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Item 1. Financial Statements

2026-08-04 compared with 2026-05-11 · 106 added, 86 removed, 319 unchanged (38% of the section changed)

FINANCIAL STATEMENTS (UNAUDITED)

EXP WORLD HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

March 31, 2026

June 30, 2026

December 31, 2025

19 unchanged sentences

Common Stock, $ 0.00001 par value 900,000,000 shares authorized;

211,059,707 issued and 164,323,924 outstanding at March 31, 2026 and 207,785,762 issued and 161,049,979 outstanding at December 31, 2025

213,853,720 issued and 167,117,937 outstanding at June 30, 2026 and 207,785,762 issued and 161,049,979 outstanding at December 31, 2025

Additional paid-in capital

Treasury stock, at cost:

46,735,783 shares held at March 31, 2026 and December 31, 2025

46,735,783 shares held at June 30, 2026 and December 31, 2025

Accumulated earnings (deficit)

2 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

EXP WORLD HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except share amounts and per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Commissions and other agent-related costs

3 unchanged sentences

Sales and marketing expenses

Litigation contingency

Total operating expenses

17 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

EXP WORLD HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Common stock:

10 unchanged sentences

Agent equity stock-based compensation

Other stock-based compensation

Other share activity

Balance, end of period

9 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

EXP WORLD HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

3 unchanged sentences

Amortization expense - intangible assets

Loss on disposition of assets

Credit (benefit) losses on receivables/bad debt on receivables

10 unchanged sentences

Accrued expenses

Litigation contingency

Other operating activities

2 unchanged sentences

Purchases of property and equipment

Acquisitions, net of cash acquired

Proceeds from sale of assets

Investments in unconsolidated affiliates

15 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

eXp World Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

1 unchanged sentence

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

eXp World Holdings, Inc.

(the “Company” or “eXp”) operates a cloud-based real estate brokerage and provides related services supporting real estate agents, brokers, and entrepreneurs across North America and international markets through three reportable segments:

(“AGNT”, the “Company”, “we”, “us” or “our”) (formerly known as eXp World Holdings, Inc.) was incorporated in the State of Delaware on July 30, 2008 and converted to a Texas corporation on June 11, 2026.

AGNT is a multi-model real estate platform operating through its subsidiaries eXp Realty®, the Company’s cloud-based brokerage, and NextHome, Inc.

(“NextHome”), a national real estate franchise.

Together, these businesses support independent real estate agents, franchise owners, brokers, and entrepreneurs across North America and international markets.

The Company also operates FrameVR.io, a virtual collaboration platform, and SUCCESS® Enterprises, a personal development and media brand.

The Company reports results through three reportable segments:

North American Realty, International Realty, and Other Affiliated Services.

15 unchanged sentences

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 unless the joint venture specifically supports one of the other reportable segments.

Joint ventures are typically included in the Other Affiliated Services segment unless the joint venture specifically supports one of the other reportable segments.

Investments in Equity Securities

9 unchanged sentences

When necessary, the Company will reclassify certain amounts in prior period financial statements to conform to the current period’s presentation.

The prior periods presented do not include any reclassifications.

The Company maintains a consistent presentation across all periods presented.

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.

Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers and amounts held in Canadian commission trust accounts.

Buyer escrow amounts are recorded as customer deposit liabilities until released, at which time the liability is reduced.

Amounts held in legally designated trust accounts at financial institutions in Canada are restricted solely to the payment of real estate commissions, in accordance with applicable Canadian real estate regulations.

The corresponding obligation is reflected in commissions payable to agents, included in accrued expenses on the Company’s condensed consolidated balance sheets.

The following table provides a reconciliation of cash and 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.

1 unchanged sentence

Restricted cash

Balance, March 31, 2025

Balance, June 30, 2025

Balance, December 31, 2025

Balance, March 31, 2026

Balance, June 30, 2026

EXPECTED CREDIT LOSSES

The Company evaluates expected credit losses using an aging schedule and records an allowance when amounts are determined to be uncollectible.

As of March 31, 2026 and December 31, 2025, the Company recognized expected credit losses of $ 47 and $ 82 , respectively.

As of June 30, 2026 and December 31, 2025, the Company recognized expected credit losses of $ 126 and $ 82 , respectively.

PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

March 31, 2026

June 30, 2026

December 31, 2025

6 unchanged sentences

Property and equipment, net

For the three months ended March 31, 2026 and 2025, depreciation expense was $ 1,679 and $ 1,945 , respectively.

For the three months ended June 30, 2026 and 2025, depreciation expense was $ 1,643 and $ 1,587 , respectively.

For the six months ended June 30, 2026 and 2025, depreciation expense was $ 3,322 and $ 3,532 , respectively.

GOODWILL AND INTANGIBLE ASSETS

Goodwill was $ 17,635 as of March 31, 2026 and $ 17,872 as of December 31, 2025.

As of March 31, 2026, the Company recorded cumulative translation adjustment of $( 237 ) related to Canadian goodwill.

Goodwill was $ 26,917 as of June 30, 2026 and $ 17,872 as of December 31, 2025.

As of June 30, 2026, the Company recorded cumulative translation adjustment of $( 515 ) related to goodwill held in Canadian operations.

Definite-lived intangible assets, net consisted of the following:

March 31, 2026

June 30, 2026

Existing technology

12 unchanged sentences

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 March 31, 2026 and 2025 was $ 643 and $ 616 , respectively.

Amortization expense for definite-lived intangible assets for the three months ended June 30, 2026 and 2025 was $ 602 and $ 685 , respectively.

Amortization expense for definite-lived intangible assets for the six months ended June 30, 2026 and 2025 was $ 1,245 and $ 1,301 , respectively.

STOCKHOLDERS’ EQUITY

The following table represents a share reconciliation of the Company’s common stock issued for the periods presented:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Common stock:

4 unchanged sentences

Other stock-based compensation

Other share activity

( 2,715,349 )

Balance, end of period

During the three months ended March 31, 2026, cash dividends paid totaled $ 7,970 .

The Board currently intends to continue paying quarterly dividends.

However, payment of cash dividends is at the discretion of the Board in accordance with applicable law after considering various factors, including our financial condition, operating results, current and anticipated cash needs and plans for growth.

Under Delaware law, we can only pay dividends either out of surplus or out of the current or the immediately preceding year’s earnings.

Therefore, no assurance is given that we will pay any future dividends to our common stockholders, or as to the amount of any such dividends.

During the three and six months ended June 30, 2026, cash dividends paid totaled $ 8,167 and $ 16,137 , respectively.

The Company’s board of directors (the “Board”) currently intends to continue paying quarterly dividends.

However, payment of cash dividends is at the discretion of the Board in accordance with applicable law after considering various factors, including the Company’s financial condition, operating results, current and anticipated cash needs and plans for growth.

Under Texas law, we can only pay dividends either out of surplus or out of the current or the immediately preceding year’s earnings.

Therefore, no assurance is given that the Company will pay any future dividends to its common stockholders, or as to the amount of any such dividends.

Stock Compensation Programs

Related to the Agent Equity Program, during the three months ended March 31, 2026 and 2025, the Company issued shares of the Company’s common stock to agents and brokers with a value of $ 18,555 and $ 20,756 , respectively, inclusive of discount.

Related to the Agent Growth Incentive Program (“AGIP”), during the three months ended March 31, 2026 and 2025 the Company’s stock-based compensation expense was $ 9,073 and $ 7,922 , respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $ 968 and $ 622 , respectively.

As of March 31, 2026, the total unrecognized compensation costs associated with AGIP, where the performance metric has been achieved and the number of shares awarded are fixed, was $ 58,412 , which is expected to be recognized over a weighted-average period of approximately 2.00 years.

Related to the Agent Equity Program, during the three months ended June 30, 2026 and 2025, the Company issued shares of the Company’s common stock to agents and brokers with a value of $ 24,157 and $ 26,803 , respectively, inclusive of discount.

During the six months ended June 30, 2026 and 2025, the Company issued shares of the Company’s common stock to agents and brokers with a value of $ 42,711 and $ 47,559 , respectively, inclusive of discount.

Related to the Agent Growth Incentive Program (“AGIP”), during the three months ended June 30, 2026 and 2025, the Company’s stock-based compensation expense was $ 11,146 and $ 9,615 , respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $ 1,385 and $ 526 , respectively.

During the six months ended June 30, 2026 and 2025, the Company’s stock-based compensation expense was $ 20,219 and $ 17,734 , respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $ 2,353 and $ 1,149 , respectively.

As of June 30, 2026, the total unrecognized compensation costs associated with AGIP, where the performance metric has been achieved and the number of shares awarded are fixed, was $ 59,045 , which is expected to be recognized over a weighted-average period of approximately 1.98 years.

The following table illustrates changes in the Company’s stock-based compensation liability for the periods presented:

5 unchanged sentences

Stock grants reclassified from liability to equity year to date

Balance, March 31, 2026

Balance, June 30, 2026

Other Restricted Stock Units (“RSUs”)

4 unchanged sentences

The total fair value of RSUs is recognized as stock-based compensation expense over the vesting period, with adjustments for estimated forfeitures.

During the three months ended March 31, 2026 and 2025, the Company's stock compensation attributable to RSUs was $ 396 and $ 197 , respectively.

As of March 31, 2026, the total unrecognized compensation costs associated with these RSUs was $ 3,124 , which is expected to be recognized over a weighted-average period of approximately 2.14 years.

During the three months ended June 30, 2026 and 2025, the Company's stock-based compensation expense attributable to RSUs was $ 627 and $ 248 , respectively.

During the six months ended June 30, 2026 and 2025, the Company's stock-based compensation expense attributable to RSUs was $ 1,022 and $ 445 , respectively.

As of June 30, 2026, the total unrecognized compensation costs associated with these RSUs was $ 4,360 , which is expected to be recognized over a weighted-average period of approximately 1.68 years.

Stock Option Awards

1 unchanged sentence

These options generally have time-based restrictions with equal and periodically graded vesting over a three-year period.

During the three months ended March 31, 2026 and 2025, the Company granted 112,510 and 72,845 stock options, respectively, to employees with an estimated grant date fair value of $ 3.79 and $ 5.66 per share, respectively.

During the three months ended June 30, 2026 and 2025, the Company granted 70,644 and 83,573 stock options, respectively, to employees with an estimated grant date fair value of $ 2.63 and $ 4.67 per share, respectively.

During the six months ended June 30, 2026 and 2025, the Company granted 183,154 and 156,418 stock options, respectively, to employees with an estimated grant date fair value of $ 3.34 and $ 5.28 per share, respectively.

The fair values were calculated using a Black Scholes-Merton option pricing model.

Stock Repurchase Plan

The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares and it limits the Company’s aggregate repurchases to $ 1.0 billion.

Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Stock Repurchase Program

The Company’s stock repurchase program does not obligate the Company to acquire a minimum amount of shares and it limits the Company’s aggregate repurchases to $ 1.0 billion.

Under the program, shares may be repurchased in privately

negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

For accounting purposes, common stock repurchased under the stock repurchase program is recorded based upon the trade date of the applicable trade.

1 unchanged sentence

These shares are considered issued but not outstanding.

During the three months ended March 31, 2026, there were no repurchases of common stock, and no shares were issued from treasury.

As of March 31, 2026, and December 31, 2025, the Company held 46,735,783 shares in treasury with a total cost of $ 743 million.

During the three and six months ended June 30, 2026, there were no repurchases of common stock, and no shares were issued from treasury.

As of June 30, 2026, and December 31, 2025, the Company held 46,735,783 shares in treasury with a total cost of $ 743 million.

As of June 30, 2026, approximately $ 233 million remained available for repurchases under the Company’s stock repurchase program.

SEGMENT INFORMATION

The following table provides information about the Company’s reportable segments and a reconciliation of the total segment revenues to consolidated revenues, commissions and other agent-related costs, and segment adjusted EBITDA to the consolidated income (loss) before income tax expense (benefit) and goodwill (in thousands).

Three Months Ended March 31,

The following table provides information about the Company’s reportable segments (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

North American Realty

5 unchanged sentences

Commissions and Other Agent-Related Costs

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

North American Realty

5 unchanged sentences

Operating Income (Loss)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

North American Realty

5 unchanged sentences

Adjusted EBITDA

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

North American Realty

5 unchanged sentences

Depreciation and amortization expense

Legal costs non-recurring

Litigation contingency

Stock-based compensation expense

Other stock-based compensation expense

Stock option expense

Other (income) expense, net

Consolidated income (loss) before income tax expense

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

EARNINGS PER SHARE

Basic earnings (loss) per share is computed based on net income (loss) attributable to eXp stockholders divided by the basic weighted-average shares outstanding during the period.

Basic earnings (loss) per share is computed based on net income (loss) attributable to AGNT stockholders divided by the basic weighted-average shares outstanding during the period.

Dilutive earnings (loss) 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.

1 unchanged sentence

The following table sets forth the calculation of basic and diluted earnings (loss) per share attributable to common stockholders during the periods presented:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net income (loss)

5 unchanged sentences

Net income (loss) per share - diluted

For three months ended March 31, 2026 and 2025 total outstanding shares of common stock excluded 3,103,669 and 3,424,959 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive.

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 $( 3.6 ) million and $ 1.7 million for the three months ended March 31, 2026 and 2025, respectively, which represent effective tax rates of 41.1 % and ( 17.9 %), 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.

For the three months ended June 30, 2026 and 2025, total outstanding shares of common stock excluded 3,657,416 and 2,965,463 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive.

For the six months ended June 30, 2026 and 2025, total outstanding shares of common stock excluded 3,189,234 and 3,099,063 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive.

The Company’s 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.

The Company’s provision for income tax expense amounted to $ 1,447 and $ 2,139 for the six months ended June 30, 2026 and 2025, respectively, which represent effective tax rates of ( 22.8 %) and ( 19.1 %), respectively.

The effective tax rate differs from the Company’s 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.

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 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 continues to monitor the Organization 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 2026.

2 unchanged sentences

The Company values its money market funds at fair value on a recurring basis.

As of March 31, 2026 and December 31, 2025, the fair value of the Company’s money market funds was $ 12,507 and $ 12,397 , respectively.

As of June 30, 2026 and December 31, 2025, the fair value of the Company’s money market funds was $ 12,619 and $ 12,397 , respectively.

The Company holds investments in equity securities without readily determinable fair values.

These investments are accounted for under the measurement alternative method in accordance with ASC 321 .

As of March 31, 2026, the carrying value of these investments was $ 12,235 .

As of June 30, 2026, the carrying value of these investments was $ 12,235 .

There were no transfers between levels of the fair value hierarchy, and the Company held no Level 2 financial instruments during the periods presented.

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 filings with the Securities and Exchange Commission (the “SEC”), stockholder derivative actions, non-compliance with contractual or other legal obligations, and beginning with the May 2026 acquisition of NextHome, franchise laws and regulations, including the Federal Trade Commission’s Franchise Rule (16 C.F.R.

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 Company’s business, reputation, results of operations, cash flows and/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, stockholder derivative actions, non-compliance with contractual or other legal obligations, and franchise laws and regulations, including the Federal Trade Commission’s Franchise Rule (16 C.F.R.

Part 436), state franchise disclosure and registration requirements, and franchise relationship laws governing termination, renewal, and transfer rights.

1 unchanged sentence

The Company and its affiliated brokerage entities are among several defendants in certain sell-side and buy-side class action lawsuits, as detailed below.

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.

Sell-Side Class Action Lawsuits

12 unchanged sentences

On March 31, 2026, the United States District Court for the Northern District of Georgia granted final approval of the Settlement.

However, during the quarter ended March 31, 2026,

certain objectors filed a notice of appeal of the final approval to the Eleventh Circuit Court of Appeals.

The effectiveness of the settlement agreement is predicated on the outcome of the appeal.

Despite the appeal, the remaining $ 17.0 million (not in thousands) installment is due on or before June 27, 2026, and the Company intends to pay this amount from available cash.

However, during the quarter ended March 31, 2026, certain objectors filed a notice of appeal of the final approval to the Eleventh Circuit Court of Appeals.

The effectiveness of the Settlement is predicated on the outcome of the appeal.

Despite the appeal, the remaining $ 17.0 million (not in thousands) installment was paid on June 27, 2026, from available cash.

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.

6 unchanged sentences

and/or (v) there are novel legal issues or unsettled legal theories presented.

Buy-Side Class Action Lawsuit

The Company is currently named in one putative nationwide class action on behalf of home buyers (those who were not also sellers) captioned Batton et al.

The Company is currently named in one putative nationwide class action lawsuit on behalf of home buyers (those who were not also sellers) captioned Batton et al.

The National Association of Realtors, et al.

5 unchanged sentences

At World Properties, et al., United States District Court for the Northern District of Illinois (“Tuccori”), have implications for resolution of the claims asserted against the Company in the Batton Action.

Tuccori, to which the Company was not named as a defendant, is a case that consolidated several purported class actions filed by home buyers.

In October 2025, the court preliminarily approved a settlement structure (the “Tuccori Settlement”) which included an opt-in procedure under which other companies subject to home buyer claims could participate in the Tuccori Settlement, subject to preliminary and final court approval.

On April 14, 2026, the Company opted into the Tuccori Settlement via an Opt-In Settlement Agreement.

Tuccori, to which the Company was not named as a defendant, is a case that consolidated several purported class action lawsuits filed by home buyers.

In October 2025, the court preliminarily approved a settlement structure, which included an opt-in procedure under which other companies subject to home buyer claims could participate in the Tuccori settlement, subject to preliminary and final court approval.

On April 14, 2026, the Company opted into the Tuccori settlement via an Opt-In Settlement Agreement (the “Tuccori Settlement”).

By the terms of the Tuccori Settlement, the Company agreed to make certain changes to its business practices and to pay a total settlement amount of $ 4.335 million (not in thousands) payable as $ 1.0 million (not in thousands) within 30 days after entry of an order granting preliminary approval of the Tuccori Settlement, with the remaining balance due within 30 days after the “Effective Date” of the Tuccori Settlement, which requires, among other things, entry of a final judgment and order approving the Tuccori Settlement and expiration or exhaustion of any appeal rights.

On May 26, 2026, the United States District Court for the Northern District of Illinois granted preliminary approval of the Tuccori Settlement and the Company subsequently paid the first installment of the Tuccori Settlement during the fiscal quarter ended June 30, 2026.

The Tuccori Settlement remains subject to final court approval and appeals process, if any.

The Company anticipates that the Tuccori Settlement will apply to any claims based on any or all of the same factual predicates as those in the Batton Action.

Derivative Litigation

4 unchanged sentences

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.

During the quarter ended March 31, 2026, the Court of Chancery denied the defendants' motion to dismiss.

The case will now proceed to discovery.

During the quarter ended March 31, 2026, the Court of Chancery denied the defendants' motion to dismiss and the case is now proceeding through discovery.

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 progressing through preliminary stages, (ii) specific damage amounts have not been sought, (iii) there are significant factual issues to be resolved;

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 progressing through 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.

1 unchanged sentence

Quarterly Cash Dividend

On April 23, 2026 , the Company’s Board declared a dividend of $ 0.05 per share which is expected to be payable on June 5, 2026 , to stockholders of record as of the close of business on May 22, 2026 .

The ex-dividend date is expected to be on or around May 21, 2026.

On July 28, 2026 , the Company’s Board declared a dividend of $ 0.05 per share which is expected to be payable on August 28, 2026 , to stockholders of record as of the close of business on August 14, 2026 .

The ex-dividend date is expected to be on or around August 13, 2026.

The dividend will be paid in cash.

NextHome Acquisition

On May 6, 2026, the Company completed the acquisition of NextHome, Inc.

(“NextHome”), a national franchised real estate brokerage network.

The acquisition represents the Company’s initial entry into the franchised real estate brokerage model.

NextHome operates a franchise system through which independent real estate brokerages and agents operate under the NextHome brand pursuant to franchise agreements.

The Company will reflect NextHome’s results in its consolidated financial statements beginning in the second quarter of 2026, from the date of acquisition.

The initial contribution of NextHome to the Company’s consolidated revenues and results of operations is not expected to be material, though the acquisition introduces a new regulatory framework, including federal and state franchise laws and disclosure requirements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements