AGNT

AGNT (eXp World Holdings) is a high-volume, low-margin residential brokerage whose top line keeps grinding higher — FY2025 revenue of $4.77B (+4.5% YoY) on 440,163 transactions and $194B in sales volume — but the economics underneath are fragile. Gross margin is just 7.0% and has compressed (gross profit fell to $334M from $342M despite higher revenue), operating income was -$21.5M, and net income was -$22.7M, the third straight annual loss. Adjusted EBITDA collapsed from $75.5M to $33.2M, and 'real estate per transaction cost' rose from $559 to $624 — a direct admission that unit economics are deteriorating even as scale grows. Agent count was flat at 83,060, so the growth engine (agent recruitment) has stalled.

The MD&A is candid that performance is tied to the U.S. housing cycle, and the Risk Factors lean hard on 'high interest rates during 2024 and 2025' and affordability constraints suppressing transaction volumes. Management is responding by sprinkling in optionality — expansion into Peru, Ecuador, Türkiye, Japan, Romania, Netherlands; the LYVVE global search platform; Land/Ranch and Sports/Entertainment divisions; CRM of Choice — but none of this changes the structural 7% gross take-rate, and international launches typically dilute near-term margins.