AGNT, Inc. (AGNT) Q2 2026 Earnings: Revenue $1.4B (+10.7%)
AGNT — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
AGNT (formerly eXp World Holdings) grew Q2 revenue 11% to a record $1.45B on higher agent productivity and US home prices, but commission capping squeezed gross margin to 6.8% and a 217% tax rate left a $2.7M net loss.
Revenue
$1.4B
+10.7% YoY
Net income
-$2.7M
-17.5% YoY
Diluted EPS
$-0.02
Operating margin
0.1%
This period vs a year ago
Same period last year
This period
Revenue▲+10.7%
≈$1.3B
$1.4B
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
AGNT, Inc. is the company investors knew until June 2026 as eXp World Holdings (ticker EXPI). It owns eXp Realty, a cloud-based residential real estate brokerage with no traditional branch offices, and since May 2026 NextHome, a franchised brokerage. Agents affiliate their licenses with the company and it earns the commission on each home sale, then pays most of it back out to the agents. The company changed its name to AGNT and moved its legal home from Delaware to Texas on June 11, 2026.
In the second quarter of 2026 (April–June) revenue rose 11% to a record $1.45 billion, driven by more home sales closed per agent and higher US home prices. Most of that growth went back out to agents, though: gross profit rose only 7%. The business turned a small operating profit of $1.6 million, against a $2.4 million operating loss a year earlier, but a $5.0 million tax charge on $2.3 million of pre-tax income left a net loss of $2.7 million ($0.02 per share), slightly wider than last year's $2.3 million loss.
At a glance
Revenue $1.45 billion, +11%. Deals closed rose 12% to 132,497 and the dollar value of homes sold rose 15% to $60.5 billion. The business is growing faster than the number of agents (+6%).
Gross margin 6.8%, down from 7.1%. The company keeps only about 7 cents of each revenue dollar, and that share is shrinking as more agents hit their annual commission cap and keep 100% of later commissions.
Net loss $2.7 million despite an operating profit. An effective tax rate of 217% turned $2.3 million of pre-tax profit into a loss. The company attributes this mainly to stock-compensation tax shortfalls and executive pay that cannot be deducted.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$1,449.5M
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$1,308.9M
+10.7%
Gross profit
$98.8M
$92.7M
+6.6%
Gross margin
6.8%
7.1%
-0.3 pts
Total operating expenses
$97.2M
$95.0M
+2.2%
Operating income (loss)
$1.6M
$(2.4)M
Swung to profit
Operating margin
0.1%
-0.2%
+0.3 pts
Net income (loss)
$(2.7)M
$(2.3)M
Loss 17.5% wider
Diluted EPS
$(0.02)
$(0.01)
Loss wider
Adjusted EBITDA (company's non-GAAP measure)
$25.7M
$11.2M
+129%
Real estate sales transactions
132,497
118,612
+11.7%
Real estate sales volume
$60.5B
$52.5B
+15.2%
Agents and brokers (period-end)
87,338
82,704
+5.6%
Overhead cost per transaction
$525
$621
-15%
"Overhead cost per transaction" is the company's own measure: general and administrative, technology and marketing costs divided by all transactions. It is a rough gauge of how cheaply the platform handles each deal.
Where the growth came from
Revenue here is mostly the gross commission on homes agents sell, so it moves with the housing market. The company says the 12% rise in transactions and 15% rise in sales volume came from "increased agent productivity and increased home sale prices." The gap between the two implies an average sale of about $456,000 per transaction side, roughly 3% more than a year ago. Agent count grew 6%, but the 10-Q says that increase came "primarily due to the addition of agents in connection with the NextHome acquisition." It also says the organic agent base "has experienced continued pressure." Growth this quarter came from each agent doing more deals, not from signing up more agents.
By segment:
Segment
Q2 2026 revenue
YoY
Segment adj. EBITDA Q2 2026
Q2 2025
North American Realty
$1,403.0M
+10%
$30.7M
$19.8M
International Realty
$46.4M
+44%
$(1.3)M
$(3.9)M
Other Affiliated Services
$0.7M
-3%
$(0.2)M
$(2.3)M
Corporate and other
$(0.5)M
—
$(3.5)M
$(2.4)M
North America is still about 97% of revenue. It grew on US productivity and prices, "partially offset by lower real estate transactions in Canada." International grew 44% on higher productivity in markets the company had already entered, and it is still loss-making but losing less.
Why so little of the revenue reaches profit
About 93% of revenue ($1.35 billion) went out as "commissions and other agent-related costs": the agents' split, revenue-share payments to agents who recruited others, and stock awards to agents. That line grew 11.1%, a little faster than revenue. The company blames "increased agent commission capping." Under eXp's model, an agent who pays the company a set annual amount keeps all further commission that year, so a stronger selling season leaves the company a smaller share of each extra deal. Productive agents are good for revenue but squeeze the margin, and the drop in gross margin from 7.1% to 6.8% shows that happening.
Cost cuts made in 2025 did the rest. G&A (general and administrative) expense fell to $71.6M from $74.1M on lower employee costs, marketing was flat, and technology spending rose slightly. Two new items appeared in Q2. One was a $4.3 million litigation charge, the full amount AGNT agreed to pay to opt into the Tuccori home-buyer antitrust class-action settlement. The other was $4.5 million of "legal costs non-recurring" linked to "strategic corporate development initiatives." Without those two items, operating expenses would have been about $88.3 million, 7% lower than a year ago.
What the headline numbers hide
The adjusted EBITDA jump flatters the underlying change. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization, plus the company's other add-backs) rose $14.5 million. About $8.8 million of that is the two legal items above, which are added back and had no year-ago equivalent. The measure also excludes $12.1 million of stock pay under the agent growth incentive program and $0.9 million of stock option expense. The company's own filing says these "have been and will continue to be... significant recurring expenses." Compared like for like, GAAP operating income excluding the two legal items went from $(2.4) million to about $10.5 million. That is a real improvement of about $13 million, but on $1.45 billion of revenue.
Operating cash flow is inflated by money that isn't the company's. First-half operating cash flow was $59.3 million against a $7.8 million net loss. $34.1 million of it was growth in customer deposits: buyer escrow money held on others' behalf and recorded as a liability. The company's own "adjusted operating cash flow," which strips this out, was $15.7 million in Q2 (vs $13.4 million). For the half it works out to about $25 million, down from about $42 million, mainly because of the $18 million of legal settlement payments.
Heavy stock-based pay, and dilution to match. First-half non-cash stock compensation totaled $66.2 million: $42.7 million in agent equity awards, $20.2 million in agent growth incentives and $3.2 million other. That is large against a business earning a few million in operating profit. Shares outstanding rose from 161.0 million at December 31 to 167.1 million at June 30 (+3.8%) with no buybacks in the half. Weighted diluted shares were 6.5% higher than a year earlier.
Receivables grew fast, but this looks seasonal. Accounts receivable rose from $108.8 million at year-end to $167.6 million, a pattern that matches the spring selling season. The half-year cash drain from receivables ($58.3 million) was almost the same as a year earlier ($58.0 million), and the 10-Q attributes the rise to "the timing of receivable collections."
Tax, not operations, caused the net loss. The 217% quarterly tax rate comes from stock-comp shortfalls (tax deductions smaller than the booked expense) and non-deductible executive pay. It is not a sign of weaker operations, but it is not obviously a one-off either, since both causes are structural to how the company pays people.
Balance sheet, legal and capital return
At June 30 the company had $111.2 million of cash, no debt and $99.9 million of restricted cash (escrow and Canadian trust money). It paid the second $17.0 million installment of its $34.0 million Hooper nationwide seller-side antitrust settlement on June 27, 2026. That settlement received final court approval on March 31, 2026, but objectors have appealed to the Eleventh Circuit and its effectiveness depends on that appeal. A Canadian class action and a Delaware shareholder derivative suit against current and former directors and officers are ongoing. The derivative suit concerns the company's response to alleged sexual misconduct by affiliated agents and revenue-share arrangements; a motion to dismiss was denied in Q1 and the case is in discovery. Management gives no loss estimate for either. NextHome cost $8.0 million in cash (net of cash acquired) and added $9.0 million of goodwill. The company calls the franchise business "currently immaterial."
The quarterly dividend is $0.05 per share ($8.2 million paid in Q2).
After the quarter: a large related-party buyback. On September 14, 2026 AGNT bought back 8,693,290 shares for $32.0 million ($3.68 each, a 10% discount to the five-day average price). That is about 5% of the shares outstanding at June 30 and roughly 29% of June 30 cash. The seller was a trust whose sole beneficiaries are adult family members of Chairman and CEO Glenn Sanford. According to the company, the trust sold to meet tax and estate requirements after the death of its previous trustee. The audit committee of independent directors approved the deal under the related-person policy. It undoes most of the first-half share-count increase, but it is a meaningful cash outflow directed to a founder-linked holder.
Takeaway: AGNT's business grew 11% in Q2 on the strength of each agent closing more deals, but its model hands almost all of that growth back to agents. The company keeps less than 7 cents per revenue dollar, and that share is falling as more agents hit their commission cap. Management's cost cuts turned that thin slice into an operating profit, but GAAP earnings are still a loss, and the adjusted EBITDA figure that doubled leaves out recurring stock pay that is larger than the operating profit itself.
Outlook
Management gave these figures (Adjusted EBITDA guidance is non-GAAP and not reconciled to GAAP):
Q3 2026 guidance
Full-year 2026 guidance (Aug 4)
Full-year 2026 guidance (May 11)
Revenue
$1.35B–$1.45B
$4.85B–$5.15B
$4.85B–$5.15B
Operating expenses
$85M–$90M
$355M–$365M
$325M–$345M
Adjusted EBITDA
$17M–$22M
$50M–$60M
$50M–$75M
Two things stand out. First, the CFO describes this as "narrowing" the full-year adjusted EBITDA range, but the change is all at the top end: the high end fell by $15 million and the midpoint dropped from $62.5 million to $55 million. Second, full-year operating expense guidance rose by $20–30 million even though revenue guidance didn't change. Q2 itself landed at or above the top of the May guidance on revenue ($1.45B vs $1.36–1.45B) and adjusted EBITDA ($25.7M vs $16–21M), and slightly above it on operating expenses ($97.2M vs $93–97M).
With $29.8 million of adjusted EBITDA already earned in the first half, the full-year range implies $20–30 million for the second half. Q3 guidance of $17–22 million would leave little for the seasonally slower fourth quarter. Our read is that productivity gains and 2025 cost cuts are real, but three things cap how much of the revenue growth reaches shareholders: commission capping, which rises with agent success; the recurring cost of paying agents in stock; and an organic agent count that management itself says is under pressure. Things to watch in the Q3 report: whether the organic agent base (excluding NextHome) stabilizes, whether gross margin keeps slipping, how the Hooper appeal resolves, and whether the stock-driven dilution resumes after September's buyback.