Jesse Hill
Chief Financial Officer

[Audio Gap] Productivity drove more agents to reach their cap in Q1, resulting in a gross profit of $75.3 million. Operating loss of $8.8 million for the quarter improved 15% year-over-year from a loss of $10.4 million last year, primarily driven by improvements we made to streamline our operations in 2025. Adjusted EBITDA was $4.1 million for the first quarter and above the midpoint of our guidance range of $2 million to $5 million, an increase of 88% over Q1 2025. Operating expenses were $84.1 million at the midpoint of our guidance range in the first quarter. And finally, we increased our cash position 6% year-over-year, ending the quarter with $122 million in cash on the balance sheet.

On the next slide, I'll walk us through our financial results by segment for the quarter. The North America Realty segment continues to be the largest revenue and profit generator for the company with revenue of $965.1 million for the first quarter and $10 million in adjusted EBITDA, a 29% year-over-year increase as we begin to realize the benefit of cost-saving initiatives we put in place last year. International continues to be our fastest-growing segment, increasing 27% in Q1, while we continue to invest in community building activities like eXpcon Cape Town, as Leo mentioned previously. We continue to reduce operating expenses in North America Realty and other affiliated services segments as we realize the benefit of initiatives we put into place to streamline operations across both segments in 2025.