a certain number when it comes to international agent Count where you feel like if you hit that number international as a whole can be profitable.

And that becomes a really attractive and competitive value proposition and business model and just about any country. So international right now is at approximately 5000 agents and brokers.

<unk> grown in scale and so as we look forward over the next five years, we continue with our heads down on our mission of continuing to improve the business through adding productive agents and scaling to countries with strong leadership and strong demand.

So I'm really touch on yeah, I'll, probably touch on that first one look I mean, it must be like do you want to take it.

Felix Bravo: And so as we look forward over the next five years, we continue with our head down on our mission of continuing to improve the business through adding productive agents and scaling to countries with strong leadership and strong demand the way we have over this past 12 months.

Yes sure go ahead Glen and then.

Yeah, so so our.

So when we look at 50.

The way we have over this past 12 months.

50 countries by 2030, theirs and continuing to invest in new countries.

Got it and then related to that is there a certain number when it comes to international agent Count where you feel like if you hit that number international as a whole can be profitable.

Matt Fylock: Got it. And then related to that, is there a certain number when it comes to international agent count where you feel like if you hit that number, international as a whole can be profitable?

We don't think about international getting to a scale, where it shows net net profitability for.

So I'm really touch on me I'll, probably touch on that first one.

Glenn Sanford: So I'll probably touch on that first. And I mean, unless Felix, you want to take it?

Probably two or three years minimum not that we don't have IRR internal returns on a number of countries Hum Okay is.

It must be like do you want to pick up.

Yeah Sure go ahead, Glen and then.

Felix Bravo: Yeah, sure. Go ahead, Glenn. And then if anything, I can jump in after.

I can jump in yeah. So so our.

Glenn Sanford: Yeah, so when we look at 50 countries by 2030 and continuing to invest in new countries, we don't think about international getting to a scale where it shows net profitability for probably two or three years minimum. Not that we don't have IRR, internal returns on a number of countries. The UK, which actually has to publicly file their financials as a country for some bizarre reason in the UK. But you can look at a number of our countries and see sort of where they sit. And we certainly share that from time to time, but we do have a number of countries that have sort of turned the corner.

So when we look at.

Which actually has to publicly filed their financials as a country for some bizarre reason and the U K, but you can look at you know a number of our countries and see sort of where they sit and we certainly share that from time to time, but we do have a number of countries that are sort of turned the corner, but we.

50 countries by 2030 theirs and continuing to invest in new countries. We don't think about international getting to a scale where it shows net net profitability for.

Probably two or three years.

Fundamentally are going to continue to invest in that growth because when we start to look at.

Minimum not that we don't have IRR internal.

The out periods of time not that we're focused specifically on the <unk>.

<unk> on a number of countries Hum UK is.

Net income of the units, we see us continuing to invest until we get to a scale, where we don't have more places to invest and then it starts to actually turn into sort of a net net profitability in that segment of the market, but we as we find more and more green.

Which actually has to publicly filed their financials as a country for some bizarre reason and the U K, but you can look at you know a number of our countries and see sort of where they sit.

And we certainly share that from time to time, but we do have a number of countries that are sort of turned the corner, but we.

Green shoot opportunities, we will continue to invest there even though they won't maybe show sort of net net income we do see the gross revenue and the gross profit being something that will continue to increase.

Glenn Sanford: But we fundamentally are going to continue to invest in that growth because when we start to look at the out periods of time, not that we're focused specifically on the net income of the unit, we see us continuing to invest until we get to a scale where we don't have more places to invest. And then it starts to actually turn into sort of a net profitability in that segment of the market. But as we find more and more green shoot opportunities, we will continue to invest there, even though they won't maybe show sort of net net income. We do see the gross revenue and the gross profit being something that will continue to increase.

Fundamentally are going to continue to invest in that growth because when we start to look at.

Periods of time, not that we're focused specifically on the.

Net income of the units, we see us continuing to invest until we get to a scale, where we don't have more places to invest and then it starts to actually turn into sort of a net net profitability.

Got it that's helpful. Glenn. Thank you and then lastly, I had a quick follow up for Jesse appreciate the added detail on the GAAP gross margins in <unk>, but just to confirm should we expect GAAP gross margins to stay in the low 7% range consistent with two <unk> and the.

That segment of the market, but as we find more and more.

Half of the year as these more productive agents are capping.

Yeah, well, we generally don't provide forward guidance I think that's generally a safe bet right.

We track somewhat too to the industry and that's the that's the direction that Fannie is currently forecasting for the.

Got it that's helpful. Glenn. Thank you and then lastly, I had a quick follow up for Jesse I. Appreciate the added detail on the GAAP gross margins in <unk>, but just to confirm should we expect GAAP gross margins to stay in the low 7% range consistent with <unk> in the second half of the year as these more.

Matt Fylock: Got it. That's helpful, Glenn. Thank you. And then lastly, I had a quick follow-up for Jesse. Appreciate the added detail on the GAAP gross margins in 2Q. But just to confirm, should we expect GAAP gross margins to stay in the low 7% range, consistent with 2Q, in the second half of the year as these more productive agents are capping?

The back half of the year and so we expect to trend at a similar pattern.

Thank you Jessie and thanks, Tim I appreciate it.

Thanks, Matt and then we had a couple of questions from the audience that one was on the gross margin, which we've already spent some time on in answering other too just specifically someone was asking Glenn what the cost is for a subscription to success.

The agents are capping.

Yeah, well, we generally don't provide forward guidance I think that's generally a safe bet right, where we've tracked somewhat too to the industry and that's the direction that Fannie is currently forecasting for the.

Jesse Hill: Yeah, while we generally don't provide forward guidance, I think that's generally a safe bet, right? We track somewhat to the industry, and that's the direction that Fannie is currently forecasting for the back half of the year. And so we expect to trend in a similar pattern.

And then Wendy the cost of land and rich.

So we're actually bringing back.

The back half of the year and so we expect to trend at a similar pattern.

Gesine subscriptions I think the there was a decision last year to remove that and make it simply a success plus benefit we believe that there's still a cohort and we actually see some data that shows that.

Thank you Jessie and thanks, Tim I appreciate it.

Matt Fylock: Thank you, Jesse. Thank you, team. Appreciate it.

Denise Garcia: Thanks, Matt. And then we had a couple of questions from the audience. One was on the gross margin, which we've already spent some time on and answered. Other two, just specifically, someone was asking Glenn what the cost is for a subscription to Success. And then Wendy, the cost of Land and Ranch.

Thanks, Matt and then we had a couple of questions from the audience that one was on the gross margin, which we've already spent some time on in answering other too just specifically.

Individuals are actually.

Some of them with asking Glenn what the cost is for a subscription to success.

Like to subscribe to physical magazines, it's kind of a it's.

It's now actually slightly growing segment in certain segments, we think personal development fits that narrative quite well, but.

And then Wendy the cost of land and rich.

Yeah, So we're actually bringing back.

Glenn Sanford: Yeah, so we're actually bringing back magazine subscriptions. I think there was a decision last year to remove that and make it simply a Success Plus benefit. We believe that there's still a cohort, and we actually see some data that shows that individuals actually like to subscribe to physical magazines. It's kind of now actually a slightly growing segment in certain segments. We think personal development fits that narrative quite well. But that will be a typical magazine subscription, I think, around $20 a year or so for the magazine. Success Plus is $25 per month, which includes an active community. I'm getting involved in that community directly. So if you become part of the Success Plus, especially the paid community, I'm going to be engaged with you every day, just helping build that community.

That will be you know a typical magazine subscription I think around $20 a year or so for the magazine.

Success, plus is a $25 per month and <unk>.

Which includes an active <unk>.

Immunity.

I'm getting involved in that community directly so if you're if you become part of the success plus the special the payer community.

Individuals are actually like.

To subscribe to physical magazines, it's kind of it's not.

Actually slightly growing segment in certain segments, we think personal development fits that narrative quite well.

I'm gonna be engaged with you every day just helping.

Helping build that community and the way I think about it is if we.

<unk>.

That will be a typical magazine subscription I think around $20 a year or so for the magazine.

Can grow that community itself to 50000 members over a period of time.

About a $12 million or your run rate business and in that.

Possibly.

Okay.

Hum.

And if so which includes an active.

Because it is a good solid gross margin attached to it.

Community.

I'm getting involved in that community directly. So if you are if you become part of the success plus the special the Payor community.

We're not adding significant numbers today I think we've had two or three just from some internal stuff of new members from some new programs over the last 24 hours, but we are looking at how do we turn that into 10 hungry.

I'm going to be engaged with you every day just helped.

Helping build that community and the way I think about it is if we can.

Glenn Sanford: And the way I think about it is if we can grow that community itself to 50,000 members over a period of time, that's about a $12 million a year run rate business. And that has a good solid gross margin attached to it. We're not adding significant numbers today. I think we've had two or three just from some internal stuff of new members from some new programs just in the last 24 hours. But we are looking at how do we turn that into 10, 100,000 people a day, a month joining that community and what's the viral flywheel that's going to drive that. We think with a lot of the new AI tooling and some of the expertise that we've developed and understanding even inside of EXP and bringing that to Success, we think there's an opportunity to create some viral opportunities for growth.

Can grow that community itself to 50000 members over a period of time.

1000 people a.

A day a month.

About $12 million of your run rate business and in that.

Because it is it has a good solid gross.

Arjun attached to it we're.

We're not adding significant numbers today I think we've had two or three.

Inside of ESP, and bringing that to success, we think theres an opportunity to create some some viral opportunities for growth.

Just from some internal stuff of new members from some new programs just the last 24 hours, but we are looking at how do we turn that into 10 <unk> hundred.

But we're in the early stages of kind of figuring out what those pieces of value are but the ability to build that under a a recognized and trusted brand I think is going to pay huge dividends when it comes to rolling out some of this.

1000 people a.

A day a month.

Joining that community and what are the what's the viral flywheel, that's going to drive that we think with a lot of the new AI tooling and some of the expertise that we've developed and understanding even inside of ESB and bringing that to success, we think theres an opportunity to create some some viral.

Sure.

Called vibe coated application stacks for personal development.

And when do we had a question about land and match them with the customers to join Landon Ranch.

Opportunities for growth.

Absolutely. Thanks, Denise so let the Landon Ranch program you can find all the information on that at land and branch that E X P royalty dot com and you'll find that joined button there.

Glenn Sanford: But we're in the early stages of kind of figuring out what those pieces of value are. But the ability to build that under a recognized and trusted brand, I think, is going to pay huge dividends when it comes to rolling out some of these new, call it, bibe-coded application stacks for personal development.

But we're in the early stages.

Okay.

But the ability to build that under a a recognized and trusted brand I think is going to pay huge dividends when it comes to rolling out some of this.

We have very yes.

Price points, there, but generally speaking between 2020 500 and that includes a certification.

<unk>.

Called vibe coated application stacks for personal development.

There's training on how to get started and as I said, there's the franchise programs and we have occasionally some specials going on but generally you are in that price point of around the 2000 to 2500 dollar range to get started.

Denise Garcia: All right. And Wendy, we had a question about Land and Ranch and what the cost was to join Land and Ranch.

And when do we had a question about land is match them with the customers to join Landon Ranch.

Absolutely. Thanks, Denise so let the Landon Ranch program you can find all the information on that Atlanta, and branch that E X P royalty dot com and you'll find that joined button there.

Wendy Forsythe: Absolutely. Thanks, Denise. So the Land and Ranch program, you can find all of the information on that at landandranch.exprealty.com, and you'll find a join button there. And we have various price points there, but generally speaking, between 2,000 and 2,500. And that includes a certification, and it includes training on how to get started. And as I said, there's different sort of programs, and we have occasionally some specials going on. But generally, you're in that price point of around the $2,000 to $2,500 range to get started.

Great well, thank you <unk>.

<unk> a question portion of the call. Thank you everyone for joining please stay connected by visiting us at DXP World Holdings' Dot com for the latest updates on NXT news results and events and Additionally, you will find a recording of this call and our latest investor presentation on the investors section of the site.

We have very yes.

Price points, there, but generally speaking between 2020 500 and that includes a certification and are encouraged training on how to get started and as I said, there's the franchise programs and we have occasionally some specials going on but generally you are in that price point is around the 2000.

<unk> second quarter 2025 earnings Fireside.

Fireside chat.

One to 2500 dollar range to get started.

Great well, thank you <unk>.

Denise Garcia: Great. Well, thank you. That concludes our question portion of the call. Thank you, everyone, for joining. Please stay connected by visiting us at expworldholdings.com for the latest updates on EXP news, results, and events. And additionally, you'll find a recording of this call and our latest investor presentation on the investor section of the site. This concludes the second quarter 2025 earnings fireside

<unk> our question portion of the call. Thank you everyone for joining please stay connected by visiting us at DXP World Holdings' Dot com for the latest updates on NXP news results and events and Additionally, you will find a recording of this call and our latest investor presentation on the investors section of the site.

<unk> second quarter 2025 fireside chat.

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