eXp World Holdings, the holding company for eXp Realty, released its financial report for the second quarter of 2023, highlighting a positive net income of $9.4 million. Revenue during the quarter reached $1.2 billion, a 13% decrease from the same period in 2022, while gross profit decreased 10% to $96.5 million. Adjusted EBITDA was $24.7 million and net income was $9.4 million.
Agents and brokers on the eXp Realty platform increased 7% year over year to 88,248, even as transactions decreased by 9% and transaction volume decreased 16% to $48.6 billion.
“We delivered another profitable quarter despite lower transaction volume, as persistently high mortgage rates kept many buyers on the sidelines,” said Jeff Whiteside, eXp World Holdings CFO and Chief Collaboration Officer. “Even as we continued to fund our key growth priorities and invest in agent-centric innovation, our balanced approach to spending resulted in a higher operating margin compared to the prior year quarter. Our efficient, cloud-based model, strong balance sheet and attractive operating cash flow profile are enabling us to invest in our agents to drive long-term growth and shareholder value. While high mortgage rates are expected to persist in the short term, consumer price inflation has started to cool down in our core North American market, and forward interest rate curves suggest that rates may now be at or near peak levels. We are optimistic that lower mortgage rates will unleash significant pent-up demand as affordability improves and buyers can once again meet seller price objectives.”
The company ended the quarter with cash and cash equivalents of $124.7 million, up from $121.6 million at the end of 2022.