eXp World Holdings, Inc.

We 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. Should you wish to ask a question during our presentation, you can enter your questions by scanning the QR 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 up the call to questions. Leo, you may begin.

Thanks, Denise. We've always been focused on driving excellence across every area of our business, and 2025 has been no different. This year, we expanded into seven 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 four 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 two sponsors. Since launching the program, we've seen co-sponsorship happen across 28 countries globally, showing great collaboration amongst our agents in countries all over the globe. And in our U.S. and Canadian markets, 14% of the agents have joined eXp, Since we rolled out co-sponsorship, joining with a co-sponsor, and agents that have joined with a co-sponsor are 64% more productive than those without. And agents with a co-sponsor have a 19% lower attrition rate. We've also introduced a commercial division in the UK and two programs that help agents differentiate their brands in specialization markets like land and ranch and 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 at exp given our scale we're one of the few brokerages to be able to offer best in quality education 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 accelerator series a free comprehensive eight-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 nine training sessions, demonstrating a strong appetite for these high-impact tools. We've highlighted FastCap earlier this year, and it continues its momentum. with nearly 20,000 agent registrations, and the agents that complete the program are 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 Zucasa for Canadian agents into the FastCap program, including seller and buyer cultivation tools and leads. We've also launched the FastAttract program in 2025. In the six months since completing the first the first FAFSA track 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. 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 in 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 stats 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 NAR 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 tripled 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 of this year, and the story remains consistent. Productivity drives retention. The more productive an 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 non-productive 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 welcomed some amazing people over the course of 2025. We added more than 25 prominent teams in the U.S. and Canada that generated 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 boomerang agents that returned 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 51% in Q4 and 67% year-over-year in 2025. The team did all of this while launching seven 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 segments as we streamlined 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 deliberate 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 were 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 cost compared to our original international expansion efforts. Ultimately, we strengthen 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 to $980 million, expenses in the range of $82 to $86 million, and adjusted EBITDA in the range of $2 to $5 million. For the year, we expect revenue in the range of $4.85 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 to $345 million. Finally, we expect adjusted EBITDA in the range of $50 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?