eXp World Holdings, Inc.

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 $2.5 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 to 1.45 billion, expenses in the range of 93 to 97 million, and adjusted EBITDA in the range of 16 to 21 million. For the year, we are reiterating our outlook with revenue in the range of 4.85 to 5.15 billion, operating expenses in the range of 325 to 345 million, and adjusted EBITDA in the range of 50 to 75 million dollars 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?

Hey, thanks, Jesse. You know, 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 nine months replatforming the entire business. And during this quarter, we actually welcomed Matthew and Kristen Ferry, actually right at the end of the quarter, to participate. 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 over 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 five or six figures to engage with, built directly into the overall eXp ecosystem. That's 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, Orson Swett Marden, to Napoleon Hill, W. Clement Stone, Earl Nightingale, Augment Dino, 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. 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, multi-model option through Next Home International, our fastest-growing segment and expansion frontier, frame VR, our virtual infrastructure, and success, our culture and growth layer. No other brokerage on earth is built this way, and the multi-model expansion through Next Home is a real proof point. We can now welcome independents and entire offices that previously couldn't find a home with us without compromising what makes the EXP model work. What we offer agents and what no one else can fully replicate is a complete operating system for building a scalable, sustainable real estate business, full-stack marketing suite, world-class personal development through success, health and wellness resources, and a fully immersive global collaboration layer through Frame. Every investment we're making right now, the eXp Hub, AI Copilots, the Listing Intelligence Platform, 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 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?