In 2021, AGNT founder Glenn Sanford said eXp would reach 500,000 agents in five years. That goal has long been abandoned in favor of recruiting and retaining only the most productive agents — a move that company leaders say laid the groundwork for the company’s record-breaking second-quarter revenue.
Glenn Sanford | Credit: LinkedIn
“The name change to AGNT, Inc. this quarter says plainly what this company now is,” Sanford, chairman and CEO of AGNT, Inc., said in a written statement. “One platform, multiple brokerage models, all of it built to serve agents. eXp Realty is the most agent-centric brokerage on the planet, and NextHome extends that reach to agents and broker/owners who want something different. A broader platform with more opportunities is a more resilient one.”
AGNT, formerly known as eXp World Holdings, saw its revenue grow 11 percent year over year to $1.4 billion. However, net losses grew during the quarter, expanding from $2.3 million to $2.7 million. The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 129 percent year over year to $25.7 million.
AGNT’s agent count increased 6 percent year over year to 87,833, including the roughly 4,900 agents under NextHome. The productivity per agent also jumped, increasing by 6 percent to 5.5 transaction sides.
Agents on teams were 78 percent more productive than individual agents during the quarter, and agents who participated in eXp’s co-sponsor program had 40 percent higher production and were 10 percent more likely to stay with the firm.
AGNT Chief Financial Officer Jesse Hill said the “incremental increase” in productivity led to notable gains in transaction sides (+12 percent to 132,000) and sales volume (+15 percent) during the quarter. AGNT’s market share also edged up, reaching 3 percent.
Leo Pareja
“Our second quarter results are a testament to what happens when you build a platform that genuinely serves agents,” eXp Realty CEO Leo Pareja said. “Record revenue and record transactions don’t happen by accident; they are the direct result of agents choosing to grow their businesses with us, stay on the platform, and produce more.”
“Retention continues to be highest among our top quartile of producers, and transactions per agent continue to climb, reinforcing our belief that platform utility, not just network size, is what drives durable growth,” he added. “EXp Realty remains the engine of this platform, and we are just getting started.”
As for NextHome’s impact on AGNT’s second-quarter earnings, Hill said the franchisor’s contribution was “smaller, more modest,” with eXp’s revenue accounting for gross commission income and NextHome mainly generating revenue through franchise fees. The CFO said AGNT expects that to be the story in the “shorter term” as AGNT begins to execute the multi-model blueprint it unveiled after acquiring NextHome in May.
A significant part of the blueprint is the AGNT OS platform, which uses artificial intelligence to automate much of the agent workflow, from document review to compliance and advertising review. The platform also includes an agent development tool, Fast Cap, and after-hours policy and procedure support.
“All of our staff have access to at least one enterprise AI in their day-to-day work … And with the models improving the way they are, we’re just in the early stages of seeing where AI can take us over the next few years,” Sanford said.
