Why eXp World Holdings (EXPI) Is Down 9.6% After Surprise Q2 Loss and Earnings Miss

• eXp World Holdings recently reported second quarter 2025 earnings, showing revenue of US$1,308.88 million and a swing to a net loss of US$2.29 million, compared with a profit in the same period last year.
• Despite affirming a third quarter dividend and completing a significant share buyback tranche, the company's earnings shortfall drew investor attention and outweighed other positive developments.
• We'll explore how the swing to a quarterly net loss and earnings miss influences eXp World Holdings' investment narrative and growth outlook.

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eXp World Holdings Investment Narrative Recap

To be a shareholder in eXp World Holdings, you need to believe in the long-term appeal of its cloud-based brokerage platform and the company's ability to expand internationally while maintaining agent network growth amid a shifting real estate market. The recent swing to a net loss in Q2 2025 raises concerns about near-term profitability, especially as margin headwinds and agent retention remain key risks. Short-term catalysts tied to tech adoption and platform scale are still in play, but the impact of the Q2 earnings miss on these drivers does not appear to be material for now.

Among recent announcements, the company's completion of a significant share buyback tranche, repurchasing 2,850,130 shares for US$24.91 million in Q2 2025, stands out. This share reduction can potentially support shareholder value and reinforces the company's long-term capital allocation plans, but it should be weighed against ongoing profitability pressures and agent growth challenges.

But while these actions may provide some stability, investors should be aware that rising operating expenses and declining agent headcount could still...

Read the full narrative on eXp World Holdings (it's free!)

eXp World Holdings' narrative projects $4.9 billion in revenue and $48.2 million in earnings by 2028. This requires 2.5% yearly revenue growth and a $62.2 million increase in earnings from the current -$14.0 million.

Uncover how eXp World Holdings' forecasts yield a $12.00 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span from US$10.91 to US$72.06 per share, reflecting a wide range of independent viewpoints. As many anticipate continued investment in technology and international growth, recent earnings headwinds may underscore differing expectations for profitability and resilience.

Explore 3 other fair value estimates on eXp World Holdings - why the stock might be worth just $10.91!

Build Your Own eXp World Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your eXp World Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free eXp World Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate eXp World Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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