eXp World’s Q2 results triggered a negative market reaction, with management citing a challenging real estate environment and the impact of strategic investments as key reasons for underperformance. CEO Leo Pareja pointed to improved agent productivity and retention, noting, “Sales transactions per agent are up 4% year-over-year,” while CFO Jesse Hill highlighted one-time expenses and ongoing efforts to streamline operations. Management also acknowledged pressure on operating margins due to a higher proportion of productive agents reaching their compensation cap, and continued investment in technology and international expansion.

Is now the time to buy EXPI? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From eXp World’s Q2 Earnings Call

• Thomas White (D.A. Davidson): Asked about the 20% increase in operating expenses and whether there were one-time items. CFO Jesse Hill explained $6 million in strategic expenses and projected lower expenses in coming quarters due to streamlining.
• Thomas White (D.A. Davidson): Inquired about the company’s long-term margin priorities. Founder and Chairman Glenn Sanford said management focuses on overall gross margin dollars, not just percentages, and expects efficiencies and platform expansion to support future improvement.
• Thomas White (D.A. Davidson): Pressed for clarity on the importance of stock-based compensation in agent retention. Sanford stated that while stock is a differentiator, most agents value the full package rather than just equity incentives.
• Matthew Filek (William Blair): Requested detail on international agent growth and profitability timelines. Bravo confirmed international agent count at roughly 5,000 and said profitability may remain limited for 2–3 years as investments continue.
• Matthew Filek (William Blair): Asked if GAAP gross margins would remain low due to productive agents capping. Hill responded that margins are likely to stay near current levels in the short term, in line with broader industry trends.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace of agent and team recruitment, especially in newly launched and planned international markets; (2) the impact of AI and automation investments on operational efficiency and gross margins in the second half of the year; and (3) the growth and profitability of new affiliate programs such as Land & Ranch and SUCCESS Enterprises. Execution in these areas will be key to sustaining future revenue and margin improvement.

eXp World currently trades at $10.21, down from $10.84 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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