Douglas Elliman Inc. Reports First Quarter 2025 Financial Results
Company reports 27% year-over-year revenue growth and significant improvements in Net Loss and Adjusted EBITDA, driven by strategic investments and disciplined expense management.
“Our performance in the first quarter highlights the strength of our luxury brand and the incredible efforts of our agents, employees and leadership team,” said
GAAP Financial Results
Three months ended
First quarter 2025 revenues were
Non-GAAP Financial Measures
Reconciliations of Non-GAAP financial measures to the comparable GAAP financial results for the three months ended
Three months ended
Adjusted EBITDA attributed to
Adjusted Net Loss attributed to
Gross Transaction Value
For the first quarter of 2025, Douglas Elliman’s subsidiary,
Consolidated Balance Sheet
Conference Call to Discuss First Quarter 2025 Results
As previously announced, the Company will host a conference call and webcast to discuss its first quarter 2025 results on
A replay of the webcast will be available shortly after the call ends on
Non-GAAP Financial Measures
Adjusted EBITDA attributed to
The Company believes the Non-GAAP Financial Measures provide investors and analysts with a useful measure of operating results unaffected by differences in capital structures and ages of related assets among otherwise comparable companies.
Management uses the Non-GAAP Financial Measures as measures to review and assess the operating performance of the Company’s business, and management does and investors should review both the overall performance (GAAP net income) and the operating performance (the Non-GAAP Financial Measures) of the Company’s business. While management considers the Non-GAAP Financial Measures to be important, they should be considered in addition to, but not as substitutes for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating income, net income and cash flows from operations. In addition, the Non-GAAP Financial Measures are susceptible to varying calculations and the Company’s measurement of the Non-GAAP Financial Measures may not be comparable to those of other companies. Attached hereto as Tables 2 and 3 is information relating to the Company’s Non-GAAP Financial Measures for the three months ended
About
Investors and others should note that we may post information about
Forward-Looking and Cautionary Statements
This press release includes forward-looking statements within the meaning of the federal securities law. All statements other than statements of historical or current facts made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may be,” “continue” “could,” “potential,” “objective,” “plan,” “seek,” “predict,” “project” and “will be” and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the year ended
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TABLE 1
C
ONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
Revenues: |
|
|
|
||||
|
Commissions and other brokerage income |
$ |
241,143 |
|
|
$ |
188,265 |
|
|
Property management |
|
9,492 |
|
|
|
9,047 |
|
|
Other ancillary services |
|
2,768 |
|
|
|
2,927 |
|
|
Total revenues |
|
253,403 |
|
|
|
200,239 |
|
|
|
|
|
|
||||
|
Expenses: |
|
|
|
||||
|
Real estate agent commissions |
|
186,525 |
|
|
|
149,016 |
|
|
Sales and marketing |
|
19,739 |
|
|
|
21,298 |
|
|
Operations and support |
|
17,728 |
|
|
|
18,799 |
|
|
General and administrative |
|
27,325 |
|
|
|
27,016 |
|
|
Technology |
|
5,535 |
|
|
|
5,843 |
|
|
Depreciation and amortization |
|
1,900 |
|
|
|
1,981 |
|
|
Litigation settlement |
|
— |
|
|
|
17,750 |
|
|
Operating loss |
|
(5,349 |
) |
|
|
(41,464 |
) |
|
|
|
|
|
||||
|
Other income (expenses): |
|
|
|
||||
|
Interest expense |
|
(1,530 |
) |
|
|
(7 |
) |
|
Interest income |
|
1,361 |
|
|
|
1,383 |
|
|
Equity in earnings (losses) from equity-method investments |
|
2 |
|
|
|
(11 |
) |
|
Change in fair value of derivative embedded within convertible debt |
|
(746 |
) |
|
|
— |
|
|
Investment and other losses |
|
(22 |
) |
|
|
(391 |
) |
|
Loss before provision for income taxes |
|
(6,284 |
) |
|
|
(40,490 |
) |
|
Income tax expense |
|
— |
|
|
|
1,195 |
|
|
|
|
|
|
||||
|
Net loss |
|
(6,284 |
) |
|
|
(41,685 |
) |
|
|
|
|
|
||||
|
Net loss attributed to non-controlling interest |
|
299 |
|
|
|
210 |
|
|
|
|
|
|
||||
|
Net loss attributed to |
$ |
(5,985 |
) |
|
$ |
(41,475 |
) |
|
|
|
|
|
||||
|
Per basic common share: |
|
|
|
||||
|
|
|
|
|
||||
|
Net loss applicable to common shares attributed to |
$ |
(0.07 |
) |
|
$ |
(0.50 |
) |
|
|
|
|
|
||||
|
Per diluted common share: |
|
|
|
||||
|
|
|
|
|
||||
|
Net loss applicable to common shares attributed to |
$ |
(0.07 |
) |
|
$ |
(0.50 |
) |
|
TABLE 2
|
|||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
||||||||||
|
Net loss attributed to |
$ |
(40,826 |
) |
|
$ |
(76,316 |
) |
|
$ |
(5,985 |
) |
|
$ |
(41,475 |
) |
|
Interest expense |
|
4,462 |
|
|
|
2,939 |
|
|
|
1,530 |
|
|
|
7 |
|
|
Interest income |
|
(5,511 |
) |
|
|
(5,533 |
) |
|
|
(1,361 |
) |
|
|
(1,383 |
) |
|
Income tax (benefit) expense |
|
(78 |
) |
|
|
1,117 |
|
|
|
— |
|
|
|
1,195 |
|
|
Net loss attributed to non-controlling interest |
|
(775 |
) |
|
|
(686 |
) |
|
|
(299 |
) |
|
|
(210 |
) |
|
Depreciation and amortization |
|
7,655 |
|
|
|
7,736 |
|
|
|
1,900 |
|
|
|
1,981 |
|
|
EBITDA |
$ |
(35,073 |
) |
|
$ |
(70,743 |
) |
|
$ |
(4,215 |
) |
|
$ |
(39,885 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Equity in (earnings) losses from equity-method investments (a) |
|
(49 |
) |
|
|
(36 |
) |
|
|
(2 |
) |
|
|
11 |
|
|
Change in fair value of derivatives embedded within convertible debt |
|
15,724 |
|
|
|
14,978 |
|
|
|
746 |
|
|
|
— |
|
|
Stock-based compensation expense |
|
5,254 |
|
|
|
6,574 |
|
|
|
2,035 |
|
|
|
3,355 |
|
|
Litigation, settlement and related settlement expenses (b) |
|
16,836 |
|
|
|
33,333 |
|
|
|
1,898 |
|
|
|
18,395 |
|
|
Executive employee severance and separation expenses |
|
2,420 |
|
|
|
2,010 |
|
|
|
410 |
|
|
|
— |
|
|
Restructuring |
|
1,041 |
|
|
|
1,041 |
|
|
|
— |
|
|
|
— |
|
|
Other, net |
|
(5,658 |
) |
|
|
(5,289 |
) |
|
|
22 |
|
|
|
391 |
|
|
Adjusted EBITDA |
|
495 |
|
|
|
(18,132 |
) |
|
|
894 |
|
|
|
(17,733 |
) |
|
Adjusted EBITDA attributed to non-controlling interest |
|
431 |
|
|
|
349 |
|
|
|
214 |
|
|
|
132 |
|
|
Adjusted EBITDA attributed to |
$ |
926 |
|
|
$ |
(17,783 |
) |
|
$ |
1,108 |
|
|
$ |
(17,601 |
) |
|
|
|
|
|
|
|
|
|
||||||||
- Represents equity in (earnings) losses recognized from the Company’s investments in equity method investments that are accounted for under the equity method and are not consolidated in the Company’s financial results.
-
Represents unusual litigation expense, settlement and related expenses incurred in connection with industry-wide antitrust class action lawsuits and other matters related to employees and agents. For the year ended
December 31, 2024 , we incurred unusual litigation expense, settlement and related expenses of$33,333 with$15,583 being included in general and administrative expenses and$17,750 being included in litigation settlement expense. For the three months endedMarch 31, 2025 , we incurred such expenses of$1,898 and they are included in general and administrative expenses in the condensed consolidated statements of operations. For the three months endedMarch 31, 2024 , we incurred such expenses of$18,395 with$645 being included in general and administrative expenses and$17,750 being included in litigation settlement expense in the condensed consolidated statement of operations.
|
TABLE 3
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
||||||
|
Net loss attributed to |
$ |
(5,985 |
) |
|
$ |
(41,475 |
) |
|
|
|
|
|
||||
|
Change in fair value of derivatives embedded within convertible debt |
|
746 |
|
|
|
— |
|
|
Non-cash amortization of debt discount on convertible debt |
|
534 |
|
|
|
— |
|
|
Executive severance and separation expense |
|
410 |
|
|
|
— |
|
|
Litigation, settlement and related settlement expenses |
|
1,898 |
|
|
|
18,395 |
|
|
Total adjustments |
|
3,588 |
|
|
|
18,395 |
|
|
|
|
|
|
||||
|
Tax expense related to adjustments |
|
— |
|
|
|
— |
|
|
Adjusted net loss attributed to |
$ |
(2,397 |
) |
|
$ |
(23,080 |
) |
|
|
|
|
|
||||
|
Per diluted common share: |
|
|
|
||||
|
|
|
|
|
||||
|
Adjusted net loss applicable to common shares attributed to |
$ |
(0.03 |
) |
|
$ |
(0.28 |
) |
|
TABLE 4
|
|||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
|
||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
Revenues: |
|
|
|
|
|
|
|
||||
|
Commissions and other brokerage income |
$ |
999,435 |
|
$ |
946,557 |
|
$ |
241,143 |
|
$ |
188,265 |
|
Property management |
|
37,230 |
|
|
36,785 |
|
|
9,492 |
|
|
9,047 |
|
Other ancillary services |
|
12,126 |
|
|
12,285 |
|
|
2,768 |
|
|
2,927 |
|
Total revenues |
$ |
1,048,791 |
|
$ |
995,627 |
|
$ |
253,403 |
|
$ |
200,239 |
|
|
|
|
|
|
|
|
|
||||
|
Gross transaction value (in billions) |
$ |
39.1 |
|
$ |
36.4 |
|
$ |
9.9 |
|
$ |
7.1 |
|
Total transactions |
|
22,212 |
|
|
21,781 |
|
|
4,908 |
|
|
4,477 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250501605411/en/
917-902-2503
FGS Global
212-687-8080
J. Bryant Kirkland III,
305-579-8000
Source:
