“After careful consideration, the Board of Directors unanimously approved this proposal because we believe Texas provides a governance environment that is clearer, more predictable and better suited to a company of our size and complexity,” Sanford wrote. “This is not a structural change in the way we operate. IT is a thoughtful evolution of the framework within which we operate – a framework that serves the long-term interests of our shareholder, our agents and the company.”
Sanford added that the decision reflects eXp’s guiding philosophy: “Choose clarity over complexity and long-term management over short-term positioning.”
Sanford’s revelation of this desired move comes just six weeks after the Delaware Chancery Court ordered him to face claims that he actively covered up sexual assaults committed by two former top agents and recruiters at the company. According to the court, Sanford may have covered up these attacks because the broker’s revenue downline system placed the two alleged perpetrators in Sanford’s direct downline.
In an emailed statement, a spokesperson for eXp HousingWire that the company’s board of directors “believes that reincorporation into Texas is in the best interests of the company and its shareholders,” and that the decision came after “more than a year of extensive deliberation and review.”
“The reinstatement is not expected to result in any changes to our business, management, operations, assets or liabilities,” the spokesperson added. “Detailed details about the proposal are described in our proxy statement filed with the SEC.”
eXp’s annual shareholders meeting will take place on April 24, 2026.
In 2025, eXp generated net sales of $4.8 billion, up 4% year over year. However, net loss rose slightly to $22.7 million from $21.3 million a year ago. Much of the 2025 net loss came in the fourth quarter, with eXp posting a net loss of $12.9 million, compared to $9.5 million a year ago. Despite this increase in net loss, the company’s available cash and cash equivalents at year-end were $124.5 million, compared to $113.6 million a year ago.
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