Douglas Elliman Inc. SEC 10-Q Report

Douglas Elliman Inc., a leading residential real estate brokerage firm, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance, highlighting key metrics and business activities for the three months ended June 30, 2025.

Financial Highlights

Revenue: $271.4 million. The decline in revenue for the three months ended June 30, 2025, compared to the same period in 2024, was primarily due to lower commissions and other brokerage income driven by decreased existing home sales.

Operating Loss: $5.5 million. Operating loss increased due to decreased revenues during the three months ended June 30, 2025.

Net Loss: $22.7 million. The net loss for the three months ended June 30, 2025, was primarily due to decreased revenues and increased other expenses, including a significant loss from changes in the fair value of the derivative embedded within convertible debt.

Net Loss Margin: (5.98)%. Reflects the impact of decreased revenues and increased other expenses on the company's profitability for the three months ended June 30, 2025.

Business Highlights

Change in Reportable Segments: Beginning in the first quarter of 2025, Douglas Elliman Inc. started reporting its financial results as a single reportable segment, consolidating previous segment information to streamline reporting and analysis.

Geographical Performance: The company operates the largest residential brokerage in the New York metropolitan area and has significant operations in Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia, Washington, D.C., Arizona, New Hampshire, and Michigan. In the three months ended June 30, 2025, commission and other brokerage income decreased in New York City, Florida, the West region, and the Northeast region compared to the same period in 2024.

Sales Units: For the last twelve months ended June 30, 2025, Douglas Elliman completed 21,857 transactions, with 10,438 transactions in the first six months of 2025, slightly up from 10,362 transactions in the same period of 2024.

Average Transaction Value: The average transaction value per transaction for the six months ended June 30, 2025, was $1,923.1 thousand, an increase from $1,718.7 thousand in the same period of 2024.

Number of Principal Agents: As of June 30, 2025, the company had 4,714 principal agents, a decrease from 5,107 agents as of June 30, 2024.

Annual Retention: The annual retention rate for the six months ended June 30, 2025, was 86%, compared to 89% for the year ended December 31, 2024.

Future Outlook: The company anticipates that its cash and cash equivalents, along with expected cash flows from operations and available financings, will be sufficient to meet liquidity needs over the next twelve months. The company is also evaluating potential acquisitions, joint ventures, and other strategic transactions to enhance its operational capabilities.

SEC Filing: Douglas Elliman Inc. [ DOUG ] - 10-Q - Aug. 05, 2025