EXp Realty paid $232.6 million in revenue share and equity benefits to agents and brokers in 2023, according to the company’s annual program update published mid-Monday. The lion’s share of the payouts — $197.9 million — came from revenue share. The remaining $34.7 million came from 2.2 million EXPI stock shares.
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EXp Realty paid $232.6 million in revenue share and equity benefits to agents and brokers in 2023, according to the company’s annual program update published Monday. The lion’s share of the payouts — $197.9 million — came from revenue share. The remaining $34.7 million came from 2.2 million EXPI stock shares.
Revenue share payouts are based on the number of productive agents a current eXp agent or broker sponsors, and equity shares are given when agents and brokers meet certain key performance indicators, such as hitting the full commission cap. Agents can also enroll to be paid 5 percent of every transaction commission in stock purchased at a 10 percent discount.
Glenn Sanford
“Our mission is simple: empower agents to succeed and solve their biggest pain points,” eXp Realty founder and CEO Glenn Sanford said in a prepared statement. “Before we created this company, real estate agents were not offered any meaningful ownership in the brokerages they were part of, so we built eXp to compensate our agents for their contributions to our growth.”
“We’re not just a brokerage, we’re a community of forward-thinkers committed to shared growth opportunities,” he added. “Despite market challenges, our resilient model continues to thrive, proving that when our agents succeed, we all do.”
This year’s revenue share was a 4.86 percent decrease from 2022 when eXp doled out $244.5 million in revenue share and equity benefits. More than $200 million came from revenue share and $42.5 million came from equity benefits. The 2022 revenue and equity share was 20 percent above 2021’s total of roughly $162 million.
The decline in revenue share and equity benefits stems from the company’s 2023 performance.
EXp’s latest earnings report revealed the virtual brokerage’s full-year revenue declined 7 percent to $4.3 billion. The company’s profitability took a 180-degree turn from a $15.4 million net income in 2022 to a $9 million net loss in 2023. The company’s earnings per share also suffered, dropping $0.02 or 118 percent.
A previous Inman article outlined eXp’s rocky journey on the stock market. The company’s shares traded in the mid-$13 range during the first quarter of 2023 before rebounding to $25 per share by Q3. However, shares slid again before ticking up in December and falling back to the $12 range this year.
Despite a rough 2023, Sanford and his executive crew have remained bullish about eXp’s 2024 trajectory.
“Our unique approach to agent compensation and equity ownership is a testament to our belief in shared success,” Sanford said of the 2023 revenue and equity payout.” As we continue to build in the evolving real estate landscape, our focus remains on empowering agents, fostering their growth, and ensuring they have a significant stake in the collective success of our company.”