AGNT, Inc. 10-Q

Item 1. FINANCIAL STATEMENTS (UNAUDITED) EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 ASSETS ​ ​ ​ ​ CURRENT ASSETS ​ ​ ​ ​ Cash and cash equivalents ​ $ 112,761 ​ $ 113,607 Restricted cash ​ 73,620 ​ 54,981 Accounts receivable, net of allowance for credit losses of $ 2,524 and $ 1,589 , respectively ​ 123,766 ​ 87,692 Prepaids and other assets ​ 13,001 ​ 11,692 TOTAL CURRENT ASSETS ​ 323,148 ​ 267,972 Property and equipment, net ​ 14,058 ​ 11,615 Other noncurrent assets ​ 22,570 ​ 11,679 Intangible assets, net ​ 4,885 ​ 6,456 Deferred tax assets, net ​ 76,435 ​ 75,774 Goodwill ​ 17,647 ​ 17,226 TOTAL ASSETS ​ $ 458,743 ​ $ 390,722 ​ ​ ​ ​ ​ LIABILITIES AND EQUITY ​ ​ ​ ​ CURRENT LIABILITIES ​ ​ ​ ​ Accounts payable ​ $ 9,781 ​ $ 10,478 Customer deposits ​ 73,465 ​ 55,660 Accrued expenses ​ 123,074 ​ 85,661 Litigation contingency ​ 17,000 ​ 34,000 Other current liabilities ​ 158 ​ 54 TOTAL CURRENT LIABILITIES ​ 223,478 ​ 185,853 TOTAL LIABILITIES ​ 223,478 ​ 185,853 ​ ​ ​ ​ ​ EQUITY ​ ​ ​ ​ Common Stock, $ 0.00001 par value 900,000,000 shares authorized; 204,643,680 issued and 158,836,724 outstanding at September 30, 2025; 195,028,207 issued and 154,133,385 outstanding at December 31, 2024 ​ 2 ​ 2 Additional paid-in capital ​ 1,069,515 ​ 962,758 Treasury stock, at cost: 45,806,956 and 40,894,822 shares held September 30, 2025 and December 31, 2024, respectively ​ ( 732,907 ) ​ ( 686,680 ) Accumulated deficit ​ ( 100,931 ) ​ ( 68,135 ) Accumulated other comprehensive (loss) ​ ( 414 ) ​ ( 3,076 ) TOTAL EQUITY ​ 235,265 ​ 204,869 TOTAL LIABILITIES AND EQUITY ​ $ 458,743 ​ $ 390,722 ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 4 Table of Contents EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands, except share amounts and per share data) (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 　 ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Revenues ​ $ 1,316,683 ​ $ 1,231,187 ​ $ 3,580,466 ​ $ 3,469,485 Operating expenses ​ ​ ​ ​ ​ ​ ​ ​ Commissions and other agent-related costs ​ 1,230,479 ​ 1,143,535 ​ 3,325,473 ​ 3,205,949 General and administrative expenses ​ 62,341 ​ 61,390 ​ 203,288 ​ 185,132 Technology and development expenses ​ 17,312 ​ 13,804 ​ 52,210 ​ 43,413 Sales and marketing expenses ​ 2,535 ​ 2,792 ​ 8,231 ​ 8,962 Litigation contingency ​ - ​ 18,000 ​ - ​ 34,000 Total operating expenses ​ 1,312,667 ​ 1,239,521 ​ 3,589,202 ​ 3,477,456 Operating income (loss) ​ 4,016 ​ ( 8,334 ) ​ ( 8,736 ) ​ ( 7,971 ) Other (income) expense ​ ​ ​ ​ ​ ​ ​ ​ Other (income) expense, net ​ ( 608 ) ​ ( 801 ) ​ ( 2,311 ) ​ ( 3,738 ) Equity in losses of unconsolidated affiliates ​ 195 ​ 281 ​ 322 ​ 804 Other (income), net ​ ( 413 ) ​ ( 520 ) ​ ( 1,989 ) ​ ( 2,934 ) Income (loss) before income tax expense ​ 4,429 ​ ( 7,814 ) ​ ( 6,747 ) ​ ( 5,037 ) Income tax expense (benefit) ​ 932 ​ ( 1,333 ) ​ 3,071 ​ 3,508 Net income (loss) from continuing operations ​ 3,497 ​ ( 6,481 ) ​ ( 9,818 ) ​ ( 8,545 ) Net income (loss) from discontinued operations ​ - ​ ( 2,025 ) ​ - ​ ( 3,217 ) Net income (loss) ​ $ 3,497 ​ ($ 8,506 ) ​ ($ 9,818 ) ​ ($ 11,762 ) Earnings (loss) per share ​ ​ ​ ​ ​ ​ ​ ​ Basic, net (loss) income from continuing operations ​ $ 0.02 ​ ($ 0.04 ) ​ ($ 0.06 ) ​ ($ 0.06 ) Basic, net (loss) income from discontinued operations ​ $ - ​ ($ 0.01 ) ​ $ - ​ ($ 0.02 ) Basic, net (loss) income ​ $ 0.02 ​ ($ 0.06 ) ​ ($ 0.06 ) ​ ($ 0.08 ) Diluted, net (loss) income from continuing operations ​ $ 0.02 ​ ($ 0.04 ) ​ ($ 0.06 ) ​ ($ 0.06 ) Diluted, net (loss) income from discontinued operations ​ $ - ​ ($ 0.01 ) ​ $ - ​ ($ 0.02 ) Diluted, net (loss) income ​ $ 0.02 ​ ($ 0.06 ) ​ ($ 0.06 ) ​ ($ 0.08 ) Weighted average shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 157,101,785 ​ 153,259,842 ​ 155,985,872 ​ 153,858,160 Diluted ​ 160,767,662 ​ 153,259,842 ​ 155,985,872 ​ 153,858,160 Comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 3,497 ​ ($ 8,506 ) ​ ($ 9,818 ) ​ ($ 11,762 ) Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation gain (loss), net of tax ​ ( 390 ) ​ 915 ​ 2,662 ​ ( 872 ) Comprehensive income (loss) ​ $ 3,107 ​ ($ 7,591 ) ​ ($ 7,156 ) ​ ($ 12,634 ) ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 5 Table of Contents EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ 　 ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Common stock: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 2 ​ $ 2 ​ $ 2 ​ $ 2 Balance, end of period ​ 2 ​ 2 ​ 2 ​ 2 Treasury stock: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ ( 716,549 ) ​ ( 626,825 ) ​ ( 686,680 ) ​ ( 545,559 ) Repurchases of common stock ​ ( 16,358 ) ​ ( 35,015 ) ​ ( 46,227 ) ​ ( 116,281 ) Balance, end of period ​ ( 732,907 ) ​ ( 661,840 ) ​ ( 732,907 ) ​ ( 661,840 ) Additional paid-in capital: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ 1,031,660 ​ 883,704 ​ 962,758 ​ 804,833 Shares issued for stock options exercised ​ 55 ​ 592 ​ 432 ​ 1,644 Agent growth incentive stock-based compensation ​ 9,072 ​ 8,747 ​ 26,584 ​ 26,150 Agent equity stock-based compensation ​ 27,150 ​ 29,541 ​ 74,709 ​ 85,997 Stock option compensation ​ 1,578 ​ 1,986 ​ 5,032 ​ 5,946 Balance, end of period ​ 1,069,515 ​ 924,570 ​ 1,069,515 ​ 924,570 Accumulated (deficit) earnings: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ ( 96,723 ) ​ ( 35,100 ) ​ ( 68,135 ) ​ ( 16,769 ) Net income (loss) ​ 3,497 ​ ( 8,506 ) ​ ( 9,818 ) ​ ( 11,762 ) Dividends declared and paid ($ 0.05 per share of common stock) ​ ( 7,705 ) ​ ( 7,489 ) ​ ( 22,978 ) ​ ( 22,564 ) Balance, end of period ​ ( 100,931 ) ​ ( 51,095 ) ​ ( 100,931 ) ​ ( 51,095 ) Accumulated other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ ( 24 ) ​ ( 1,455 ) ​ ( 3,076 ) ​ 332 Foreign currency translation gain (loss) ​ ( 390 ) ​ 915 ​ 2,662 ​ ( 872 ) Balance, end of period ​ ( 414 ) ​ ( 540 ) ​ ( 414 ) ​ ( 540 ) Noncontrolling interest: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ - ​ - ​ - ​ 1,169 Transactions with noncontrolling interests ​ - ​ - ​ - ​ ( 1,169 ) Balance, end of period ​ - ​ - ​ - ​ - Total equity ​ $ 235,265 ​ $ 211,097 ​ $ 235,265 ​ $ 211,097 The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 6 Table of Contents EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 OPERATING ACTIVITIES ​ ​ ​ ​ Net (loss) ​ ($ 9,818 ) ​ ($ 11,762 ) Reconciliation of net (loss) to net cash provided by operating activities: ​ ​ ​ ​ Depreciation expense ​ 5,243 ​ 5,887 Amortization expense - intangible assets ​ 2,014 ​ 1,855 Allowance for credit losses on receivables/bad debt on receivables ​ 935 ​ ( 870 ) Equity in loss of unconsolidated affiliates ​ 322 ​ 804 Agent growth incentive stock-based compensation expense ​ 27,389 ​ 28,067 Stock option compensation ​ 5,032 ​ 5,961 Agent equity stock-based compensation expense ​ 74,709 ​ 85,997 Deferred income taxes, net ​ ( 661 ) ​ ( 684 ) Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ( 35,859 ) ​ ( 18,935 ) Prepaids and other assets ​ ( 1,309 ) ​ 1,978 Customer deposits ​ 17,805 ​ 22,510 Accounts payable ​ ( 698 ) ​ 1,858 Accrued expenses ​ 36,609 ​ 21,114 Litigation contingency ​ ( 17,000 ) ​ 34,000 Other operating activities ​ 104 ​ 20 NET CASH PROVIDED BY OPERATING ACTIVITIES ​ 104,817 ​ 177,800 INVESTING ACTIVITIES ​ ​ ​ ​ Purchases of property and equipment ​ ( 7,686 ) ​ ( 4,408 ) Purchase of business ​ - ​ ( 3,150 ) Investments in unconsolidated affiliates ​ ( 12,363 ) ​ ( 4,236 ) Capitalized software development costs in intangible assets ​ ( 443 ) ​ ( 1,165 ) NET CASH USED IN INVESTING ACTIVITIES ​ ( 20,492 ) ​ ( 12,959 ) FINANCING ACTIVITIES ​ ​ ​ ​ Repurchase of common stock ​ ( 46,227 ) ​ ( 116,281 ) Proceeds from exercise of options ​ 432 ​ 1,644 Transactions with noncontrolling interests ​ - ​ ( 1,169 ) Dividends declared and paid ​ ( 22,978 ) ​ ( 22,564 ) NET CASH USED IN FINANCING ACTIVITIES ​ ( 68,773 ) ​ ( 138,370 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash ​ 2,241 ​ ( 624 ) Net change in cash, cash equivalents and restricted cash ​ 17,793 ​ 25,847 Cash, cash equivalents and restricted cash, beginning balance ​ 168,588 ​ 169,893 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE ​ $ 186,381 ​ $ 195,740 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: ​ ​ ​ ​ Cash paid for income taxes ​ 3,546 ​ 2,198 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: ​ ​ ​ ​ Property and equipment purchases in accounts payable ​ 84 ​ - ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 7 Table of Contents eXp World Holdings, Inc. Notes to the Condensed Consolidated Financial Statements (UNAUDITED) (Amounts in thousands, except share amounts and per share data or as noted otherwise) ​ 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION eXp World Holdings, Inc. (“eXp” or, collectively with its subsidiaries, the “Company,” “we,” “us,” or “our”) owns and oversees a diversified portfolio of service-oriented businesses. These businesses significantly benefit from the integration of our advanced enabling technology platform. Our strategic focus is to continue to expand our real estate brokerage operations. To achieve this, we emphasize enhancing the value proposition for our agents, investing in the development of immersive, cloud-based technological solutions, and offering affiliate and media services that bolster these efforts. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on February 20, 2025 (the “2024 Annual Report”). In our opinion, the accompanying interim unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The Company is operated and managed as three reportable segments, which are North American Realty, International Realty and Other Affiliated Services. Our business segments bring together related eXp technologies and services to support the success and development of agents, entrepreneurs and businesses and provide them with remote business solutions. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements include the accounts of eXp and its consolidated subsidiaries, including those entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or does not exercise control over the operations and has less than 50% ownership, it will use the equity method or the cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. Variable interest entities (“VIEs”) and noncontrolling interests A company is deemed to be the primary beneficiary of a VIE and must consolidate the entity if the company has both: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial, and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Joint ventures are typically included in the Other Affiliated Services segment unless the joint venture specifically supports one of the reportable segments. Investments in Equity Securities 8 Table of Contents We hold investments in certain equity securities that do not have readily determinable fair values and for which we do not exercise significant influence. These investments qualify for and are accounted for using the measurement alternative under FASB ASC Topic 321, Investments – Equity Securities . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Restricted cash Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash transfers from escrow, the Company reduces the respective customers’ deposit liability. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown on the condensed consolidated statements of cash flows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ Restricted cash ​ Total Balance, September 30, 2024 ​ $ 130,432 ​ $ 65,308 ​ $ 195,740 Balance, December 31, 2024 ​ $ 113,607 ​ $ 54,981 ​ $ 168,588 Balance, September 30, 2025 ​ $ 112,761 ​ $ 73,620 ​ $ 186,381 ​ ​ ​ ​ ​ ​ ​ 3. EXPECTED CREDIT LOSSES The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses the aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable is separated into three categories to evaluate allowance under the CECL impairment model. The receivables in each category share similar risk characteristics. The three categories include agent non-commission based fees, agent short-term advances, and commissions receivable for real estate property settlements. The Company increases the allowance for expected credit losses when the Company estimates all or a portion of a receivable is uncollectable. The Company recognizes recoveries as a decrease to the allowance for expected credit losses. As of September 30, 2025 and December 31, 2024, receivables from real estate property settlements totaled $ 116,197 and $ 82,300 , respectively, of which the Company recognized expected credit losses of $ 32 and $ 34 , respectively. As of September 30, 2025 and December 31, 2024, agent non-commission based fees receivable and short-term advances totaled $ 10,093 and $ 6,980 , of which the Company recognized expected credit losses of $ 2,492 and $ 1,555 , respectively. 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 Computer hardware and software ​ $ 52,119 ​ $ 44,079 Furniture, fixture, and equipment ​ 2,206 ​ 2,205 Total depreciable property and equipment ​ 54,325 ​ 46,284 Less: accumulated depreciation ​ ( 40,543 ) ​ ( 35,262 ) Depreciable property and equipment, net ​ 13,782 ​ 11,022 Assets under development ​ 276 ​ 593 Property and equipment, net ​ $ 14,058 ​ $ 11,615 ​ 9 Table of Contents For the three months ended September 30, 2025 and 2024, depreciation expense was $ 1,711 and $ 1,937 , respectively. For the nine months ended September 30, 2025 and 2024, depreciation expense was $ 5,243 and $ 5,887 , respectively. 5. GOODWILL AND INTANGIBLE ASSETS Goodwill was $ 17,647 as of September 30, 2025 and $ 17,226 as of December 31, 2024. As of September 30, 2025, the Company recorded cumulative translation adjustment of $ 421 related to Canadian goodwill. The Company has a risk of future impairment to the extent that individual reporting unit performance does not meet projections. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future. Intangible assets, net consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ Gross ​ Accumulated ​ ​ ​ Net Carrying ​ Amount Amortization Impairment ​ Amount Trade name $ 2,057 ($ 1,179 ) $ - ​ $ 878 Existing technology ​ 5,785 ​ ( 4,767 ) ​ - ​ 1,018 Non-competition agreements ​ 470 ​ - ​ - ​ 470 Customer relationships ​ 2,011 ​ ( 914 ) ​ - ​ 1,097 Licensing agreement ​ 210 ​ ( 210 ) ​ - ​ - Intellectual property ​ 1,453 ​ ( 31 ) ​ - ​ 1,422 Total intangible assets $ 11,986 ($ 7,101 ) $ - ​ $ 4,885 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Gross ​ Accumulated ​ ​ ​ Net Carrying ​ ​ Amount Amortization Impairment ​ Amount Trade name $ 2,042 ($ 943 ) $ - ​ $ 1,099 Existing technology ​ 5,349 ​ ( 2,564 ) ​ - ​ 2,785 Non-competition agreements ​ 461 ​ ( 272 ) ​ - ​ 189 Customer relationships ​ 2,560 ​ ( 503 ) ​ ( 549 ) ​ 1,508 Licensing agreement ​ 210 ​ ( 210 ) ​ - ​ - Intellectual property ​ 3,448 ​ ( 578 ) ​ ( 1,995 ) ​ 875 Total intangible assets $ 14,070 ($ 5,070 ) ($ 2,544 ) ​ $ 6,456 ​ Definite-lived intangible assets are amortized using the straight-line method over an asset’s estimated useful life. Amortization expense for definite-lived intangible assets for the three months ended September 30, 2025 and 2024 was $ 713 and $ 442 , respectively. Amortization expense for definite-lived intangible assets for the nine months ended September 30, 2025 and 2024 was $ 2,014 and $ 1,855 , respectively. 6. STOCKHOLDERS’ EQUITY The following table represents a share reconciliation of the Company’s common stock issued for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 　 ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Common stock: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ 201,449,583 ​ 189,947,235 ​ 195,028,207 ​ 183,606,708 Shares issued for stock options exercised ​ 10,264 ​ 95,037 ​ 82,546 ​ 320,481 Agent growth incentive stock-based compensation ​ 662,874 ​ 308,790 ​ 1,968,559 ​ 1,341,303 Agent equity stock-based compensation ​ 2,520,959 ​ 2,208,226 ​ 7,564,368 ​ 7,290,796 Balance, end of period ​ 204,643,680 ​ 192,559,288 ​ 204,643,680 ​ 192,559,288 ​ The Company’s equity programs described below were administered under the stockholder approved 2015 Equity Incentive Plan, as amended, for issuances prior to September 1, 2024 and under the stockholder approved 2024 Equity Incentive Plan for issuances on or after September 1, 2024. The purpose of the equity plans is to retain the services of valued 10 Table of Contents employees, directors, officers, agents, and consultants and to incentivize such persons to make contributions to the Company and motivate excellent performance. Agent Equity Program (“AEP”) The Company provides agents and brokers the opportunity to elect to receive 5 % of commissions earned from each completed real estate transaction in the form of shares of the Company’s common stock under the AEP. If agents and brokers elect to receive portions of their commissions in shares of the Company’s common stock, they are entitled to receive the equivalent number of shares of the Company’s common stock based on the fixed monetary value of the commission payable. The Company recognized a 10 % discount on these issuances prior to February 29, 2024, and a 5 % discount on these issuances beginning as of March 1, 2024, as an additional cost of sales charge during the periods presented. During the three months ended September 30, 2025 and 2024, the Company issued 2,520,959 and 2,208,226 shares of the Company’s common stock, respectively, to agents and brokers with a value of $ 27,150 and $ 29,541 , respectively, inclusive of discount. During the nine months ended September 30, 2025 and 2024, the Company issued 7,564,368 and 7,290,796 shares of common stock, respectively, to agents and brokers with a value of $ 74,709 and $ 85,997 , respectively, inclusive of discount. Agent Growth Incentive Program (“AGIP”) The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock under the AGIP through agent attraction and performance benchmarks. The AGIP encourages greater performance and awards agents with shares of the Company’s common stock based on achievement of performance milestones. Awards typically vest after performance benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are granted on a fixed-dollar amount of shares based on the achievement of performance metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the performance metric is achieved. For the three months ended September 30, 2025 and 2024 the Company’s stock-based compensation expense attributable to the AGIP was $ 9,655 and $ 9,910 , respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $ 583 and $ 891 , respectively. For the nine months ended September 30, 2025 and 2024 the Company’s stock-based compensation expense attributable to the AGIP was $ 27,389 and $ 28,067 , respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $ 1,732 and $ 2,179 , respectively. The following table illustrates changes in the Company’s stock-based compensation liability for the periods presented: ​ ​ ​ ​ ​ ​ Amount Balance, December 31, 2023 ​ $ 5,000 Stock grant liability increase year to date ​ 2,251 Stock grants reclassified from liability to equity year to date ​ ( 2,206 ) Balance, December 31, 2024 ​ $ 5,045 Stock grant liability increase year to date ​ 1,732 Stock grants reclassified from liability to equity year to date ​ ( 928 ) Balance, September 30, 2025 ​ $ 5,849 ​ Stock Option Awards Stock options are granted to directors, officers, certain employees and consultants with an exercise price equal to the fair market value of common stock on the grant date and expire 10 years from the date of grant (or 5 years from the date of grant for options granted to significant stockholders). These options typically have time-based restrictions with equal and periodically graded vesting over a three-year period. During the three months ended September 30, 2025 and 2024, the Company granted 366,424 and 62,735 stock options, respectively, to employees with an estimated grant date fair value of $ 5.52 and $ 6.21 per share, respectively. During the nine months ended September 30, 2025 and 2024, the Company granted 522,842 and 738,473 stock options, respectively, to employees with an estimated grant date fair value of $ 5.50 and $ 6.57 per share, respectively. The fair values were calculated using a Black Scholes-Merton option pricing model. 11 Table of Contents Other Awards In addition to the core programs described above, the Company may grant other equity-based or ad hoc awards as needed to attract and retain employees, agents, or team leaders. These awards are generally granted with time-based or performance-based vesting conditions, and the terms are determined based on the specific objectives of the grant. To date, participation and grants of this variety have been limited. Restricted Stock Units (“RSUs”) The Company grants RSUs to officers and certain employees and may grant them to directors and consultants in the future. Each RSU represents the right to receive one share of the Company’s common stock upon vesting, subject to time-based and/or performance-based restrictions. RSUs typically vest over a three-year period with equal and periodically graded vesting or cliff vesting, as applicable. RSUs do not have an exercise price, and no payment is required by the grantee to receive the shares upon vesting. The Company measures stock-based compensation awards at their grant-date fair value. The resulting compensation cost is recognized on a straight-line basis over the requisite service period, which is typically the vesting period. The Company accounts for forfeitures when they occur as a reduction of recorded stock-based compensation. For the three months ended September 30, 2025 and 2024, the Company granted 131,243 and 13,995 RSUs, respectively, with weighted average grant date fair values of $ 10.41 and $ 14.23 , respectively. For the nine months ended September 30, 2025 and 2024, the Company granted 259,461 and 41,147 RSUs, respectively, with weighted average grant date fair values of $ 10.10 and $ 12.74 , respectively. As of September 30, 2025 and 2024, the total unrecognized stock-based compensation associated with these RSUs was $ 2,980 and $ 393 , respectively, which are expected to be recognized over a weighted average period of approximately 2.36 and 1.41 years, respectively. Stock Repurchase Plan In December 2018, the Company’s board of directors (the “Board”) approved a stock repurchase program (the “Stock Repurchase Program”), which has been amended from time to time, most recently in August 2025 as described in more detail below. Under the current authorization, the Company may repurchase up to $ 1.0 billion of its common stock, inclusive of amounts previously expended. The Stock Repurchase Program is intended primarily to offset dilution from equity compensation programs. Pursuant to the updated framework approved by the Board in October 2025, any share repurchases are subject to maintaining a minimum consolidated cash and cash equivalents balance of at least $ 100 million immediately after giving effect to any repurchase. Subject to that framework, the timing, amount, and pricing of repurchases are at the discretion of the CEO and CFO and depend upon, among other factors, internal financial models and the Company’s liquidity and strategic priorities. Repurchases may be made in the open market during an open trading window or pursuant to Rule 10b5-1 trading plans, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 10b5-1 Repurchase Plan In connection with the Stock Repurchase Program, from time to time, the Company adopts written trading plans pursuant to Rule 10b5-1 of the Exchange Act to conduct repurchases on the open market. On January 10, 2022, the Company and Stephens Inc. (“Stephens”), a financial services firm that acts as an agent authorized to purchase shares on behalf of the Company, entered into that certain Issuer Repurchase Plan (as amended, the “Issuer Repurchase Plan”) which authorizes Stephens to repurchase shares of common stock of the Company, and is amended from time to time to adjust the monthly authorized repurchase amount. Most recently, on August 6, 2025, the Board approved, and the Company entered into the Eleventh Amendment to Issuer Repurchase Plan which provides for the repurchase of up to $ 10.0 million during the calendar month of November 2025 and no repurchases from August 6, 2025 through October 31, 2025 . Shares of Company common stock repurchased under the Stock Repurchase Program are funded from cash and cash equivalents on hand and recorded based upon the applicable trade date. Such repurchased shares are held in treasury and are presented using the cost method. These shares are considered issued but not outstanding. 12 Table of Contents The following table shows the share changes in treasury stock for the periods presented (not in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Treasury stock: ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ 44,217,271 ​ 36,213,862 ​ 40,894,822 ​ 28,937,671 Repurchases of common stock ​ 1,589,685 ​ 2,794,040 ​ 4,912,134 ​ 10,070,231 Balance, end of period ​ 45,806,956 ​ 39,007,902 ​ 45,806,956 ​ 39,007,902 ​ 7. SEGMENT INFORMATION The three reportable segments presented below represent the Company’s segments for which separate financial information is available and is utilized on a regular basis by its Chief Operating Decision Maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its segments. Management evaluates the operating results of each of its reportable segments based upon Revenues and Adjusted Segment EBITDA, which is a non-U.S. GAAP measure. Adjusted Segment EBITDA is defined by the Company as a segment’s operating income (loss) before income taxes plus depreciation and amortization, impairment charges, litigation contingency, stock-based compensation expenses, stock option expense and other (income) expense, net. The Company’s presentation of Adjusted Segment EBITDA may not be comparable to similar measures used by other companies. The Company’s three reportable segments are as follows: ● North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America. ● International Realty: includes real estate brokerage operations in all other international locations. ● Other Affiliated Services: includes our SUCCESS ® Magazine, and other ancillary ventures. The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Condensed Consolidated Financial Statements included herein. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated income (loss) before income tax expense (benefit) and Goodwill (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 ​ 2024 ​ 2025 ​ 2024 North American Realty $ 1,275,865 ​ $ 1,206,660 ​ $ 3,475,400 ​ $ 3,408,418 International Realty 40,743 ​ 24,230 ​ 104,693 ​ 60,142 Other Affiliated Services 675 ​ 1,426 ​ 2,210 ​ 4,681 Revenues reconciliation: ​ ​ ​ ​ ​ ​ ​ Segment eliminations ( 600 ) ​ ( 1,129 ) ​ ( 1,837 ) ​ ( 3,756 ) Consolidated revenues $ 1,316,683 ​ $ 1,231,187 ​ $ 3,580,466 ​ $ 3,469,485 ​ 13 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Commissions and other agent-related costs ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 ​ 2024 ​ 2025 ​ 2024 North American Realty $ 1,196,460 ​ $ 1,123,673 ​ $ 3,237,481 ​ $ 3,156,931 International Realty 33,654 ​ 19,538 ​ 86,945 ​ 48,608 Other Affiliated Services 365 ​ 799 ​ 1,047 ​ 2,151 Commissions reconciliation: ​ ​ ​ ​ ​ ​ ​ Segment eliminations - ​ ( 475 ) ​ - ​ ( 1,741 ) Consolidated commissions and other agent-related costs $ 1,230,479 ​ $ 1,143,535 ​ $ 3,325,473 ​ $ 3,205,949 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 ​ 2024 ​ 2025 ​ 2024 North American Realty $ 23,100 ​ $ 28,899 ​ $ 50,620 ​ $ 85,208 International Realty ( 1,591 ) ​ ( 1,670 ) ​ ( 7,065 ) ​ ( 7,401 ) Other Affiliated Services ( 1,298 ) ​ ( 1,282 ) ​ ( 5,044 ) ​ ( 3,037 ) Corporate expenses and other ( 2,499 ) ​ ( 2,005 ) ​ ( 7,443 ) ​ ( 6,973 ) Consolidated Adjusted EBITDA $ 17,712 ​ $ 23,942 ​ $ 31,068 ​ $ 67,797 ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income tax expense reconciliation: ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense 2,424 ​ 2,379 ​ 7,257 ​ 7,742 Litigation contingency - ​ 18,000 ​ - ​ 34,000 Stock-based compensation expense 9,694 ​ 9,910 ​ 27,515 ​ 28,067 Stock option expense 1,578 ​ 1,987 ​ 5,032 ​ 5,959 Other (income) expense, net ( 413 ) ​ ( 520 ) ​ ( 1,989 ) ​ ( 2,934 ) Consolidated income (loss) before income tax expense $ 4,429 ​ ($ 7,814 ) ​ ($ 6,747 ) ​ ($ 5,037 ) ​ ​ ​ ​ ​ ​ Goodwill ​ September 30, 2025 ​ December 31, 2024 North American Realty $ 17,647 ​ $ 17,226 International Realty - ​ - Other Affiliated Services - ​ - Segment and consolidated total 17,647 ​ 17,226 ​ The Company does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed. ​ ​ 8. EARNINGS PER SHARE Basic earnings per share is computed based on net income attributable to eXp stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. The Company uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. 14 Table of Contents The following table sets forth the calculation of basic and diluted earnings per share attributable to common stock during the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations ​ $ 3,497 ​ ($ 6,481 ) ​ ($ 9,818 ) ​ ($ 8,545 ) ​ Net income (loss) from discontinued operations ​ $ - ​ ($ 2,025 ) ​ $ - ​ ($ 3,217 ) ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares - basic ​ 157,101,785 ​ 153,259,842 ​ 155,985,872 ​ 153,858,160 ​ Dilutive effect of common stock equivalents ​ 3,665,877 ​ - ​ - ​ - ​ Weighted average shares - diluted ​ 160,767,662 ​ 153,259,842 ​ 155,985,872 ​ 153,858,160 ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income from continuing operations per share - basic ​ $ 0.02 ​ ($ 0.04 ) ​ ($ 0.06 ) ​ ($ 0.06 ) ​ Net (loss) income from discontinued operations per share - basic ​ $ - ​ ($ 0.01 ) ​ $ - ​ ($ 0.02 ) ​ Net (loss) income from continuing operations per share - diluted ​ $ 0.02 ​ ($ 0.04 ) ​ ($ 0.06 ) ​ ($ 0.06 ) ​ Net (loss) income from discontinued operations per share - diluted ​ $ - ​ ($ 0.01 ) ​ $ - ​ ($ 0.02 ) ​ ​ For three months ended September 30, 2025 and 2024 total outstanding shares of common stock excluded 235,336 and 4,153,812 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive. For nine months ended September 30, 2025 and 2024 total outstanding shares of common stock excluded 3,223,228 and 3,309,505 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive. 9 . INCOME TAXES Our quarterly tax provision is computed by applying the estimated annual effective tax rate to the year-to-date pre-tax income or loss plus discrete tax items arising in the period. Our provision for income tax expense (benefit) amounted to $ 3.1 million and $ 3.5 million for the nine months ended September 30, 2025 and 2024, respectively which represent effective tax rates of ( 45.5 %) and ( 69.6 %), respectively. The effective tax rate differs from our statutory rates in both periods primarily due to foreign and domestic mix of earnings, and stock-based compensation. The Company is subject to a wide variety of tax laws and regulations in the jurisdictions where it operates. U.S. and international tax reform legislation could affect the Company's effective tax rate. The Company continues to monitor the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) framework—including the legislative adoption of Pillar Two and other tax reform legislation by jurisdiction—to evaluate the potential impact on future periods. The Company does not expect the adoption of Pillar Two rules to have a significant impact on its consolidated financial statements in fiscal year 2025. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into U.S. law. In accordance with ASC 740, the Company evaluated the impact of the legislation on its financial statements, including potential changes to deferred tax assets and liabilities, and the effective tax rate. The Company determined that OBBBA did not have a material impact on its consolidated financial statements. ​ 10 . FAIR VALUE MEASUREMENT The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: ● Level 1 – Inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). ● Level 2 – Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). ● Level 3 – Inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). 15 Table of Contents The Company holds funds in a money market account, which are considered Level 1 assets. The Company values its money market funds at fair value on a recurring basis. As of September 30, 2025 and December 31, 2024, the fair value of the Company’s money market funds was $ 12,286 and $ 38,344 , respectively. There have been no transfers between Level 1, Level 2 and Level 3 in the period presented. The Company did not have any Level 2 financial assets or liabilities in the period presented. In the first quarter of 2025, the Company acquired $ 11,000 of Level 3 assets, at fair value, and such assets increased in value to $ 11,735 at September 30, 2025 due to an additional capital contribution. 11. COMMITMENTS AND CONTINGENCIES From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions that may be asserted against us that could have a material adverse effect on the business, reputation, results of operations, cash flows or financial condition. Such litigation includes, but is not limited to, actions or claims relating to cyber-attacks, data breaches, the Real Estate Settlement Procedures Act (“RESPA”), the Telephone Consumer Protection Act of 1991 (“TCPA”) and state consumer protection laws, antitrust and anticompetition, worker classification, timely filing required SEC filings, stockholder derivative actions and non-compliance with contractual or other legal obligations. Antitrust Litigation The Company and its affiliated brokerage entities were among several defendants in eight U.S. and one Canadian putative class action lawsuits alleging that the Company participated in a system that resulted in sellers of residential property paying inflated buyer broker commissions in violation of U.S. federal and state antitrust laws and federal Canadian antitrust laws, as applicable, and one U.S. putative class action lawsuit alleging that the Company participated in a system that resulted in buyers of residential property paying inflated home prices as a result of sellers paying inflated buyer broker commissions in violation of federal and Illinois antitrust laws (collectively, the “antitrust litigation”). On December 9, 2024, the Company and certain of its subsidiaries entered into a Settlement Agreement (the “Settlement”) with plaintiffs in the U.S. antitrust lawsuit 1925 Hooper LLC, et al. v. The National Association of Realtors et al., Case No. 1:23-cv-05392- SEG (United States District Court for the Northern District of Georgia, Atlanta Division), which was filed on November 22, 2023 against the Company and other U.S. brokerage defendants (the “Hooper Action”). The Settlement resolves all claims set forth in the Hooper Action and similar claims on a nationwide basis against the Company (collectively, the “Claims”) and releases the Company, its subsidiaries and affiliates, and their independent contractor real estate agents in the U.S. from the Claims. By the terms of the Settlement, the Company agreed to make certain changes to its business practices and to pay a total settlement amount of $ 34.0 million (not in thousands) (the “Settlement Amount”) into a qualified settlement escrow fund (the “Settlement Fund”). The Settlement Amount is expected to be deposited into the Settlement Fund in installments, of which 50 % of the settlement (or $ 17.0 million (not in thousands)) is to be deposited into the Settlement Fund within 30 business days after preliminary court approval of the Settlement and the final 50 % (or $ 17.0 million (not in thousands)) is to be deposited on or before the one-year anniversary of the initial settlement payment. On May 23, 2025, the United States District Court for the Northern District of Georgia granted preliminary approval of the Settlement. In accordance with the Settlement terms, the Company funded the first $ 17.0 million (not in thousands) installment into the Settlement Fund during the fiscal quarter ended June 30, 2025. The Company intends to use available cash to pay the remaining Settlement Amount. Management has determined that a remaining $ 17.0 million (not in thousands) loss is probable and has included a $ 17.0 million (not in thousands) litigation contingency accrual recorded for the quarter ended September 30, 2025. While management has determined that loss in excess of the accrual is reasonably possible, it is currently unable to reasonably estimate the possible additional loss or range of possible additional loss because, among other reasons, (i) the settlement is subject to court approval and appeals processes, (ii) further developments in the legal proceedings, including but not limited to motions or rulings, could impact the Company’s exposure; and/or (iii) potential changes in law or precedent could affect the final determination of liability. The Settlement remains subject to final court approval and will become effective following any appeals process, if applicable. The Settlement and any actions taken to carry out the Settlement are not an admission or concession of liability, or of the validity of any claim, defense, or point of fact or law on the part of any party. The Company continues to deny the material allegations of the complaints in the antitrust litigation. The Company entered into the Settlement after considering the risks and costs of continuing the litigation. The Company continues to vigorously defend against the claims in the Canadian putative class action antitrust lawsuit Kevin McFall v. Canadian Real Estate Association, et al., Case No. T-119-24-ID 1 (Federal Court of Canada), filed on January 18, 16 Table of Contents 2024. Management is currently unable to reasonably estimate the possible loss or range of possible loss for the Canadian antitrust litigation because, among other reasons, (i) the proceeding is in preliminary stages, (ii) specific damage amounts have not been sought, (iii) damages sought are, in our opinion, unsupported and/or exaggerated, (iv) there are significant factual issues to be resolved; and/or (v) there are novel legal issues or unsettled legal theories presented. For the Canadian antitrust litigation, we have not recorded any accruals as of September 30, 2025. While the Company does not expect such litigation to have a material adverse effect on our business, results of operations, cash flows or financial condition, due to the complexities inherent in such litigation, including the uncertainty of legal processes and potential developments in the cases, the ultimate liability may differ from current expectations. Derivative Litigation Certain current and former directors and officers of the Company were named as defendants, and the Company was named as a nominal defendant, in a derivative lawsuit in the Court of Chancery of the State of Delaware, first filed on September 25, 2024, entitled Los Angeles City Employees’ Retirement System, on behalf of eXp World Holdings, Inc. v. Glenn Sanford, et. al. (C.A. No. 2024-0998-KSJM). The lawsuit alleges that certain current and former directors and officers breached fiduciary duties related to the Company’s response to reports of alleged sexual misconduct involving independent contractor real estate agents affiliated with the Company’s subsidiaries and that certain defendants had improper compensation arrangements allowing them to profit from the Company’s revenue share program in connection therewith. The complaint seeks a court declaration of fiduciary duty breaches, disgorgement of profits, damages with interest, injunctive relief for improved oversight of sexual misconduct allegations, and reimbursement of plaintiffs’ costs, including expert and attorney fees. Although the Company does not anticipate that the outcome of such litigation will have a material adverse effect on its business, results of operations, cash flows, or financial condition, the inherent complexities and uncertainties of legal proceedings may result in a liability that differs from current expectations. Management is currently unable to reasonably estimate the possible loss or range of possible loss for this matter because, among other reasons, (i) the proceeding is in preliminary stages, (ii) specific damage amounts have not been sought, (iii) there are significant factual issues to be resolved; and/or (iv) there are novel legal issues or unsettled legal theories presented. 12. SUBSEQUENT EVENTS Quarterly Cash Dividend On October 25, 2025 , the Company’s Board declared a dividend of $ 0.05 per share which is expected to be payable on December 1, 2025 , to stockholders of record as of the close of business on November 17, 2025 . The ex-dividend date is expected to be on or around November 14, 2025. The dividend will be paid in cash.