eXp World Holdings Reports Q3 2025 Results

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EXP WORLD HOLDINGS, INC.
CONSOLIDATED US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
*(In thousands)*
*(UNAUDITED)*

	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Net income (loss) from continuing operations	$3,497		($6,481)		($9,818)		($8,545)
Other (income), net		(413)		(520)		(1,989)		(2,934)
Income tax expense (benefit)		932		(1,333)		3,071		3,508
Depreciation and amortization		2,424		2,379		7,257		7,742
Litigation contingency		—		18,000		—		34,000
Stock-based compensation expense (1)		9,694		9,910		27,515		28,067
Stock option expense		1,578		1,987		5,032		5,959
Adjusted EBITDA	$17,712		$23,942		$31,068		$67,797

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ADJUSTED OPERATING CASH FLOW
*(In thousands)*
*(UNAUDITED)*

	Three Months Ended September 30,				Nine Months Ended September 30,
		2025		2024		2025		2024
Net Cash Provided by Operating Activities	$28,891		$45,999		$104,817		$177,800
Less: Customer Deposits		(16,539)		(19,436)		17,805		22,510
Adjusted Operating Cash Flow	$45,430		$65,435		$87,012		$155,290

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EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS *(In thousands, except share amounts)* *(UNAUDITED)*

	September 30, 2025		December 31, 2024

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$112,761		$113,607
Restricted cash		73,620		54,981
Accounts receivable, net of allowance for credit losses of $2,524 and $1,589, respectively		123,766		87,692
Prepaids and other assets		13,001		11,692
TOTAL CURRENT ASSETS		323,148		267,972
Property, plant, and equipment, net		14,058		11,615
Other noncurrent assets		22,570		11,679
Intangible assets, net		4,885		6,456
Deferred tax assets, net		76,435		75,774
Goodwill		17,647		17,226
TOTAL ASSETS	$458,743		$390,722

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$9,781		$10,478
Customer deposits		73,465		55,660
Accrued expenses		123,074		85,661
Litigation contingency		17,000		34,000
Other current liabilities		158		54
TOTAL CURRENT LIABILITIES		223,478		185,853
TOTAL LIABILITIES		223,478		185,853
EQUITY
Common Stock, $0.00001 par value 900,000,000 shares authorized; 204,643,680 issued and 158,836,724 outstanding at September 30, 2025; 195,028,207 issued and 154,133,385 outstanding at December 31, 2024		2		2
Additional paid-in capital		1,069,515		962,758
Treasury stock, at cost: 45,806,956 and 40,894,822 shares held September 30, 2025 and December 31, 2024, respectively		(732,907)		(686,680)
Accumulated deficit		(100,931)		(68,135)
Accumulated other comprehensive (loss)		(414)		(3,076)
TOTAL EQUITY		235,265		204,869
TOTAL LIABILITIES AND EQUITY	$458,743		$390,722

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EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS *(In thousands)* *(UNAUDITED)*

	Nine Months Ended September 30,
		2025		2024
OPERATING ACTIVITIES
Net (loss)	($9,818)		($11,762)
Reconciliation of net (loss) to net cash provided by operating activities:
Depreciation expense		5,243		5,887
Amortization expense – intangible assets		2,014		1,855
Allowance for credit losses on receivables/bad debt on receivables		935		(870)
Equity in loss of unconsolidated affiliates		322		804
Agent growth incentive stock-based compensation expense		27,389		28,067
Stock option compensation		5,032		5,961
Agent equity stock-based compensation expense		74,709		85,997
Deferred income taxes, net		(661)		(684)
Changes in operating assets and liabilities:
Accounts receivable		(35,859)		(18,935)
Prepaids and other assets		(1,309)		1,978
Customer deposits		17,805		22,510
Accounts payable		(698)		1,858
Accrued expenses		36,609		21,114
Litigation contingency		(17,000)		34,000
Other operating activities		104		20
NET CASH PROVIDED BY OPERATING ACTIVITIES		104,817		177,800
INVESTING ACTIVITIES
Purchases of property and equipment		(7,686)		(4,408)
Purchase of business		–		(3,150)
Investments in unconsolidated affiliates		(12,363)		(4,236)
Capitalized software development costs in intangible assets		(443)		(1,165)
NET CASH USED IN INVESTING ACTIVITIES		(20,492)		(12,959)
FINANCING ACTIVITIES
Repurchase of common stock		(46,227)		(116,281)
Proceeds from exercise of options		432		1,644
Transactions with noncontrolling interests		–		(1,169)
Dividends declared and paid		(22,978)		(22,564)
NET CASH USED IN FINANCING ACTIVITIES		(68,773)		(138,370)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash		2,241		(624)
Net change in cash, cash equivalents and restricted cash		17,793		25,847
Cash, cash equivalents and restricted cash, beginning balance		168,588		169,893
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$186,381		$195,740
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Cash paid for income taxes		3,546		2,198
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases in accounts payable		84		–