Acquiring a franchisor could make eXp an attractive option for agents and brokers whose companies were recently acquired in a consolidation rush, eXp executives said.
EXp stayed true to its nimble and asset-light roots this year as volumes rose 2% just before announcing the acquisition of franchisor NextHome.
The company revealed in its earnings report Monday that it generated revenue of just over $1 billion in the first three months of 2026. The company’s net loss was $5.1 million, lower than its $11 million loss in the same period last year.
Monday’s earnings report was also an opportunity for the company to share more details about why it believes it will continue to attract agents and brokers amid a wave of increased competition and consolidation.
“Some people will probably never work for a cloud brokerage, but we just added a whole new lane and green shoot opportunity,” Pareja said on a call with analysts Monday to discuss the report.
Since NextHome is not a publicly traded company, eXp said it has already benefited from acquiring the franchisor.
“Unlike other competitions where contracts have been announced, here it’s over and we’re off to the races,” Pareja said.
He said eXp is positioned to remain agile in the era of consolidation, and targeting NextHome reflects the company’s agility.
“We specifically aimed for a franchise system that is young, growing, well-recognized and well-regarded,” Pareja said. “I see this opportunity where these companies that were legacy players and are now owned by new owners are winding down, creating a huge opportunity for us.”
This acquisition gives agents from other recently acquired brokerages and franchises the option to join eXp, especially as eXp expands beyond its cloud-based brokerage roots.
“Over the past 24 months, a lot of people have woken up completely caught off guard by new ownership structures, from private equity to other public companies,” Pareja said. “Some of these companies have very different worldviews than our own, from consumer-centricity to transparency to mindsets about how listings are displayed.”
Still, there are some important metrics to keep an eye on in the coming months.
Monday’s report showed, among other things, that the company’s Agent Net Promoter Score, which reflects agents’ satisfaction with their brokerage, dropped from 78 last year to 67 this year.
The company claims that a score above 50 indicates “excellent agent satisfaction,” and that this quarter’s fluctuations show the metric is working as intended.
Agent count increased 0.5% year-over-year in the first quarter, and the company now has 82,332 agents. This represents a net increase of 432 agents over the previous year. Monday’s report also showed a 2% increase in trading.
EXp grew 27% in its overseas division in the second quarter, making it the fastest growing overseas.
EXp founder Glenn Sanford said he is focused on rebuilding the company’s SUCCESS platform, reducing the department’s headcount by 60 percent and bringing on new leadership.
The platform aligns with eXp’s model for training and developing agents to drive business, Sanford said.
“EXp has historically been a private development company that just happens to sell real estate,” he said. “We changed the ticker to AGNT. It wasn’t just a superficial thing. It was the clearest expression possible of what this company was and who it was founded for.”
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