Real estate technology company eXp World (NASDAQ: EXPI) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 5.3% year on year to $1.01 billion. Guidance for next quarter’s revenue was optimistic at $1.41 billion at the midpoint, 2.5% above analysts’ estimates. Its GAAP loss of $0.03 per share was $0.02 above analysts’ consensus estimates.
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eXp World (EXPI) Q1 CY2026 Highlights:
- Revenue: $1.01 billion vs analyst estimates of $972.7 million (5.3% year-on-year growth, 3.4% beat)
- EPS (GAAP): -$0.03 vs analyst estimates of -$0.05 ($0.02 beat)
- Adjusted EBITDA: $4.05 million vs analyst estimates of $3.06 million (0.4% margin, relatively in line)
- Revenue Guidance for the full year is $5 billion at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $62.5 million at the midpoint, below analyst estimates of $65.83 million
- Operating Margin: -0.9%, in line with the same quarter last year
- Free Cash Flow Margin: 1.8%, down from 3.9% in the same quarter last year
- Market Capitalization: $1.05 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 put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, eXp World grew its sales at a 18% annual 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 5.1% 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 5.3%, and its $1.01 billion of revenue exceeded Wall Street’s estimates by 3.4%. Company management is currently guiding for a 7.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not accelerate its top-line performance yet.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
eXp World’s operating margin has more or less stayed the same over the last 12 months . 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.
eXp World’s operating margin was negative 0.9% this quarter. 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 19.3% annually over the last five years while its revenue grew by 18%. This tells us the company became less profitable on a per-share basis as it expanded.
In Q1, eXp World reported EPS of negative $0.03, up from negative $0.07 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.
Key Takeaways from eXp World’s Q1 Results
It was good to see eXp World beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its EBITDA guidance for next quarter missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this print was mixed. The stock remained flat at $6.76 immediately following the results.
Is eXp World an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
