Q1 2026 eXp World Holdings Inc Earnings Call

May 11, 2026

Speaker #1: Good morning, and welcome to the EXP World Holdings first quarter 2026 earnings fireside chat via livestream in our Metaverse on the Web frame. I mentioned this to relations for EXP World Holdings.

Speaker #1: 8.8 million for the quarter, improved 15% year over year from a loss of 10.4 million last year, primarily driven by improvements we made to streamline our operations in 2025.

Speaker #1: Adjusted EBITDA was 4.1 million for the first quarter, and above the midpoint of our guidance range of 2 to 5 million, an increase of 88% over Q1 2025.

Speaker #1: Today we'll begin our earnings fireside chat with remarks from Leo Perea, CEO of EXP Realty; Jesse Hill, CFO of EXP World Holdings; and Glenn Sanford, founder, CEO, and chairman of EXP World Holdings.

Speaker #1: Operating expenses were 84.1 million, at the midpoint of our guidance range in the first quarter. And finally, we increased our cash position 6% year over year, ending the quarter with 122 million dollars in cash on the balance sheet.

Speaker #1: Following our remarks, we'll open the call to a Q&A session with our speakers. Let's begin with a review of the statements. 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.

Speaker #1: On the next slide, I'll walk us through 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, with revenue of $965.1 million for the first quarter and $10 million in adjusted EBITDA, a 29% year-over-year increase as we begin to realize the benefit of cost-saving initiatives we put in place last year.

Speaker #1: Forward-looking statements are subject to various risks and uncertainties. Materially from these statements. Include 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 condition.

Speaker #1: International continues to be our fastest-growing segment, increasing 27% in Q1 while we continue to invest in community-building activities, like eXpCon Cape Town, as Leo mentioned previously.

Speaker #1: Forward-looking statements or information. Replay will also be made available on expworldholdings.com. Now for a few logistics, and we'll get started. For those of you joining on frame today, welcome to our Metaverse on the Web.

Speaker #1: We continue to reduce operating expenses in North America Realty and other affiliated services segments, as we realize the benefit of initiatives we put in place to streamline operations across both segments in 2025.

Speaker #1: To zoom into a specific screen, click on that screen and then click zoom in. If the content on the screen. Simply refresh your page, and while in frame, if you need help, just use the help button at the bottom right to link with tech support.

Speaker #1: On the next slide, I'll review our updated outlook for 2026 and the second quarter. Looking ahead, we remain focused on maintaining our financial discipline to drive sustainable, profitable growth, and we are providing our outlook for the second quarter and full year 2026.

Speaker #1: Should you wish to ask a question during our presentation, you can enter your questions by hitting the QR code on the screen on your mobile phone or go to agent.

Speaker #1: Starting with the second quarter, we expect revenue in the range of $1.36 to $1.45 billion, expenses in the range of $93 to $97 million, and adjusted EBITDA in the range of $16 to $21 million.

Speaker #1: 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 screen will remain up on the right-hand side of the stage.

Speaker #1: For the year, we are reiterating our outlook with revenue in the range of $4.85 to $5.15 billion, operating expenses in the range of $325 to $345 million, and adjusted EBITDA in the range of $50 to $75 million for 2026.

Speaker #1: Now I'll turn the fire. Leo, you may begin.

Speaker #2: Thank you. I'll begin with a recap of our operational highlights for Q1, starting with international. International continues to be our fastest-growing segment, increasing revenue 27% year over year to 40.2 million.

Speaker #1: We are encouraged by our strong performance as we head into Q2; however, we are aware of the growing uncertainty and tightening macroeconomic environment. This coupled with less visibility into the second half has led us to reiterate our full-year guidance at this time.

Speaker #2: The strong revenue growth was driven by our increasingly solid that continued to increase our productivity every year. This is a testament to the fact that we're building a strong agent community worldwide.

Speaker #1: In light of this limited visibility, we believe it's prudent to reiterate the full-year guidance and reassess our outlook at the midpoint of the year.

Speaker #2: We debuted EXP Con Cape Town during the first quarter as well. We had nearly 1,000 attendees and hundreds of attendees on Explorer passes checking us out.

Speaker #1: Along the same time, we will continue to stay financially flexible, reserve the right to invest where we see meaningful opportunities to support our agents, strengthen our technology platform, and enhance long-term shareholder value.

Speaker #2: The power of the EXP platform sessions and opportunity to share innovative ideas and technology with our agents, visitors considering joining EXP. We're looking forward to our first EXP Con in Paris in July, 15th through the 17th.

Speaker #1: As always, our focus remains on executing with discipline, maintaining a strong balance sheet, and continuing to build a more efficient, resilient, and profitable eXp.

Speaker #1: And now I'll turn the call over to Glenn to wrap it up before we open the call to questions. Glenn?

Speaker #2: Distribution strategy, specifically targeting April 15th of 2026, EXP began syndicating coming-soon listings to major national portals. Realtor.com, Homes.com, and Comehome.com on a non-exclusive basis.

Speaker #2: Hey, thanks, Jesse. I've been spending my time really, really, retooling success since actually around July last year. I jumped in and I've been running with the same playbook that we used in international in 2024.

Speaker #2: Underscoring our commitment to. We believe that the role of the market by syndicating early, EXP aims to deliver sellers the widest possible audience to generate demand before listing officially goes live.

Speaker #2: We brought staffing down about 60%. We spent about the last nine months replatforming the entire business. And during this quarter, we actually welcomed Matthew and Kristen Ferry, actually right after the end of the quarter, to help us lead success.

Speaker #2: We've added another specialty division to our platform during the quarter. Entertainment divisions, new homeowner and a powerful global network so we can collaborate directly with developers representing new construction communities and scale their businesses.

Speaker #2: Matthew, many of you will recognize the name in organized real estate. He's one of the most respected sales and life coaches of the last 30 years.

Speaker #2: Kristen, his wife, has been the operational engine behind his business for years, and now brings that same capability to success itself. That combination gives us a real team to scale, not just a marquee hire.

Speaker #2: Finally, we ended the quarter with over 80,000 agents. Productive, drive by five and 2% increase in real estate transactions year over year. We also saw an 11% year-over-year increase in icon agents in Q1.

Speaker #2: And the green shoots are already showing. Success certified coaching has completed its first cohort. The second cohort started last week. On its own, success coaching should move success into net income by 2027.

Speaker #2: The icon program is essentially a flagship embodiment of EXP's realty view top producers as revenue. Treat them as owners and partners, which brings me to the next slide.

Speaker #2: We've launched success events, and that success dot events is also generating revenue. Before we built it, there was no single place to find personal development events across the entire vertical.

Speaker #2: Last week on May 8th, we officially changed our ticker symbol from EXPI to AGNT. The new ticker symbol is a direct reflection of what the built by agents, announced the acquisition of Nexum.

Speaker #2: Think of it a bit like the Zillow of personal development. Top personal development personas are now participating with us, and that participation is already producing revenue.

Speaker #2: Which I'll discuss on the next slide. Nexum operates a proven scalable franchise model with best-in-class satisfaction. They have over 500 franchisees across the US, 900 agents.

Speaker #2: For our agents, this means access to coaching, content, and events that, in any other context, cost $5 or $6 figures to engage with, built directly into the overall eXp ecosystem.

Speaker #2: They've been by franchise business review for five consecutive years. And earned recognition from entrepreneur Inc., 5,000 singling strong unit economics and franchise retention. Both consumers and cultural-driven identity.

Speaker #2: That's why what I mean when I describe success as the culture and growth layer of the eXp ecosystem. It's an asset our agents draw on that no other brokerage can offer.

Speaker #2: And in 2027, we're leaning into what made success the definitive voice in personal development for more than a century. The lineage runs from our founder, Orson Swett Martin, through Napoleon Hill, W.

Speaker #2: In fact, a lot of Nexum brings to the table, which I'll unpack on the next slide. Nexum franchise model unlocks a multi-model platform for EXP with a complementary growth engine.

Speaker #2: Clement Stone, Earl Nightingale, Og Mandino, and of course, Jim Rohn, who is worldwide intellectual property we hold. The principles those voices built, the new thought tradition, are being validated every day by modern neuroscience and psychology when we have a signature offering coming that marries those two worlds, the wisdom that builds success and the science now confirming it.

Speaker #2: They have an experienced leadership team that's well known across the industry, the host of real estate, featured speakers and industry conferences. Now with us, Nexum has a global referral network and a share of our professional services.

Speaker #2: Combined, we have over 87,000 agents. We as many of them woke up that may not be reflective of their views on the industry when it comes to consumers and transparency.

Speaker #2: And I'm excited about what 2027 looks like for success. Next slide, please. I want to close by describing what we're actually building, because I think it's still underappreciated.

Speaker #2: A perfect example is later on today we'll be dropping a press release welcoming Albert. Market and his management team who formally were at Keller Williams and brought over their 200 agents to the Next Home brand.

Speaker #2: This last week, we changed our ticker to AGNT. That wasn't cosmetic. It was really the clearest possible statement of what this company is and who it's built for.

Speaker #2: eXp is a platform business built by agents, built for agents. And the four connected offerings really working in harmony: eXp North America, now multi-model option through Next Home, International, our fastest growing segment, and the expansion frontier FrameVR, our virtual infrastructure, and success, our culture and growth layer.

Speaker #2: And that's just an example of why we're so excited for this opportunity. Previously, we missed out model, but now we can welcome them and Albert and his team are a perfect example of that.

Speaker #2: We continue to see high retention rates among the most productive agents with attrition in the low to mid-single transactions per year. The less likely they are to leave.

Speaker #2: No other brokerage on earth has built this way, and the multi-model expansion through Next Home is a real proof point. We can now welcome independence and entire offices that previously couldn't find a home with us without compromising what it makes the eXp model work.

Speaker #2: Of the non-productive agents, the less EXP in the first quarter, 66% of them left the industry altogether. Part of our strategy in the last few years which Next Home complements so well is to attract agents on teams or 78% more productive 41% of new agents TXP were on teams.

Speaker #2: What we offer agents and what no one else can fully replicate is a complete operating system for building a scalable, sustainable real estate business.

Speaker #2: Full-stack marketing suite, world-class personal development through success, health and wellness resources, and a fully immersive global collaboration layer through Frame. Every investment we're making right now, the eXp Hub, AI Copilot, the listing intelligence platform, the app store marketplace, and the single-thread leadership model that puts a dedicated owner on every major bet, is designed around one goal: helping agents build businesses that grow beyond themselves.

Speaker #2: I'll review our strategic initiatives for 2026 on the next slide. We shared this slide last quarter and we would like to provide a bit of progress report and how we've measured our strategic this year to date.

Speaker #2: Starting with improvement. Jesse will provide more detail on the quarter's financial results but I'll note that we've lowered our first quarter operating costs by more than $2 million year over year.

Speaker #2: This is what's underappreciated about eXp, not the agent count, not the share gain, really the fundamental architecture. And that's the eXp platform. That's the moat.

Speaker #2: Moving to deploy capital with discipline of Next Home that transforms by using cash on hand and continue to have no debt on our balance sheet.

Speaker #2: And every quarter, the gap widens. I'll turn it over back over to Denise for Q&A.

Speaker #2: And finally, assessing opportunities that accelerate growth and expand our capabilities. With Nexum, we increase our to offer a franchise option for under that model.

Speaker #3: Great. Thanks, Glenn. I'll kick it off with a question for everyone on the team, before we open the call to questions from the audience.

Speaker #3: And analysts, so Leo, I'll start with you. Can you speak to how adding an award-winning franchise model like Next Home complements our core cloud brokerage?

Speaker #2: Not only does this accelerate growth in agents but it expands our capabilities. So far, we're on track with our strategic initiatives. We outlined for 2026 and with that, I'll hand the call over to Jesse results.

Speaker #3: Specifically, how does this multi-model approach allow us to capture a broader segment of the market that was previously out of reach? And what does this mean for our competitive moat heading into the second half of the year?

Speaker #2: Jesse. Operational and financial highlights for the first quarter 2026 beginning on the next slide. Starting with operational metrics on a consolidated basis, we ended the quarter with over 82,000 agents with continued productivity per while volume increased 5.5% for the quarter.

Speaker #4: Thanks, Denise. Adding Next Home gives us an advantage because we can now attract independent brokers and franchises coming off of their franchise agreement. There are many, many folks who woke up in the last 24 cut off guard by new ownership structure ranging from private equity to other publicly traded companies.

Speaker #4: And some of those companies views differ substantially from how they may view the world, from putting the consumer first to transparency and the top track around how we display listings.

Speaker #2: Higher PPP drove sales transactions 2% year over year or 91.6,000 transactions in the first quarter. The next slide financials. Just over $1 billion in the first quarter at 5% year over year and above the high end of our guidance range of 980 million.

Speaker #4: And we just realized that in this shifting landscape, having a chassis to give us the optionality to add these folks is incredible. And you have to appreciate the iterativeness of platforms.

Speaker #4: When Glenn started this was for the agent, we became the home of the team. And now we've realized that as we continue to grow, there's an opportunity for the folks that'll probably never be at a cloud brokerage, and we just added a complete new lane and a green shoot opportunity.

Speaker #2: Despite no material change in the macroeconomic environment and a seasonally slow and retain agents and increase productivity resulting in a gross profit of 75.3 million.

Speaker #3: All right. Thanks, Leo. Jesse, one for you. With the integration of Next Home, the financial mix of the company is evolving. Can you discuss how Next Home's model differs from eXp's core cloud-based brokerage model?

Speaker #2: Operating loss of 8.8 million for the quarter improved 15% year over year from a loss of 10.4 million last year primarily driven by 2025.

Speaker #5: Yeah. Thanks, Denise. And Leo just touched on it. A big part of the DLC is that it does allow us to capture revenue from those agents' teams, independent brokerages that we historically haven't had.

Speaker #2: 4.1 million for the first quarter and above the midpoint of our guidance range of 2 to 5 million and increase of 88% over Q1 2025.

Speaker #2: Operating expenses were 84.1 million at the midpoint of our guidance range and cash position 6% year over year ending the quarter 122 million cash on balance sheet.

Speaker #5: We may have had to pass on because they were more aligned or more akin to something in the franchise model. So this does, by making eXp now multi-modal platform and providing this chassis, it allows an on-ramp to some pretty large opportunities that we see here in the near term.

Speaker #2: On the next slide, I'll walk us through 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 with revenue of 985 million for the first quarter and 10 million% year over year increase as we begin to realize the benefit of cost-saving initiatives we put in place last year.

Speaker #5: And then specifically, just speaking to the financial differences in franchise, franchise offers very predictable recurring revenue over the multi-year terms and the contracts. And then they typically have higher gross margins as well, being especially Next Home very asset-light.

Speaker #5: Very aligned to the eXp model, even though we are slightly different in the offering, right, between franchise and brokerage. But they are asset-light as a franchisor with very little corporate overhead.

Speaker #2: International continues to be our fastest growing segment increasing 27% in Q1. We continue to have like EXP Concave We continue to reduce operating expenses in North America Realty and other affiliated services segments as we realize the benefit of initiatives we put into place to streamline operations across both segments in 2025.

Speaker #5: So as you continue to scale, you see very expanded margins in that platform specifically.

Speaker #3: Thanks, Jesse. And Glenn, one for you. How do you see personal development and success impacting eXp?

Speaker #2: Yeah. So I think it really comes down to the idea that we've expressed literally since we started the company, which is that real estate is fundamentally powered by human beings who have developed sales skills, scripts, dialogues, lead generation, but more importantly, it's sort of their mindset and how they see themselves in the world.

Speaker #2: Outlook for 2026. Looking ahead, we remain focused on maintaining our financial discipline to drive sustainable, profitable growth and we are providing our outlook for the second quarter and full year 2026.

Speaker #2: Starting with the second quarter, we 45 billion and adjusted EBITDA in the range of 16 to 21 million. For the year, we are reiterating our outlook with revenue in the range of 4.85 to 5.15 billion.

Speaker #2: And success has really been doing that for 129 years. So the more that we can expose agents to how to think better, how to operate better, it just raises the, for lack of a better term, the consciousness of the entire organization in a way where we're, again, more aligned, more connected, shared vocabulary, and shared ways of doing things that just kind of reinforces itself.

Speaker #2: Operating expense range of 325 to 335 million. And adjusted in the range of 50 to 75 million dollars for 2026. We are encouraged by our strong performance as we head into Q2.

Speaker #2: However, we are aware of the growing uncertainty and tightening macroeconomic environment. This to reiterate our full year guidance. We believe it's prudent to reiterate the full year guidance and reassess our outlook at the midpoint of the year.

Speaker #2: So for me, I always think about the fact that eXp really has been historically a personal development company that just happens to sell real estate.

Speaker #2: Along the same time, we will continue to stay financially flexible reserve the right to invest strengthen our technology platform and long-term value. As always, our focus remains on executing with discipline maintaining a strong balance sheet and continuing to build a more efficient, resilient, and profitable EXP.

Speaker #2: And with that lens, we became the largest single customer of Success Magazine, even before we bought the magazine. Because of our belief in personal development being so fundamental and so this really just continues to give us more access.

Speaker #2: And as I've been diving into personal development, especially since jumping in as managing director last July, it's becoming more and more obvious the places that we're going to be able to make meaningful sort of upgrades for all intents and purposes relative to the our agents and brokers who want to get access to some of the folks over on the Success side of the house.

Speaker #2: And now I'll turn the call over to Glenn to wrap it up before we open the call. My time really, really ritualing success since actually around July last year I jumped in and I've been running with the same playbook.

Speaker #2: As well as a lot of the content that they get just as being part of eXp.

Speaker #2: We brought staffing down about six months. The entire business and during this quarter we actually we welcomed Matthew and Kristen Ferry actually right after the end of the quarter to help us lead success.

Speaker #3: All right. Thanks, Glenn. Now I'll move over to our analysts to ask questions. But before I do, I just want to remind the audience that you can ask a question via Slido.

Speaker #3: By looking at the QR code there on your screen or going to slido.com and punching in agent, A-G-N-T, our ticker, and ask a question there or vote up a question that's in the queue.

Speaker #2: The name in organized of the last 30 years Kristen his wife has been the operational engine behind his business for years and now brings that same capability to success itself.

Speaker #3: But for now, I'll take our first question from Tom White at DEA Davidson. Tom, you can go ahead and ask your question.

Speaker #2: That team to scale not just a success certified coaching has completed its first cohort. The second cohort started last week on its own success coaching should move success into net income by 2027.

Speaker #6: Great. Thank you very much. Maybe just to follow up for Leo on the Next Home deal and congrats on that. But I guess the last few weeks here, you've had the two kind of national leaders in cloud-based models here make acquisitions of franchise models.

Speaker #2: And that success is also generating revenue. Before we built it there was no single place to find personal development events across the entire vertical.

Speaker #6: Leo, can you maybe just talk a little bit about why you think that is and why now? I understand maybe going after these agents or groups of agents or Indies that weren't suited, I guess, for the national model.

Speaker #2: Think of it a bit like the Zillow of personal development. Top personal development participation is already producing the coaching content and events that in any other context cost five or six figures to engage with built directly into the overall EXP ecosystem.

Speaker #6: But I'm just curious if there's kind of anything else maybe just sort of like industry-wide dynamics or competitively that's you think resulting in you guys making this deal.

Speaker #6: And maybe just comment on I think this is the first domestic brokerage you guys have ever acquired. Maybe the first kind of brokerage model that you've acquired anywhere.

Speaker #2: That's why culture and growth layer is an asset our agents draw on that no other brokers can offer. And in 2027 we're leaning into what made success the definitive voice in personal development for more than a century.

Speaker #6: Does this open I don't want to say the floodgates, but is this sort of a new is this sort of a new potential kind of vein of growth that you guys might look to consolidate more brokerages?

Speaker #1: Ritually Success, since actually around July last year I jumped in and, I've been running with the, the same playbook that we used in International in 2024.

Speaker #1: Kristen, his wife, has been the operational engine behind bringing that same capability to Success itself. That combination gives us a real team to scale, not just a marquee hire.

Speaker #6: Thanks. Tom, that's a perfectly fair question. So one is the timing is interesting. It's similar to the other ones, but appreciate that this conversation probably started in earnest.

Speaker #1: we brought staffing down about 60%. We spent about the last 9 months replatforming the entire business, and during this, this quarter, we actually we welcomed Matthew and Kristen Ferry, actually right after the end of the quarter, to.

Speaker #2: Napoleon Hill W. And of course Jim Rohn who is worldwide intellectual property we hold. The principles those voices built the new thought tradition are being validated.

Speaker #6: September, right? So the process too because unlike the other ones where deals were announced, this is closed and we're off to the races. The press release that drops around noon is probably really indicative of what the opportunity I see in front of us.

Speaker #1: And the green shoots are already showing. SUCCESS Certified Coaching has completed its first cohort. The second cohort started last week. On its own, SUCCESS Coaching should move SUCCESS into net income by 2027.

Speaker #6: There is a gentleman by the name of Albert Maggers in the Gold Coast of California who's joining Next Home with $200 agents. That is way outside of their typical office size.

Speaker #2: We have a signature offering wisdom that builds success science now confirming it. And I'm excited about what 2027 looks like for success. Next slide please.

Speaker #1: we've launched Success events, and that Success dot events is it's is also generating revenue. before we built it, there was no single place to find personal development events across the entire vertical.

Glenn Sanford: Kristen, his wife, has been the operational engine behind his business for years and now brings that same capability to SUCCESS itself. That combination gives us a real team to scale, not just a marquee hire. The green shoots are already showing. Success Certified Coaching has completed its first cohort. The second cohort started last week. On its own, Success Coaching should move SUCCESS into net income by 2027. We've launched Success Events, and that success.events is also generating revenue. Before we built it, there was no single place to find personal development events across the entire vertical. Think of it a bit like the Zillow of personal development. Top personal development personas are now participating with us, that participation is already producing revenue.

Glenn Sanford: Kristen, his wife, has been the operational engine behind his business for years and now brings that same capability to SUCCESS itself. That combination gives us a real team to scale, not just a marquee hire. The green shoots are already showing. SUCCESS Certified Coaching has completed its first cohort. The second cohort started last week. On its own, SUCCESS Coaching should move SUCCESS into net income by 2027. We've launched SUCCESS Events, and that success.events is also generating revenue. Before we built it, there was no single place to find personal development events across the entire vertical. Think of it a bit like the Zillow of personal development. Top personal development personas are now participating with us, that participation is already producing revenue.

Speaker #6: And the opportunity that James and I saw when we started this conversation last year, where if you see the trend, most of the acquisitions of franchises have been a growth company buying a legacy company that's contracting at very large percentages, 5 to 7 percent per year.

Speaker #2: I want to close by describing what we're actually building because this last week we changed cosmetic was really the clearest possible statement of what this company is and who it's built for.

Speaker #1: Think of it a bit like the Zillow of personal development. top personal development personas are now participating with us, and that participation is already producing revenue.

Speaker #6: That's not what we did. We specifically went for a young growing well-recognized highly rated franchise system because I see this opportunity where these companies that are legacy players that are now owned by new ownership are seeing contraction.

Speaker #1: For our agents, this means access to coaching, content, and events that, in any other context, cost five or six figures to engage with, built directly into the overall eXp ecosystem.

Speaker #2: EXP is a platform business built by agents built for agents and the working in harmony. My model option through Next Home International our fastest growing segment and the expansion frontier frame VR our virtual infrastructure and success our cultural brokers on earth has built this way.

Speaker #1: That's why I describe Success as the culture and growth layer of the eXp ecosystem. It's an asset our agents draw on that no other brokerage can offer, and in 2027, we're leaning into what made Success the definitive voice in personal development for more than a century.

Speaker #6: And that created a massive opportunity for us. And so I think part of the strategies to always stay nimble and see opportunities, even 6, 12, 18 months out.

Speaker #6: And so I think directionally, we're seeing a huge opportunity that wasn't present even 24 months ago. And then secondly, on the positioning of how we see the world, I think I've given you my standard Jim Bramble role-played answer of as a Section 16 officer of a public company, it's my fiduciary responsibility to always stay in curiosity for any acquisition that's a creative to our shareholders and market share.

Glenn Sanford: For our agents, this means access to coaching, content, and events that in any other context cost 5 or 6 figures to engage with, built directly into the overall eXp ecosystem. That's why what I mean when I describe SUCCESS as the culture and growth layer of the eXp ecosystem. It's an asset our agents draw on that no other brokerage can offer. In 2027, we're leaning into what made SUCCESS the definitive voice in personal development for more than a century. The lineage runs from our founder, Orison Swett Marden, through Napoleon Hill, W. Clement Stone, Earl Nightingale, Og Mandino, and of course, Jim Rohn, whose worldwide intellectual property we hold. The principles those voices built, the new thought tradition, are being validated every day by modern neuroscience and psychology.

Glenn Sanford: For our agents, this means access to coaching, content, and events that in any other context cost five or six figures to engage with, built directly into the overall eXp ecosystem. That's why what I mean when I describe SUCCESS as the culture and growth layer of the eXp ecosystem. It's an asset our agents draw on that no other brokerage can offer. In 2027, we're leaning into what made SUCCESS the definitive voice in personal development for more than a century. The lineage runs from our founder, Orison Swett Marden, through Napoleon Hill, W. Clement Stone, Earl Nightingale, Og Mandino, and of course, Jim Rohn, whose worldwide intellectual property we hold. The principles those voices built, the new thought tradition, are being validated every day by modern neuroscience and psychology.

Speaker #1: The lineage runs from our founder, Orson Swett Martin, through Napoleon Hill, W. Clement Stone, Earl Nightingale, Og Mandino, and, of course, Jim Jim Rohn, who who is worldwide intellectual property we hold.

Speaker #2: A real proof point. We can now welcome independence and entire offices that previously couldn't find a home with us without compromising what it makes what makes the EXP model work.

Speaker #1: the principles those voices built, the new thought tradition, are being validated every day by modern neuroscience and psychology when we have a signature offering coming that marries those two worlds, the, the wisdom that built Success and the science now confirming it.

Speaker #6: But I do see that we now have a chassis that keeps us available and nimble for the optionality ahead.

Speaker #2: Replicate is scalable sustainable real estate business. Full stack marketing suite world-class personal development through success health and wellness resources and a fully immersive global collaboration layer through frame.

Speaker #5: Okay. Thanks. And maybe just a quick follow-up for Jesse. Or anyone. Just you affirmed the full year guide. You obviously have Next Home now.

Speaker #1: And I'm excited about what 2027 looks like for Success. next slide, please. I wanna close by describing what we're actually building, because I think it's still underappreciated.

Speaker #2: Everything AI co-pilots the list has a single thread leadership model that puts a dedicated owner on every major bet is designed around one goal.

Speaker #5: Can you maybe help us get a sense of what you think the kind of contribution from Next Home might be this year?

Speaker #1: This last week, we changed our ticker to AGNT. That wasn't cosmetic. It was really the clearest possible statement of what this company is and who it's built for.

Speaker #2: Helping agents build businesses that grow beyond themselves. The agent count the share and that's the EXP platform. That's the moat and every quarter is the gap widens.

Speaker #4: Yeah, sure. I can take that. At this point in time, it's more of a strategic addition to our platform. They're financial contribution will frankly be modest when you layer it against our full consolidated results in the near term.

Speaker #1: eXp is a platform business built by and the four connected offerings, really working in harmony. eXp North America, it's now multi-model option through Next Home, International, our fastest-growing segment, and the expansion frontier FrameVR, our virtual infrastructure, and Success, our culture and growth layer.

Glenn Sanford: We have a signature offering coming that marries those two worlds, the wisdom that builds SUCCESS and the science now confirming it. I'm excited about what 2027 looks like for SUCCESS. Next slide, please. I wanna close by describing what we're actually building because I think it's still underappreciated. This last week we changed our ticker to AGNT. That wasn't cosmetic. It was really the clearest possible statement of what this company is and who it's built for. eXp is a platform business built by agents, built for agents, the four connected offerings really working in harmony. eXp North America, it's now multi-model option through Next Home International, our fastest growing segment and expansion frontier, Frame VR, our virtual infrastructure, and SUCCESS, our culture and growth layer.

Glenn Sanford: We have a signature offering coming that marries those two worlds, the wisdom that builds SUCCESS and the science now confirming it. I'm excited about what 2027 looks like for SUCCESS. Next slide, please. I wanna close by describing what we're actually building because I think it's still underappreciated. This last week we changed our ticker to AGNT. That wasn't cosmetic. It was really the clearest possible statement of what this company is and who it's built for. eXp is a platform business built by agents, built for agents, the four connected offerings really working in harmony. eXp North America, it's now multi-model option through NextHome International, our fastest growing segment and expansion frontier, Frame VR, our virtual infrastructure, and SUCCESS, our culture and growth layer.

Speaker #4: But we are more focused on the long term of this deal, the value that it brings in incremental agents production and margin. And then more specifically to answer your question, it's not currently included in our full year guidance at this time.

Speaker #2: I'll turn it over back over to Denise for Q&A. Great. Question for everyone on the team. And analysts. So Leo I'll start with you.

Speaker #4: I think that is something we're going to evaluate when we fully incorporate this here in Q2 and look to reiterate full year guidance at that time, Tom.

Speaker #2: Can you speak to how adding an award-winning franchise model like Next Home complements our core cloud brokerage? Specifically how does this market that was previously out of reach?

Speaker #1: no other brokerage on earth has built this way, and the multi-model expansion through Next Home is a real proof point. we can now welcome independence and entire offices that previously couldn't find a home with us without compromising what it makes what makes the eXp model work.

Speaker #5: Okay. Thank you.

Speaker #3: Thanks, Tom. Now I'll go over to Michael Brindose. Michael Brindose from Benchmark. If you'd like to ask a question, you can go ahead. Here, Mike needs to be open.

Speaker #2: Second half of the year. Thanks Denise. Adding Next Home gives us a advantage because we can now attract independent brokers and franchises coming who woke up in the last 24 months leadership structure ranging from private equity to other publicly traded companies and some of those companies views differ substantially from how they may view the world from putting the consumer first to transparency and stop track around how just realize that in this to give us the optionality to add these folks is incredible.

Speaker #1: what we offer agents and what no one else can fully replicate is a complete operating system for building of s-scalable, sustainable real estate business.

Speaker #7: All right.

Speaker #1: Full-stack marketing suite, world-class personal development through Success, health and wellness resources, and a fully immersive global collaboration layer through Frame. Every investment we're making right now—the eXp Hub, AI copilots, the Listing Intelligence Platform, the App Store marketplace, and the single-thread leadership model that puts a dedicated owner on every major bet—is designed around one goal: helping agents build businesses that grow beyond themselves.

Speaker #3: Oh, we're working on those technical fixes there. I'll move over to Stephen Sheldon from William Blair. He asked us a couple of questions via email.

Glenn Sanford: No other brokerage on earth is built this way, and the multi-model expansion through NextHome is a real proof point. We can now welcome independents and entire offices that previously couldn't find a home with us without compromising what makes the eXp model work. What we offer agents and what no one else can fully replicate is a complete operating system for building a scalable, sustainable real estate business. Full stack marketing suite, world-class personal development through SUCCESS, health and wellness resources, and a fully immersive global collaboration layer through Frame. Every investment we're making right now, the eXp Hub, AI Copilots, the Listing Intelligence Platform, the App Store Marketplace, and the single thread leadership model that puts a dedicated owner on every major bet, is designed around one goal, helping agents build businesses that grow beyond themselves.

Speaker #3: He wanted to know first, Leo, how much are you planning to integrate Next Home versus letting it operate a more standalone? And beyond the franchising capability, what else does Next Home bring to the table in terms of technology or other capabilities that EXP can leverage broadly?

Speaker #2: And you have to appreciate the iterativeness of platforms when Glenn started this was for the agent we became the home of the team and now we've realized that probably never be at a cloud and a green shoot opportunity.

Speaker #6: And thanks for the question. So the first and most important one is there will be no changes to the Next Home brand. They will be a standalone brand because it is a different offering as a complete separate chassis.

Speaker #1: This is what's underappreciated about eXp—not the agent count, not the share gain—really, the fundamental architecture. And that's the eXp platform. That's the moat, and every quarter, the gap widens.

Speaker #6: And Next Home was nimble and highly strategic acquisition for us. The part of the appeal is having the second chassis as well as the leadership.

Glenn Sanford: Every investment we're making right now, the eXp Hub, AI Copilots, the Listing Intelligence Platform, the App Store Marketplace, and the single thread leadership model that puts a dedicated owner on every major bet, is designed around one goal, helping agents build businesses that grow beyond themselves. This is what's underappreciated about eXp, not the agent count, not the share gain, really the fundamental architecture. That's the eXp platform, that's the moat. Every quarter the gap widens. I'll turn it back over to Denise for Q&A.

Speaker #1: I'll turn it over back over to Denise for Q&A.

Speaker #2: All right. Thanks Leo. Jesse one for you. With the integration of Next Home the financial mix of the company is evolving. Can you discuss how this core cloud-based brokerage model?

Speaker #6: Going into a world where consolidation and roll-ups are happening, I think the there is no it'd be wise to not underestimate the leadership groups that come together.

Speaker #2: Great. Thanks, Glenn. I'll kick it off with a question for everyone on the team before we open the call to questions from the audience and analysts.

Speaker #2: So, Leo, I'll start with you. can you speak to how adding an award-winning franchise model like Next Home complements our core cloud brokerage? Specifically, how does this multi-model approach allow us to capture a broader segment of the market that was previously out of reach, and what does this mean for our competitive moat heading into the second half of the year?

Speaker #6: Because we are in a very specific independent contractor-driven business that is personality-driven. And people follow people. And we have very large buying power. So there's going to be quite a bit of synergies on technology that we purchase across the board.

Glenn Sanford: This is what's underappreciated about eXp, not the agent count, not the share gain, really the fundamental architecture. That's the eXp platform. That's the moat. Every quarter the gap widens. I'll turn it back over to Denise for Q&A.

Speaker #2: And Leo just touched on a big part of the DLC is that it does allow us to capture revenue from those agents teams independent brokerages that we historically haven't had.

Speaker #2: We may have had to pass on something in the franchise model. Model platform and providing this chassis it allows an on-ramp to some pretty large opportunities that we see here in the near term.

Speaker #6: And as we were doing due diligence, we were both pleasantly surprised by the similarities. They're 42% virtual. A lot of their franchisees use Regis out of all shared spaces.

Speaker #3: Thanks, Denise. Adding Next Home gives us an advantage because we can now attract independent brokers and franchises coming off of their franchise agreement. There are many, many folks who've woken up in the last 24 months completely caught off guard by new ownership structures ranging from private equity to other publicly traded companies.

Denise Garcia: Great. Thanks, Glenn. I'll kick it off with a question for everyone on the team before we open the call to questions from the audience and analysts. Leo, I'll start with you. Can you speak to how adding an award-winning franchise model like NextHome complements our core cloud brokerage? Specifically, how does this multi-model approach allow us to capture a broader segment of the market that was previously out of reach? What does this mean for our competitive moat heading into the H2 of the year?

Speaker #6: With a lot of similarities from tech stack with all the other vendors we offer. So there is going to be some really interesting synergies as we go forward.

Speaker #2: And then specifically just speaking to the financial differences and predictable recurring revenue over the years. And they typically have higher growth margins as well being especially Next Home very asset light.

Speaker #3: Great. Okay. Thank you. And He said, "Great to see continued strong agent NPS." But it did step down a touch sequentially. Is there anything to call out there?

Speaker #2: Very aligned to the EXP model even though we are slightly different in the offering right between as a franchisor scale you see very expanded margins in that platform specifically.

Leo Pareja: Thanks, Denise. Adding NextHome gives us a advantage because we can now attract independent brokers and franchises coming off of their franchise agreement. There are many folks who've woken up in the last 24 months completely caught off guard by new ownership structure, ranging from private equity to other publicly traded companies. Some of those companies' views differ substantially from how they may view the world, from putting the consumer first to transparency and thought track around how we display listings. We just realize that in this shifting landscape, having a chassis to give us the optionality to add these folks is incredible. You have to appreciate the iterativeness of platforms. When Glenn started, this was for the agent. We became the home of the team.

Speaker #6: Yeah, that's a great question. And that's one of the reasons why Glenn started with NPS and the focus on it. One is anything in the 70s is considered good.

Speaker #6: If you were to have an 80-plus someone's almost gaming the system, we're all students of Fred Reichheld. He's on our board. And I've read the book cover to cover.

Speaker #2: Thanks Jesse. And Glenn one for you. How do you see personal development and success impacting EXP? I think it really comes down to the literally since we started the company which is that real estate is fundamentally powered by human beings who have developed sales skills but and how they see themselves in the world.

Speaker #6: And you never want to game the system. So that is a very good example of in real-time fire or smoke detector system. And we were able to identify it.

Speaker #3: And some of those companies' views differ substantially from how they may view the world, from putting the consumer first to transparency, and the soft track around how we display listings.

Speaker #6: And it's one quarter versus multi-quarter sequentially. And that's actually a perfect example of the metric being used in action.

Speaker #3: And we just realized that in this shifting landscape, having a chassis to give us the optionality to add these folks is incredible. And you have to appreciate the iterativeness of platforms.

Leo Pareja: We just realize that in this shifting landscape, having a chassis to give us the optionality to add these folks is incredible. You have to appreciate the iterativeness of platforms. When Glenn started, this was for the agent. We became the home of the team. Now we've realized that as we continue to grow, there's an opportunity for the folks that'll probably never be at a cloud brokerage, and we just added a complete new lane and a green shoot opportunity.

Speaker #3: Great. All right. And over at Slido, we have already answered the questions that we got there. So thank you, everyone, for joining us on our first quarter earnings call.

Speaker #3: When Glenn started, this was for the agent. We became the home of the team, and now we've realized that as we continue to grow, there's an opportunity for the folks that'll probably never be at a cloud brokerage. We just added a complete new lane and a green shoot opportunity.

Leo Pareja: Now we've realized that as we continue to grow, there's an opportunity for the folks that'll probably never be at a cloud brokerage, and we just added a complete new lane and a green shoot opportunity.

Speaker #2: And success has really been doing that for 129 years. So the more that we can expose to how to think raises the for lack of a better term the consciousness of the entire organization in a way where we're again more aligned more connected shared vocabulary and things that just kind of reinforce I always think about the fact that EXP really has been historically a personal development company that just happens to sell real estate and with that lens we became the largest single customer of Success Magazine even before we bought personal development being so this really just continues to give us more access and as I've been diving into personal development especially since jumping in as managing director last July becoming more obvious that we're going to be able to make intensive purposes relative to the our agents and brokers who want to get access to some of the folks over on the success side of the house as well as a lot of the content I'll move over to our analysts to ask questions but before I do I just want to remind the audience that you can ask a question via Slido by looking at the QR code there on your screen or going to slido.com.

Speaker #3: This concludes the call. As always, please stay connected by visiting eXpWorld Holdings for the latest updates on eXp News, results, and events. Additionally, you'll find a recording of this call and our latest investor presentation on the investor section of our site.

Speaker #2: All right. Thanks, Leo. Jesse, one for you. With the integration of Next Home, the financial mix of the company is evolving. Can you discuss how Next Home's model differs, differs from eXp's core cloud-based brokerage model?

Denise Garcia: All right. Thanks, Leo. Jesse, one for you. With the integration of NextHome, the financial mix of the company is evolving. Can you discuss how NextHome's model differs from eXp's core cloud-based brokerage model?

Speaker #4: Yeah. Thanks, Denise. And, and Leo, just touched on it. A big part of the DL thesis is that it does allow us to capture revenue from those agents' teams' independent brokerages that we historically haven't had that we may have had to pass on because they were more aligned or more, more akin to something in the franchise model.

Jesse Hill: Yeah. Thanks, Denise. Leo just touched on it. A big part of the deal thesis is that it does allow us to capture revenue from those agents, teams, independent brokerages that we historically haven't had. That we may have had to pass on because they were more aligned or more akin to something in the franchise model. This, by making eXp now a multimodal platform and providing this chassis, it allows an on-ramp to some pretty large opportunities that we see here in the near term.

Jesse Hill: That we may have had to pass on because they were more aligned or more akin to something in the franchise model. This, by making eXp now a multimodal platform and providing this chassis, it allows an on-ramp to some pretty large opportunities that we see here in the near term. Specifically just speaking to the financial differences in franchise. You know, franchise offers very predictable recurring revenue over the multi-year terms and the contracts. They typically have higher gross margins as well, being especially NextHome, very asset light, very aligned to the eXp model, even though we are slightly different in the offering, right, between franchise and brokerage. They are asset light as a franchisor with very little corporate overhead.

Speaker #4: So this does, by, by making eXp now multi-modal, platform and, and providing this chassis, it allows an on-ramp to some, some pretty large opportunities that we see here in, in the near term.

Speaker #4: And then specifically, just speaking to the financial differences in franchise, you know, franchise offers very predictable, recurring revenue over the multi-year terms and the contracts.

Jesse Hill: Specifically just speaking to the financial differences in franchise. You know, franchise offers very predictable recurring revenue over the multi-year terms and the contracts. They typically have higher gross margins as well, being especially NextHome, very asset light, very aligned to the eXp model, even though we are slightly different in the offering, right, between franchise and brokerage. They are asset light as a franchisor with very little corporate overhead.

Speaker #4: And then they typically have higher gross margins as well, being and especially Next Home, very asset-light, very aligned to the eXp model, even though, we, we are slightly different in the, offering, right, between franchise and brokerage.

Speaker #4: But they are asset-light as a franchisor with very little corporate overhead. So as you continue to scale, you see very expanded margins, in that platform specifically.

Leo Pareja: As you continue to scale, you see very expanded margins, in that platform specifically.

Speaker #2: Thanks, Jesse. And Glenn, one for you. How do you see personal development and success impacting eXp?

Denise Garcia: Thanks, Jesse. Glenn, one for you. How do you see personal development and success impacting eXp?

Speaker #1: yeah. So, I think it really comes down to the, idea that we've expressed literally since we started the company, which is that, you know, real estate is fundamentally powered by, you know, human beings who have developed sales skills, scripts, dialogues, lead generation, but more importantly, it's, it's sort of their, their mindset and, and, and how they see themselves in the world.

Glenn Sanford: I think it really comes down to the idea that we've expressed literally since we started the company, which is that real estate is fundamentally powered by human beings who have developed sales skills, scripts, dialogues, lead generation. More importantly, it's sort of their mindset and how they see themselves in the world. SUCCESS has really been doing that for 129 years.

Speaker #2: But for now I'll take our first question from Tom White at DA Davidson. Tom you can go ahead and ask your question. Great. Thank you very much.

Speaker #2: Maybe just to follow up for. But I guess last few weeks you kind of national leaders and cloud-based models here make acquisitions of franchise models.

Speaker #1: And, and success has really been you know, doing that for, you know, 129 years. So, you know, the more that we can expose agents to, to how to think better, how to operate better, it just raises the, for lack of a better term, the consciousness of the entire organization, in a way where we're, again, more aligned, more connected, shared vocabulary, and, and, and sh-shared ways of doing things that just you kind of reinforces itself.

Glenn Sanford: You know, the more that we can expose agents to how to think better, how to operate better, it just raises the, for lack of a better term, the consciousness of the entire organization, in a way where we're, again, more aligned, more connected, shared vocabulary and shared ways of doing things that just kind of reinforces itself. For me, I always think about the fact that, you know, eXp really has been historically a personal development company that just happens to sell real estate. You know, with that lens, we became the largest single customer of Success Magazine even before we bought the magazine because of our belief in personal development being, you know, so fundamental. This really just continues to give us more access.

Glenn Sanford: You know, the more that we can expose agents to how to think better, how to operate better, it just raises the, for lack of a better term, the consciousness of the entire organization, in a way where we're, again, more aligned, more connected, shared vocabulary and shared ways of doing things that just kind of reinforces itself. For me, I always think about the fact that, you know, eXp really has been historically a personal development company that just happens to sell real estate. You know, with that lens, we became the largest single customer of SUCCESS Magazine even before we bought the magazine because of our belief in personal development being, you know, so fundamental. This really just continues to give us more access.

Speaker #2: Leo can you talk a little bit about why that is and why now? I understand going after these agents or groups of agents or Indies that weren't suited I guess for the national model but I'm just curious if there's kind of anything else maybe just sort of like industry-wide dynamics or competitive leads resulting in you guys making the first domestic brokerage you guys have ever acquired.

Speaker #1: So, for me, I always think about the fact that, you know, eXp really has been historically a personal development company that just happens to sell real estate.

Speaker #1: And, you know, with that lens, we became the largest single customer of Success Magazine even before we bought the magazine. Because of our belief in personal development being you know, so fundamental, and, so this really just continues to give us, more access.

Speaker #2: Maybe the first kind of brokerage model that you've acquired anywhere like does this open I don't want to say the floodgates but is this sort of a new potential consolidate more brokerages?

Speaker #1: And as I've been diving into personal development, especially since jumping in as managing director last July, it's becoming more and more obvious the places that we're gonna be able to make meaningful sort of upgrades, for all intents and purposes, relative to our agents and brokers who want to get access to some of the folks over on the Success side of the house, as well as a lot of the content that they get just as being part of eXp.

Glenn Sanford: As I've been diving into personal development, especially since jumping in as managing director last July, it's becoming more and more obvious the places that we're gonna be able to make meaningful sort of upgrades for all intents and purposes relative to our agents and brokers who want to get access to some of the folks over on the SUCCESS side of the house, as well as a lot of the content that they get just as being part of eXp.

Speaker #2: Thanks. That's a perfectly fair question. So one is the timing is interesting. It's similar to the other ones but appreciate that this conversation probably started in earnest the process too because off to the races.

Speaker #2: The press release that drops around noon is probably really indicative of what the opportunity I see in front of us. There is a gentleman by the name of Albert Maggers in the Gold Coast of California who's joined is way outside of their typical when we started this conversation last year.

Speaker #2: All right. Thanks, Glenn. Now I'll, I'll move over to to our analysts, to ask questions. But before I do, I just wanna remind the audience that you can ask a question via Slido.

Denise Garcia: All right. Thanks, Glenn. Now I'll move over to our analysts to ask questions. Before I do, I just wanna remind the audience that you can ask a question via Slido by looking at the QR code there on your screen or going to slido.com and punching in agent, A-G-N-T, our ticker, and ask a question there or vote up a question that's in the queue. For now, I'll take our first question from Tom White at D.A. Davidson. Tom, you can go ahead and ask your question.

Speaker #2: Where if you see the trend most of the acquisitions of franchises have been a growth company buying a legacy company that's per year. That's not what we did.

Speaker #2: by looking at the QR code there on your screen or going to slido.com. And, punching in agent, A-G-N-T, our ticker. and ask a question there or vote up a question that's in the queue.

Speaker #2: But for now, I'll take our first question from Tom White at D.A. Davidson. Tom, you can go ahead and ask your question.

Speaker #2: Growing well recognized highly rated franchise system because I see this opportunity where these companies that are legacy players that are now owned by new ownership are seeing contraction and that I think part of the strategy 12, 18 months out.

Speaker #1: great. Thank you very much. maybe just to follow up for Leo on the Next Home deal and congrats on that. But I guess, you know, the last few weeks here, you've had the two kind of n-national leaders in cloud-based models here.

Thomas White: Great. Thank you very much. Maybe just to follow up for Leo on the NextHome deal, and congrats on that. I guess, you know, the last few weeks here, you've had the two kinda national leaders and cloud-based models here make acquisitions of franchise models. Leo, can you maybe just talk a little bit about like why you think that is and why now? I understand, you know, maybe going after, you know, these agents or groups of agents or indies that weren't suited, I guess, for the national model. I'm just curious if there's kinda anything else, maybe just sort of like industry-wide dynamics or competitively that's I think resulting in you guys making this deal.

Tom White: Great. Thank you very much. Maybe just to follow up for Leo on the NextHome deal, and congrats on that. I guess, you know, the last few weeks here, you've had the two kinda national leaders and cloud-based models here make acquisitions of franchise models. Leo, can you maybe just talk a little bit about like why you think that is and why now? I understand, you know, maybe going after, you know, these agents or groups of agents or indies that weren't suited, I guess, for the national model. I'm just curious if there's kinda anything else, maybe just sort of like industry-wide dynamics or competitively that's I think resulting in you guys making this deal.

Speaker #2: And so I think directionally we're seeing a huge opportunity that wasn't present even 24 months ago. And then secondly on the positioning of how we see the world I think as a second responsibility acquisition that's to our shareholders and market share.

Speaker #1: make acquisitions of, of, of franchise models. Leo, can you maybe just talk a little bit about, like, why you think that is and why now?

Speaker #1: I understand, you know, maybe going after, you know, these agents or groups of agents or indies that weren't suited, I guess, for the national model.

Speaker #1: But I'm just curious if there's kind of anything else, maybe just sort of like industry-wide dynamics or competitively, that you think is resulting in you guys making this deal.

Speaker #2: But I do see that we have now have a chassis that keeps us available and nimble for the option okay. Thanks. Or anyone just you affirmed the full year guide.

Speaker #1: And maybe just comment on, I think this is the first domestic brokerage you guys have ever acquired—maybe the first kind of brokerage model that you've acquired anywhere.

Thomas White: Maybe just comment on, I think this is the first domestic brokerage you guys have ever acquired, maybe the first kind of brokerage model that you've acquired anywhere. Like, does this open, you know, I don't wanna say the floodgates, but, you know, Is this sort of a new potential kind of vein of growth that you guys might look to consolidate more brokerages? Thanks.

Tom White: Maybe just comment on, I think this is the first domestic brokerage you guys have ever acquired, maybe the first kind of brokerage model that you've acquired anywhere. Like, does this open, you know, I don't wanna say the floodgates, but, you know, Is this sort of a new potential kind of vein of growth that you guys might look to consolidate more brokerages? Thanks.

Speaker #1: Like, does this open—you know, I don't want to say the floodgates—but, you know, is this sort of a new, is this sort of a new potential kind of vein of growth that you guys might look to consolidate more brokerages?

Speaker #2: You obviously have next home now. Can you maybe help us get a sense of what you think the contribution next be? Sure. I can take that.

Speaker #2: At this point in time it's more of a strategic addition to our platform. Their financial contribution will frankly be modest when you layer it against our full consolidated results in the near deal that more specifically to answer your question.

Speaker #1: Thanks.

Speaker #3: Tom, that's a perfectly fair question. So one is the timing is interesting. It's similar to the other ones, but appreciate that, you know, this conversation probably started in earnest.

Leo Pareja: Tom, that's a perfectly fair question. One is, the timing is interesting. It's similar to the other ones, but appreciate that, you know, this conversation probably started in earnest September, right? The process too, 'cause unlike the other ones where deals were announced, this is closed and we're off to the races. The press release that drops around noon is probably really indicative of what the opportunity I see in front of us. There is a gentleman by the name of Albert Maggers in the Gold Coast of California, who's joining NextHome with 200 agents. That is way outside of their typical office size and the opportunity that James and I saw when we started this conversation last year.

Speaker #3: September, right? So the, the process too 'cause unlike the other ones where deals were announced, this is closed and we're off to the races.

Speaker #3: The press release that drops around noon is probably really indicative of what the opportunity, I see in front of us. There is a gentleman by the name of Albert Magers in the Gold Coast of California who's joining NextHome with 200 agents.

Speaker #2: It's not currently included in our full year guidance at this time. I think that is something we're going to evaluate when we fully incorporate this here in Q and at that time.

Speaker #3: That is way outside of their typical office size and the opportunity that James and I saw when we started this conversation last year, where if you see the trend most of the acquisitions of franchises have been a growth company buying a legacy company that's contracting at very large percentages, 5 to 7 percent per year.

Speaker #2: Okay. Now I'll go over to Michael Brindose. Michael Brindose from Benchmark. If you'd like to ask a question you can go ahead. Your mic needs to be oh we're working on those technical fixes there.

Leo Pareja: Where if you see the trend, most of the acquisitions of franchises have been a growth company buying a legacy company that's contracting at very large percentages, 5% to 7% per year. That's not what we did. We specifically went for a young, growing, well-recognized, highly rated franchise system because I see this opportunity where these companies that are legacy players that are now owned by new ownership are seeing contraction, and that created a massive opportunity for us. I think part of the strategy is to always stay nimble and see opportunities even 6, 12, 18 months out. I think directionally, we're seeing a huge opportunity that wasn't present even 24 months ago.

Speaker #3: That's not what we did. We specifically went for a young, growing, well-recognized, highly rated franchise system. Because I see this opportunity where these companies that are legacy players, that are now owned by new ownership, are seeing contraction.

Speaker #2: I'll move over to Stephen Sheldon from William Blair. He asked us a couple of questions via email. The opportunity are you planning to integrate next and beyond the franchising capability?

Speaker #3: And that created a massive opportunity for us. And so I think part of the, the strategies to always stay nimble and see opportunities, even 6, 12, 18 months out.

Speaker #2: What else does next home bring to the table in terms of technology or other capabilities that EXC can leverage broadly? And that's it. Thanks for the question.

Speaker #3: And so I, I, I think directionally, we're, we're seeing a huge opportunity that wasn't present even 24 months ago. And then secondly, on the positioning of how we see the world, I think I've given you my role-played answer of, you know, as a Section 16 officer of, of a public company, it's my fiduciary responsibility to always stay in curiosity for any acquisition that's a creative to our shareholders and market share.

Leo Pareja: On the positioning of how we see the world, I think I've given you my standard Jim Bramble role-play answer of, you know, as a Section 16 officer of a public company, it's my fiduciary responsibility to always stay in curiosity for any acquisition that's accretive to our shareholders and market share. I do see that we now have a chassis that keeps us available and nimble for the optionality ahead.

Speaker #2: So the first most important. It is a different and next home was nimble and highly strategic acquisition for us. The part of the appeal is having the second chassis as well as the leadership.

Speaker #3: But I, I, I do see that we, we have now have a chassis that keeps us available and nimble for the optionality ahead.

Speaker #2: Going into a world where consolidation and roll-ups are it'd be wise to not underestimate leadership because we are in a very specific independent contractor driven business that is personality driven.

Speaker #1: Okay. Thanks. And maybe just a, a quick follow-up for Jesse. or, or anyone. Just you, you know, you affirmed the full year guide. You obviously have Next Home now.

Thomas White: Okay, thanks. Maybe just a quick follow-up for Jesse, or anyone. Just, you know, you affirmed the full year guide. You obviously have Next Home now. Can you maybe help us get a sense of what you think the kind of contribution from Next Home might be this year?

Tom White: Okay, thanks. Maybe just a quick follow-up for Jesse, or anyone. Just, you know, you affirmed the full year guide. You obviously have NextHome now. Can you maybe help us get a sense of what you think the kind of contribution from NextHome might be this year?

Speaker #2: And people follow people. And we have very large technology that we purchase both pleasantly surprised by the similarities. Their 42% virtual a lot of their franchisees use Regis out of all shared spaces.

Speaker #1: Can you maybe help us get a sense of what you think the kind of contribution from Next Home might be this year?

Speaker #4: Yeah, sure. I can take that. You know, at this point in time, it's more of a strategic addition to our platform. Their financial contribution will, frankly, be modest when you layer it against our full consolidated results in the near term.

Jesse Hill: Yeah, sure. I can take that. You know, at this point in time, it's more of a strategic addition to our platform. Their financial contribution will, frankly be modest, when you layer it against our full consolidated results in the near term. We are more focused on the long term of this deal, the value that it brings in incremental agents, production, and margin. More specifically to answer your question, it's not currently included in our full year guidance at this time. I think that is something we're gonna evaluate, when we fully incorporate this here in Q2 and look to reiterate full year guidance at that time, Tom.

Speaker #2: With a lot of similarities from all the other there is going to be some really great. Okay. Thank you. And another one from Stephen Sheldon.

Speaker #4: but we, we are more focused on the long term of this deal, the value that it brings in incremental agents production and margin. And then more specifically to answer your question, it's not currently included in our full year guidance at this time.

Speaker #2: He said great to see continued strong agent NPS. But it did step down a touch sequentially. Is there anything? That's a great question. That's one of the reasons why Glenn on it.

Speaker #4: I think that is something we're going to evaluate when we fully incorporate this here in Q2 and look to reiterate full-year guidance at that time, Tom.

Speaker #2: One is anything in the 70s is considered good. If you were to have like an 80 plus someone's almost gaming the system. We're all students of Fred Reichheld.

Speaker #3: Okay. Thank you.

Thomas White: Okay. Thank you.

Tom White: Okay. Thank you.

Speaker #2: Thanks, Tom. Now, I'll go over to Michael Brindose. Michael Brindose from Benchmark, if you'd like to ask a question, you can go ahead.

Denise Garcia: Thanks, Tom. Now I'll go over to Michael Rindos. Michael Rindos from Benchmark. If you'd like to ask a question, you can go ahead. Your mic needs to be open. All right. While we're working on those technical fixes there, I'll move over to Stephen Sheldon from William Blair. He asked us a couple questions via email. He wanted to know, first, Leo, how much are you planning to integrate NextHome versus letting it operate a more standalone? Beyond the franchising capability, what else does NextHome bring to the table in terms of technology or other capabilities that eXp can leverage broadly?

Speaker #2: He's on our board and I've read the book covered and so that is a very good example. And we were able to identify it.

Speaker #2: Here, Mike needs to be open.

Speaker #2: And it's one quarter versus multi-quarter sequentially. And that's actually a perfect example of the metric being used in action. Great. We have already answered the questions that so thank you everyone for joining us on our first quarter earnings call.

Speaker #5: All right.

Speaker #2: Well, we're working on those technical fixes there. I'll move over to Stephen Sheldon from William Blair. He asked us a couple of questions via email.

Speaker #2: he wanted to know, first, Leo, how much are you planning to integrate Next Home versus letting it operate a more standalone? And beyond the franchising capability, what else does Next Home bring to the table in terms of technology or other capabilities that eXp can leverage broadly?

Speaker #2: This concludes the call. As always please stay connected by visiting EXP World Holdings for the latest updates on EXP news. The recording of this call and our latest presentation thanks again for joining and this concludes our first quarter earnings fireside chat.

Speaker #3: Yeah. That's a thanks for the question. So the first, most important one is there will be no changes to the Next Home brand. They will be a standalone brand 'cause it is a different offering as a complete separate chassis.

Leo Pareja: Yeah, that's a Thanks for the question. The first most important one is there will be no changes to the NextHome brand. They will be a standalone brand 'cause it is a different offering as a complete separate chassis. NextHome was a nimble and highly strategic acquisition for us. The part of the appeal is having the second chassis as well as the leadership. Going into a world where consolidation and roll-ups are happening, I think the, there's no, it'd be wise to not underestimate the leadership groups that come together. 'Cause we are in a very specific independent contractor-driven business that is personality-driven, and people follow people. And we have very large buying power, there's gonna be quite a bit of synergies on technology that we purchase across the board.

Leo Pareja: Yeah. Thanks for the question. The first most important one is there will be no changes to the NextHome brand. They will be a standalone brand 'cause it is a different offering as a complete separate chassis. NextHome was a nimble and highly strategic acquisition for us. The part of the appeal is having the second chassis as well as the leadership. Going into a world where consolidation and roll-ups are happening, I think the, there's no, it'd be wise to not underestimate the leadership groups that come together. 'Cause we are in a very specific independent contractor-driven business that is personality-driven, and people follow people.

Speaker #3: And NextHome was a nimble and highly strategic acquisition for us. The part of the appeal is having the second chassis as well as the leadership.

Speaker #3: Going into a world where consolidation and roll-ups are happening, I think the there is no it'd be, it'd be wise to not underestimate the leadership groups that come together.

Speaker #3: 'Cause we are in a very specific independent, independent contractor-driven business that is personality-driven. And people follow people. and we have very large buying power.

Leo Pareja: We have very large buying power, there's gonna be quite a bit of synergies on technology that we purchase across the board. As we were doing due diligence, we were both pleasantly surprised by the similarities. They're 42% virtual. A lot of their franchisees use Regus out of all shared spaces, with a lot of similarities from tech stack with all the other vendors we offer. There is gonna be some really interesting synergies as we go forward.

Speaker #3: So there's gonna be quite a bit of synergies on technology that we purchase across the board. And as we were doing due diligence, we were both pleasantly surprised by the similarities.

Leo Pareja: As we were doing due diligence, we were both pleasantly surprised by the similarities. They're 42% virtual. A lot of their franchisees use Regus out of all shared spaces, with a lot of similarities from tech stack with all the other vendors we offer. There is gonna be some really interesting synergies as we go forward.

Speaker #3: they're 42% virtual. A lot of their franchisees use Regis out of all shared spaces. With a lot of similarities from tech stack with all the other vendors we offer.

Speaker #3: So there is gonna be some really interesting synergies as we go forward.

Speaker #2: Great. Okay. Thank you. And another one from Stephen, Sheldon. He said, "Great to see continued strong agent a-a NPS." But it did step down a touch sequentially.

Denise Garcia: Great. Okay, thank you. Another one from Stephen Sheldon. He said, Great to see continued strong agent NPS, but it did step down a touch sequentially. Is there anything to call out there?

Speaker #2: Is there anything to call out there?

Speaker #3: Yeah, that's a great question. And that's one of the reasons why Glenn started with NPS and the focus on it. One is, anything in the 70s is considered good.

Leo Pareja: Yeah, that's a great question, and that's one of the reasons why Glenn started with NPS and the focus on it. One is anything in the 70s is considered good. If you were to have like an 80-plus, someone's almost gaming the system. We're all students of Fred Reichheld. He's on our board, and I've read the book cover to cover, and you never wanna game the system. That is a very good example of a real-time fire or smoke detector system, and we were able to identify it, and it's one quarter versus, you know, multi-quarter sequentially, and that's actually a perfect example of the metric being used in action.

Speaker #3: If you were to have like an 80-plus someone's almost gaming the system. We're, we're all students of Fred Reichheld. He's on our board. And I've read the book cover to cover.

Speaker #3: And you never want to game the system. So that is a very good example of a real-time fire or smoke detector system, and we were able to identify it.

Speaker #3: And it's, it's one quarter versus, you know, multi-quarter sequentially. And that's actually a perfect example of the, the metric being used in action.

Speaker #2: Great. All right. And and over at Slido, we have already answered the, the questions that, that we got there. So thank you, everyone, for joining us on our first quarter earnings call.

Denise Garcia: Great. All right. Over at Slido, we have already answered the questions that we got there. Thank you everyone for joining us on our Q1 earnings call. This concludes the call. As always, please stay connected by visiting eXp World Holdings for the latest updates on eXp news, results, and events. Additionally, you'll find a recording of this call and our latest investor presentation on the investor section of our site. Thanks again for joining. This concludes our Q1 earnings fireside chat.

Speaker #2: this concludes the call. as always, please stay connected by visiting eXpWorld Holdings for the latest updates on eXp News, results, and events. Additionally, you'll find a recording of this call and our latest investor presentation on the investor section of our site.