NYSE:DOUG Douglas Elliman Q2 2025 Earnings Report $2.14 -0.61 (-22.18%) Closing price 08/1/2025 03:59 PM EasternExtended Trading$2.25 +0.11 (+5.14%) As of 08/1/2025 07:59 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History Douglas Elliman EPS ResultsActual EPS-$0.06Consensus EPS $0.03Beat/MissMissed by -$0.09One Year Ago EPSN/ADouglas Elliman Revenue ResultsActual Revenue$271.37 millionExpected Revenue$333.91 millionBeat/MissMissed by -$62.55 millionYoY Revenue GrowthN/ADouglas Elliman Announcement DetailsQuarterQ2 2025Date7/31/2025TimeAfter Market ClosesConference Call DateFriday, August 1, 2025Conference Call Time8:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Douglas Elliman Q2 2025 Earnings Call TranscriptProvided by QuartrAugust 1, 2025 ShareLink copied to clipboard.Key Takeaways Positive Sentiment: First half revenues increased by 8% year-over-year to $524.8 million, marking the strongest first half performance since 2022. Positive Sentiment: Adjusted EBITDA for the six months was a positive $0.3 million compared to a loss last year, and adjusted net loss narrowed to $7.1 million from $23.6 million. Positive Sentiment: The company launched Element Capital, an innovative mortgage platform in Florida that will expand to all operating states and provide a new licensing revenue stream. Positive Sentiment: The Element International platform was introduced to directly serve high-end luxury clients in key markets across Latin America, the Middle East, Europe, and Asia Pacific. Negative Sentiment: Second quarter revenues fell to $271.4 million from $285.8 million and net loss widened to $22.7 million, reflecting May–June market softness and a $17 million non-cash derivative charge. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallDouglas Elliman Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xThere are 4 speakers on the call. Operator00:00:00Welcome to Douglas Elliman's Second Quarter twenty twenty five Earnings Conference Call. This call is being recorded and simultaneously webcast. Operator00:00:10An archived version of the webcast will be available on the Investor Relations section of the company's website located at investors.ellmann.com for one year. I would now like to turn the conference over to Douglas Elliman Vice President of Finance, Heather Capriola. Speaker 100:00:30Thank you, and good morning. On the call with me today is Michael Lebowitz, President and CEO of Douglas Elliman Inc. And Brian Kirkland, CFO of Douglas Elliman Inc. During this call, the terms adjusted EBITDA and adjusted net loss will be used as well as last twelve months or LTM metrics. These terms are non GAAP financial measures and should be considered in addition to, but not as a substitute for, other measures of financial performance prepared in accordance with GAAP. Speaker 100:01:04Reconciliations to adjusted EBITDA and adjusted net loss are contained in the company's earnings release, which has been posted to the Investor Relations section of the company's website. Before the call begins, I would like to read a safe harbor statement. The statements made during this conference call that are not historical facts are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward looking statements. These risks are described in more detail in the company's Securities and Exchange Commission filings. Now I would like to turn the call over to the Chief Executive Officer of Douglas Elliman, Michael S. Speaker 100:01:52Lebowitz. Speaker 200:01:54Thank you, Heather. Good morning, and thank you for joining us. I am pleased to share that Douglas Elliman continues to make meaningful progress as we execute our strategy to drive growth, improve profitability, and position the company for long term success. On today's call, we will discuss the current operating environment and Douglas Elliman's financial results for the three six months ended 06/30/2025. All numbers presented this morning will be as of 06/30/2025, unless otherwise stated. Speaker 200:02:28We will then provide closing comments and open the call for questions. Before we turn to our second quarter twenty twenty five results, I would like to begin by providing industry updates and summarizing some of our recent accomplishments. In the 2025, our revenues increased by 8% year over year to $524,800,000 marking our strongest first half revenue performance since 2022. We also delivered significant improvement towards restoring our profitability with notable reductions in operating losses when compared to the 2024. Our agents and employees remain at the center of everything we do. Speaker 200:03:13Their hard work and commitment to excellence driver our success. We are proud to support them with the tools and technology they need to excel in today's market. After a challenging period in the middle of the second quarter, which Bryant will discuss later, we remain optimistic about the third quarter and 2025, thanks to encouraging recent trends, including continued demand for luxury homes, rising average transaction values and a strong development marketing pipeline. These results reflect the strength of our iconic brands, the dedication of our agents and the resilience of the luxury markets we serve. Now let us look to the future. Speaker 200:03:57We are focused on executing our strategic growth initiatives, including the recent launches of Element Capital and Element International. In July 2025, we were pleased to announce the creation of Element Capital, an innovative mortgage platform developed with associated mortgage bankers, which we expect to provide a licensing revenue stream and represent the transformative advancement in our comprehensive service offering. The platform was initially launched in Florida, and we hope to expand it to all states where Douglas Elliman operates. Elliman Capital will provide our clients with access to an extensive and creative range of financing products. This new platform fosters convenience and oversight throughout the entire real estate transaction process, enabling our agents to provide seamless support from initial property search through closing. Speaker 200:04:51In June 2025, we were also incredibly proud to launch Element International, which extend extends our renowned bespoke service to key global markets. This initiative will enable us to directly serve the growing international real estate needs of our clients without any intermediaries. Initial focus will be on high end luxury demand in Latin America, The Middle East, Europe, Asia Pacific, and other emerging wealth centers. Our international expansion will begin with immediate activation of certain core services for existing clients and will showcase our preeminent development marketing division. Given the scarcity of listing inventory of ultra luxury homes in many of our markets, our development marketing division continues to be a cornerstone of our long term growth strategy. Speaker 200:05:47Bryant will discuss the successes of this division later in the call. Moving forward, we continue to evaluate complementary transactions and ancillary businesses such as title, escrow, insurance brokerage and property management. Now I would like to discuss our industry and we'll briefly address the practice of private listings. At Douglas Elliman, we have a long standing commitment to offering clients greater choice and flexibility while continuing to promote equal access to listings and uphold a transparent fair housing market. The decision to list property privately must originate from the seller. Speaker 200:06:25Our brokerage does not push, incentivize, or default to private listings. With a larger percentage of luxury homes in our inventory, private listings may be the right fit because there are valid seller driven reasons to withhold a property from public view, including personal privacy, timing, or a desire to test the market. Our approach differs from brokerage led exclusivity models and that we offer private listings as one option among many, empowering clients to make informed decisions based on their unique needs rather than applying a one size fits all model. Additionally, we believe co broking remains the most effective path for most sellers as broad exposure in the most reliable way to maximize value, drive competition, and fulfill our fiduciary obligation to act in our clients' best interest. Any Douglas Elliman private listing platform will require sellers to review and sign acknowledging the potential risk of reduced exposure. Speaker 200:07:26The platform will also include strong guardrails to ensure compliance with other listing platforms, such as broker oversight, audit logs, and technical controls. We believe this transparent, client first approach sets us apart from our competitors and builds long term trust and value. In summary, our growth initiatives coupled with a disciplined approach to capital allocation, cost management, and investment are transforming Douglas Elliman into a more diversified, resilient, and growth oriented real estate services company to deliver sustainable long term value for stockholders. With the launch of Element International, we're very excited to extend our renowned service beyond The U. S. Speaker 200:08:14And build a direct presence in key international luxury markets, further advancing our evolution into a truly global brand. With that, I will turn it over to Bryant who will provide more details on our financial performance and the trends shaping the residential real estate market. Speaker 300:08:33Thank you, Michael. And we are confident that the positive momentum in our financial performance beginning in 2024 and continuing through the 2025 has positioned Douglas Elliman for long term success. Results from the 2025 indicate that our core operations are starting to reflect the impact of the strategic actions we have taken over the past two years. In particular, the first half benefited from favorable sales mix highlighted by strong contributions from development marketing as well as New York City and its suburbs, which are our most profitable markets. Specifically, revenues from existing home sales in our New York and Northeast markets increased by $16,800,000 or 7.9% from the twenty twenty four first half and development marketing's first half revenue increased by $17,700,000 from the twenty twenty four first half. Speaker 300:09:39In the 2025 compared to the 2024, we experienced a challenging period in May to early June when our results were negatively impacted by exogenous economic pressures and industry specific headwinds. During this period, heightened volatility in international financial markets driven by geopolitical uncertainties, including global economic policies created a sense of caution among buyers and sellers. At the same time, the continuation of elevated mortgage rates further dampened market activity as higher borrowing costs continue to cause many clients to delay selling or purchasing decisions. In retrospect, we also saw the highest first quarter cash receipts since 2022 and we believe that an increase in written contracts after the twenty twenty four U. S. Speaker 300:10:45Elections accelerated some sales, especially in New York City from the second quarter into the first quarter. It is important to note that we recognize revenue from home sale transactions at the time of closing, which typically occurs thirty to ninety days after contract signing, depending on each market's custom. As a result, contracts written in March and April directly affected our reported results for the quarter. Before reviewing the financial performance, we will provide some updates on our trends. First, Douglas Elliman sets the standard in the luxury market and pricing for luxury home sales remains strong. Speaker 300:11:34Our industry best price per transaction for the year to date period rose to 1,920,000 per home sale compared to $1,720,000 per home sale in the comparable 2024 period. For the last twelve months, our average price per transaction has been $1,770,000 per home sale compared to $1,640,000 in the 2024 period. Our agents sold three forty homes for more than $5,000,000 or 6% of total transactions in the 2025 and six eighty three homes for more than $5,000,000 in the 2025. Year to date sales represent a 38% increase when compared to the six months ended 06/30/2024. Equally impressive are 100 home sales of more than $10,000,000 in the second quarter and two zero four home sales of more than $10,000,000 in the 2025. Speaker 300:12:47This was a 32% increase from the 2024. These results demonstrate Douglas Elliman continues to be the definitive name in luxury real estate. And as Michael discussed, our development marketing division remains the preeminent industry player with a pipeline of actively marketed projects of approximately $28,100,000,000 of gross transaction value, Approximately $18,800,000,000 of gross transaction value is in Florida alone. Within this active pipeline, we have another 5,900,000,000 of gross transaction value coming to market through September 2026. We believe this foundation of business bodes well for the future as we will recognize commission income from these projects when they close, which is generally between the 2025 and 02/1931. Speaker 300:13:55In addition to a strong 2024 in development marketing, We are continuing to see the early momentum of this pipeline in the 2025 when development marketing's revenue increased to $35,400,000 from $17,700,000 in the 2024. Transitioning to our expense structure. We continue to manage investments across our markets with a strict focus return on investment metrics. In the three and six months ended 06/30/2025, our operating expenses excluding commissions, depreciation and amortization, unusual litigation expense settlement and related expense, restructuring expenses and non cash stock compensation expenses increased by $1,000,000 and declined by $1,900,000 respectively from the 2024 periods. Related to the change in the second quarter, although targeted expense areas such as offline advertising continue to decline, our overall expenses increased due to higher compensation and recurring professional fees, partly due to inflationary pressures. Speaker 300:15:18The rise in compensation expense was attributable to our continued investment in the development marketing business as well as increased bonus accruals associated with the increased revenues from business performance in 2025. Now turning to Douglas Elliman's financial results for the three months ended 06/30/2025. Douglas maintains ample liquidity with cash and cash equivalents at 06/30/2025 of approximately $136,000,000 The strength of our balance sheet provides a competitive advantage for Douglas Elliman as we implement expansion plans to scale our operations and strengthen our services platform. Moving to the operating performance of the business in the second quarter. Douglas Elliman reported 271,400,000 in revenues compared to $285,800,000 in the twenty twenty four second quarter. Speaker 300:16:19The decline in revenues was primarily the result of reduced closing transactions in May 2025 as well as early June. Net loss for the second quarter was $22,700,000 or $0.27 per diluted share compared to $1,700,000 or $02 per diluted share in the 2024. Net loss in the 2025 period included a non cash charge of $17,000,000 associated with the increase in fair value of derivatives embedded within our convertible debt, and this was primarily driven by an increase in our stock price from $1.72 per share at 03/31/2025 to $2.32 per share at 06/30/2025. Adjusted EBITDA for the second quarter was a loss of $849,000 compared to positive $2,900,000 in the twenty twenty four second quarter. Adjusted net loss for the second quarter was $4,700,000 or $06 per share compared to $532,000 or $01 per share in the twenty twenty four second quarter. Speaker 300:17:38Moving to the operating performance of the business for the six months ended 06/30/2025. Douglas Elliman reported $524,800,000 in revenues, up from $486,000,000 in the 2024 period. Net loss for the six months ended 06/30/2025 was $28,700,000 or $0.34 per diluted share compared to $43,100,000 or $0.52 per diluted share in 2024 period. Net loss in the 2025 period included a non cash charge of $17,700,000 associated with the increase in fair value of derivatives embedded within our convertible debt, and this was primarily driven by an increase in our stock price from $1.67 per share at 12/31/2024 to $2.32 per share at 06/30/2025. Net loss in the 2024 period included a $17,750,000 litigation settlement charge. Speaker 300:18:52Adjusted EBITDA for the six months ended 06/30/2025 was $259,000 compared to a loss of $14,700,000 in the 2024 period. Adjusted net loss for the six months ended 06/30/2025 was $7,100,000 or $08 per share compared to $23,600,000 or $0.28 per share in the 2024 period. Thank you for your attention. And now back to you, Michael. Speaker 200:19:28Thank you, Brian. Our results in the 2025 are proof that our turnaround is working, and we are well positioned for success in the second half of the year and beyond. I remain deeply confident in the strength and brand power of the Douglas Elliman franchise and I'm energized by the incredible opportunities that lie ahead for us. With that, we will be happy to answer questions. Operator? Speaker 100:20:02You. Operator00:20:34Those are all the questions that we have for today. Thank you for joining us on Douglas Elliman's quarterly earnings conference call. We hope you have a good day, and this will conclude our call. Speaker 200:20:48Thank you. ThankRead morePowered by Earnings DocumentsPress Release(8-K) Douglas Elliman Earnings HeadlinesElliman (DOUG) Q2 Revenue Drops 5%August 1 at 12:59 AM | fool.comDouglas Elliman Inc. 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Email Address About Douglas EllimanDouglas Elliman (NYSE:DOUG) owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.View Douglas Elliman ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon's Earnings: What Comes Next and How to Play ItApple Stock: Big Earnings, Small Move—Time to Buy?Microsoft Blasts Past Earnings—What’s Next for MSFT?Visa Beats Q3 Earnings Expectations, So Why Did the Market Panic?Spotify's Q2 Earnings Plunge: An Opportunity or Ominous Signal?RCL Stock Sinks After Earnings—Is a Buying Opportunity Ahead?Amazon's Pre-Earnings Setup Is Almost Too Clean—Red Flag? 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There are 4 speakers on the call. Operator00:00:00Welcome to Douglas Elliman's Second Quarter twenty twenty five Earnings Conference Call. This call is being recorded and simultaneously webcast. Operator00:00:10An archived version of the webcast will be available on the Investor Relations section of the company's website located at investors.ellmann.com for one year. I would now like to turn the conference over to Douglas Elliman Vice President of Finance, Heather Capriola. Speaker 100:00:30Thank you, and good morning. On the call with me today is Michael Lebowitz, President and CEO of Douglas Elliman Inc. And Brian Kirkland, CFO of Douglas Elliman Inc. During this call, the terms adjusted EBITDA and adjusted net loss will be used as well as last twelve months or LTM metrics. These terms are non GAAP financial measures and should be considered in addition to, but not as a substitute for, other measures of financial performance prepared in accordance with GAAP. Speaker 100:01:04Reconciliations to adjusted EBITDA and adjusted net loss are contained in the company's earnings release, which has been posted to the Investor Relations section of the company's website. Before the call begins, I would like to read a safe harbor statement. The statements made during this conference call that are not historical facts are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward looking statements. These risks are described in more detail in the company's Securities and Exchange Commission filings. Now I would like to turn the call over to the Chief Executive Officer of Douglas Elliman, Michael S. Speaker 100:01:52Lebowitz. Speaker 200:01:54Thank you, Heather. Good morning, and thank you for joining us. I am pleased to share that Douglas Elliman continues to make meaningful progress as we execute our strategy to drive growth, improve profitability, and position the company for long term success. On today's call, we will discuss the current operating environment and Douglas Elliman's financial results for the three six months ended 06/30/2025. All numbers presented this morning will be as of 06/30/2025, unless otherwise stated. Speaker 200:02:28We will then provide closing comments and open the call for questions. Before we turn to our second quarter twenty twenty five results, I would like to begin by providing industry updates and summarizing some of our recent accomplishments. In the 2025, our revenues increased by 8% year over year to $524,800,000 marking our strongest first half revenue performance since 2022. We also delivered significant improvement towards restoring our profitability with notable reductions in operating losses when compared to the 2024. Our agents and employees remain at the center of everything we do. Speaker 200:03:13Their hard work and commitment to excellence driver our success. We are proud to support them with the tools and technology they need to excel in today's market. After a challenging period in the middle of the second quarter, which Bryant will discuss later, we remain optimistic about the third quarter and 2025, thanks to encouraging recent trends, including continued demand for luxury homes, rising average transaction values and a strong development marketing pipeline. These results reflect the strength of our iconic brands, the dedication of our agents and the resilience of the luxury markets we serve. Now let us look to the future. Speaker 200:03:57We are focused on executing our strategic growth initiatives, including the recent launches of Element Capital and Element International. In July 2025, we were pleased to announce the creation of Element Capital, an innovative mortgage platform developed with associated mortgage bankers, which we expect to provide a licensing revenue stream and represent the transformative advancement in our comprehensive service offering. The platform was initially launched in Florida, and we hope to expand it to all states where Douglas Elliman operates. Elliman Capital will provide our clients with access to an extensive and creative range of financing products. This new platform fosters convenience and oversight throughout the entire real estate transaction process, enabling our agents to provide seamless support from initial property search through closing. Speaker 200:04:51In June 2025, we were also incredibly proud to launch Element International, which extend extends our renowned bespoke service to key global markets. This initiative will enable us to directly serve the growing international real estate needs of our clients without any intermediaries. Initial focus will be on high end luxury demand in Latin America, The Middle East, Europe, Asia Pacific, and other emerging wealth centers. Our international expansion will begin with immediate activation of certain core services for existing clients and will showcase our preeminent development marketing division. Given the scarcity of listing inventory of ultra luxury homes in many of our markets, our development marketing division continues to be a cornerstone of our long term growth strategy. Speaker 200:05:47Bryant will discuss the successes of this division later in the call. Moving forward, we continue to evaluate complementary transactions and ancillary businesses such as title, escrow, insurance brokerage and property management. Now I would like to discuss our industry and we'll briefly address the practice of private listings. At Douglas Elliman, we have a long standing commitment to offering clients greater choice and flexibility while continuing to promote equal access to listings and uphold a transparent fair housing market. The decision to list property privately must originate from the seller. Speaker 200:06:25Our brokerage does not push, incentivize, or default to private listings. With a larger percentage of luxury homes in our inventory, private listings may be the right fit because there are valid seller driven reasons to withhold a property from public view, including personal privacy, timing, or a desire to test the market. Our approach differs from brokerage led exclusivity models and that we offer private listings as one option among many, empowering clients to make informed decisions based on their unique needs rather than applying a one size fits all model. Additionally, we believe co broking remains the most effective path for most sellers as broad exposure in the most reliable way to maximize value, drive competition, and fulfill our fiduciary obligation to act in our clients' best interest. Any Douglas Elliman private listing platform will require sellers to review and sign acknowledging the potential risk of reduced exposure. Speaker 200:07:26The platform will also include strong guardrails to ensure compliance with other listing platforms, such as broker oversight, audit logs, and technical controls. We believe this transparent, client first approach sets us apart from our competitors and builds long term trust and value. In summary, our growth initiatives coupled with a disciplined approach to capital allocation, cost management, and investment are transforming Douglas Elliman into a more diversified, resilient, and growth oriented real estate services company to deliver sustainable long term value for stockholders. With the launch of Element International, we're very excited to extend our renowned service beyond The U. S. Speaker 200:08:14And build a direct presence in key international luxury markets, further advancing our evolution into a truly global brand. With that, I will turn it over to Bryant who will provide more details on our financial performance and the trends shaping the residential real estate market. Speaker 300:08:33Thank you, Michael. And we are confident that the positive momentum in our financial performance beginning in 2024 and continuing through the 2025 has positioned Douglas Elliman for long term success. Results from the 2025 indicate that our core operations are starting to reflect the impact of the strategic actions we have taken over the past two years. In particular, the first half benefited from favorable sales mix highlighted by strong contributions from development marketing as well as New York City and its suburbs, which are our most profitable markets. Specifically, revenues from existing home sales in our New York and Northeast markets increased by $16,800,000 or 7.9% from the twenty twenty four first half and development marketing's first half revenue increased by $17,700,000 from the twenty twenty four first half. Speaker 300:09:39In the 2025 compared to the 2024, we experienced a challenging period in May to early June when our results were negatively impacted by exogenous economic pressures and industry specific headwinds. During this period, heightened volatility in international financial markets driven by geopolitical uncertainties, including global economic policies created a sense of caution among buyers and sellers. At the same time, the continuation of elevated mortgage rates further dampened market activity as higher borrowing costs continue to cause many clients to delay selling or purchasing decisions. In retrospect, we also saw the highest first quarter cash receipts since 2022 and we believe that an increase in written contracts after the twenty twenty four U. S. Speaker 300:10:45Elections accelerated some sales, especially in New York City from the second quarter into the first quarter. It is important to note that we recognize revenue from home sale transactions at the time of closing, which typically occurs thirty to ninety days after contract signing, depending on each market's custom. As a result, contracts written in March and April directly affected our reported results for the quarter. Before reviewing the financial performance, we will provide some updates on our trends. First, Douglas Elliman sets the standard in the luxury market and pricing for luxury home sales remains strong. Speaker 300:11:34Our industry best price per transaction for the year to date period rose to 1,920,000 per home sale compared to $1,720,000 per home sale in the comparable 2024 period. For the last twelve months, our average price per transaction has been $1,770,000 per home sale compared to $1,640,000 in the 2024 period. Our agents sold three forty homes for more than $5,000,000 or 6% of total transactions in the 2025 and six eighty three homes for more than $5,000,000 in the 2025. Year to date sales represent a 38% increase when compared to the six months ended 06/30/2024. Equally impressive are 100 home sales of more than $10,000,000 in the second quarter and two zero four home sales of more than $10,000,000 in the 2025. Speaker 300:12:47This was a 32% increase from the 2024. These results demonstrate Douglas Elliman continues to be the definitive name in luxury real estate. And as Michael discussed, our development marketing division remains the preeminent industry player with a pipeline of actively marketed projects of approximately $28,100,000,000 of gross transaction value, Approximately $18,800,000,000 of gross transaction value is in Florida alone. Within this active pipeline, we have another 5,900,000,000 of gross transaction value coming to market through September 2026. We believe this foundation of business bodes well for the future as we will recognize commission income from these projects when they close, which is generally between the 2025 and 02/1931. Speaker 300:13:55In addition to a strong 2024 in development marketing, We are continuing to see the early momentum of this pipeline in the 2025 when development marketing's revenue increased to $35,400,000 from $17,700,000 in the 2024. Transitioning to our expense structure. We continue to manage investments across our markets with a strict focus return on investment metrics. In the three and six months ended 06/30/2025, our operating expenses excluding commissions, depreciation and amortization, unusual litigation expense settlement and related expense, restructuring expenses and non cash stock compensation expenses increased by $1,000,000 and declined by $1,900,000 respectively from the 2024 periods. Related to the change in the second quarter, although targeted expense areas such as offline advertising continue to decline, our overall expenses increased due to higher compensation and recurring professional fees, partly due to inflationary pressures. Speaker 300:15:18The rise in compensation expense was attributable to our continued investment in the development marketing business as well as increased bonus accruals associated with the increased revenues from business performance in 2025. Now turning to Douglas Elliman's financial results for the three months ended 06/30/2025. Douglas maintains ample liquidity with cash and cash equivalents at 06/30/2025 of approximately $136,000,000 The strength of our balance sheet provides a competitive advantage for Douglas Elliman as we implement expansion plans to scale our operations and strengthen our services platform. Moving to the operating performance of the business in the second quarter. Douglas Elliman reported 271,400,000 in revenues compared to $285,800,000 in the twenty twenty four second quarter. Speaker 300:16:19The decline in revenues was primarily the result of reduced closing transactions in May 2025 as well as early June. Net loss for the second quarter was $22,700,000 or $0.27 per diluted share compared to $1,700,000 or $02 per diluted share in the 2024. Net loss in the 2025 period included a non cash charge of $17,000,000 associated with the increase in fair value of derivatives embedded within our convertible debt, and this was primarily driven by an increase in our stock price from $1.72 per share at 03/31/2025 to $2.32 per share at 06/30/2025. Adjusted EBITDA for the second quarter was a loss of $849,000 compared to positive $2,900,000 in the twenty twenty four second quarter. Adjusted net loss for the second quarter was $4,700,000 or $06 per share compared to $532,000 or $01 per share in the twenty twenty four second quarter. Speaker 300:17:38Moving to the operating performance of the business for the six months ended 06/30/2025. Douglas Elliman reported $524,800,000 in revenues, up from $486,000,000 in the 2024 period. Net loss for the six months ended 06/30/2025 was $28,700,000 or $0.34 per diluted share compared to $43,100,000 or $0.52 per diluted share in 2024 period. Net loss in the 2025 period included a non cash charge of $17,700,000 associated with the increase in fair value of derivatives embedded within our convertible debt, and this was primarily driven by an increase in our stock price from $1.67 per share at 12/31/2024 to $2.32 per share at 06/30/2025. Net loss in the 2024 period included a $17,750,000 litigation settlement charge. Speaker 300:18:52Adjusted EBITDA for the six months ended 06/30/2025 was $259,000 compared to a loss of $14,700,000 in the 2024 period. Adjusted net loss for the six months ended 06/30/2025 was $7,100,000 or $08 per share compared to $23,600,000 or $0.28 per share in the 2024 period. Thank you for your attention. And now back to you, Michael. Speaker 200:19:28Thank you, Brian. Our results in the 2025 are proof that our turnaround is working, and we are well positioned for success in the second half of the year and beyond. I remain deeply confident in the strength and brand power of the Douglas Elliman franchise and I'm energized by the incredible opportunities that lie ahead for us. With that, we will be happy to answer questions. Operator? Speaker 100:20:02You. Operator00:20:34Those are all the questions that we have for today. Thank you for joining us on Douglas Elliman's quarterly earnings conference call. We hope you have a good day, and this will conclude our call. Speaker 200:20:48Thank you. ThankRead morePowered by