AGNT, Inc 10-Q for FY2024 Q2

AGNT, Inc. (AGNT)

10-Q 2024-07-31 For: 2024-06-30

Added on April 10, 2026

About this 10-Q

AGNT, Inc filed this 10-Q on July 31, 2024, covering the quarter ended June 30, 2024 (FY2024 Q2).

Headline figures

Quarter ended June 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.3B; up 5.2% from $1.23B a year earlier
Net income: $12.38M; up 31.4% from net income of $9.42M a year earlier
Diluted EPS: $0.08; up 33.3% from $0.06 a year earlier

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Delaware		98-0681092
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

2219 Rimland Drive, Suite 301, Bellingham, WA		98226
(Address of principal executive offices)		(Zip Code)
(360) 685-4206
(Registrant’s telephone number, including area code)


(Title of Each Class)	(Trading Symbol)	(Name of each exchange on which registered)
Common Stock, $0.00001 par value per share	EXPI	The Nasdaq Stock Market


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐


		Page
	Forward Looking Statements	3

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35


	June 30, 2024	December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 108,395	$ 125,873
Restricted cash	85,126	44,020
Accounts receivable, net of allowance for credit losses of $1,527 and $2,204, respectively	133,896	85,343
Prepaids and other assets	7,082	9,275
Current assets of discontinued operations	1,068	1,964
TOTAL CURRENT ASSETS	335,567	266,475
Property, plant, and equipment, net	11,789	12,967
Other noncurrent assets	10,815	7,410
Intangible assets, net	5,965	7,012
Deferred tax assets	66,916	69,253
Goodwill	19,673	16,982
Noncurrent assets of discontinued operations	6,706	5,569
TOTAL ASSETS	$ 457,431	$ 385,668

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$ 11,529	$ 8,788
Customer deposits	86,496	44,550
Accrued expenses	122,497	86,483
Litigation contingency	16,000	-
Other liabilities	23	10
Current liabilities of discontinued operations	560	1,809
TOTAL CURRENT LIABILITIES	237,105	141,640
Long-term payable	-	20
TOTAL LIABILITIES	237,105	141,660

EQUITY
Common Stock, $0.00001 par value 900,000,000 shares authorized; 189,947,235 issued and 153,733,373 outstanding at June 30, 2024; 183,606,708 issued and 154,669,037 outstanding at December 31, 2023	2	2
Additional paid-in capital	883,704	804,833
Treasury stock, at cost: 36,213,862 and 28,937,671 shares held, respectively	(626,825)	(545,559)
Accumulated deficit	(35,100)	(16,769)
Accumulated other comprehensive (loss) income	(1,455)	332
Total eXp World Holdings, Inc. stockholders' equity	220,326	242,839
Equity attributable to noncontrolling interest	-	1,169
TOTAL EQUITY	220,326	244,008
TOTAL LIABILITIES AND EQUITY	$ 457,431	$ 385,668


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Revenues	$ 1,295,244	$ 1,231,116	$ 2,238,298	$ 2,079,569
Operating expenses
Commissions and other agent-related costs	1,197,668	1,135,615	2,062,414	1,912,453
General and administrative expenses	61,160	64,917	123,742	119,543
Technology and development expenses	14,848	14,888	29,609	28,948
Sales and marketing expenses	3,031	2,860	6,170	5,787
Litigation contingency	-	-	16,000	-
Total operating expenses	1,276,707	1,218,280	2,237,935	2,066,731
Operating income	18,537	12,836	363	12,838
Other (income) expense
Other (income) expense, net	(1,749)	(1,294)	(2,937)	(2,168)
Equity in losses of unconsolidated affiliates	374	143	523	485
Total other (income) expense, net	(1,375)	(1,151)	(2,414)	(1,683)
Income before income tax expense	19,912	13,987	2,777	14,521
Income tax expense	8,146	2,632	4,841	1,174
Net income (loss) from continuing operations	11,766	11,355	(2,064)	13,347
Net income (loss) from discontinued operations	617	(1,933)	(1,192)	(2,472)
Net income (loss)	$ 12,383	$ 9,422	($ 3,256)	$ 10,875

Earnings (loss) per share
Basic, net income (loss) from continuing operations	$ 0.08	$ 0.07	($ 0.01)	$ 0.09
Basic, net income (loss) from discontinued operations	$ 0.00	($ 0.01)	($ 0.01)	($ 0.02)
Basic, net income (loss)	$ 0.08	$ 0.06	($ 0.02)	$ 0.07
Diluted, net income (loss) from continuing operations	$ 0.08	$ 0.07	($ 0.01)	$ 0.09
Diluted, net income (loss) from discontinued operations	$ 0.00	($ 0.01)	($ 0.01)	($ 0.02)
Diluted, net income (loss)	$ 0.08	$ 0.06	($ 0.02)	$ 0.07
Weighted average shares outstanding
Basic	153,580,879	153,249,120	154,160,607	152,899,883
Diluted	155,984,147	156,693,959	154,160,607	156,119,627
Comprehensive income (loss):
Net income (loss)	$ 12,383	$ 9,422	($ 3,256)	$ 10,875
Other comprehensive income (loss):
Foreign currency translation gain (loss), net of tax	(898)	64	(1,787)	707
Comprehensive income (loss) attributable to eXp World Holdings, Inc.	$ 11,485	$ 9,486	($ 5,043)	$ 11,582


	Cash and cash equivalents	Restricted cash	Total
Balance, June 30, 2023	$ 124,714	$ 88,560	$ 213,274
Balance, December 31, 2023	$ 125,873	$ 44,020	$ 169,893
Balance, June 30, 2024	$ 108,395	$ 85,126	$ 193,521


ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS
(Unaudited)

	June 30, 2024	December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 684	$ 991
Accounts receivable, net of allowance for credit losses of $194 and $99, respectively	289	626
Prepaids and other assets	95	347
TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS	1,068	1,964
Property, plant, and equipment, net	7	11
Intangible assets, net	2,753	3,469
Deferred tax assets	3,946	2,089
TOTAL ASSETS OF DISCONTINUED OPERATIONS	$ 7,774	$ 7,533

LIABILITIES
CURRENT LIABILITIES
Accounts payable	$ 7	$ 110
Accrued expenses	553	1,699
TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS	560	1,809
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS	$ 560	$ 1,809


INCOME STATEMENT OF DISCONTINUED OPERATIONS
(Unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Revenues	$ 4	$ 1,811	$ 653	$ 3,974
Operating expenses
Cost of revenue	910	796	1,589	1,517
General and administrative expenses	309	2,578	2,074	5,308
Technology and development expenses	99	158	215	509
Sales and marketing expenses	1	18	(2)	54
Total operating expenses	1,319	3,550	3,876	7,388
Operating (loss)	(1,315)	(1,739)	(3,223)	(3,414)
Other income
Other income, net	(6)	(5)	(23)	(11)
Total other income, net	(6)	(5)	(23)	(11)
(Loss) before income tax expense	(1,309)	(1,734)	(3,200)	(3,403)
Income tax benefit (expense)	1,926	(199)	2,008	931
Net income (loss) from discontinued operations	$ 617	($ 1,933)	($ 1,192)	($ 2,472)


	June 30, 2024	December 31, 2023
Computer hardware and software	$ 38,830	$ 37,444
Furniture, fixture, and equipment	2,221	2,254
Total depreciable property and equipment	41,051	39,698
Less: accumulated depreciation	(31,451)	(27,733)
Depreciable property, net	9,600	11,965
Discontinued operations	(7)	(11)
Assets under development	2,196	1,013
Property, plant, and equipment, net	$ 11,789	$ 12,967


	June 30, 2024
	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount
Trade name	$ 2,655	($ 1,393)	$ 1,262
Existing technology	3,345	(1,498)	1,847
Non-competition agreements	458	(347)	111
Customer relationships	1,284	(698)	586
Licensing agreement	210	(210)	-
Intellectual property	2,836	(677)	2,159
Total intangible assets	$ 10,788	($ 4,823)	$ 5,965


		Amount
Stock grant liability balance at December 31, 2022		$ 3,885
Stock grant liability increase year to date		3,832
Stock grants reclassified from liability to equity year to date		(2,717)
Balance, December 31, 2023		$ 5,000
Stock grant liability increase year to date		1,288
Stock grants reclassified from liability to equity year to date		(806)
Balance, June 30, 2024		$ 5,482


	Revenues		Revenues
	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
North American Realty	$ 1,274,621	$ 1,219,345	$ 2,201,758	$ 2,056,459
International Realty	20,316	11,991	35,912	22,748
Other Affiliated Services	1,467	1,072	3,255	2,749
Revenues reconciliation:
Segment eliminations	(1,160)	(1,292)	(2,627)	(2,387)
Consolidated revenues	$ 1,295,244	$ 1,231,116	$ 2,238,298	$ 2,079,569


	Adjusted EBITDA		Adjusted EBITDA
	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
North American Realty	$ 38,503	$ 34,122	$ 56,312	$ 55,325
International Realty	(2,376)	(3,782)	(5,731)	(7,458)
Other Affiliated Services	(988)	(1,168)	(1,755)	(1,849)
Corporate expenses and other	(2,325)	(2,325)	(4,968)	(4,548)
Consolidated Adjusted EBITDA	$ 32,814	$ 26,847	$ 43,858	$ 41,470

Operating Profit Reconciliation:
Depreciation and amortization expense	2,963	3,143	5,363	5,358
Litigation contingency	-	-	16,000	-
Stock compensation expense	9,329	8,488	18,157	18,148
Stock option expense	1,985	2,380	3,975	5,126
Consolidated operating profit	$ 18,537	$ 12,836	$ 363	$ 12,838


	Goodwill
	June 30, 2024	December 31, 2023
North American Realty	$ 17,286	$ 14,595
International Realty	-	-
Other Affiliated Services	2,387	2,387
Segment and consolidated total	19,673	16,982


	Six Months Ended June 30,
	2024	2023
OPERATING ACTIVITIES
Net income (loss)	($ 3,256)	$ 10,875
Reconciliation of net income (loss) to net cash provided by operating activities:
Depreciation expense	3,950	4,163
Amortization expense - intangible assets	1,413	1,195
Allowance for credit losses on receivables/bad debt on receivables	(677)	(2,470)
Equity in loss of unconsolidated affiliates	523	485
Agent growth incentive stock compensation expense	18,157	18,148
Stock option compensation	3,975	5,126
Agent equity stock compensation expense	56,456	65,652
Deferred income taxes, net	2,337	3,370
Changes in operating assets and liabilities:
Accounts receivable	(48,871)	(45,266)
Prepaids and other assets	1,841	367
Customer deposits	41,946	50,854
Accounts payable	2,741	(3,069)
Accrued expenses	35,243	49,273
Long term payable	-	(4,692)
Litigation contingency	16,000	-
Other operating activities	23	157
NET CASH PROVIDED BY OPERATING ACTIVITIES	131,801	154,168
INVESTING ACTIVITIES
Purchases of property, plant, equipment	(2,772)	(3,433)
Purchase of business	(3,150)	-
Investments in unconsolidated affiliates	(3,938)	(5,350)
Capitalized software development costs in intangible assets	(509)	(1,179)
NET CASH USED IN INVESTING ACTIVITIES	(10,369)	(9,962)
FINANCING ACTIVITIES
Repurchase of common stock	(81,266)	(78,728)
Proceeds from exercise of options	1,052	1,253
Transactions with noncontrolling interests	(1,169)	-
Dividends declared and paid	(15,075)	(13,460)
NET CASH USED IN FINANCING ACTIVITIES	(96,458)	(90,935)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	(1,346)	620
Net change in cash, cash equivalents and restricted cash	23,628	53,891
Cash, cash equivalents and restricted cash, beginning balance	169,893	159,383
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$ 193,521	$ 213,274


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Common stock:
Balance, beginning of quarter	186,361,476	174,532,043	183,606,708	171,656,030
Shares issued for stock options exercised	14,286	79,599	225,444	192,807
Agent growth incentive stock compensation	678,825	730,003	1,032,513	1,386,439
Agent equity stock compensation	2,892,648	2,558,438	5,082,570	4,664,807
Balance, end of quarter	189,947,235	177,900,083	189,947,235	177,900,083


	Three Months Ended	Three Months Ended	Change 2024 vs. 2023
	June 30, 2024	June 30, 2023	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 1,295,244	$ 1,231,116	$ 64,128	5%
Operating expenses
Commissions and other agent-related costs	1,197,668	1,135,615	62,053	5%
General and administrative expenses	61,160	64,917	(3,757)	(6)%
Technology and development expenses	14,848	14,888	(40)	-%
Sales and marketing expenses	3,031	2,860	171	6%
Total operating expenses	1,276,707	1,218,280	58,427	5%
Operating income	18,537	12,836	5,701	44%
Other (income) expense
Total other (income) expense, net	(1,749)	(1,294)	(455)	(35)%
Equity in losses of unconsolidated affiliates	374	143	231	162%
Total other (income) expense, net	(1,375)	(1,151)	(224)	(19)%
Income before income tax expense	19,912	13,987	5,925	42%
Income tax expense	8,146	2,632	5,514	209%
Net income (loss) from continuing operations	11,766	11,355	411	4%
Adjusted EBITDA⁽¹⁾	$ 32,814	$ 26,847	$ 5,967	22%


	Six Months Ended	Six Months Ended	Change 2024 vs. 2023
	June 30, 2024	June 30, 2023	$	%

	(In thousands)
Statement of Operations Data:
Revenues	$ 2,238,298	$ 2,079,569	$ 158,729	8%
Operating expenses
Commissions and other agent-related costs	2,062,414	1,912,453	149,961	8%
General and administrative expenses	123,742	119,543	4,199	4%
Technology and development expenses	29,609	28,948	661	2%
Sales and marketing expenses	6,170	5,787	383	7%
Litigation contingency	16,000	-	16,000	-%
Total operating expenses	2,237,935	2,066,731	171,204	8%
Operating income	363	12,838	(12,475)	(97)%
Other (income) expense
Total other (income) expense, net	(2,937)	(2,168)	(769)	(35)%
Equity in losses of unconsolidated affiliates	523	485	38	8%
Total other (income) expense, net	(2,414)	(1,683)	(731)	(43)%
Income before income tax expense	2,777	14,521	(11,744)	(81)%
Income tax expense	4,841	1,174	3,667	312%
Net income (loss) from continuing operations	(2,064)	13,347	(15,411)	(115)%
Adjusted EBITDA⁽¹⁾	$ 43,858	$ 41,470	$ 2,388	6%


Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs⁽¹⁾	Approximate dollar value of shares that may yet be purchased under the plans or programs
4/1/2024-4/30/2024	2,002,515	$ 10.12	2,002,515	$ 379,074,101
5/1/2024-5/31/2024	1,327,188	11.91	1,327,188	364,074,109
6/1/2024-6/30/2024	1,369,246	10.90	1,369,246	349,080,915
Total	4,698,949	$ 10.98	4,698,949


Exhibit		Exhibit			Incorporated by Reference
Number		Description	Form	Exhibit	Filing Date/Period End Date
3.1		Restated Certificate of Incorporation	10-K	3.1	2/28/2023

3.2		Restated Bylaws	10-K	3.2	2/28/2023


10.1		Eighth Amendment to eXp World Holdings, Inc. Stock Repurchase Plan	8-K	10.1	6/20/2024

10.2*†		eXp World Holdings, Inc. 2024 Equity Incentive Plan

31.1*		Certification of the Chief Executive Officer pursuant to Rule 13a 14(a) under the Securities Exchange Act of 1934

31.2*		Certification of the Chief Financial Officer pursuant to Rule 13a 14(a) under the Securities Exchange Act of 1934

32.1**		Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2**		Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document

101.SCH	*	Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


July 31, 2024		eXp World Holdings, Inc.
		(Registrant)

		/s/ Kent Cheng
		Kent Cheng
		Chief Accounting Officer (Principal Financial Officer)


	(i) by forgiveness of indebtedness owed by the Company to the purchaser;
	(ii) by surrender of shares of the Company held by the Participant that have a Fair Market Value on the date of surrender equal to the aggregate exercise price or purchase price of the Shares as to which said Award will be exercised or settled;

	(iii) by reducing the number of shares of Stock to be delivered to the Participant upon exercise of the Option or settlement of an Award, with the reduction valued on the basis of the aggregate Fair Market Value on the Date of Exercise or purchase of the additional shares of Stock that would otherwise have been delivered to the Participant upon the Option exercise or Award settlement;
	(iv) by the delivery, concurrently with such exercise and in accordance with Regulation T promulgated under the Securities Exchange Act of 1934, or any successor rule or regulation, of a properly executed exercise notice for the Option and irrevocable instructions to a broker promptly to deliver to the Company to pay the exercise price a specified amount of the proceeds of a sale of the Option shares or loan secured by the Option shares;
	(v) by waiver of compensation due or accrued to the Participant for services rendered or to be rendered to the Company or a Parent or Subsidiary of the Company; and/or
	(vi) by any combination of the foregoing or by other means determined by the Board to be consistent with this Plan’s purposes.


Date:	July 31, 2024

By:	/s/ Glenn Sanford
	Glenn Sanford
	Chief Executive Officer (Principal Executive Officer)

February 25, 2021
Date:		July 31, 2024

By:		/s/ Kent Cheng
	Kent Cheng
	Chief Accounting Officer (Principal Financial Officer)