AGNT, Inc.

Good afternoon and welcome to the Agent Second Quarter 2026 Earnings Fireside Chat via livestream and our metaverse on the web, Frame. My name is Denise Garcia and I manage investor relations for Agent, formerly eXp World Holdings. Today, we will begin our Earnings Fireside Chat with remarks from Leo Pareja, CEO of eXp Realty, Jesse Hill, Chief Financial Officer of Agent, and Glenn Sanford, Founder, CEO, and Chairman of Agent. 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'll 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 agnt.inc. 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 that screen disappears or if you lose audio, simply refresh your page or log out and re-enter. While in frame, if you need help, just use the Help button at 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 AGNT. 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. Before I get into the numbers, I just want to ground everyone in what AGNT is today. agent is a global operating system for modern real estate entrepreneur and a multi-model platform where independent agents franchise owners and team leaders all find a home built for the way they want to grow two models maximum optionality that's the thesis behind everything i'll walk through today which brings me how the multi-model platform actually comes together exp realty remains the undisputed cloud-based leader in our industry NextHome offers a premier franchise experience. Together, these two brands expand our agent offering and let us serve a wider segment of the market than either brand could reach alone. NextHome is a complementary growth engine that unlocks multi-model reach across distinct market segments. We have seasoned operators in both brands driving execution and aligned incentives. We share a global referral network connecting eXp agents with NextHome franchisees worldwide. and we're consolidating back office legal technology resources driving efficiencies across both brands. We are witnessing the financialization of the real estate industry. Now across private equity and public company acquisitions there's about 400,000 agents who find themselves at a franchise over the next They may no longer feel aligned with, and now we have an opportunity to convert entire franchises as those agreements come due. Now let's look at the platform built by agents for agents actually produced this quarter. This was a record revenue quarter, and it was built on agent success. We ended the quarter with 87,338 agents, up 6% year-rear. Transactions grew even faster. Over 132,000 real estate sale transactions, up 12% year-over-year. Revenue came in at $1.4 billion, up 11% year-over-year. And productivity, transactions per agent, was up 6%. Put simply, record revenue driven by increased agent productivity. That's not just agent counting doing the work. That's our agents doing more and doing it better, which is exactly why retention of the best agents matters so much. And that's our next slide.

We continue to see our least productive cohorts churn out of the industry entirely, not just out of eXp.

67% of non-productive agents in the US who left eXp actually left the industry altogether in Q2. Meanwhile, we're growing productivity with teams. 41% of new Q2 agents joined on teams and agents on teams are 78% more productive than individual agents. Our co-sponsor program just hit a one-year anniversary. Here's what we found. Agents with a co-sponsor show 40% higher production and have 10% higher retention rate. This was a deliberate strategy. Attract productive agents, put them in a structure that makes them more productive and retain them. It's working. Now I want to shift gears and talk about how we're building the platform underneath all of this. Everything I just walked through is only possible because the platform we're building underneath it. AG&T OS brings everything an agent needs to run their business together in one place. Instead of agents juggling a dozen disconnected logins and tools, Agent TOS, which operates the hub for eXp Realty agents, is the operating system for the agent's business. No more needing to find where to log in. All agents have to do is eXpRealty.com, log in as an agent, and you'll be taken to the hub. Then they can download the hub app to their phone. The app is available on both Apple and Android, group chats, text, Skyslope, My eXp, University, Marketplace, and everything you need to run your business is now live directly inside the Hub. This is the foundation for our AI native platform I want to spend the rest of my time talking about. We're transforming eXp into an AI native platform, one built to give agents the tools they need to be productive and manage their business and to increase on their own operating efficiency at the same time. And it's working. I'll share some examples from the second quarter. Doc AI, our review assistant, has been trained on thousands of documents. It has now reviewed over 5 million documents and validated 22,000 daily uploads at a score of 100%. Task Center automation resulted in 19% year-over-year increase in files handled per transaction analyst. Our AI enhanced expert care now resolves the majority of incoming chats automatically. Carlo, our comprehensive advertising review logic operator to review agents advertising and signage and log broker supervision automatically is now deployed across residential brokerage operations with commercial in progress. Broker Assistant delivers immediate, scalable, after-hour support for policies, procedures, and guidance across our state sites and eXp community hub. And FastCap, our AI-powered agent development tool, features a role-play accelerator that's been used over 2,800 times this quarter for scalable, on-demand skills development. While we're building AI native tools here domestically, our international business has been building its own operating system, Nexus, which I'll show on the next slide. Nexus brings every tool our international agents use into one connected system, from a project management tool that keeps every transaction on track to our global property search platform, connecting buyers and sellers across borders in one seamless experience. This isn't six disconnected tools pulled together. It's one system, four foundations, one identity, one data layer, one AI layer, and built to scale from day one. And we're seeing the momentum we've created in our international business show up in the numbers. In the second quarter, international revenue grew 44% year over year, while at the same time, we cut our international operating loss by 57% year over year and reduced our adjusted EBITDA loss by 66% year over year. This is the same pattern we're seeing domestically with AI-native tooling. Give agents a better platform, and the efficiency follows, which brings me to how it summed up the quarter. We're controlling the controllable, and it shows record revenue with increased operating efficiency. We're transforming into a multi-model AI-native platform to give agents the tools they need to be productive and manage their business. And as I walk through, it's working. We like our position. We're playing offense on AI and efficiency and defense on the balance sheet. With that, I'll hand over the call to Jesse to walk through the second quarter financial results.

Jesse. Thank you, Leo. And now I'll walk us through our consolidated operational and financial highlights for the second quarter of 2026, beginning on the next slide. Starting with operational metrics on a consolidated basis, we ended the quarter with over 87,000 agents with continued low attrition among our most productive agent cohorts. Productivity per person, or PPP, was up over 6% at 5.5, while volume increased 15% for the quarter. Higher PPP drove sales transactions up 12% year over year, resulting in over 132,000 sales transactions in the second quarter. On the next slide, I'll walk through our second quarter financials. Starting with revenue, we generated $1.4 billion in the second quarter, up 11% year over year, at the high end of our guidance range, despite continued pressures in the macroeconomic environment. Gross profit was $98.8 million, up 7% year over year. Prior investments in technology and process improvements are strengthening both our top and bottom lines, excluding one-time items. Operating income was $1.6 million for the quarter, up 169% year-over-year, compared to an operating loss position in the second quarter of 2025. Operating expenses were $97.2 million, $200,000 above the high end of our guidance range, primarily driven by one-time non-recurring costs. Adjusted EBITDA was $25.7 million for the quarter, and above the high end of our guidance range of $21 million, and up 129% year-over-year. Finally, we ended the quarter with $111.2 million in cash on the balance sheet, up 18% year-over-year. On the next slide, I'll walk through our financial results by segment. The North America Realty segment continues to be our largest revenue and profit generator, with revenue of $1.4 billion for the quarter, up 10% year-over-year, and adjusted EBITDA of $30.7 million, up 55% year-over-year. International continues to be our fastest growing segment with revenue of 46.4 million, up 44% year over year. While we continue to invest in expansion, the segment posted an operating loss of 1.8 million, which was 57% improved year over year, and a negative adjusted EBITDA of 1.3 million, which was 66% improved year over year. Our other segment contributed 0.7 million in revenue, roughly flat year over year, with an adjusted EBITDA improving 92% to a loss of 0.2 million. On a consolidated basis, that's $1.4 billion in revenue, up 11%, $1.6 million in operating income, up 169%, and $25.7 million in adjusted EBITDA, up 129% year-over-year. On the next slide, I'll review our updated outlook for 2026 and the third quarter. Looking ahead, our focus remains on innovation, efficiency, growth, and agent success, and we are providing our outlook for the third quarter and updating the full year 2026. Starting with the third quarter, we expect revenue in the range of 1.35 to 1.45 billion, expenses in the range of 85 to 90 million, and adjusted EBITDA in the range of 17 to 22 million. For the year, we continue to expect revenue in the range of 4.85 to 5.15 billion, as productivity gains continue to be offset by a challenging macroeconomic environment. We now expect operating expenses in the range of 355 to 365 million, and we have tightened the range of our adjusted EBITDA guidance to 50 to 60 million for 2026. We intend to 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. And now I will turn the call over to Glenn to wrap it up before we open up the call to questions. Glenn?

Hey, thanks. Thanks, Jesse, and thanks everyone for being here. So first and foremost, AG&T is the platform. It has really four businesses underneath of it. EXP Realty is still the engine. It's the most agent-centric real estate brokers on the planet. And now we have two models. We have the EXP Realty and Next Home, which is the franchise structure of for those agents or broker owners who want to run small teams and in some cases larger enterprises on top of it. But the agent is really still the center of the relationship and their opportunities to grow whatever size business that they want to grow. International, as you know, it's growing. It's doing very, very well. And we added a number of countries last year. And so we're excited about the continued growth. One of our stated goals is to be in 50 countries by 2030. We think that that's a realistic goal, and we expect that our continued investments will get us into new countries fairly rapidly. If you look at countries like Peru, Ecuador, especially South America, and of course we've got our first EXPCON taking place in Colombia next year, we're making big investments in that. Of course, Frame is the platform that we're in right now. It continues to literally create the communication and collaboration layer for the entire enterprise. And you can think about the idea that we have almost 90,000 people, actually over 90,000 when you think about staff and other people that use the platform that turn to Frame on a regular basis to collaborate with our overall enterprise. Success, it's a cultural and training layer. Success Coaching has now had over 100 people go through our Success Certified Coaching platform. And we just relaunched that this year. And with Matthew and Kristen Berry continuing to serve in larger leadership roles at Success, we're excited about how that continues to roll out for the balance of the year. and today I'm happy to announce that Amy Cosper has joined us as editor-in-chief for Success Magazine as well. As we move toward 2027, we also have a bulk app and magazine subscription that we're going to be offering. We're already starting to offer to other large enterprises, but we're excited about the work that This team is doing to really create some real opportunities in the success magazine ecosystem. One thing that I've talked about over time is the single thread leader model, but I want to start to think about it as the AI enhanced leadership model. And originally we were talking about, you know, agile org design, Agile Scale, Align Teams. And now all of our staff have access to at least one enterprise AI in their day-to-day work. And this has really allowed us to build things like our hub, build things like our doc AI, where we're using AI to not just read things in an OCR fashion, but to actually be opinionated about the things that it's advising the company on. And with the models improving the way they are, we're just in the early stages of seeing where AI can take us over the next few years. Obviously, we invented the cloud-based model back in 2009. Our competitors are still tethered to legacy offices, commission structures, and software and hardware stack that take years to move if they can even move off of them. We've had none of that to work around since we've been on the cloud since 2009. We actually invented the term cloud-based brokerage. We've been distributed and technology focused from day one. So AI has been a more natural transition given our infrastructure. We've talked a little bit about eXp Hub. We've got AI co-pilots for agent workflow. We've got a listing intelligence platform that we're continuing to build out. We now have an app store marketplace that was enabled because we built our entire replacement for workplace by Facebook. And now we've got the most robust communication platform that is not tied to a SAS contract. And really this goes back to the idea that the name change really wasn't cosmetic. We referred, obviously, to eXp Realty as the most agent-centric real estate brokerage. And we made AG&T platform much more overt. And that's a moat we continue to invest in. With that, I'll turn it back to Denise for Q&A.

Thanks, Glenn. We'll kick it off with a question for each of our speakers before we turn the call to the analysts and ask their questions. Leo, can you give us an update on the macro and what you're expecting in the second half of 2026?

Thanks, Denise. The back half of 2026 is looking to have a continued uncertainty from several macro factors. We have sticky inflation, conflict in the Middle East, and as of last week, a very strong emphasis on the weakening of the Japanese yen. This is certainly is translated into bond market pressure with a 10-year treasury yielding climbing to its highest level since Jan of 2025. roughly touching 4.7. Last week, the Fed held its federal Fed funds between 3.5 and 3.25, signaling their ongoing concerns around inflation and geopolitical uncertainty. A weak Japanese yen is adding to the bond market pressure. We saw last Friday the US Treasury step in to support Japan's weakening position. All together, feds holding on rates, Middle Eastern-driven energy and inflation pressure in the bond market, pricing shifts, all point to the back half of 2026 housing activity to track softer to year end.

All right. Thanks, Leo. Jesse, one for you. You just had a record quarter despite a challenging backdrop. What drove the second quarter?

Yeah, thanks, Denise. And we mentioned our over 87,000 agent count. But what's more important, and we mentioned this nearly every quarter, is productive agents. And we called out our PPP, our productivity per person, improved 6% year-over-year to 5.5 in Q2. and across our sizable agent base, even incremental improvements in agent productivity can result in outsized gains across the overall brokerage. And so we saw that translate into 15% increase in sales volume in Q2. And sales volume, of course, drives our revenue in the form of gross commission income. And then just one other thing to add to this along the same talk track, actually. We saw a gain in market share. Our U.S. brokerage in Q2 gained 3% in market share relative to the total U.S. real estate market. So we're proud of our record revenue quarter, but we're also happy to see gaining market share in the quarter as well.

and one for you, Glenn. Can you speak to some of the initiatives in international that drove growth there?

Yeah, well, not the least of it is that last year we opened up eight new countries and a lot of those countries are actually growing quite quickly. So congratulations to everybody on the international team for the hard work that they're doing. We just finished EXPCON International in Paris just a few weeks ago. Well attended by agents from all over the world. The enthusiasm for the EXP model around the world is very tangible and it definitely was on full display. And things like our co-sponsorship program, our international sponsorship program, is working really well where agents can work with in-country agents to bring on the agents that they're looking to attract to the EXP model. Obviously, the legacy brokerage models internationally are even further behind than the domestic US and Canadian-based brokerages. There's still a lot of brokerages that are 50-50 splits with their agents, no caps, And so our model is much more agent oriented and the commission splits definitely are appealing. But then our worldwide model that's now backed by platforms like Live, L-Y-V-V-E and its ability to basically act as a worldwide portal for eXp listings in all countries that we operate in. Last year we started on a lab experiment in international to build out Nexus. I remember when Felix started to build that out and it's truly become an AI operating system for all of the international countries providing things like CRM, valuation tools, marketing tools, transaction management tools, and the platform that was built was built by a very small number of people using AI as the tooling infrastructure. So we're really talking about less than about four people overall, four or five people overall building the Nexus operating system, but they're able to build at scale for 27-ish countries around the world, multi-language, multi-modal, and along with the LIV platform. International is running very lean, will continue to run lean and of course we're seeing a number of countries now turn profitable as we continue to invest in new countries which will likely have more countries toward the end of the year announced and either launched or opening up in early 2027. It's really been a big team effort that's really driven that international growth, but it's going very well.

Thanks, Glenn. Just as a reminder for the audience, if you'd like to ask a question, you can go to slido.com and enter the event code AGENT, A-G-N-T, and ask a question there. Or you can use the QR code on your mobile device and ask a question in Slido that way. For now, I'll go to the analysts on the stage that are joining us here. Tom White from D.A. Davidson, go ahead.

Great. Thanks, Denise. Good evening, everyone. A couple, if I could. I guess just on agent count, so I think you set up 6%. What was that kind of excluding Next Home? If I remember, Next Home had, I think, roughly 5,000 agents. So it was kind of the legacy business flattish. And maybe you can also just call out the impact of Next Home on revenues in the quarter.

Sure, I can take that one, Tom. Thank you for the question. We shared, I believe previously, the Next Home acquisition actually resulted in approximately 4,900 agents. So you're correct, modest growth in the organic business in Q2, but we did see some growth there in our own brokerage, 4,900 from Next Home and then a little over 100 organic. And for the second part of your question, sorry, can you remind me?

Oh, just maybe help quantify what the contribution of Next Home did to reported revenue in the quarter.

right right got it so with next home it's important to point out uh that it's a franchise model and and and so we're not recording revenue in the same way and i'm explaining this for the full audience tom i think you know this but uh we're not reporting revenue in the same way as we do our traditional us brokerage which records revenue at gross commission income next home is the franchise model and we get revenue there in different ways uh franchise fees notably So it'll be smaller, more modest contribution, especially in the shorter term with Next Home. That one's more of a strategic bolt-on to create the on-ramp for the multi-model sort of approach that we're taking this year and going forward into the future to create multiple options for agents. Modest contribution to our revenue in Q2 and the updated guidance. Short answer for you.

Okay, that's great. Leo, the AI native Brokerage Slide, I thought was interesting. I'm curious whether any of those like AI innovations that you talked about have started to displace any kind of like legacy, maybe SaaS products that you guys had historically been paying for and curious whether, you know, Does that mean that there's kind of a cost-saving opportunity from you guys going forward? Or is it just about kind of AI helping everyone be more efficient?

Yeah, I think it's all of the above, Tom. Absolutely. So Meta gave us notice 18 months ago that we were no longer going to have access to Workplace. We shifted over to Salesforce Slack product, and the agents really had a wanting of the previous enterprise feeling, and we really were able to build it ground up very quickly because of the AI software writing ability, and now it's super... TaylorMate for us. But not only from an experience standpoint, but also in the financial result. And so, yes, you know, when people think of AI, I think the real lift is on businesses of scale that do repetitive behavior like we do. So, you know, Doc AI gives us the ability to actually, you know, meaningfully impact the workflow versus like these kind of very aspirational Agent Tech Workflows that people pontificate on LinkedIn and other places. This actually has meaningful impact into our daily life. And then I actually made a post on social media two hours ago, randomly enough, where I instructed agents to pull out their credit card bill and see all of the SaaS stuff they pay for on a reoccurring basis. And SaaS could also just be like... you know a marketing martech thing that they do on a monthly basis that now can be replaced by a Claude skill right and so I think the whole world is going through like what am I paying for how does this add meaningful activity so I think there's more than one way of looking at it not not of just purely like I'm gonna replace Trello but more like hey I'm paying for an automation and it could be as simple as you know Claude co-work can actually go into your email at noon and pull a list of all the things you need to do so I I'm always pragmatically skeptical of everything and so it's show me and let's continue to push the envelope and keep moving forward.

Great. Maybe just one last one for me and then I'll Get back in the queue. But Jesse, just on operating expenses, they ticked up, I think, $8.5 million-ish or so versus the first quarter. Is that the level that we should sort of think about for the next couple of quarters? Or maybe there was something kind of one-time-ish related to Next Home coming on board there? Just any kind of forward color on OPEX?

No, yeah, thank you, Tom. We did hit the right end of our bookend, actually 200k over on that, and we're watching it very diligently. You are correct, though. There are actually two one-times, and legal in particular. We note them in the queue that total to approximately $8 million. That said, you're asking about the forward look. I would say, you know, use the guidance that we're providing. We tightened, actually, even the bookends on... on our OpEx guidance for the back half of the year. So we want to make sure that we're sharing that as transparently as possible and sharing what our modeling is showing with you all. But we do see heightened legal costs continuing in the back half also, and that's reflected in the guidance.

Okay. Thank you very much. Appreciate it.

And now I'll go to Matt Feilich from William Blair. Matt, if you'd like to ask a question, you can.

Thank you, Denise, and good evening, everyone. You have Matt Feilich on first, Steven Sheldon. Appreciate the time. Somewhat related to Tom's first question, can you provide some more detail on how Next Homes factors into the revised guidance? You delivered a pretty sizable adjusted EBITDA beat during the quarter, but then you narrowed the full year adjusted EBITDA range. So just try and understand how that all pieces together.

Yeah, I can take that one. I'm actually glad for the double take. I regretted not explaining it a little bit further in detail. So we have revised the guidance. It now includes Next Home. I'll say there's hundreds of puts and takes into our internal modeling, right? So we did a lot of updates, but then we held the bookends on top line revenue, which is probably a part of what you're getting at. But Next Home now is included. When we say modest, we mean sub 10%. And you can think about that across categories, revenue, expense, key metrics. So Next Home is currently less than 10% of our business. I look forward to the day where it grows beyond that, and we actually have to break it out and report it separately. But I'll keep it to that high level for now. It's sub 10% to the contribution. It is reflected in the forward guidance, but it's not material to the overall business.

And then Jesse, just as a quick follow up to that, anything you can share about Next Home in terms of profitability?

I don't think we're we're not breaking that out at this point in time. So, Leo, maybe do you want to take it from the like the strategic play that we're going with next home in the multimodal approach?

Yeah. So, Matt, I'm not sure you're asking this, but this is the question Jesse lobbed over to me. So when we look at the financialization we're witnessing, so you've had private equity and public companies come together and now be multibrand. We see a huge opportunity with upwards of 400,000 agents in franchises that may be now curious as their franchise agreements come due. And so that next acquisition was really important as a platform so we can now compete in the space that we think is going to be ripe for opportunity. As Jesse commented earlier, the gross margin of that business is a completely different profile. So as right now, it's not adding meaningfully to the contribution, but we see that as a huge green shoot opportunity from both margin expansion, revenue expansion, all of the opportunities that you kind of always click down on that.

Okay, that's helpful, Leo. Thank you for that additional color. And I'll switch gears for my last one. In the past, you've talked about using AI to reduce the cost of processing transactions and we're just trying to get a read on what inning you would say you're in with those efforts, trying to understand how much opportunity may remain there.

Yeah, I think the whole world is trying to solve that. I definitely think directionally there's still way more opportunity. And as every day the models get stronger and better, there's also ways of improving the process. But I would say we're nowhere near to completely maximizing that opportunity.

Okay, very helpful. Thank you, Leo and team. I'll jump back in the queue.

All right. We have no further questions from the audience, so this concludes our second quarter earnings call. Thank you for joining, and as always, stay up to date via our website, agnt.inc, for the latest updates on news, results, and events. You can find a recording of this call and our latest investor presentation there, too. Thank you all for your time. Thanks, everyone.

Thank you, everyone.