Adjusted EBITDA was $11.2 million, positive but down year-over-year, impacted by lower gross margin and strategic investments including severance costs.
Agent count was 82,704, down 5% year-over-year but up 1% sequentially quarter-over-quarter, with increased transactions per agent indicating higher productivity.
eXp World Holdings generated $1.3 billion in revenue in Q2 2025, with real estate sales volume up 1% year-over-year despite a 2% decrease in sales transactions.
International segment revenue grew 59% year-over-year, driven by increased productive agents and new market launches, though adjusted EBITDA loss increased due to expansion and events.
Non-GAAP gross margin was 12%, while GAAP gross margin was 7.1%, down 40 basis points from Q2 2024 due to more agents reaching their cap.
North America Realty segment remains the largest revenue and profit generator with $1.3 billion revenue and $19.8 million adjusted EBITDA in Q2.
Other affiliated services contributed modest revenue but had an adjusted EBITDA loss of $2.3 million.
The company ended Q2 with $94.6 million in cash, after paying $17 million of a $34 million antitrust litigation settlement.
A nonrecurring tax benefit of $82 million contributed to a $60 million tax benefit in the quarter, lowering future tax provision rate to 25.2%.
Broker direct originations grew nearly 60%, with market share at approximately 5%.
Correspondent lending acquisitions increased 30% to $30 billion with margins at 25 basis points, slightly down from Q1.
Excluding fair value changes and a nonrecurring tax benefit, operating ROE was 13%.
Hedge costs were $54 million, mostly incurred in April due to interest rate volatility, with fair value of MSR increasing by $16 million net of hedges.
PennyMac ended the quarter with $700 billion servicing portfolio UPB and $4 billion total liquidity.
PennyMac Financial Services reported Q2 2025 net income of $136 million, or $2.54 diluted EPS, with an annualized ROE of 14%.
Production segment pretax income was $58 million, down from $62 million in Q1, with acquisition and origination volumes up 31% to $38 billion UPB.
Servicing segment pretax income was $54 million, or $144 million excluding valuation changes, with servicing expenses declining to 4.6 basis points of average servicing portfolio UPB.
Dafinchi