XML 144 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

11.        SEGMENT INFORMATION

Segment information aligns with how the Chief Operating Decision Maker (“CODM”), Glenn Sanford, Chief Executive Officer of eXp World Holdings, Inc., manages the business and allocates resources as three operating segments. The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information and is (iii) regularly reviewed by the CODM. Once operating segments are identified, the Company performs a quantitative analysis of the current and historic revenues and profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics. We have three operating segments and three reportable segments.

The CODM uses revenues and Adjusted Segment EBITDA as key metrics to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. The CODM also regularly reviews commissions and other agent-related costs to assess segment performance. Commissions and other agent-related costs include sales commissions, revenue share and stock-based compensation paid to our agents. Adjusted Segment EBITDA for the reportable segments is defined as net income before depreciation and amortization, interest expense, income taxes, and other items that are not core to the operating activities of the Company. The Company’s three reportable segments as follows:

●North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America.
●International Realty: includes real estate brokerage operations in all other international locations.
●Other Affiliated Services: includes our SUCCESS® Magazine, FrameVR.io, and other ancillary ventures.

Historically, the Company has reported results for four reportable segments. In the first quarter of 2024, the Company determined that the Virbela segment qualified for reporting as discontinued operations. In prior years, Virbela represented an operating and reporting segment under ASC 280. Prior years segment information has been reclassified to remove Virbela from the segment disclosure, in accordance with discontinued operations treatment.

The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions.

All segments follow the same basis of presentation and accounting policies as those described in Footnote 2 – Summary of Significant Accounting Policies. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit (in thousands). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation.

​

​

​

​

​

​

​

​

Revenues

​

Year Ended December 31,

​

2024

​

2023

​

2022

North American Realty

$ 4,478,293

​

$ 4,220,063

​

$ 4,552,939

International Realty

88,146

​

53,931

​

35,924

Other Affiliated Services

6,105

​

4,802

​

5,084

Revenues reconciliation:

​

​

​

​

​

Segment eliminations

(4,872)

​

(4,975)

​

(4,271)

Consolidated revenues

$ 4,567,672

​

$ 4,273,821

​

$ 4,589,676

​

​

​

​

​

​

​

​

Commissions and other agent-related costs

​

Year Ended December 31,

​

2024

​

2023

​

2022

North American Realty

$ 4,153,113

​

$ 3,910,851

​

$ 4,200,134

International Realty

71,657

​

43,103

​

27,597

Other Affiliated Services

2,742

​

2,448

​

2,973

Commissions reconciliation:

​

​

​

​

​

Segment eliminations

(2,235)

​

(2,505)

​

(2,201)

Consolidated commissions and other agent-related costs

$ 4,225,277

​

$ 3,953,897

​

$ 4,228,503

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

Year Ended December 31,

​

2024

​

2023

​

2022

North American Realty

$ 99,253

​

$ 91,101

​

$ 103,255

International Realty

(9,481)

​

(13,657)

​

(13,708)

Other Affiliated Services

(4,876)

​

(3,795)

​

(2,600)

Corporate expenses and other

(9,413)

​

(8,321)

​

(15,449)

Consolidated Adjusted EBITDA

$ 75,483

​

$ 65,328

​

$ 71,498

​

​

​

​

​

​

(Loss) income before income tax expense reconciliation:

​

​

​

​

​

Depreciation and amortization expense

10,289

​

10,892

​

9,838

Impairment expense

4,930

​

-

​

-

Litigation contingency

34,000

​

-

​

-

Stock compensation expense

37,285

​

43,178

​

30,861

Stock option expense

7,973

​

10,736

​

14,442

Other (income) expense, net

(3,277)

​

(2,995)

​

821

Consolidated (loss) income before income tax expense

($ 15,717)

​

$ 3,517

​

$ 15,536

​

​

​

​

​

​

​

Goodwill

​

December 31, 2024

​

December 31, 2023

North American Realty

$ 17,226

​

$ 14,595

International Realty

-

​

-

Other Affiliated Services

-

​

2,387

Segment and consolidated total

17,226

​

16,982

​

​

Geographical information

For the years ended December 31, 2024, 2023 and 2022 approximately 11%, 9% and 9%, respectively, of the Company’s total revenue was generated outside of the U.S. Long-lived assets held outside of the U.S. were 17% and 14% as of December 31, 2024 and 2023, respectively.

The Company’s CODM does not use segment assets to allocate resources or to assess the performance of the segments and therefore, total segment assets have not been disclosed.