Risk Factors Update Summary

• The company faces competition from traditional real estate firms, real estate tech companies, and new entrants.
• The Federal Reserve Board raised interest rates in 2022 and 2023, significantly impacting mortgage rates.
• Failure to attract agents and their clients could adversely affect financial condition and operations.
• Implementing a "sell-to-cover" settlement method may result in dilution and impact stockholders.
• Losses due to bank failures could lead to clients seeking full-service agents, impacting business.
• Rising interest rates led to a rapid increase in mortgage rates, affecting home affordability.
• Rapid growth in the past may not be indicative of future growth potential.
• Expansion into international markets may impact internal control over financial reporting.
• Declining home inventory levels negatively impacted transaction volume, reducing revenue opportunities.
• Integration of machine learning and AI technology poses operational, compliance, and reputational risks.
• Expansion into integrated services markets may face challenges, impacting revenue growth projections.
• Competition may increase due to changes in commission rates, affecting revenue and financial condition.
• Investments in platform innovation and acquisitions may not yield expected agent retention or productivity.
• Failure to expand services into new markets may hinder revenue growth and business performance.