AGNT, Inc. Common Stock 2026 Q2 Earnings Call

Afternoon. Welcome to the AGNT second quarter 2026 earnings fireside chat via live stream and our metaverse on the web, Frame. My name is Denise Garcia, and I manage investor relations for AGNT, formerly eXp World Holdings. Today, we will begin our earnings fireside chat with remarks from Leo Pareja, CEO of eXp Realty, Jesse Hill, Chief Financial Officer of AGNT, and Glenn Sanford, Founder, CEO, and Chairman of AGNT. Following our prepared remarks, we will open the call to a Q&A session with our speakers. Let's begin with a review of the forward-looking statements. There'll be a number of forward-looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings. Forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements.

Please see our filings with the SEC, including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q, for a discussion of specific risks that may affect our business, performance, and financial condition. We assume no obligation to update or revise any forward-looking statements or information. As a reminder, today's call is being recorded and a replay will also be made available on agnt.inc. For a few logistics and we'll get started.

While in Frame, if you need help, just use the Help button at the bottom right to link with tech support. Should you wish to ask a question during our presentation, you can enter your questions by scanning the QR code presented on this screen with your mobile phone or go to slido.com and type in the event code AGNT. From there, you can submit a question or vote up an existing question by giving a thumbs-up for that question to be asked. This screen will remain up on the right-hand side of the stage. I'll turn the fireside chat over to our speakers before opening the call to questions. Leo, you may begin. Thanks, Denise.

Before I get into the numbers, I just want to ground everyone in what AGNT is today. AGNT is a global operating system for modern real estate entrepreneur and a multi-model platform where independent agents, franchise owners, and team leaders all find a home built for the way they want to grow. Two models, maximum optionality. That's the thesis behind everything I'll walk through today. Which brings me how the multi-model platform actually comes together. eXp Realty remains the undisputed cloud-based leader in our industry. NextHome offers a premier franchise experience. Together, these two brands expand our agent offering and let us serve a wider segment of the market than either brand could reach alone. NextHome is a complementary growth engine that unlocks multi-model reach across distinct market segments. We have seasoned operators in both brands driving execution and aligned incentives.

We share a global referral network connecting eXp agents with NextHome franchisees worldwide, and we're consolidating back office legal technology resources, driving efficiencies across both brands. We are witnessing the financialization of the real estate industry. Across private equity and public company acquisitions, there's about 400,000 agents who find themselves at a franchise over the next couple of years they may no longer feel aligned with, and now we have an opportunity to convert entire franchises as those agreements come due. Let's look at the platform built by agents for agents actually produced this quarter. This was a record revenue quarter, and it was built on agent success. We ended the quarter with 87,338 agents, up 6% year-over-year. Transactions grew even faster. Over 132,000 real estate sale transactions, up 12% year-over-year. Revenue came in at $1.4 billion, up 11% year-over-year.

Productivity, transactions per agent was up 6%. Put simply, record revenue driven by increased agent productivity. That's not just agent counting doing the work. That's our agents doing more and doing it better, which is exactly why retention of the best agents matters so much, and that's our next slide. We continue to see our least productive cohorts churn out of the industry entirely, not just out of eXp. 67% of non-productive agents in the U.S. who left eXp actually left the industry altogether in Q2. Meanwhile, we're growing productivity with teams. 41% of new Q2 agents joined on teams, and agents on teams are 78% more productive than individual agents. Our co-sponsor program just hit a one-year anniversary. Here's what we found. Agents with a co-sponsor show 40% higher production and have 10% higher retention rate. This was a deliberate strategy.

Attract productive agents, put them in a structure that makes them more productive, and retain them. It's working. I want to shift gears and talk about how we're building the platform underneath all of this. Everything I just walked through is only possible because the platform we're building underneath it. AGNT OS brings everything an agent needs to run their business together in one place. Instead of agents juggling a dozen disconnected logins and tools, AGNT OS, which operates the Hub for eXp Realty agents, is the operating system for the agent's business. No more needing to find where to log in. All agents have to do is exprealty.com, log in as an agent, and you'll be taken to the Hub. Then they can download the Hub app to their phone. The app is available on both Apple and Android.

Group chats, text, SkySlope, My eXp University, Marketplace, and everything you need to run your business is now live directly inside the Hub. This is the foundation for our AI native platform I want to spend the rest of my time talking about. We're transforming eXp into an AI native platform. One built to give agents the tools they need to be productive and manage their business, and to increase on their own operating efficiency at the same time. And it's working. I'll share some examples from the second quarter. DocAI, our review assistant, has been trained on thousands of documents. It has now reviewed over 5 million documents and validated 22,000 daily uploads at a score of 100%. Task center automation resulted in 19% year-over-year increase in files handled per transaction analyst. Our AI enhanced expert care now resolves the majority of incoming chats automatically.

CARLO, our comprehensive advertising review logic operator to review agents' advertising and signage and log broker supervision automatically, is now deployed across residential brokerage operations with commercial in progress. Broker Assistant delivers immediate, scalable after-hour support for policies, procedures, and guidance across our state sites and eXp Hub. FastCAP, our AI-powered agent development tool, features a role-play accelerator that's been used over 2,800 times this quarter for scalable on-demand skills development. While we're building AI native tools here domestically, our international business has been building its own operating system, Nexus, which I'll show on the next slide. Nexus brings every tool our international agents use into one connected system, from a project management tool that keeps every transaction on track, to our global property search platform, connecting buyers and sellers across borders in one seamless experience. This isn't six disconnected tools bolt together.

It's one system, four foundations, one identity, one data layer, one AI layer, and built to scale from day one. We're seeing the momentum we've created in our international business show up in the numbers. In the second quarter, international revenue grew 44% year-over-year, while at the same time, we cut our international operating loss by 57% year-over-year and reduced our Adjusted EBITDA loss by 66% year-over-year. This is the same pattern we're seeing domestically with AI native tooling. Give agents a better platform and the efficiency follows. Which brings me to how I'd sum up the quarter. We're controlling the controllable, and it shows. Record revenue with increased operating efficiency. We're transforming into a multi-model AI native platform that give agents the tools they need to be productive and manage their business. As I walk through, it's working.

We like our position. We're playing offense on AI and efficiency, and defense on the balance sheet. With that, I'll hand over the call to Jesse to walk through the second quarter financial results.

Jesse? Thank you, Leo. Now I'll walk us through our consolidated operational and financial highlights for the second quarter 2026, beginning on the next slide.

Starting with operational metrics on a consolidated basis, we ended the quarter with over 87,000 agents, with continued low attrition among our most productive agent cohorts. Productivity per person, or PPP, was up over 6% at 5.5, while volume increased 15% for the quarter. Higher PPP drove sales transactions up 12% year-over-year, resulting in over 132,000 sales transactions in the second quarter. On the next slide, I'll walk through our second quarter financials. Starting with revenue, we generated $1.4 billion in the second quarter, up 11% year-over-year at the high end of our guidance range, despite continued pressures in the macroeconomic environment. Gross profit was $98.8 million, up 7% year-over-year.

Prior investments in technology and process improvements are strengthening both our top and bottom lines, excluding one-time items. Operating income was $1.6 million for the quarter, up 169% year-over-year compared to an operating loss position in the second quarter of 2025. Operating expenses were $97.2 million, $200,000 above the high end of our guidance range, primarily driven by one-time non-recurring costs. Adjusted EBITDA was $25.7 million for the quarter and above the high end of our guidance range of $21 million and up 129% year-over-year. Finally, we ended the quarter with $111.2 million in cash on the balance sheet, up 18% year-over-year. On the next slide, I'll walk through our financial results by segment.