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[Audio Gap] Productivity drove more agents to reach their cap in Q1, resulting in a gross profit of $75.3 million. 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 improvements we made to streamline our operations in 2025. Adjusted EBITDA was $4.1 million for the first quarter and above the midpoint of our guidance range of $2 million to $5 million, an increase of 88% over Q1 2025. 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 in cash on the balance sheet.

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. 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. 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.

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. Starting with the second quarter, we expect revenue in the range of $1.36 billion to $1.45 billion, expenses in the range of $93 million to $97 million and adjusted EBITDA in the range of $16 million to $21 million. For the year, we are reiterating our outlook with revenue in the range of $4.85 billion to $5.15 billion, operating expenses in the range of $325 million to $345 million and adjusted EBITDA in the range of $50 million to $75 million for 2026. 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. 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. 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. 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. And now I'll turn the call over to Glenn to wrap it up before we open the call to questions. Glenn?

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. We brought staffing down about 60%. We spent about the last 9 months replatforming 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. 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. 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. 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. 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, and that participation is already producing revenue. 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. 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, 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. And we have a signature offering coming that marries those two worlds, the wisdom that builds SUCCESS and the science now confirming it. 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. 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, and the four connected offerings really working in harmony: eXp North America is now multi-model option through NextHome; International, our fastest-growing segment and expansion frontier; FrameVR, our virtual infrastructure; and SUCCESS, our culture and growth layer. 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 it makes -- 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. 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. I'll turn it over -- back over to Denise for Q&A.

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. So 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? And what does this mean for our competitive moat heading into the second half of the year?

Thanks, Denise. Adding NextHome 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 have woken up in the last 24 months, completely caught off guard by new ownership 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 thought track around how we display listings. And we just realize that in the 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. 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 will probably never be at a cloud brokerage, and we just added a complete new lane and a green shoot opportunity.

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?

Yes. Thanks, Denise. And Leo just touched on 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 -- 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. And then specifically, just speaking to the financial differences in franchise, franchise offers very predictable recurring revenue over the multiyear terms and the contracts. And then 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. 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.

Thanks, Jesse. And Glenn, one for you. How do you see personal development and SUCCESS impacting eXp?

Yes. 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. 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. 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. 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. 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 as well as a lot of the content that they get just as being part of eXp.

All right. Thanks, Glenn. Now I'll move over to our analysts to ask questions. [Operator Instructions] But for now, I'll take our first question from Tom White at D.A. Davidson.

Great. Maybe just a follow-up for Leo on the NextHome 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. Leo, can you maybe just talk a little bit about like 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. But I'm just curious if there's kind of anything else maybe just sort of like industry-wide dynamics or competitively that's think -- resulting in you guys making this deal? 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. Like does this open -- I don't want to say the floodgates, but is this sort of a new potential kind of vein of growth that you guys might look to consolidate more brokerages?

Tom, that's a perfectly fair question. So one is the timing is interesting and similar to the other ones, but I appreciate that this conversation probably started in earnest 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. 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, 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. And so I think part of the strategy is to always stay nimble and see opportunities even 6, 12, 18 months out. 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 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. But I do see that we now have a chassis that keeps us available and nimble for the optionality ahead.

Okay. And maybe just a quick follow-up for Jesse. -- or anyone. Just 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?

Yes, sure, I can take that. 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. 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. 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.

Thanks, Tom. Now I'll go over to Michael. Michael Brindos from Benchmark. If you'd like to ask a question, you can go ahead. All right. 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 e-mail. He wanted to know, first, Leo, how much are you planning to integrate NextHome versus letting it operate a more stand-alone? And beyond the franchising capability, what else does NextHome bring to the table in terms of technology or other capabilities that eXp can leverage broadly?

Thanks for the question. So the first most important one is there will be no changes to the NextHome brand. There will be a stand-alone brand because it is a different offering as a complete separate chassis. And NextHome was 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 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. 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 Regus out of all shared spaces 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.

Great. Okay. And 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?

Yes, 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 want to game the system. So that is a very good example of in real-time fire smoke detector system, and we were able to identify it. And it's one quarter versus multi-quarter sequentially. And that's actually a perfect example of the metric being used in action.

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. 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 Investors section of our site. Thanks again for joining, and this concludes our First Quarter Earnings Fireside Chat.

[Audio Gap] 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 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 expworldholdings.com.

Now for a few logistics and we'll get started. For those of you joining in frame today, welcome to our Metaverse on the web. To zoom into a specific screen, you can click on that screen and then click zoom in. If the content on the screen disappears or if you lose audio, simply refresh the page. While in frame, if you need help, just use the help button at the bottom right to link with tech support. [Operator Instructions]

Now I'll turn the fireside chat over to our speakers before opening up the call to questions. Leo, you may begin.

Thanks, Denise. We've always been focused on driving eXp across every area of our business and 2025 has been no different. This year, we [indiscernible] 7 countries, increasing our international revenue 67% year-over-year to $147 million. As our technology-driven model continues to disrupt the real estate industry and resonate with agents around the world. We're constantly improving and iterating on our value stack, and we've launched 4 significant programs this year, starting with co-sponsorship, Which has been a tremendous success elevated agent attraction to another level.

The program helps drive growth and deepen collaboration between agents, offering agents the option to have 2 sponsors. Since launching the program we've seen co-sponsorship happen across 28 countries globally, showing great collaboration amongst our agents and countries all over the globe. In our U.S. and Canadian markets, 14% of agents have joined eXp, since we rolled out cosponsorship joining with a cosponsor, and agents that have joined with a co-sponsor are 64% more productive than those without. And agents with a cosponsor have a 19% lower attrition rate.

We've also introduced a commercial division in the U.K. and 2 programs to help agents differentiate their brands in specialization markets like [ land and ranch ] sports entertainment, in addition to luxury, which has had a tremendous success. These programs have seen a combined membership increase of 48% year-over-year in 2025.

Education is one of our priorities [indiscernible]. Given our scale, we're one of the few brokerages to be able to offer best in quality education and access for agents to top-rated trainers and industry leaders throughout -- through eXp University, giving us a huge competitive advantage that other brokers simply cannot replicate. In 2025, we launched an AI accelerated series, a free comprehensive 8-week training program designed to empower our agents with the most sophisticated tools at their disposal and further drive their productivity. These series have already generated nearly 4,000 program views across its 9 training sessions, demonstrating a strong appetite for these high-impact tools.

We've highlighted [ Fast Cap ] earlier in the year, and it continues its momentum. With nearly 20,000 agent registrations and the agents that complete the program we're reporting seeing the results in both the number of appointments and agreements executed, whether it's buyer agency or listing agreements. In 2026, we're integrating realty.com for U.S. agents and [ Zucassa ] for Canadian agents into the [ Fast Cap ] program, including seller and buyer cultivation tools and leads.

We have also launched the [ Fast Attract ] program in 2025. In the 6 months since completing the first Fast Attract pilot program, agents have had a 24% relative lift in recruiting compared to peers who haven't taken the class yet. And we continue to take a leadership position, standing up for consumer choice and transparency. [ Holli Mayberry ], who was recently promoted to Chief Brokerage Officer has joined the earnings call for the Q&A portion, and can share more details on consumer choice framework and the other actions we are taking to help agents remain focused on their business in the midst of a changing real estate landscape.

And finally, our most important asset, our people. We ended 2025 with 83,060 agents worldwide, up slightly from last year, and a base of agents that I believe is stronger than ever as we enter the new year. During 2025, we saw growth agent productivity and revenue accelerate through the year. We ended Q4 with a 6% year-over-year increase in productivity and 9% year-over-year increase in revenue. We also saw a year-over-year increase in the number of ICON agents for the full year of 2025.

As we've shown throughout the year, we are more likely to retain productive agents. So as productivity increases, attrition improves. Our Q4 attrition was the best it's been all year in Q4. With worldwide agent attrition improving 17% year-over-year and an impressive even larger improvement of 23% year-over-year in the United States. These steps are even more impressive when you consider that the industry is contracting. Let's talk more about this trend on the next slide.

In the U.S., 4% of U.S. realtors exited their membership base in 2025, based on NMR data. And while eXp's U.S. residential did experience net attrition in '25, we outperformed NAR attrition rates by 25%. Compared to our historical rates, our attrition continues to drop year-over-year. We saw a 6% year-over-year improvement from '24, and more than triple the rate in '25 with a 23% year-over-year improvement. I'll talk more about what's driving that trend in the next slide.

I presented this slide every quarter this year, and the story remains consistent. Productivity drives retention. The more effective in agent is, the less likely they are to leave. In the U.S., the majority of departing agents continue to be our lowest producing cohort and agents in the highest producing cohorts are multiple times less likely to churn than our low producing agents. Of the nonproductive agents that leave eXp, 63% of them leave the industry altogether. But fewer agents are leaving and our attrition rates have improved all year with 23% year-over-year improvement for the full 2025.

Part of that is due to our strategy to attract teams to eXp. Because agents on teams are 78% more productive than individual agents, and 40% of the new agents to eXp were on teams in the fourth quarter. And speaking of teams, I would like to highlight some of the teams that joined eXp in 2025, starting on the next slide.

We welcome some amazing people over the course of 2025. We added more than 25 prominent teams in the U.S. and Canada that generate over $5.5 billion in sales in 2024, while at their respective brokerages. They joined us from coast to coast leaving traditional brokerages and indies alike, and some were booming agents that return to eXp after realizing our value prop is hard to replicate anywhere else. And the momentum continues with more teams joining in 2026. We intend to empower our agents and build on these results going forward.

Next slide, please. 2025 was a defining year at eXp as we enhanced agent productivity and retention and made significant infrastructure investments. In 2026, we expect to translate those investments into margin through disciplined execution. We will also continue to assess opportunities that accelerate growth and expand our capabilities.

I will turn it over to Jesse to expand on the strategic investments we made in 2025 and share our outlook for 2026.

Thank you, Leo. And now I'll walk us through our consolidated operational and financial highlights for the fourth quarter and the full year 2025, beginning on the next slide.

Starting with operational metrics on a consolidated basis, we ended the quarter and the year with just over 83,000 agents, driven by strong agent retention, which drove a 17% reduction in attrition for the year. Productivity per person, or PPP, was up for the quarter and the year at 5.3, while volume ramped up throughout the year, accelerating to 8% in Q4 and 5% for the full year. The higher PPP drove sales transactions up 6%, or 110,000 transactions in the fourth quarter, and there were over 440,000 sales transactions in 2025.

On the next slide, I'll walk us through our financials. Starting with revenue. We generated $4.8 billion in 2025, up 4% year-over-year despite no material change in the macroeconomic environment. Revenue growth for Q4 accelerated to 9% to $1.2 billion. During the year, we invested in programs to attract and retain agents and increase productivity with more agents reaching their cap, which resulted in a gross profit of $333.6 million in 2025. Operating loss of $21.5 million for 2025 and $12.7 million for the quarter was down year-over-year, primarily driven by gross margin compression and higher investments in computer and software, partially offset by early gains that we have seen in operational efficiencies.

Adjusted EBITDA of $33.2 million for 2025 and $2.1 million for the quarter continues to be positive but down year-over-year again, primarily driven by this margin compression and partially offset by our streamlined operations. Finally, we've increased our cash position, ending the year with a healthy $124.2 million in cash on the balance sheet.

On the next slide, I'll 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, with revenue of $1.1 billion for the fourth quarter and $4.6 [ billion ] for the year. International continues to be our fastest-growing segment, increasing nearly 5% in Q4 and 67% year-over-year in 2025. The team did all of this while launching 7 new markets, so kudos to Felix Bravo and the international team for all of their accomplishments in 2025.

Operating expenses increased in the fourth quarter primarily due to the continued investments in our eXpcon events and increased legal expenses in the U.S., while we reduced operating expenses in other affiliated services segment as we streamline success operations. Success contributed modest revenue for the year with an operating loss of $6.2 million as we focused on retooling the success platform.

On the next slide, I'll review our 2025 priorities and results. During 2025, we built a strong foundation for profitable growth through several key priorities. We focused on improving operational efficiency through back-office automation so that agents can focus more on their clients. In the fourth quarter, we saw improvements on a year-over-year basis with a 6% decrease in related costs, a 7% increase in the number of agents per staff, and a 12% increase in the number of transactions per staff.

We made liberate investments in AI and technology to streamline our high-volume workflows and boost agent productivity in 2025 that we expect to result in continued efficiencies that will drive margin expansion into 2026 and beyond. We also unlock new opportunities for our agents, adding to our luxury affiliate program and introducing [ Land and Ranch ] and Sports and entertainment. These programs are expected to contribute margin expansion as they continue to ramp, and we saw a 48% year-over-year increase in agent memberships across these programs in 2025.

Finally, we are focused on driving international growth by applying a scalable proven model that we developed over several years. I already mentioned the 67% year-over-year revenue growth in 2025. But I'd also like to mention that we launched these new markets more efficiently, down 37% in our launch costs compared to our original international expansion efforts. Ultimately, we strengthened our platform, improve productivity and position ourselves to deliver profitable growth as the real estate industry continues to evolve that is expected to result in higher sustained margins throughout the year.

Now let me walk you through our ongoing priorities and our initial outlook for 2026 on the next slide. Looking ahead, we remain focused on maintaining our financial discipline to drive sustainable, profitable growth and we are providing our initial outlook for the first quarter and the full year 2026. Starting with the first quarter, we expect revenue in the range of $960 million to $980 million, expenses in the range of $82 million to $86 million, and adjusted EBITDA in the range of $2 million to $5 million. For the year, we expect revenue in the range of $4.85 billion to $5.15 billion.

Regarding expenses, we expect to continue to leverage the investments we've made in technology and infrastructure, and we see this translating into operating expenses in the range of $325 million to $345 million. Finally, we expect adjusted EBITDA in the range of $50 million to $75 million for 2026. We intend to stay financially flexible. We reserve the right to invest where we see meaningful opportunities to support our agents, strengthen our technology platform and enhance long-term shareholder 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.

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

Thanks, Jesse. In 2025, I did something most CEOs don't do. I went deep into two of our businesses to rebuild them from the ground up. And I want to tell you why, because it reflects exactly how we think about building this company.

In 2024, I focused on replatforming eXp International. And the thesis was really simple. If we build a cleaner, more scalable technology foundation we can expand faster and cheaper. The results showed up in 2025. 7 new country launches, international revenue up 67% to $147 million, and launch costs down 37% compared to our original expansion efforts. And that's really a proof point as really this founder's approach to infrastructure, producing compounding returns.

I took that same playbook and applied it to success. In mid-2025, I joined as the Managing Director with really a singular mandate. Don't iterate on what exists, rebuild it. We replatformed [ success.com ] entirely, relaunched coaching certification and began architecting success as a culture and growth layer for the entire eXp ecosystem. What I learned about community design, creator tools and AI native product architecture came back directly into the eXp and gave birth to the eXp hub, which is really our workplace replacement when that went away. This has really been a deliberate pattern. When a segment of our platform needs to be rebuilt for the next era, we go in, we apply a founder's mindset, and come out with infrastructure to that compounds.

Now we're bringing that same philosophy to eXp itself. We're introducing the single-threaded leader framework. It's really an AI-assisted operating model where leaders with singular focus and full accountability for specific outcomes are paired with AI-assisted engineering to deliver something this industry has never seen, a genuinely high-touch agent and consumer experience running on an entirely AI-enhanced platform. The framework isn't just about leadership structure. It's about what becomes possible when you remove competing priorities and replace them with AI native tooling. Smaller, more focused teams dramatically higher output and a level of personalization at scale that no traditional brokerage can replicate, because they're carrying the weight of legacy infrastructure we simply don't have.

We're already in motion. I'm working directly with some of our country leaders internationally as the first cohort to pilot this framework. [ While ] people who know their markets deeply and are operating with AI assisted tools to allow them to run leaner faster and far greater impact than was previously possible. We have more to share as the year progresses, but early work is validating exactly what we expected. Singular focus plus AI native tooling is a multiplier.

We have third-party validation of how we deploy operationally. We have AI-native leaders embedded throughout the organization, and we are running leaner teams with measurably higher output than 2 years ago. 2025 was the year we proved it works. 2026 is the year we scale across every layer of the platform.

Next slide, please. Really, the eXp platform, and I wanted to close by describing what we're actually building because I think it's really underappreciated. eXp is a platform business. For connected segments working in deliberate harmony, eXp, obviously, Realty North America as the engine. International has the rapidly expanding frontier. FrameVR, where you're attending today is our virtual infrastructure and then SUCCESS as our culture and growth layer.

No other brokerage on earth is built this way. Our competitors, most of which are franchise systems are anchored in physical real estate legacy commission structures and technology stacks, they can't move fast enough to modernize. They face real consolidation pressure as AI raises the cost of falling behind. We have none of those constraints. We are built, distributed and technology forward from day 1, which means we layer AI onto a clean architecture rather than retrofitting it into a broken way.

What we offer agents and what no one else can fully replicate is a complete operating system for building scalable, sustainable real estate business, full stack marketing, deep ongoing personal development through success and a fully immersive global collaboration layer through Frame. Every investment we're making right now, the eXp Hub, AI copilots, listing intelligence platform, App Store marketplace, single-thread leaders driving focused execution is designed around one goal, helping agents build businesses grow beyond themselves, powered by the best platform in the industry. That's the eXp platform, that's the moat, and we're just getting started.

Now I'll turn it back to Denise for Q&A.

Thanks, Glenn. I'll get off with a question for everyone on the team before we open the call to questions from the audience and the analysts. Glenn, how resistant is the larger residential brokerage industry to AI?

It was a great question. So when we think about it quite a bit, the -- there's a lot of the industry that can be impacted by AI. But one of the things that's really interesting is this -- it's this -- [ we're ] the wisdom of the agent comes in, which is really at the table, taking a listing, working on pricing, working on marketing strategies, working with the buyer, again, understanding the neighborhoods at the local level. Those are things that AI just can't do in a great way.

They don't actually live in the neighborhood. They have to sort of absorb stuff and kind of -- than through probability, what is the data. So the profession definitely is not going away, but the relations, the trust, the local expertise is really something very durable. But running a business is about to get radically more efficient for platforms that are ready. And we're ready. I mean, we've been building this infrastructure for now for a few years to be ready. Well, most of our competitors aren't. And that I really -- maybe I'll just reframe the question slightly differently.

It's the real question isn't whether brokerage is AI resilient, it's who is positioned to win in an AI-enabled industry? And I think that's a really critical question. So here's what I see, as mentioned, many traditional brokerages carry structural complexities, whether they be commercial leases, fixed overhead, legacy technology that's spread across offices and really an entrenched way of operating that isn't able to be centralized and managed. So they're not easy to unwind to replace, they'll face real pressure to consolidate just to build the economies of scale needed to compete.

We've seen this countless times over the years with companies who have attempted to even do what we've done here, which is to build a cloud-based real estate brokerage from a more traditional place and none of them have been able to get there. So eXp, of course, has no branches. It's one company. No leases, no legacy infrastructure and the ability to really work at scale across the entire enterprise. We're built to be distributed and technology forward, which means as we adopt more AI-assisted engineering, AI-assisted brokerage models on top of our current infrastructure, we're really in a place to continue to lead rather than follow. And I think that's the real key.

Great. All right. Thanks, Glenn. Leo, one for you. Can you discuss agent count in Q4?

Yes. Sure, Denise. Thanks for that question. Historically, going back to 2023, 2024, we have seasonality. We have agent dip count from the third quarter going to the fourth quarter. That said, we've prioritized agent productivity over agent counts. So in the 4 years I've been here, that's been my hyper focus, right? An agent is not equal to an agent. If you look at real trends every year, we tend to enjoy having some of the most productive agents in the country, and we're doubling down on that. We've seen our agent productivity per person increase. And most of that has been on teams as well.

So even about an hour before the call started, I zoomed into an onboarding in Houston to a 60-person independent that will announce at our next earnings call that was between [indiscernible] one of our legacy competitors. And so we're continuing to add entire independent brokerages, ones rolling off franchise agreements and the ones that were really independent. We saw in 2025 that 40% of the agents that joined were on teams. And our team members are about 78% more productive than our [indiscernible]. So our strategy has been paying off. Our productivity grew 6% year-over-year in Q4, which, by the way, was our highest quarterly growth. So it continued to accelerate.

And when you look at North America, 63% of the agents that left our company left the industry. So we see this very selfself-fulfilling prophecy if the agents that lean in, take advantage of our tools, not only sell homes but also stay sticky. And the ones we lose tend to be at the majority of the quantities, the ones that are not selling homes. So we're continuing to invest in our learning platform. Its where agents can consume the content on their own pace virtually at all times and to continue to improve productivity.

So -- and the one I'm probably the most proud about is how much we improved attrition. So globally, it was 17% attrition. And I mentioned earlier in my comments, 23% year-over-year. I mean by numbers, it's roughly 6,000 agent improvement on attrition. And that's in a year where the U.S. according to NAR membership contracted 4%. So we are substantially outperforming the market from attrition standpoint. And we don't give guidance on agent count, but I'd say that our business is stable, durable, and we have a track record that is only going to be magnified in the headwinds of the industry.

So we're in a great cash position. We're able to take advantage of opportunities as we see them, and we continue to strengthen our value proposition.

All right. One for you, Jesse. You mentioned a few metrics like PPP and staff per transaction. Which metrics should we focus on in 2026 to measure the success of your ongoing priorities?

Yes. Thanks, Denise. You mentioned our North Star metric is productivity per person, or PPP, which is essentially transactions per agent over a trailing 12-month period, and that was 5.3% for the year. And as long as that's moving in the right direction, we know that we're making our agents more productive and successful, as well as attracting and retaining the most productive agents.

A second one would be productive agent retention. Leo spoke to the total agent attrition, which improved 17% across the company and notably 23% in the United States, which is obviously our core market. And then a third one, SG&A per unit. This is one -- it's essentially our unit economics. We as a leadership team, pay a lot of attention to this. And we spoke throughout 2025. We invested very heavily in AI and automation, and we expect that to translate in EBITDA margin expansion into 2026, which is one of the reasons why we wanted to begin providing that forward guidance to show what we believe we can achieve with continued efficiencies in this particular metric over time.

All right. Thanks, Jesse. One for you, Holly. Can you discuss the role that you're playing as the Chief Brokerage Officer and your top priorities for 2026?

Thank you, Denise. I'm really happy to be here. What we found is the industry is really loud. And eXp, we are extremely clear. Between the NAR settlement fallout, [indiscernible] scrutiny, TCPA enforcement and state-by-state [ legilative ] change, we're finding agents across the industry are overwhelmed. We've made the deliberate strategic choice. eXp will lean in where others go silent. And so we've built a compliance infrastructure before the crisis, not in response to it. And so that consistent timely guidance, training and support is offered through our state meetings, eXp University and on-demand content. That way, no agent is left guessing.

And we've developed specialty contractual forms at the state level that are absolutely focused on the consumer. Tools like our eXp broker assistant, [ Carlo ], our comprehensive advertising review logics operator. This is giving agents real-time broker support that protects their business and runs 24/7. I'm excited because this is risk management at scale. It's proactive governance, infrastructure, and it protects our company, our agents and defends our brand reputation in every market we operate.

We are strategically focused on not waiting to be told what to do but set the standard. And that posture is our competitive differentiator where regulatory complexity is only increasing. But that's just table stakes when we look at top [indiscernible] So our agent voice, that is our edge through our agent advisory councils at both the national and state level, we've localized feedback and forming decisions in real time. And these committees are not symbolic. They are active feedback loops for us. Their testing programs, surfacing friction and they help us accelerate our ability to respond faster than traditional brokerage structures can.

And of course, we serve two distinct agent populations with eXp Realty and eXp Commercial, and we're structured accordingly. The result is we're finding a culture that doesn't just retain agents. It attracts the best. So I'm very excited when we combine the proactive regulatory navigation with agent voice and feedback, we're creating conditions for sustainable growth. The agent of confidence, it's driving production. Production drives revenue, and that is becoming our flywheel as we look to 2026.

Thanks, Holly. And now one for you, Carrie. Can you highlight some of the technology-related improvements that eXp made in 2025, and what you're focused on in 2026?

Thanks so much, Denise. I appreciate being here. For 2025, I really want to talk about kind of two key areas of development. It was all about personalization and productivity. And those are the two themes that we've already heard Glenn and Leo, and Jesse talked about today.

But first is the AI copilot integration of our [ MIRA ] business Assistant in our [ My eXp ] app for agents. And we wanted to ensure that agents had a more complete overview of their business results as well as insights. This assists both solo agents, team leaders and large tractors as they continue to measure progress and growth on a weekly and quarterly basis, all while improving along the way with the analysis that MIRA can deliver.

And the second is [ Live ], which is our global portal infrastructure, and this is building on our growth internationally. We want to continue to introduce opportunities for agents to prosper at eXp, while decreasing their overreliance on monolithic third-party portals especially internationally. And Live will continue to be expanded on in 2026 as we grow the consumer audience and impact to our agents globally.

And then so for the future, we're really in 2026, going to be focused on expanding that agent ecosystem. And that includes continuing to build on the eXp Hub community platform that we introduced at EXPCON in Miami that Glenn spoke about. It's really a foundation for aging groups and organizations across the globe at eXp. And this is really built by eXp for eXp platform. And it allows us to curate a really bespoke experience for our eXp agents and staff, but really incentivizes community and communication to happen within our ecosystem as opposed to a potential third-party platform.

Incidentally, we already have 13% of our agent base communicating and participating in the hub in these early months [indiscernible] launched it. We've also introduced a marketplace app store within the hub, and this will continue to be built upon in 2026. It provides a foundation for both staff and agents to build and distribute applications and software that further support growth, productivity, similarly to how the iOS App Store supports an increased value of the iPhone. So that idea that we have a centralized app store that agents can access that focus really on how to grow their own business.

Continuing to [indiscernible] agents in softer and sometimes turbulent market conditions continues with our listing intelligence platform. This brings greater access to listing leads and data in markets across the U.S. and Canada. We are developing shared repositories of knowledge that further accelerate modernization of building software across all of our levels of the organization at eXp. And in a world where the cost to build continues to decrease with widespread access to AI coding tools, we want to allow for flexible long-term storage and advanced analytics with our data.

We're really investing in an increasingly performing data infrastructure. It allows for secure and reliant access to business intelligence. And ultimately, it will really provide a strong competitive advantage for eXp and our agents, because both shared repos as well as greater access to data throughout the organization, really will be a bedrock for our single threaded leadership framework that Glenn spoke about earlier. So we're excited to get started.

Great. Thanks. Now I'll open the call to our audience and the analysts on the stage here. [Operator Instructions] So first, I'll open the mic up for Tom White from D.A. Davidson. Did you have a question for us?

Yes. Thanks, Denise. Maybe a couple, if I could. I guess just on the fourth quarter revenue versus kind of gross profit growth dynamic. I think revenues were up like 9%, but gross profit was flat. And I guess when I try and think through, kind of, what drove the difference in growth rates there? I imagine sort of the percent of -- or number of capped transactions is a factor.

But I guess I'm trying to like suss out the extent to which that higher mix of cap transaction is just sort of normal mix in your agent pool? Like the better, more productive agents are the ones doing kind of a bigger chunk of the deals? Or is it the impact of just some of the agent attraction stuff you guys are doing so that you're enabling sort of more agents to cap more quickly?

And maybe as an aside, like how should we think about the gross margin, kind of, expectations that are kind of embedded in your outlook for the year?

Yes, I can take that one, Tom. Thanks for the question. It's actually both. And it's probably divided down the middle. The seasonality of Q3, Q4, does see higher capping towards the later part of the year, right, to the point that you're assessing out. But it also is that we continue to attract and retain highly productive agents and then with a specific focus on highly productive teams. And that's the phenomenon that we've been talking about for a few years now, but it is continuing to apply some pressure to our margin percentage overall.

I'd say I don't have the specifics on me, but it's probably about 50-50. If you just look at historic trend, you would definitely see that margin compression that happens every year in Q3, Q4 just due to the calendar year of agents capping. And then over time, if you look at that compression that we're seeing over the last couple of years, from attracting more productive agents over time.

And then actually -- and let me answer your guidance question or outlook on 2026. What we're currently modeling in that guidance is very similar trend to what we've seen in 2025. So slight compression, but offset partially by increased units coming through the business. And we're focusing on the improvement in unit economics to continue to drive the margin expansion on the EBITDA side.

Okay. Maybe one more follow-up and then I can get back in the queue. But just -- any update on sort of thoughts about resuming the buyback? I don't know -- I think you guys were supposed to pay the second installment of the NAR settlement. Maybe it's in the second quarter, I can't remember, but just give us an update on what you're thinking there?

Sure thing. And I can take that one, too. And to your point, our reduced buyback activity in 2025 was primarily driven by the NAR litigation, which we had the first tranche this past summer. We have the second tranche coming up at the summer of 2026 here. So we did want to make sure that we were being good stewards and maintaining that $100 million cash threshold that we've set internally as a leadership team on the balance sheet. And so we drove that pause.

We did finish with a pretty healthy $124 million. And so buyback is something, of course, long term that we want to continue to use a strategic tool in our capital allocation toolkit. But we're still evaluating in the short term what our cash needs are going to be this year and with that upcoming second tranche of the litigation.

Great. Maybe one from the audience here, too. Could you speak to the strategic initiatives you believe will have the most meaningful impact on improving financial performance and restoring shareholder value over the next several years?

Yes. No, I feel like this is a common question I've asked -- I get asked by agents all the time. So I'm assuming this is coming from an agent.

So one of the things I implore them to just actually download trading view and actually have a full [ sector ] on your phone, right? So if you're an agent and you're following EXPI, I would encourage you to follow RE/MAX [ Encompass ] and all of the other public comps, and you become very aware of when the government does something, right? You'll be mining your business [indiscernible], then you'll kind of see the entire segment move down or up, right?

If there is a good reporting on rates and good to define by the eye and the beholder because sometimes it feels counterintuitive as they move up and down. So historically, our sector is very much tied to total transaction count. So in years where there's 4 million, the sector as a whole tends to be depressed. And in years where you have 7 million transactions, the sector goes up.

Now with that said, to Glenn's comments, I think there's going to be a separation between the companies that are able to take advantage of the opportunity that AI is presenting itself. So I do think for some companies, it is a bit of lip service. We are a company that has a service that is repeatable and scalable. And I think businesses like ours, if you see our performance from quarter-by-quarter last year, I think Tom was pleasantly surprised when we reported -- we moved the expenses from Q2 to Q3. That is more tightly close to the guidance we've provided. And so you will see us being able to take advantage of that.

And into Glenn's comments of like the last mile effect of the real estate industry, we believe, will rely on high-performing agents. And not only are we going to streamline our expenses by letting the tools available, but we're really focused on creating in delivering tools that leverage the agents in their daily business, right? So there's going to be the -- there's going to be the leveraging from us from expense management and really cycling off of what historically has been SaaS expenses. So we're really leaning in on that. The platform that Glenn started in our engineers took over.

I mean it's 7-figure contracts. And so as we take advantage of that, I think long term, we're going to be able to improve margin, returns to our shareholders, while keeping our flagship concept of agent-centric and building most agent-centric company on the planet as still our North Star, but being able to take advantage of this moment in time with the technology available to us.

Great. Thanks, Leo. And we have one more from the audience also from an agent. This is probably for you, Leo. What is eXp Realty going to do to improve their toolbox and technology to attract high-volume listing teams, and help the legacy agents get more listings in 2026?

That's a great question, Denise. So we have been focused on listings. And for example, we just went through a pilot program in January. through our [ Fast CAP ] program. So our [ Fast CAP ] program has really extended in reach. So since inception, we've had 20,000 registrants take it through. But the [indiscernible] cohort as a pilot, we partnered with realty.com and included seller jump all leads. And something like 1,800 leads were given out with multiple agents in the first 6 weeks reporting multiple listings [indiscernible] 1, 2 listings taken in 6 weeks, which was actually even faster of an incubation period that we found. And there are several other seller products that I've been focused on, on integrating into our education platform.

So what we're doing is we're making sure that in addition to providing tools is actually the training that accompanies it with it as we continue to scale. And so one of the concepts that I repeat because Glenn was the one who put the sentence in my head when I first got here, but I fundamentally believe it, is that we're a platform business, and that's very different than other folks. So we have initiatives with data where we really -- for the top producing teams that are highly proficient and have tech orgs inside of their businesses. We want to be able to deliver to them API capabilities. So as they build code the platforms using [ Vibe ] coding and taking advantage of the tooling that's available to them. But then we also have beautiful simple UI experiences for our [indiscernible] agents that maybe don't have the scale or size or interest in building their own tech tools.

So really, the concept is being able to meet agents where they're at. And we feel that way about support. So for example, agents can walk into a broker room and frame [ BR ]. They could call a 1-800 number. They get [ slack ] us, they can message us on the hub now and meet brokers where they're at or they can pick up the phone and dial [indiscernible] number and call their favorite broker. So that same methodology of meeting people where they're at and being agile and being able to have agents self-serve and use the tools necessary for them.

Thanks, Leo. Thanks, everyone, for joining. As always, please stay connected by visiting expworldholdings.com 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 Investors section of the site. This concludes the eXp World Holdings Fourth Quarter and Full Year 2025 earnings fireside chat. Thanks for joining.

Thanks, everyone.

Thanks, everyone.

Welcome to the eXp World Holdings Third Quarter 2025 Earnings Fireside chat via live stream at our Metaverse on the web, Frame. My name is Denise Garcia, and I manage Investor Relations for eXp World Holdings. Today, we will begin our earnings fireside chat with remarks from Leo Pareja, CEO of eXp Realty; Wendy Forsythe, CMO of eXp Realty; Felix Bravo, Managing Director, eXp Realty International; Jesse Hill, Chief Financial Officer of eXp World Holdings; and Glenn Sanford, Founder, CEO and Chairman of eXp World 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. 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. 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 financial 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 eXp World Holdings.

Now for a few logistics, and we'll get started. Welcome to our Metaverse on the web. For those of you joining in Frame today, a specific screen, you can click on that screen and then click in. If the content on the screen disappears or if you lose audio, simply refresh your page. While if you use the help button at the bottom right to support. Enter scanning the QR code presented on screen with your mobile phone or to slido.com and type in the event code EXPI. 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.

Now I'll turn the fireside chat over to our speakers before opening the call to questions.

Thanks, Denise. We continue to grow and retain agents and get results. This quarter marked our second consecutive quarter of quarter-over-quarter agent growth. It's a great indication that our strategies and programs we've created to attract and retain agents are working. Not only have we been able to attract and retain agents, but we're creating a stronger, more productive agent base. Sales transactions per agent are up again, increasing 5% year-over-year. The number of our agents is up 7% year-over-year and super excited, worldwide agent attrition has improved by 13% year-over-year.

Let's talk a little bit more about retention and attrition in the U.S. on our next slide. In the U.S., the majority of our departing agents continue to be our lowest producing cohort, and we are retaining the highest producing agents, which are multiple times less likely to churn than our lower producing agents. In fact, of the nonproductive agents that left eXp, 63% left the industry altogether, but fewer agents are leaving with attrition improving by 18% year-over-year in the U.S. Our strategy to attract teams is working and helping drive the increase in productivity. 39% of new agents to eXp were on teams in the third quarter. Agents on teams are 79% more productive than individual agents.

I'd like to highlight some of our notable teams that joined us. Starting with Tammy Register in North Carolina. Tammy spent a decade at KW and the prior decade at hometown. She's consistently one of the Real Trends's top agents in her market, either #1 or #2.

We also welcomed a good friend of mine, Chris Heller, who was formerly CEO of Keller Williams Realty. He's held the #1 spot at Keller Williams, and he's held leadership roles across the industry in some of the most impactful companies in our industry. Then there was Brett Zebrowski that we welcomed in Southern California. His 90-agent team boutique brokerage came over, specializing in luxury real estate in Southern California.

On the next slide, we have a top producing SoCal solo producer, Vivian Les, who's also ranked very high on the NAHREP list. Two of our San Diego powerhouses, Kyle Whissel and Dan Beer, came together to create the Whissel Beer Group. This merger will be one of the largest teams we have at eXp with over $1 billion in sales in 2024 and with huge goals for 2025. And we're interested to watch them scale throughout California, then regionally, and we expect to see them operating on our platform nationally. After that, the Victorica Group in San Antonio came back after briefly operating as an independent and very quickly realized the benefits of being able to scale on our platform.

On the next slide, we have K2 out of New Mexico. They're the #1 Zillow seller home team who was formerly independent and now is joining us to scale. Right next door in Texas, Amy Tap as an independent broker joined us as well, which has been a testament of how we continue to recruit independent brokerages. And last but not least, in the third quarter, we welcomed the Impact Room, one of Denver's top teams. Their 31 agent team closed $305 million in sales with over 400 units in 2024, and we're excited to see what they do here.

On this next slide, I want to touch upon eXp University, which is a testament to the execution on everything we just delivered. FastCAP has been in effect for over 12 months now with 17,000 agent registrations for the program. The agents that complete the program are reporting seeing results in both the number of appointments and agreements executed, whether it's buyer agency agreement or listing agreement.

On the heels of that, we've just launched FastATTRACT. And most recently, we announced an AI accelerator 8-week program. With that, I'm going to pass it to Wendy so she can give you more statistics on what FastATTRACT is looking like.

Thanks, Leo. And building off of all the great information Leo was just talking about on eXp University, I want to share about our FastATTRACT program that eXp University launched in Q3. This is a program distinctly launched to help our agents build their revenue share lines. In FastATTRACT, we focused over a 6-week period, helping agents build their skills around building revenue share.

And we had tremendous results with this program. In fact, the program was piloted in Q3, and the results were so successful that we're continuing on with the program in Q4, and it will become a part of our curriculum throughout 2026. So welcome FastATTRACT to eXp University's curriculum and congratulations to our 138 agents who had such tremendous results during our pilot program. We're really excited about the skill development that FastATTRACT will bring to help so many of our agents build their revenue share skills.

Leo talked about the number of new joiners that were highlighted in the media. The second part of our PR strategy, in addition to highlighting our new joiners, is highlighting the thought leadership of our leaders in the media. And in Q3, we continued to highlight prominently our thought leadership around marketing and branding, AI and technology, women in leadership and advocacy for the consumer, grabbing headlines in all of the major industry trades for eXp. This is an important part of our brand messaging and voice strategy, and we did a really great job in Q3 in getting those headlines for us.

In-person events continue to be another great part of what we do to build our culture and align in spending time with all of our agents here. During Q3, we were excited to host a really phenomenal group of our top producers in Scottsdale, Arizona for our Q3 Mastermind event. During the event, we had 387 agents attend the Q3 Mastermind event, and it was a full 2-day event of masterminding, idea sharing. We had a top industry speaker, Jared James there. The event achieved top, top feedback for collaboration and idea sharing. So we were delighted with that outcome. And these events really are a core part of culture and collaboration.

As Leo likes to say, you earn your way into these rooms, and being in these rooms is really an important part of how our culture comes together and also how we stay attuned to what our clients and what our customers need and where our industry is going and what really is next. So that leads us to an event that didn't happen in Q3, but an event we spent a great deal of time planning in Q3, and that was eXp Con in Miami that just happened at the beginning of -- or just a couple of weeks ago in October.

But as I said, we spent a great deal of time planning in Q3. I'm happy to share that we actually had greater attendance in eXp Con Miami in 2025 than we did in 2024, something that our entire team is hugely proud of. We had a great event, and it truly was a time for our culture to shine. We had over 105 breakout sessions. We had over 50 of our eXp agents shining brightly up on the general session stages. And something that was really exciting about the event this year is that we capitalized on what we in the marketing world called user-generated content.

So we really leaned into marketing the event through the use of utilizing all of you, our agents as our key marketers before, during, and after the event. We were so excited by what you shared to help us market the event on social media through providing you with tools to share your experiences.

What you see here on the screen is a recap that went viral around all of the different announcements that we had during eXp Con in Miami. So this user-generated content marketing is something we use before, during, and after the event as a marketing campaign strategy for the event to get you involved and to help build excitement and spread the word around the event.

So thank you all for helping us market all of the great things that happened at eXp Con in Miami. Next, I want to give a little love to our operations team and share a little bit of the day in the life of what our operations team works on every single day.

On an average day, our operations team, some of you might be surprised by these numbers, handled just over 14,000 expert care desk tickets. On average, 73% of those tickets that come into our expert care desk are resolved on that very first contact. We know how important it is for you when you need us to get those tickets resolved.

And on first contact, 73% of those tickets are resolved. Next up is calls. When you call us and you call us on average almost 700 times a day, we know that a last resort is picking up the telephone call or picking up the telephone and calling us. So when you call us, on average, we answer that phone the vast majority of the time. If we don't answer that phone, you're on hold on average less than a minute and 40 seconds. So we know that when you call us, you need us, and we're here to answer those calls and help you out.

Our broker support team conducts on average 30 broker training sessions per day to help train you and support you on everything that's happening in your business. You visit eXp World over 7,300 times a day on average. And this last stat is an incredible one. On average, 9 agents a day become ICON agents here at eXp in Q3, a phenomenal stat and one that I want to share huge congratulations to all our ICON agents. As this year, we celebrate the 10th anniversary of our ICON agents. So huge congratulations to all of you.

All of these factors that I just shared and that Leo was just sharing all contribute to our value stack. In this quarter, we saw an increase in our production per person year-over-year. And that is in part due to the investment we continue to make in this value stack. So we saw a 3.5% increase year-over-year from 5 transactions per person up to 5.2 transactions per person. So an incredible achievement.

And with that, I'm going to hand it over to Felix to give you an update on international.

Thank you, Wendy, and thanks, everyone, for being here today. I'm really excited to share all the progress that we've been making on our international growth strategy. I'm going to dive into quite a lot. So let's start out on the next slide.

As you can see, over this past year, we've been pretty busy. Year-to-date, we've successfully opened operations in 5 countries. We opened up Peru in Q1, Ecuador and Turkey in Q2, and South Korea and Japan opened just recently here in Q3.

The most important part about the fact that eXp continues to expand internationally is that in each and every single one of these countries, from day 1, we have opened up with active agents and transactions flowing through, even global referral transactions starting to happen, which we had in Japan the very first day. This is a testament to our new country launch playbook and how we are learning to open up countries more efficiently, open quicker, ramp up our agent count and transaction count faster, but more importantly, how we're attracting the right kind of agent, the productive agent looking to build their business both locally or even at a global level.

Just recently here at eXp Con Miami, we announced our plans to open up Luxembourg, Netherlands, and Romania. We are really excited about these markets, and we are building off the momentum that we have created in EMEA by launching these 3 new countries in that region. We're confident in the leadership that we have found, which ties back to that new country playbook we've talked about so much this year, strong leadership and a strong value proposition that is focused on helping agents build the best possible business, whether that is to sell 5 to 10 homes or they want to build a mega team across the world that sells thousands of transactions.

These markets are traditionally dominated by franchise and legacy models. We have seen time and time again our ability to be disruptive in these markets and provide a better value and a more competitive split for these agents. So very excited about these 3 new countries. We also just recently announced that commercial is going international.

This is really exciting because as international scales, our demand and need from our agents to help them in not just the residential aspect of their business, but the other aspects, whether it be commercial or luxury or other affiliate businesses is starting to build. So we're really excited to announce that U.K. -- we're starting commercial in the U.K. So U.K. commercial officially launched October 8.

From day 1, we already have commercial agents in the U.K. beginning to join. But more importantly, it's another added value proposition even for our commercial agents in the U.S. and Canada who are now able to do cross-border transactions across the pond with their investors, et cetera. So very exciting about U.K. commercial, and I'm actually going to share a little bit more business highlights for you guys from the third quarter on this next slide.

So we have hit a massive milestone for us here at eXp International after just 9 months of the year. In 2025, we have surpassed last year's total revenue number and crossed the $100 million revenue mark for the first time in a calendar year. So we have built some incredible momentum.

In Q3, our real estate transactions grew 44% year-over-year, driven by a 56% year-over-year increase in our productive agents. That resulted in a 34% increase in productivity per person as well as a 59% increase in sales volume. This is a testament to the fact that what we've talked about over the last year, doubling down on value proposition, focusing on working with the top-performing agents in each country.

Our current existing agents are leveraging the platform to become more productive, more productive than they were previously either at other brands or on their own. But more importantly, also, the new agents we're attracting and as we open up new countries, these are agents who are coming in productive day 1, leveraging our platform.

We have always been where the pros go to grow in North America, and we have taken that page, and we've taken it internationally, and we are now attracting some of the top teams and top agents across the world. So we're fully operational, like I said, in Peru, Turkey, Ecuador, South Korea, and Japan.

And that doesn't just mean that we're open. That means we have agents doing transactions both at the local level in those countries, but like I said, already leveraging that referral platform and starting to spread transactions internationally. So the more that we continue to grow and expand, the more value proposition and opportunities we actually offer our current agents.

So on the next slide, we'll talk a little bit about what are our future goals, right? We've shared this with you guys in the past. All this momentum that you're seeing, all this building that we've done puts us confidently on track with our international market expansion strategy.

So we're still on pace and still looking towards a 2030 vision of 50,000 agents in 50 countries. We're going to continue to do this by partnering with strong leadership in countries where there is demand for a model like ours and focusing on creating the most competitive business model and most competitive value propositions for what an agent needs at the local level to sell real estate while giving them the accessibility to a global platform.

With that, I will turn the call over to Jesse Hill, who will walk you guys through our third quarter financial highlights.

Thank you, Felix. Congratulations on the $100 million milestone. That's an incredible accomplishment. Now I'll walk us through our consolidated operational and financial highlights for the third quarter beginning on the next slide.

Starting with revenue, we generated $1.3 billion in the third quarter, up 7% compared to the third quarter last year with no material change in the macroeconomic environment. Real estate sales volume was up 7% for the third quarter, driven by an increase in home sales prices and agent productivity with a 3% year-over-year increase in sales transactions.

Agent count was 83,446, down 2% year-over-year, but as Leo mentioned, a 1% quarter-over-quarter increase in 2025. Also, we continue to see an increase in transactions per agent, indicating that we are attracting and retaining highly productive agents. Our GAAP gross margin was 6.5%, down 57 basis points from Q3 of last year as a result of more productive agents hitting their cap.

Our non-GAAP gross margin, and we still show this to compare to competitors who exclude stock comp and revenue share was 10.9%. Adjusted EBITDA of $17.7 million continues to be positive but down year-over-year, driven partially by the compressed gross margin that I mentioned, but also offset by improvements that we made to streamline operations in the first half of this year that are beginning to pay dividends now in Q3.

Finally, we ended the quarter with a healthy cash position of $112.8 million on the balance sheet. On the next slide, I'll 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 $23.1 million and operating income of $10.6 million.

As a reminder, we are showing operating loss or income by segment as it is one additional view that we utilize internally as a leadership team, and we want to continue to include that transparency here for our analysts, investors, and agents. International, as Felix just walked us through, continues to scale and gain momentum with revenue growing 68% year-over-year for Q3.

This was driven by an increase in productive agents and transactions. Adjusted EBITDA loss improved 5%, primarily as a result of the increased productivity driving the increased transactions and revenue. Other affiliated services, which is primarily Success, contributed modest revenue with an adjusted EBITDA loss of $1.3 million.

On the next slide, I'll discuss some drivers for the quarter. The actions we took in the first half of 2025 laid a strong foundation for the results that we're seeing now -- we focused on improving operational efficiency through back-office automation and technology investments while leveraging AI to streamline our high-volume workflows.

Our expanded affiliate programs, including eXp Luxury and Land and Ranch are expected to contribute to margin expansion as they continue to ramp, and our scalable international playbook continues to drive growth across markets. We also introduced enhanced marketing and digital community tools, empowering our agents to build stronger, more sustainable businesses.

Together, these initiatives have strengthened our platform, improved productivity and positioned us to deliver profitable growth as the real estate industry continues to evolve. Now let me walk you through our ongoing priorities on the next slide. Looking ahead, while we don't provide specific forward guidance, we remain focused on increasing operational efficiency and driving continued profitability.

Our ongoing priorities include further leveraging AI and automation to simplify operations, expanding our affiliate and partnership programs such as sports and entertainment, and continuing to grow internationally with a disciplined scalable model. At the same time, we'll stay financially flexible, reserving the right to invest where we see meaningful opportunities to support our agents, strengthen our technology platform, and enhance long-term shareholder 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.

With that, I'll turn the call over to Glenn before opening up the call to questions.

Thanks, Jesse, and thanks, everyone. This quarter has been about simplifying, strengthening, and scaling across every part of the organization. Obviously, I'll start with Success Enterprises because that's where I've been spending a fair bit of my time, and it now represents one of the blueprints at the edges that we're using for how we evolve eXp as a platform company.

Last quarter, I shared that I'd be stepping in as Publisher and Managing Editor of Success. Since then, we took decisive action to streamline operations and reimagine the business. We focused really on 3 things: AI-driven operations. We've embedded AI throughout the back office product and operational workflow -- we've eliminated unnecessary complexity and dramatically increased output per team member. We actually replatformed Success.com. We rebuilt the site from the ground up for scalability.

Again, we talk about this quite a bit, but we have really an incubating team of Vibe coders around the organization who are subject matter experts that we are repositioning to actually take on core development roles of platforms and systems inside the company. And then we are also renewing our SCE coaching certification, which we'll do -- we'll launch in January 2026 with [ Cortland Warren ].

We've also introduced Labs.Success.com as a hub for experimentation, learning, and collaboration. The hub started working on August 7 of this year, and it's now a fully featured personal social network for the person. For that to become the Connect less than 2 months ago, and it's now deployed. We have thousands of agents, brokers, and staff now using it. We've been able to do that really because of what's going on with AI faster at literally less than 1/10 the cost of similar feature SaaS tools -- so it's not -- but it's not just about cost, it's also about capability. Our Connect hub really gives us complete customization across every team, region, and community in eXp.

So agents, leaders, and staff can design digital spaces that integrate communication, learning, dashboards, and automations all inside of our ecosystem. It's really been built for how we actually work decentralized, agent-centric, and global by design. The eXp Connect Hub ties together the 4 strategic parts of our business creating a unified platform that scales globally.

EXp Realty North America, obviously, the engine of the business, international success and FrameVR.io. All of these really create this global connected network. We think about this as a platform that no other brokerage can match, one that integrates full stack marketing, deep personal development, and mindset growth through success, health, and wellness resources for sustained performance and a fully immersive global collaboration layer powered by Frame and the Connect Hub. Everything we're building from AI copilots to digital community tools is designed to help agents build scalable, sustainable, and life-changing businesses.

With that, I'll turn the presentation back over to Denise to facilitate the Q&A.

Great. Thanks, Glenn. So I'll kick it off with a question for everyone on the team before we open the call to questions from the audience and our analysts. First, this one is for you, Glenn. Since you started eXp, you've often talked about eXp being the platform for the future of real estate. How do you see that platform vision playing out now?

We've really since the Internet started to for people to be in a way that allows them to seem. The access to the offices, I came out of technology and recognize that eventually this would be the way that the world would operate. And of course, if you talk to others, there hasn't been a new model launched in the last 4 to 5 years that is legacy.

Everything that's being built now is leaning into this fully platform. And then you kind of look at the scale of those platforms, and we are platforms that will fully scale out over time to capture a pretty good portion of the organized real estate business. Of course, with everything else going on, it even puts us fortunately, but at some level, unfortunately.

But fortunately, in a major way, we're super well positioned to take advantage of the new changes that are happening in the industry at large. So that only happens because of sort of this platform piece. I talked about it in 2017, 2018 on earnings calls that I believe fundamentally that there would be about 5 different platforms for real estate. As it's looking, it looks like those will generally be the platforms that will emerge as the winners. So if you have fun, go back and listen to some of the early calls, but it's seeming like that's all sort of coming to fruition.

Great. Thanks. The next question is for Leo. Leo, as you mentioned, eXp continues to narrow the gap on agent growth in the U.S. What do you see as eXp's advantages over other brokerages, particularly in the midst of consolidation and change here in the U.S.?

Thanks, Denise. To dovetail on a lot of what Glenn said, we're a fully scaled enterprise. We are no longer the disruptive start-up, but now we're probably considered one of the larger incumbents of the new breed. So I often say Glenn created a category, and we're that category leader.

That means that we now have the vantage point advantage of being in all 50 states in addition to many, many international markets, but we have the cash flow, the sustainability, and the ability to invest at a size and scale that most other smaller similar companies attempt to become us. With the level of disruption that's coming through consolidation, I think we're uniquely positioned to become one of those surviving larger scaled enterprises that Glenn just referenced that he was able to kind of telegraph even 7, 8 years ago.

A couple of things. One is no one company or model will capture all the markets. If you look historically at the previous incumbents of RE/MAX and Keller Williams in both of their heyday, they never really got above 10% or 15% of total agent count in the United States in any given year. That variance depends on the total number of agents at NAR to the total number of folks in the subsequent company. So it's not a winner-take-all situation. I think the Compass Anywhere combination will probably serve a specific market of agents who are attracted to kind of the brand-first model versus we fundamentally believe that we're secondary to the agent.

We believe the agent is the brand on the ground. I think we continue to refine who are -- the agent we serve is, and I always like to say we're the home of that entrepreneurial agent, whether that is a solo producer or whether that is a team leader who wants to build a scale enterprise, multistate, multi-market. I typically refer to us as a platform. So I would say some of our competitors want to be the app in the App Store, and we actually want to be the iOS providing them the tools to become the app. What I am very confident is in this new world of fewer larger players. I think the only question is which one we will be either 1 or 2 or 3, but we will definitely be one of the scale players that has an opportunity in this unique marketplace.

Thanks, Leo. I'll ask another question to Wendy. Wendy, what do agents want most from eXp? And how are you evolving the agent value stack to meet those needs?

Thanks, Denise. I think there's 2 things that agents are really looking for from eXp. The first one is innovative tools and technology to empower their business growth. Agents need to stay ahead in a competitive market.

So they're turning to eXp for its forward-thinking solutions, whether it's Canva, whether it's CRM of Choice, Revenos, PayNow, or myeXP, just to name a few. These are all tools that allow the agents to empower their marketing, branding, and lead generation to be more accessible and effective so that they can scale their businesses effectively.

The second thing agents are looking for from us are training, coaching, and community. While we are a virtual brokerage, we are deeply rooted in real connection and education, whether it's our weekly big agent meetings, eXp University, Elevate Coaching, our one-on-one mentorship programs, or eXp Con in Miami that I talked about during the presentation.

We find ways to place real value on continuously learning, growing, and connecting together with our top producers with supportive peers and with our leaders. So those 2 pillars, tech innovation and a collaborative community creates a powerful environment where our agents can thrive regardless of where they're at in their career. As Leo likes to say, we are a platform where you can build the dream for any size no matter where you're at.

So next, I'll go to Felix. How is eXP different from traditional brokerages in the newest countries that you just added?

Yes. Thanks, Denise. I think that's a great question. In the Netherlands and Luxembourg, we see a market that is traditionally dominated by employed models. Something -- it's very similar to what we've seen in the U.K. U.K. is traditionally Most agents are employed, and so they have a fixed income and a base salary from their brokerage or their state agency. Over the last 5 or 6 years since we've been open there, we've been disrupting that model. Most recently, over the course of this year, we are now the #1 estate agency brand in terms of listings and sales.

We've seen that our model can disrupt the employed model. In Luxembourg and the Netherlands, we're really excited to partner with agents to give them the opportunity to have much more competitive splits, but also to have a higher earnings potential and leverage the platform to grow their own brands instead of being just an employee to their state agency.

Similarly, in Romania, we see that Romania is a model -- a market that is traditionally dominated by legacy franchise models, and agents are typically on 50-50 splits, 60-40 splits and really do not have the opportunity to build their own business. We've seen our success bringing our model internationally. In Romania, we're excited to partner with the agents there that have already started reaching out because they're excited about not just our competitive splits, but the opportunities to build their own business, build their own brand.

More importantly, in most of these markets, they've never seen a rev share model or an equity model. So we're giving the power to the agents for the very first time in many cases in these markets.

Great. All right. Jesse, a question for you, and then we'll kick it off to the analysts in the audience. Is there a particular growth metric that stood out to you this quarter?

Yes. Thank you, Denise. We track quite a few KPIs internally, of course. But one that I'd like to highlight for Q3 was our agent productivity, which we define as sales transactions per agent.

Leo highlighted this in his introduction. Just to add some more color, it was -- it improved 5.4% year-over-year here in Q3. At our scale, that translates into very meaningful gains. We're talking about 83,000-plus agents, 120,000-plus transactions just in the quarter. Incremental improvements in this particular metric really begin to compound significantly on that kind of volume. It's also a testament -- we've been speaking about this for a few years now, right, the strategy of where the pros go to grow. This is really a direct indicator on, is that actually happening, right?

The whole strategy is to recruit, train and retain the most productive agents and teams, and a 5.4% improvement just on the quarter in agent productivity shows that that strategy is playing out for us.

Great. All right. So we'll open up the call to questions. Just as a reminder, you can enter your questions by scanning the QR code that's presented on the right-hand side of the stage. You can enter that code with your mobile phone or go to slido.com and enter and submit a question.

For now, I'll take our first question from Tom White at D.A. Davidson.

Two, if I could. First on OpEx. Jesse, you called out that sizable step down in G&A, which was able to kind of offset the impact of the lower gross margins. I'd be curious just to hear maybe what you thought like the top 2 or 3 things that you guys did or that affected that decline in G&A.

Just curious how sustainable this new level is? Like is there anything -- any kind of onetime-ish or timing-related things that made it particularly low? I guess just thinking about if the market fingers crossed kind of perks up at some point next year, like can you keep G&A here? Or will that sort of inevitably rise when revenues fingers crossed eventually kind of start growing more meaningfully?

And then I got a quick follow-up.

Yes. Thanks for the question, Tom, and we're happy to be speaking to a surprise beat on G&A, right? It really speaks to -- we've had this talk track for a few quarters now, and we appreciate everyone's patience, right? We knew we were front-running some expenses as we were investing in AI and automation and stacking some of that OpEx.

We saw $86.5 million in Q1. We saw $89 million, excluding the onetime in Q2, and now we're down to $82 million to what we spoke to and to your question, Tom. I can say there's nothing accrued, nothing odd. This is our new base in Q3. We reserve the right to invest in interesting things that come across, right? We also further expect to continue to drive unit economics down. What you're seeing now is the result of what we've been speaking to for the last several quarters.

You asked to hit on 2 or 3 things. I'll say it's -- I think it's 2 real things. Back-office streamlined operations. So really just taking a look at the way that we have structured our organization and the way that we process transactions and that sort of thing and really hitting on automation there as much as it could be driven by AI, but really just looking at it from a unit economics and efficiency play.

The second part, of course, is the AI. We've offset a lot of what were previously manual processes. There's quite a bit of SaaS that we are now moving to internal tools and products for. I would say it's those 2 things, streamlined back-office operations and AI offsetting quite a bit of SaaS costs for us.

Okay. And then just on the agent count, nice to see another quarter of sequential growth. It sounds like Teams is a bright spot. I would love just maybe a bit more color on the Teams growth. Is it coming from particular parts of the country? Are the teams coming to you from particular competitors or other models?

As you look at your overall value prop, what could you do to even kind of turbocharge the Teams attraction more, either from like kind of how you structure the economics or I guess I'm more curious about like the technology and the sort of the feature set side that teams need.

Thanks, Tom. I'll take that one. So it's a little bit of all of the above. If you track our press releases, we have been winning across the board, not any one specific company. So legacy players, independents, and the highest producing teams, we are disproportionately winning.

A couple of fun stats. Real Trends published an article in the last couple of weeks that said of the mega team category, I think there was like 500 and some teams with something like 28%. Again, total population count, we have somewhere about 4% of all the agents that are members of an AR. So we disproportionately -- I would say we are the home of the super team. It comes from many things that have been very intentional. I had it as one of my slides, eXp University is a value stack that we really designed to support these teams.

For example, FastCAP at other companies or other coaching companies could be as much as $8,000, $9,000 per person. So take a team of 50, which is on the higher side of the team scale that we have, and they onboard, call it, 10, 20, 30 new agents per year. By putting them through our program, we're legitimately offsetting tens of thousands of dollars into their P&L and also giving them leverage.

You asked about technology, but it's also about human capital, right? The tools that we're providing to them have become the onboarding process before their folks start to jump in. Whether it's technology that we're building internally, a lot of it being even personally led by Glenn with the Vibe coding teams, but also the enterprise agreements we've been able to strike because of our size and scale.

Wendy has done a phenomenal job with the launch and the continuing to drive the value proposition with Canva and other tools where we can then empower them. But I think, Tom, to your question, you should think of the value stack inside of eXp University as part of our technology stack in the sense that it's all virtual, it's scaled, it's deployed.

We're having thousands of agent registrants sign up per month, and we're delivering output that most companies wouldn't be able to do internally and would almost reflect a coaching company. The last stat that I'll share, as we look at our year-over-year growth on revenue, it's single digits that very much match the growth of the transaction count in the housing market.

An interesting stat that Jesse and team track for me specifically as I get in front of our top teams. Our top 250 team leaders as a group we track for multiple reasons. But that same cohort year-over-year is up over 15% on revenue. If we just take the 2% growth in revenue overall as a company, our top-performing teams are up double digits. It starts creating an ecosystem and a collaborative culture, which is literally impossible to replicate at scale in a single company. That continues to be the biggest attraction for those hyperproductive teams.

I would say that we very much are focused on that. I just flew from Las Vegas yesterday, where I spoke at the Zillow Unlock conference, 2,000 agents in the auditorium, which are mostly Zillow Flex team winners. Anecdotally, just looking out in the audience, it almost felt like an AXP event. That's just a testament of the level of practitioner and producer that we attract and retain at the company currently.

Thanks, Tom. We had another question from our analyst, Stephen Sheldon at William Blair, who e-mailed me this question and asked a question for Jesse. In recent quarters, you've talked about leveraging automation to reduce the cost of processing transactions.

Can you provide an update on the progress you've made there and where you think the biggest opportunities still sit going forward?

Yes. I think it's a similar talk track to Tom's question, but I can dig in a little bit more just on the specific -- the processing costs of a transaction. We still think we have runway there. We are implementing tools like Doc AI, which is document review and really streamlines what you can pull from contracts and automates what is previously very manual activity.

There are many examples like that in the transaction process. We published our unit economic costs in the 10-Q. It was around -- I think it was $620, $621 maybe in Q2, and it's down $523 in Q3 here. That's fully baked. There are direct and indirect costs that go into that. The direct cost is where you get a lot of the -- that's like where the juice is worth the squeeze, right, because there's so much volume going through. That’s where AI also offers the most opportunity.

We feel pretty confident that we're just scratching the surface there. We really began heavily investing in this late Q4, early Q1, and we got a lot of questions on this, again, to my answer to Tom earlier on how much we were loading up the unit economic costs. But now you see the fruits of our labor here in Q3, pulling out really about a $7 million run rate just from Q2 to Q3. We expect to -- or we want to drive further unit economic efficiencies there. More to come in 2026.

Great. All right. Thanks, Jesse. In terms of the audience, we do have one question from the audience. The question is, eXp just won best use of AI by a brokerage. So looking for examples on what eXp has done to help agents remove drag from redundant tasks with AI.

Well, I'll take that one because I'm kind of the AI guy on stage here. But there's a lot of stuff. In 2020, I had found a company that supposedly was using AI to do document management. We ended up leaving and building in-house, and we've since using some of the new models that have been frontier models.

We now have a platform that does a lot of the more traditional transaction management type of activities. It can do early review of contracts. It can be looking for things like signatures or other things. That means that the agent touches it before it goes in front of a person when there are things that are caught early in the process.

It's certainly a V1 for us. I think it's rolled out to all that's something we worked on for better part of 5 years. We think it's part of this office automation layer that we want to build over time because it's a pretty redundant process. There are a lot of components that we can handle through either AI. AI is a pretty limited aspect of what we do. AI is really the tool that we use to build a lot of stuff. I've built, and I'll take credit for in this particular case, but I went over work at success and said, hey, we really need a personal development social network.

There isn't one that exists out there. I've looked over the years at everything that exists out there, and we've used Discord, we use Facebook Private groups. We've done a whole bunch of stuff over the years. But August 7 was a specific date because that was the day that OpenAI dropped their new model into coding, GPT-5. It was already in one of the platforms that we were using, a platform called Lovable, which we do a lot of prototyping in.

With the -- over the weekend, the coding model was so strong that it was no longer just building us prototypes. It was building us full-blown working software. Labs took on a life of its own. But again, it was pretty much for the first month, probably 5, 6 weeks. I was just building it out and people were joining, and it was getting traction. We added a lot of other AI-related tools. We've got an AI coach in there named Victor.

We've got -- anyway, so those are some of the things we're doing there. I think September 14, we had some discussions and said, hey, we really need a better experience. Agents want something that's more social -- if you think about agents versus staff, they're a different type of user.

Agents are always looking for their next edge in the business. That’s why real estate agents and social media go together really well because at the end of the day, they're looking for their edge and they're looking for a place where they can collaborate.

By creating a social network around them, they're able to now discover, self-discover more easily referral networks and other things. So the hub was built entirely with AI. That was something that as a single person, without looking at a line of code, I built out to a pretty robust system. Those would be some examples. We've got a lot of other products and services, almost all of international.

Felix, I don't know if you want to just touch briefly on all the stuff that's going on in international, what's been built with AI?

Yes, absolutely. We've been similar story to Glenn and when a lot of these new models have dropped, it's allowed us to scale the AI tools that we were building even quicker. We've delivered something as easy or as simple as a website, right?

We changed all of our country websites to be in-house. That took on the next step as AI got better and we got better at using it to then delivering personalized and customizable agent microsite. Every single agent in international gets their own website with their own property search for their market.

As we got better, it took on another life, and that's when we -- just recently, the eXp Con rolled out Live, which is our public-facing portal. It's got all the listings of all the agents at eXp around the world with WhatsApp integration and a ton of other amazing tools, shareable listings, and a ton coming up on that side.

We've integrated that into every single aspect of the business. Now we're looking at a lot of the SaaS platforms that we did use and sometimes could, to a degree, even cause friction. We can now in-house it and create an ecosystem where all of the tools that our agents are using communicate with one another.

Every aspect of communication that an agent has either with our systems or with us can now all live in one ecosystem that speaks to one another and removes a lot of those barriers or frictions and creates a more streamlined process for agents.

I think that's also in part why we've seen such a big uptick in momentum and growth on international. Agents are now getting something with us that they just truly cannot get anywhere else outside of just that business model and platform and our scale and international connectivity. We're constantly rolling things out and excited to continue to share more updates. I think you'll see more on our side as well.

All right. Thanks, Glenn, and thanks, Felix. Thank you, everyone, for joining. As always, please stay connected by visiting expworldholdings.com 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 Investors section of the site. This concludes the eXp World Holdings Third Quarter 2025 Earnings Fireside chat. Thank you.

Good afternoon, and welcome to eXp World Holdings Second Quarter 2025 Earnings Fireside chat via live stream and our Metaverse on the web frame. My name is Denise Garcia, and I manage Investor Relations for eXp World Holdings. Today, we will begin our earnings fireside chat with remarks from Leo Pareja, CEO of eXp Realty; Wendy Forsythe, CMO of eXp Realty; Felix Bravo, Managing Director, International; Jesse Hill, Chief Financial Officer of eXp World Holdings; and Glenn Sanford, Founder, Chairman and CEO of eXp World 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. 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. 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 financial 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 expworldholdings.com.

Now for a few logistics, and we will get started. For those of you joining in frame today, welcome to our Metaverse on the web. To zoom in to a specific screen, you can click on that screen and then click zoom in. If the content on the screen disappears or you loose audio, simply refresh your page. While in Frame, if you need help, just use the help button on the bottom right to link with tech support.

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 slido.com and type in the event code, EXPI. 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.

Now I'll turn the 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 eXp 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. 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 nonproductive agents that left eXp 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 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 U.S. And we had 31% fewer agents leave eXp 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.

Starting with Shane and Clint Neil from the Neil team in San Antonio, a top 3 Keller Williams teams for 2024 in both units and GCI, where they operate across all niches of residential real estate, including Luxury and Land & Ranch, which Wendy will discuss in a moment. We also welcomed the MOVE team in Edmonton, Alberta and Canada. The MOVE team marked a historic moment for us at eXp 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 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 perfect foundation to scale nationally while tapping into a network of forward-thinking agents and brokers.

On the next slide, we joined the Kuma Group from Scottsdale, Arizona. Scott and his team joined us in Arizona under the leadership of Joshua Smith, his long-time mentor. And as part of eXp, he now gets to the benefit from Mike Sirard and other folks that he partnered with, formerly coming from my home group. In Long Beach, California, we welcomed Cistentia, Genesee and Serbian 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 Fairs, 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 1 and has been wildly successful.

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

Thanks, Leo. In Q2, we saw 3 significant program launches to add value in our ever-growing value stack, the launch of our CRM of Choice program, the launch of our cosponsor program and the launch of eXp Land & Ranch. So let me share some of the details of each of these programs. I'll start with our cosponsor program. The launch of the cosponsor program allows the power of 2 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 cosponsors 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. 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 1 of 3 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 the selection and power their CRMs and their CRM 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 & Ranch program. Land & Ranch is an important niche market in our business. And our eXp agents have received the launch of Land & Ranch very positively. In fact, since our launch in April, we've had over 100 agents join the Land & Ranch division, and we have a long list already waiting to join. So Land & Ranch agents, welcome. We are so happy that you are ready and able to support Land & Ranch consumers across the country.

Moving along to programs that we launched earlier in the year. And in fact, the 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. You published over 500,000 designs at the end of Q2 2025, a 5x increase in design usage going from just under 2 designs per user to almost 9 designs per user. And you are designing faster, decreasing your time to create a design from 24 minutes down to 9 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. 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 attend 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 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 2 of the 3 of our major eXp Con events happen in Q2, the first of which happened in April, which was eXp Con in Montreal, Canada. A tremendous event that had eXp agents not only from Canada, but from across the globe in attendance, was larger than our eXp Con Canada 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 eXp Con events that happened this quarter was our eXp Con event in Barcelona. And this is our eXp Con 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. And the -- 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.

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 3 new countries. Peru and Turkey both opened up in Q1 and most recently, Ecuador launched in Q2. All 3 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 3 new markets delivered production and transactions in their first month being open. 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 road map for the second half of 2025 includes planned entries into Egypt and Japan, which we had announced previously. We also recently announced that eXp Con 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. Over the last 12 months, we have doubled down on attracting productive agents throughout all of our international markets. We have a 2-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 eXp Con Barcelona just now in June, which saw a 175% increase in registrants year-over-year. But we also hosted the annual eXp U.K. 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 eXp U.K. is now officially the #1 estate agency in the U.K. 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. 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?

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.

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.

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

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. Adjusted EBITDA loss increased primarily as a result of opening new markets and hosting 2 concurrent events, including eXp Con 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 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. 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 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, Lovable 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.

And finally, the recently introduced cosponsored 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 SSU 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 a dividend on that stock, which is a tremendous value add. 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?

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 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. 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, very -- 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've we really think about a lot of things. And so I'm actually rejoining as Publisher and Managing Director of the enterprise. 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. 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. 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, interest in their career or interest 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, 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?

Yes. So thanks, Denise, for the question. First, we bought the magazine almost 5 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. So all of our agents get it included with their -- with eXp, along with -- they continue to get the magazine and now a digital magazine. We've got one that's coming up. 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 like 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 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 9 yards. 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 Gym 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 actually music that is directed to the personal development of human beings. And so if you think about it, 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 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, we want to pull people through that journey, just to help them be more effective whatever they want to do real estate or otherwise.

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

Yes. 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 have 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 reprieve much at all. 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 Zubrinsky from Southern California, an independent boutique luxury powerhouse. So for context for everybody, 90 members in his brokerage did $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 ours. 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 mega team leaders and solar 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.

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?

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 and 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 cosponsor carings happening. We're seeing all kinds of ways that businesses grow because of those in-person connections that happen at the events. 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. 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 eXp Con event in Miami that's coming up in October, when those explorer passes are available, bring an Explorer to eXp Con in Miami, it's a great attraction opportunity.

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?

Yes. Thanks, Denise. Our main focus internationally really beyond that is still been 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 2-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. 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've 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 1 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 about our growth. It's not just growth for the sake of being the largest 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.

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?

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. 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 & Ranch, Revvenos, 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.

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 D.A. Davidson. If you have a question, go ahead.

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 wanted 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 OpEx, I think, grew 20% in the quarter and ticked up quite a bit sequentially. So I don't know, is there anything onetime 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.

Sure. I can take that one. 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 to see minor operations. And so Tom, these really were -- these actions were part of a broader effort, right? We spoke to at a higher level in Q1 and we continue to execute in Q2 to realign the company's cost structure with the current macroeconomic environment where our revenues add today. But also been 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 got to be 20% -- that sort of the follow on of some of the expenses that we see creeping up overtime that we spoke to in Q1 that were building towards in Q2. So not only we have 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. With the $6 million, I mean, I don't think you guys added back -- if it was sort of onetime, I don't think I saw it added back to adjusted EBITDA. Is that correct?

That is correct.

Okay. Okay. And then -- maybe just can you talk about like over the next couple of years, let's say, 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 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?

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

I think the -- yes, 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 the -- 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 as 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. But Leo, any other color you've got on that?

Yes, Tom. So first of all, on your call out of sequential growth quarter-over-quarter are that is the result 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 a financial crisis wise like '08, where prices are 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, 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.

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.

Glenn, did you want to take that one? Or do you want me to go?

Sure, I'll take that. It's -- I think we know that it does play a little bit of a role, but it's not a -- 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 -- it's going to go up. And we still have a good percentage of regions 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. 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 -- but it is a nice reason to join us.

And Matt Filek at William Blair. You're also joining us on stage. If you have a question, you can go ahead.

Thank you, Denise. Everyone, you have Matt Filek on for Stephen Sheldon. 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 5 years as you work toward that 50,000 agent target?

Yes, 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'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 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 in scale. And so as we look forward over the next 5 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 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?

So I'll touch on -- I'll probably touch on that first. And I mean, I must feel like, do you want to take it?

Yes, sure. Go ahead, Glenn. And then anything I can comment after.

Yes. So our -- so when we look at 50 countries by 2030, there's -- 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 2 or 3 years minimum. Not that we don't have IRR, internal returns on a number of countries. U.K. is -- which actually has to publicly filed their financials as a country for some bizarre reason, in the U.K. 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, 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-net profitability in that segment of the market. But we -- 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 income. We do see the gross revenue and the gross profit being something that will continue to increase.

Got it. That's helpful, Glenn. And then lastly, I had a quick follow-up for Jesse. I 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?

Yes, 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 at a similar pattern.

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 & Ranch.

Yes. 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 is still a cohort. We actually see some data that shows that individuals are actually like to subscribe to physical magazines. It's kind of -- it's now actually 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 and it's -- 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. 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 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 2 or 3 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, 100, 1,000 people 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 eXp and bringing that to success. We think there's an opportunity to create some viral opportunities for growth. 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 called vibe coated application stacks for personal development.

All right. And Wendy, we had a question about Land & Ranc. What the cost was to join Land & Ranch.

Absolutely. Thanks, Denise. So the Land & Ranch program, you can find all of the information on that at land&ranch.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 get started.

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 Investors section of the site.

This concludes the second quarter 2025 earnings fireside chat.