Third quarter earnings reports continue to roll out, with some of the real estate industries biggest names pulling back the curtain on their revenue—or in some cases, lack thereof. Despite tough Q3 for most, eXp and Redfin remained profitable heading into the year-end stretch.
eXp World Holdings managed to suffer only a small setback last quarter, with revenue down 2 percent to $1.2 billion. Gross profit decreased 10 percent to $83.6 million, while the company pulled in a new income of $1.3 million.
“In a slower market environment where every transaction counts, eXp’s agents in the U.S. significantly outperformed the market during the third quarter,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “This outstanding performance speaks to the differentiated nature of eXp’s platform and the power of our unique, success-oriented culture.”
Also managing to find the silver lining, Redfin’s earnings statement reflected a 2 percent decrease in real estate services, with gross profit coming in at $54.1 million. Redfin’s third quarter revenue was $269 million, a decrease of 12 percent compared to the third quarter of 2022.
Gross profit was $98.3 million, an increase of 8 percent year-over-year. Net loss was $19 million, compared to a net loss of $90.2 million in the third quarter of 2022.
“In a worsening housing market, Redfin earned an adjusted EBITDA profit, a $59 million improvement over the third quarter of 2022, all while growing traffic and gaining share,” said Redfin CEO Glenn Kelman. “In October, we raised capital, began generating revenues from a new digital business, and launched all-variable agent pay in California. This downturn has only made us stronger.”
The news was a bit bleaker over at Opendoor, which lost its coveted profitable status in Q3. The company’s revenue was down 71 percent annually to $980 million, with 2,687 total homes sold. That reflects a 68 percent decline in sales annually and a 50 percent decline compared to Q2 of 2023.
Gross profit stood at $96 million versus $425 million the third quarter of last year and $149 million last quarter. Net income $106 million compared to $928 million one year ago.
“These results demonstrate our continued strong execution and market share gains in what remains an uncertain U.S. housing market,” said Carrie Wheeler, CEO of Opendoor. “With an improved cost structure, strong balance sheet, and scaled customer acquisition channels, we believe we have laid the foundation to emerge from this cycle more resilient and well-positioned for continued share gains and long-term profitability. As the market leading platform that is leveraging technology to transform and simplify the way people buy and sell their home, we have a significant opportunity ahead of us and remain steadfast in our mission to power life’s progress, one move at a time.”