eXp Realty Stock: Everything You Need to Know (2023)
Warren Buffett says, “Never invest in a business you cannot understand.” So let me help catch you up to speed on eXp World Holdings.
eXp Realty is a residential real estate brokerage that provides real estate services under the parent company eXp World Holdings Inc. eXp Realty was founded in 2009 by founder Glenn Sanford.
eXp World Holdings became a publicly-traded company in 2013. By 2018, eXp was up-listed to the NASDAQ. Today, eXp World Holdings Inc is a publicly-traded company on the NASDAQ stock exchange under the ticker symbol “EXPI.” Any investor can purchase and sell eXp Realty common stock through their current investment brokerage.
In addition to eXp Realty, eXp World Holdings also includes the following companies, eXp Global, eXp Commercial, Virbela, and Showcase IDX.
One of the many unique benefits of being an eXp Realty agent or real estate broker is acquiring stock in three different ways while selling real estate as you normally would.
Below, I’ll share how the eXp Realty stock program works for real estate agents looking to move over to the brokerage.
If you’d prefer to watch this content, check out the video below:
Sustainable Equity Plan
With eXp Realty’s Sustainable Equity Plan, real estate agents receive stock awards for completing specific tasks within the company. Agents receive shares of stock whenever they:
- Close your first home each year with eXp Realty – $200 worth of EXPI stock
- Fully cap each year – $400 worth of EXPI stock
- *Sponsor a real estate agent, and that agent closes their first home with eXp Realty (one-time only) – $400 worth of EXPI stock
Once earned, these awards have a three-year vesting period.
*Note: To vest for the sponsor equity award, you and the agent sponsored must remain with eXp Realty at the time of vesting.
ICON Agent Award Program
eXp Realty agents who sell real estate at a high level, either by transaction count or gross commission income, are eligible to receive the ICON Agent Award each year. This award pays out up to $16,000 in EXPI stock to the agent receiving the award.
Check out my post for the full details and eligibility requirements for the eXp Realty ICON Agent Award Program.
Agent Equity Program
Another way eXp Realty agents can participate in stock ownership is to opt-in to the “Agent Equity Program.” This program allows eXp Realty to withhold 5% of the commission from an agent’s transaction and purchase EXPI stock at a 10% discount.
The share price is determined by the closing market value of the month’s last trading day of EXPI stock. This day is also the issuance date.
Agents can Opt-In or Out at any time they wish to participate or not in this program by completing the Opt-In/Opt-Out Form.
Selling Your eXp Realty Stock
Upon vesting, shares of EXPI stock can be transferred to another brokerage account or sold through the agent’s Shareworks account (Before November 1st, 2019, Broadridge holds agent shares).
Access to Shareworks is through the eXp Enterprise system.
Process and Fees
EXPI stock acquired after November 1st, 2019, can be sold via Shareworks through the online portal in eXp Enterprise.
EXPI shares of stock sold through Shareworks will have a $.03/share commission fee associated with it. Additionally, there is a $20 wire fee. There are no other fees if completing this transfer/sale via the internet.
EXPI stock acquired before November 1st, 2019, can be sold via Broadridge by contacting Shareholder Support at 1-800-586-1585.
Shares acquired before November 2017 are considered “restricted stock” and require a $50 restriction removal fee before sale/transfer. I’m unaware of other fees to sell/transfer stock acquired through Broadridge.
Companies Owned By eXp World Holdings
Showcase IDX – Showcase IDX is a platform that connects real estate websites to your local MLS. This connection allows the website to display local listings. Showcase IDX is considered the leader in the real estate industry due to its modern and stylish interface and robust features.
SUCCESS Enterprises – In 2020, eXp World Holdings purchased SUCCESS Enterprises. SUCCESS is a leading personal development company established in 1897 and features SUCCESS magazine, SUCCESS.com, SUCCESS Newsletters, podcasts, digital training courses, and affiliate social media accounts.
Virbela – Virbela creates virtual office environments for companies around the globe. Virbela is what powers eXp World. Many other companies use Virbela’s virtual offices, including PricewaterhouseCoopers, MIT Sloan School of Management, and computing company HTC.
eXp Commercial – In 2020, eXp World Holdings created an entirely separate commercial brokerage rather than lump it into eXp Realty. Today eXp Commercial is home to agents all across the US and, soon, internationally. See my article that talks more about eXp Commercial.
On February 16th, 2021, eXp World Holdings completed a 2-for-1 stock split. This means that anyone who held shares of EXPI before February 16th had double shares but at half the price.
The reason why companies typically complete a stock split is to make the shares more affordable. Investors don’t have to purchase as many fractions of a share and can purchase whole shares instead.
This is particularly important for eXp World Holdings and eXp Realty since agents are issued shares for production and growth initiatives. Take, for instance; the $200 stock award agents receive for their first transaction each year. At $160/share that’s 1.25 shares. However, at $80/share that’s 2.5 shares.
Without the split, if the share price continued to increase, it could create an issue where agents wouldn’t even receive a total share when they received an award.
Company Earnings Growth
eXp World Holdings has been exponentially growing its revenue and cash flow. Before the fourth quarter of 2019, EXPI had not had a positive net income quarter (not unusual for a new company). However, since that time, EXPI has seen tremendous earnings growth.
In 2019 eXp World Holdings had a net income loss of around ten million dollars. In 2020, eXp World Holding booked a positive net income of over $30 million.
Additionally, with the addition of thousands of agents and acquisitions of multiple companies throughout the past few years, EXPI has seen substantial revenue growth. In 2018, EXPI earned revenue of just under $500 million. In 2019, that revenue nearly doubled to $979 million. Then in 2020, EXPI eclipsed the billion-dollar revenue mark and finished the year at $1.79 billion in revenue.
EXPI Dividend Stock
eXp Realty initiated quarterly dividend payments to shareholders in 2021. These payments are made from the company’s earnings and are intended to provide shareholders with a regular income stream.
The first dividend payment was $0.025 per share, which was paid in April 2021. The dividend payment increased to $0.03 per share in July 2021 and then to $0.035 per share in October 2021. The dividend payment will continue to increase by $0.005 per share each quarter until it reaches a final payout of $0.075 per share.
Let Me Know What You Think
eXp Realty has been experiencing substantial revenue growth, cash flow, and net income growth.
This is partly due to the company’s increasing number of agents and acquisitions and its initiation of quarterly dividend payments to shareholders.
EXPI is an excellent opportunity for investing in a growing real estate company that pays out regular dividends. This is especially true for real estate agents who are already selling real estate and wish to be rewarded with equity ownership in addition to their regular sales commissions.
Any opinions shared in this article are my own. I’m not a financial advisor, so be sure to speak with one before acting on any thoughts or opinions I’ve shared in this article.
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Thank you Kyle for such a detailed explanation of how stock is earned with EXP. This will be very useful in explaining to other agents in black and white how it works!
You explain this very well than how exp explains it. So what happens to your shares if something happened to you? Can a beneficiary be listed?
Hi Nancy! Great question. Yes, you can will your stock and revenue share. Keep in mind the revenue share needs to be willing to a license holder or entity as revenue share is a form of referral commission. Therefore, a licensee can be the only recipient. Best regards!
I'm with EXP now. I LOVE the way you detailed this information. I am SO appreciative! I also just really love EXP.
For 5 years I have been specializing in leasing and doing a high volume of transactions. Anywhere from 40-80 per year and in my market those commissions can sometimes even be as high as a sales commission in other areas of the country. I moved brokerages in March but the Covid shutdowns have really shown me how much I don't depend much on my brokerage to run my business as most of the resources available are much more sales focused. For this reason I've been considering eXp and I'm interested in discovering if any of these structures change when applied to a lease transaction vs a sale transaction. Would I still earn eXp stock if its a lease transaction and not a sale transaction? Is there a minimum commission that my lease transaction would need to be to earn that stock? Also, I don't currently offer property management to clients but I'm curious if there are any rules at eXp about whether or not agents can offer management services if they have earned proper certification in their state.
Hey there Lindsay! I think Covid opened many agent’s eyes to the switch in priorities around an office. To answer your questions, leases are on the same split and fee structure as purchases. 80/20. Additionally, you can receive stock for completing lease transactions. Agents can NOT offer property management to clients. You can list a property for rent but cannot do the management. Brokers are allowed to be with eXp and have a property management company outside of eXp if this is something they wish to pursue. If you’re not already working with another eXp agent, I’d love to set a meeting with you. Here’s a link to my zoom calendar: https://calendly.com/kylehandy/zoomcall
I’m in a team and I half capped and getting 100% commission before the team split. Can I still get the $400 when I reach 16,000 full cap?
I think a lot of agents are going to be very disappointed after all the 'hype' ends and they see they're making 'diddly squat at EXP Realty
Hi NJ. I appreciate your comment. I’m a little curious what your insightful analysis is based off? Or is it just more FUD that many outside of eXp try so hard to spread? (FUD = Fear, Uncertainty, & Doubt).
Kyle, Thanks for spelling it all out.
One question? Vesting
When I ICON award stock every year for three years, then on the fourth year I do not ICON award is all my stock vested?
Or just the first year ICON stock is vested? Then the fifth year my second year ICON stock is vested then the sixth year my third year ICON stock is vested?
Thanks for your input!
Hi Chris! Your second scenario is correct. Year 4 = Year 1 ICON stock vests. Year 5 = Year 2, and Year 6 = Year 3. You bet!
Good article. Can you explain the difference between
AEP Purchase Plan
eXp Agent Equity Program
This is a great explanation – thanks for sharing this.
I have questions around how this applies if I’ve already capped at my current brokerage. Would the $400 of stock be awarded if EXP is honoring my current cap status?
Happy to set up a quick Zoom with you!
Hello Kyle. Is there any other services, except Shareworks where is possible to sell the stocks?
NJ Thomas I am not with EXP, however, I would love to hear-learn what are the basis of your comment. Are you a previous agent? I am doing research.
Hello, My husband has been with eXp realty for a long time now.. how can I get my husbands stocks cash out to me, if I am the beneficiary and he has recently passed?
Hi Becky, sorry to hear about your husband’s passing. You should reach out to the stock department directly to help you with that question. email@example.com
Are the agent equity program 5% stock purchases pre-tax?
Hey Briana! No. You still pay tax on the commission earned that goes towards the 5% agent equity program.