Real estate technology company eXp World (NASDAQ: EXPI) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 8.5% year on year to $1.19 billion. Its GAAP loss of $0.08 per share was significantly below analysts’ consensus estimates.
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eXp World (EXPI) Q4 CY2025 Highlights:
- Revenue: $1.19 billion vs analyst estimates of $1.16 billion (8.5% year-on-year growth, 2.6% beat)
- EPS (GAAP): -$0.08 vs analyst estimates of -$0.02 (significant miss)
- Adjusted EBITDA: $2.1 million vs analyst estimates of $10.2 million (0.2% margin, 79.4% miss)
- Operating Margin: -1.1%, in line with the same quarter last year
- Free Cash Flow Margin: 1.2%, similar to the same quarter last year
- Market Capitalization: $1.16 billion
Company Overview
Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, eXp World grew its sales at a 21.6% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. eXp World’s recent performance shows its demand has slowed as its annualized revenue growth of 5.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, eXp World reported year-on-year revenue growth of 8.5%, and its $1.19 billion of revenue exceeded Wall Street’s estimates by 2.6%.
Looking ahead, sell-side analysts expect revenue to grow 4.4% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its products and services will see some demand headwinds.
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Operating Margin
eXp World’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same. The company broke even over the last two years, inadequate for a consumer discretionary business. Its large expense base and inefficient cost structure were the main culprits behind this performance.
This quarter, eXp World generated a negative 1.1% operating margin. The company's consistent lack of profits raise a flag.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Sadly for eXp World, its EPS declined by 21.6% annually over the last five years while its revenue grew by 21.6%. This tells us the company became less profitable on a per-share basis as it expanded.
In Q4, eXp World reported EPS of negative $0.08, down from negative $0.06 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast eXp World’s full-year EPS of negative $0.14 will flip to positive $0.12.
Key Takeaways from eXp World’s Q4 Results
It was encouraging to see eXp World beat analysts’ revenue expectations this quarter. On the other hand, its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 1.9% to $7.24 immediately after reporting.
eXp World’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
