Oscar Nieves Santana

Oscar Nieves Santana, on for John Campbell, questioned if the company had considered share buybacks given its $80 million cash position and recent stock performance, and also asked about confidence in growing from the current revenue base into fiscal 2026.

Answer

CFO Greg Wong affirmed that the capital allocation strategy remains unchanged, prioritizing internal investments and M&A while maintaining a strong balance sheet. He also expressed high confidence in the company's ability to sustain double-digit growth in the short and long term, citing large market opportunities and the ongoing shift to online performance marketing.

Oscar Nieves Santana of Stephens Inc. inquired about the full-year outlook for gross margin and operating expenses following Q1's margin compression. He also asked how eXp's alignment with Zillow on listing standards impacts its private listing strategy.

Answer

Interim CFO Jesse Hill explained that gross margin pressure is an acceptable trade-off for attracting higher-producing agents who cap faster, a key part of the company's volume-focused strategy. He noted that investments in AI should yield operating expense efficiencies in the second half of 2025. On the Zillow alignment, eXp Realty CEO Leo Pareja stated that their approach, which emphasizes broad distribution once a property is on the MLS, is fully compliant with Clear Cooperation Policy (CCP), protects consumers, and reduces enterprise liability, contrasting it with competitors' strategies.

Oscar Nieves Santana, on for John Campbell, asked about the sustainability of the Consumer segment's return to growth and inquired about the key swing factors that would determine its pace of growth in the near to medium term.

Answer

Scott Peyree, COO, detailed the drivers within the Consumer segment, highlighting strong growth trajectories in small business and personal loans, while noting the credit card business remains challenged. Douglas Lebda, CEO, identified the primary swing factors as the macroeconomic environment (interest rates, inflation), potential upside from technology and product improvements (which are not baked into forecasts), and a continued focus on operational excellence.