eXp World Holdings (EXPI) Q3 2025: International Revenue Jumps 68% as Platform Model Scales Globally
eXp World Holdings’ third quarter showcased a decisive pivot to platform-driven growth, with international revenue up 68% and agent productivity gains compounding across the global network. Strategic automation and AI investments are compressing unit costs, while the company’s agent-centric model is attracting high-performing teams and driving operational leverage. Management’s focus on scalable systems and disciplined cost controls positions eXp to capitalize on industry consolidation and digital disruption heading into 2026.
Summary
- International Expansion Accelerates: New markets and platform launches propel global agent productivity and revenue.
- AI-Driven Efficiency: Back office automation and internal tools drive sustainable unit cost reductions.
- Team-Centric Growth: High-performing agent teams join at scale, reinforcing eXp’s position as a platform for top producers.
Performance Analysis
eXp World Holdings delivered 7% YoY consolidated revenue growth in Q3, with real estate sales volume and transaction count both rising even as the broader market remained stable. The North America Realty segment continued to anchor the business, contributing the majority of revenue and profitability, while international operations emerged as a clear growth engine, with segment revenue up 68% YoY and productivity per agent climbing 34%. Agent productivity, defined as transactions per agent, improved 5.4% YoY, a critical signal that eXp’s strategy to recruit and retain high-performing agents is compounding at scale.
Gross margin compressed, with GAAP gross margin at 6.5% (down 57 bps YoY), reflecting a higher mix of productive agents hitting their cap, but the company offset this with disciplined G&A management and technology-driven cost reductions. Adjusted EBITDA remained positive at $17.7 million, though lower YoY, as margin pressure was partially absorbed by operational streamlining. Cash on hand of $112.8 million underpins financial flexibility for continued investment and international expansion. Segment reporting highlights the growing contribution of international markets, where agent count, transactions, and sales volume are scaling rapidly from a small base.
- Agent Productivity Compounds: Transactions per agent rose over 5%, magnifying gains across an 83,000+ agent network.
- International Surpasses $100M: Global segment revenue exceeded $100 million YTD, with 44% YoY transaction growth in Q3.
- G&A Step-Down: General and administrative expense fell to $82M, with AI and automation replacing legacy SaaS costs and manual workflows.
Unit economics improved sharply, with transaction processing costs dropping from $621 in Q2 to $523 in Q3, reflecting early returns on automation investments—a trend management believes can continue into 2026.
Executive Commentary
"This quarter has been about simplifying, strengthening, and scaling across every part of the organization... revitalizing Success has become really the model for how we think about platform development across eXp."
Glenn Sanford, Founder, CEO and Chairman
"Incremental improvements in [agent productivity] really begin to compound significantly on that kind of volume... a 5.4% improvement just on the quarter in agent productivity shows that that strategy is playing out for us."
Jesse Hill, CFO
Strategic Positioning
1. Platform Model as Competitive Moat
eXp’s fully digital, agent-centric platform model is now a core differentiator, enabling rapid scaling without legacy real estate overhead. The company’s internal “value stack”—including proprietary training, tools, and AI-driven operations—supports both solo agents and large teams, offering a flexible foundation for growth in both established and new markets.
2. Global Expansion Playbook Gains Traction
International expansion is executed through a repeatable “country launch playbook,” which has enabled five new market entries YTD and immediate agent and transaction activity from day one. Recent launches in Japan, South Korea, and upcoming entries in Luxembourg, Netherlands, and Romania highlight eXp’s ability to disrupt legacy franchise and employed models with a more attractive agent value proposition and revenue share incentives.
3. AI and Automation Drive Operating Leverage
Back office automation and in-house AI tools have replaced manual processes and high-cost SaaS solutions, compressing G&A and transaction costs. The company’s DocAI document review system, internal communication hubs, and agent-facing microsites are driving both efficiency and agent engagement, with management citing $7 million in run-rate cost savings QoQ.
4. Team Recruitment and Retention Strategy
eXp’s focus on attracting high-performing teams is paying off, with 39% of new agents in Q3 joining as part of a team and top 250 teams growing revenue more than 15% YoY—far outpacing company averages. The FastCap and Fast Attract programs, delivered through eXp University, are core to onboarding and upskilling teams, reinforcing the collaborative, high-velocity culture that distinguishes eXp from legacy peers.
5. Financial Flexibility and Disciplined Investment
Management emphasized a commitment to maintaining a strong balance sheet, reserving capital for strategic investments in technology, affiliate programs, and international expansion. The company’s ability to scale profitably and adaptively is underpinned by a lean cost structure and ongoing operational discipline.
Key Considerations
eXp’s Q3 results reflect a business in transition from disruptor to scaled platform incumbent, leveraging technology and international reach to outpace legacy models. Investors should weigh the following:
Key Considerations:
- International Momentum: Global segment growth is accelerating, but remains a smaller share of total revenue—sustained execution is needed to reach scale.
- Margin Pressure from Productive Agents: Higher caps and revenue share payouts create margin headwinds as top agents succeed, requiring continued cost discipline.
- AI-Driven Cost Reductions: Early automation gains are material, but ongoing investment in internal tools will be necessary to maintain the cost advantage.
- Team-Centric Ecosystem: The company’s ability to attract and retain high-performing teams is a major differentiator, but competitive recruiting dynamics remain intense.
- Platform Integration Risks: Rapid development and deployment of new tools and systems could pose integration and adoption risks if not managed carefully.
Risks
eXp’s reliance on rapid technology adoption and international scaling carries execution risk, particularly as new markets may have different regulatory, cultural, and competitive dynamics. Margin compression from increased revenue share and cap attainment by top agents could persist, requiring continued operational efficiency. Industry consolidation and the emergence of other platform models may intensify competitive pressure, challenging eXp’s ability to maintain its leadership position.
Forward Outlook
For Q4 2025, eXp management did not provide specific quantitative guidance but reiterated its focus on:
- Further leveraging AI and automation to drive operational efficiency and lower unit costs.
- Disciplined international expansion with a goal of 50,000 agents in 50 countries by 2030.
For full-year 2025, management maintained its commitment to profitable growth, emphasizing:
- Continued investment in technology and affiliate programs to support agents and expand margin opportunities.
- Financial flexibility to invest opportunistically while maintaining a strong balance sheet.
Management highlighted that ongoing cost discipline and scalable systems will be key to navigating industry volatility and capturing share as market dynamics evolve.
- AI and automation remain central to future cost reductions.
- International expansion and team recruitment are top strategic priorities.
Takeaways
eXp’s Q3 demonstrates the power of platform scale, as productivity gains and international growth offset cyclical headwinds and margin pressure. Investors should focus on:
- International Leverage: Global segment growth is shifting eXp’s revenue mix, with new markets and agent productivity gains compounding at scale.
- Cost Structure Transformation: AI and automation are delivering tangible G&A and transaction cost reductions, creating operating leverage for future growth.
- Team Ecosystem as Growth Engine: The company’s ability to attract and scale high-performing teams is a major competitive advantage, but requires continued investment in onboarding, tools, and collaborative culture.
Conclusion
eXp World Holdings is executing a platform-first strategy, with international expansion, agent productivity, and AI-driven efficiency reshaping its growth trajectory. While margin pressure and competitive intensity persist, disciplined investment and a scalable operating model position eXp to capitalize on industry disruption and consolidation in 2026 and beyond.
Industry Read-Through
eXp’s results signal a broader shift in the real estate industry toward platform-based, agent-centric models, with digital infrastructure and automation compressing costs and enabling global scale. Legacy brokerages face mounting pressure to adapt, as high-performing teams gravitate to flexible, technology-enabled ecosystems. The rapid adoption of AI for transaction management and agent support could become a new industry baseline, while international expansion strategies may accelerate as digital models prove their scalability. Investors should monitor how other brokerages respond to these forces, as the gap between incumbents and digital platforms widens.