Free cash flow margins have compressed significantly from 6.3% in 2024Q1 to 1.8% in 2026Q1, reflecting the difficulty of scaling the brokerage model during market downturns.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Jun'12 | Jun'11 | Jun'10 |
|---|
| Cash from Operations | 99.34M | 118.61M | 191.51M | 209.13M | 210.53M | 246.89M | 119.66M | 55.19M | 24.31M | 4.13M | 1.02M | 346.19K | 244.44K | 16.03K | -21.52K | -33.22K | -59.02K |
| Operating CF Growth % | -134.25% | -38.07% | -8.42% | -0.67% | -14.73% | 106.33% | 116.83% | 127% | 489.08% | 302.91% | 195.87% | 41.62% | 1425.28% | 174.48% | 35.22% | 43.72% | - |
| Operating CF / Revenue % | 2.06% | 2.49% | 4.19% | 4.89% | 4.59% | 6.55% | 6.65% | 5.63% | 4.86% | 2.64% | 1.89% | 1.51% | 1.83% | 0.15% | -0.32% | - | - |
| Net Income | -16.79M | -22.71M | -21.27M | -8.97M | 15.42M | 81.16M | 30.99M | -9.56M | -22.43M | -22.13M | -26.04M | -4.6M | 103.84K | -1.12M | -33.72K | -50.19K | -32.58K |
| Depreciation & Amortization | 9.32M | 9.56M | 10.29M | 10.89M | 9.84M | 6.25M | 3.99M | 2.38M | 893.99K | 353.23K | 58.37K | 26.3K | 14.49K | 4.44K | 6.71K | 0 | 0 |
| Stock-Based Compensation | 68.05M | 38.36M | 156.52M | 189.14M | 209.41M | 182.03M | 83.01M | 56.81M | 23.9M | 17.82M | 27.52M | 4.79M | 233.1K | 1.14M | 0 | 0 | 0 |
| Other Non-Cash Items | 71.13M | 104.26M | -772K | 9.35M | 3.8M | 601K | 157K | 139.72K | 21.27M | 5.86M | 21.96M | 4.96M | 21.41K | 891.2K | 68.24K | -50.19K | -32.58K |
| Working Capital Changes | -33.48M | -10.86M | 46.75M | 11.39M | -12.09M | 29.68M | -503K | 5.37M | 671.83K | 2.23M | -515.19K | 57.09K | -31.8K | -9.47K | 12.2K | 16.98K | -26.43K |
| Cash from Investing | -11.31M | -23.47M | -19.47M | -13.5M | -22.46M | -18.92M | -16.96M | -6.69M | -8.86M | -1.28M | -416.67K | -57.12K | -49.03K | -39.51K | -387 | 0 | 0 |
| Acquisitions (Net) | -690K | 0 | -6.15M | 0 | -10.41M | -5.5M | -10.5M | -1.5M | -6.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -500K | -3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 10.91M | 8.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.09M | -13.9M | -6.84M | -8.14M | -10.41M | -5.5M | -25K | -50K | -7.72M | -1.35M | -486.58K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -82.2M | -86.54M | -170.38M | -184.09M | -204.51M | -179.92M | -21.89M | -24.57M | 2.02M | 149.37K | 493.7K | -63.06K | 59.45K | 65.23K | 22.25K | 32.74K | 5K |
| Dividends Paid | -31.14M | -30.77M | -30.1M | -28.52M | -25.23M | -11.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Dividends | -31.14M | -30.77M | -30.1M | -28.52M | -25.23M | -11.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35.78K | -61.88K | 0 | -15K | 37.27K | 745 | 0 |
| Share Repurchases | -51.22M | -56.2M | -141.12M | -160.55M | -179.47M | -172.01M | -29.37M | -27.06M | 0 | -3.61K | -97K | -3.13K | 0 | -10K | 0 | 0 | 0 |
| Other Financing | 56K | 0 | 843K | 4.98M | 188K | 3.64M | 7.48M | 2.49M | 2.02M | 152.98K | -45.08K | 0 | 0 | 0 | -15.02K | 32K | 5K |
| Net Change in Cash | 8.13M | 12.88M | -1.3M | 11.5M | -16.53M | 47.99M | 80.85M | 24.03M | 17.45M | 2.99M | 1.11M | 218.44K | 253.32K | 41.75K | 351 | -471 | -54.02K |
| Exchange Rate Effect | 2.31M | 4.27M | -2.97M | -38K | -87K | -59K | 47K | 106.11K | -20.87K | -7.66K | 11.49K | -7.57K | -1.54K | 0 | 0 | 0 | 0 |
| Cash at Beginning | 181.46M | 168.59M | 169.89M | 159.38M | 175.91M | 127.92M | 47.07M | 23.04M | 5.6M | 1.68M | 571.81K | 353.37K | 100.06K | 58.31K | 387 | 471 | 54.49K |
| Cash at End | 190.36M | 181.46M | 168.59M | 170.88M | 159.38M | 175.91M | 127.92M | 47.07M | 23.04M | 4.67M | 1.68M | 571.81K | 353.37K | 100.06K | 738 | 0 | 471 |
| Free Cash Flow | 89.55M | 109.04M | 185.03M | 201.17M | 198.48M | 233.47M | 113.22M | 50.05M | 22.18M | 2.85M | 607.61K | 289.07K | 195.41K | -23.49K | -21.9K | -33.22K | -59.02K |
| FCF Growth % | -44.47% | -41.07% | -8.02% | 1.36% | -14.98% | 106.2% | 126.24% | 125.68% | 679.29% | 368.35% | 110.19% | 47.93% | 931.99% | -7.23% | 34.06% | 43.72% | - |
| FCF / Revenue % | 1.86% | 2.28% | 4.05% | 4.71% | 4.32% | 6.19% | 6.3% | 5.11% | 4.43% | 1.82% | 1.12% | 1.26% | 1.46% | -0.22% | -0.33% | - | - |
Agent Retention and Commission Compression
According to quarterly financial data, EXPI consistently reports negative net income while generating positive operating cash flow, with the OCF/NI ratio frequently showing extreme volatility, such as the -4.04x multiple observed in 2026Q1, indicating a significant disconnect between accounting profitability and actual cash generation.
The persistent gap between net income and operating cash flow suggests that non-cash expenses, particularly stock-based compensation, play a dominant role in the company's financial reporting. Investors should monitor whether this reliance on equity-based incentives remains sustainable if agent recruitment growth slows or if the underlying commission pool faces further regulatory pressure.
As reported in recent financial statements, EXPI's free cash flow margins have struggled to maintain momentum, peaking at 6.3% in 2024Q1 before compressing to 1.8% by 2026Q1, reflecting the inherent difficulty of scaling a high-split brokerage model in a volatile interest rate environment.
The downward trend in FCF margins suggests that the company's virtual architecture may not provide the operating leverage originally anticipated by the market. The inability to consistently expand cash flow margins despite significant revenue scale warrants further investigation into the long-term viability of the current agent revenue-share payout structure.
Based on reported figures, EXPI exhibits erratic working capital swings, ranging from a $41.7 million inflow in 2024Q1 to a $10.5 million outflow in 2025Q4, which highlights the company's sensitivity to the timing of commission receipts and the cyclical nature of residential real estate transaction volumes.
These fluctuations appear to be driven by the timing of agent commission payouts and the broader velocity of the housing market. The lack of stability in working capital management may indicate that the company's cash position is highly susceptible to sudden shifts in market liquidity and agent productivity levels.
Analysis of recent cash flow statements reveals that EXPI consistently utilizes cash for dividends and share repurchases, with buybacks totaling $24.9 million in 2025Q2, even as the company navigates periods of negative net income and fluctuating operating cash flow across its core brokerage segments.
This capital allocation strategy appears designed to support shareholder sentiment and agent equity alignment, yet it may limit the company's ability to invest in higher-margin technology or ancillary services. Investors should monitor whether this commitment to capital returns remains prudent if the core brokerage business continues to face margin compression from regulatory and competitive headwinds.
Quick answers to the most common questions about buying EXPI stock.
eXp World Holdings, Inc. (EXPI) generated $118.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
eXp World Holdings, Inc. (EXPI) generated $109.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
eXp World Holdings, Inc. (EXPI) spent $9.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, eXp World Holdings, Inc. (EXPI) returned $30.8M to shareholders via cash dividends and spent $56.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.