eXp Holdings reports a loss in Q4 as agent count slows

Revenue rose at eXp World Holdings during the fourth quarter of 2023, but the firm was unable to overcome a slow housing market, resulting in a $21 million loss and slower agent count growth.

Revenue at the parent company of eXp Realty was up 5% year-over-year to $983 million during the fourth quarter of 2023, executives disclosed on Thursday. For the full year of 2023, revenue reached $4.28 billion.

The $21.2 million net loss in Q4 widened significantly from a year prior, when the company lost $7.2 million. 

Overall, eXp World Holdings sustained a net loss of $9 million in 2023, compared to a net profit of $15.4 million in 2022.

Revenue and operating expenses rose simultaneously. In the last quarter of 2023, operating expenses rose to $1.01 billion, up from $944.1 million during the same period last year. 

“eXp delivered solid revenue in the fourth quarter, despite continued weakness in the United States residential real estate market, thanks to our global base of highly productive agents,” Glenn Sanford, founder, chairman, and CEO of eXp World Holdings, said in a statement. “Our agent-centric model and value proposition, scale and superior efficiency enable us to invest in the success of our agents.”

EXp’s year-end agent count fell 1.8% compared to the previous quarter, which Sanford said represented the first sequential decline in the company’s history. He added that the departures were mostly from agents who only managed a deal or two per year. By the end of December 2023, eXp Realty’s agent count hit 87,515 and the luxury division’s tally exceeded 1,100 members in late November.

“Our decision to offboard a significant number of unproductive agents during the fourth quarter resulted in a decrease in our agent count quarter-over-quarter, the retention of our most productive agent cohorts remained excellent,” Kent Cheng, principal financial officer at eXp World Holding, said.

Agent loyalty, measured by agent Net Promoter Score (aNPS), reached a record high of 77 for the fourth quarter, up from 73 a year ago. The aNPS measures agents’ satisfaction and other important key performance indicators.

Amid a difficult housing market, transaction sides still increased 6% year over year to 115,424. Sales volume also picked up 3% from the fourth quarter of 2022 to $38.9 billion.

Of its subsidiaries, International Realty revenue kept growing, posting a 66.6% revenue increase year over year in the fourth quarter. Meanwhile, North American Realty revenue increased 4.85% compared to Q4 of 2022, and Virbela’s revenue dropped 31% year over year.