Douglas Elliman Q2 Earnings Call Highlights

Key Points

• Second-quarter results improved: Revenue rose 4.4% year over year to $283.4 million, while the net loss narrowed to $2.7 million from $22.7 million. Excluding the divested property-management business, revenue increased 8.6%.
• Cash receipts showed renewed momentum: Existing-home-sale cash receipts increased 15% in May, 16% in June and 8% in July, with a three-month weighted average gain of 13%, led by several key markets including Florida, the Hamptons and Texas.
• Growth investments are expanding: Douglas Elliman launched an AI modernization program and its Elius data venture, expanded internationally into Paris, and grew its lending platform. The company expects meaningful technology-related cost savings beginning in 2027 and ended July with $121 million in cash.

Douglas Elliman NYSE: DOUG reported second-quarter revenue growth and a substantially narrower net loss as the luxury real estate brokerage pointed to improving transaction-related cash receipts beginning in May.

Revenue for the three months ended June 30, 2026, totaled $283.4 million, compared with $271.4 million a year earlier. Excluding revenue from the property management business that the company disposed of in October 2025, revenue rose 8.6% from $260.9 million in the prior-year quarter.

The company recorded a net loss of $2.7 million, or $0.03 per diluted share, compared with a net loss of $22.7 million, or $0.27 per diluted share, in the second quarter of 2025. The prior-year loss included $17 million in non-cash interest expense related to the decline in fair value of derivatives embedded in convertible debt that was retired in October 2025.

Adjusted EBITDA was a loss of $986,000, improving from a $3.6 million loss a year earlier. Adjusted net loss was $3.9 million, or $0.05 per share, compared with $7.3 million, or $0.09 per share, in the 2025 quarter.

Cash Receipts Improved in Recent Months

CFO Bryant Kirkland said the company began seeing positive momentum in May, when cash receipts from existing-home sales increased 15% year over year. Cash receipts rose 16% in June and 8% in July from their respective 2025 levels.

Across the three months from May through July, weighted average cash receipts from existing-home sales increased 13% from the comparable 2025 period, led by Florida, the Hamptons, Texas, Nevada and Boston, Kirkland said.

“Despite elevated mortgage rates, our luxury home buyers are beginning to look past the macroeconomic and geopolitical uncertainties that were present in early 2026,” Kirkland said.

The company’s average price per transaction was approximately $1.9 million through the first six months of 2026, consistent with the prior-year period. Its last-12-month average price per transaction was $1.85 million, up from $1.77 million for the 12 months ended June 30, 2025.

First-Half Results Remained Below Prior Year

For the six months ended June 30, Douglas Elliman reported revenue of $497.8 million, down from $524.8 million a year earlier. Excluding the former property management operation, revenue declined 1.4% from $504.8 million in the 2025 period. Kirkland noted that the comparison was affected by an unusually strong first quarter in 2025.

Net loss for the first half was $19 million, or $0.22 per diluted share, compared with a $28.7 million loss, or $0.34 per diluted share, a year earlier. The prior-year result included a $17.7 million non-cash charge associated with convertible debt that was retired in 2025.

Adjusted EBITDA loss widened to $11.4 million for the six-month period from $4.5 million a year earlier. Adjusted net loss was $16.3 million, or $0.19 per share, compared with $11.6 million, or $0.14 per share, in the prior-year period.

AI Initiative and International Expansion

President and CEO Michael Liebowitz said Douglas Elliman launched an artificial intelligence transformation initiative during the period. The effort has two components: a company-wide modernization of its technology infrastructure using agentic AI powered by Google Cloud, and the development of Elius, a newly formed intelligence company intended to build products and potential new revenue streams from the brokerage’s proprietary luxury real estate data.

Liebowitz said the Google Cloud program is intended to automate routine workflows and consolidate the company’s technology stack. The company expects the effort to begin gradually producing meaningful savings in non-commission operating expenses in 2027.

Douglas Elliman expects to fund the initial Google Cloud rollout and Elius development work from existing resources, with what Liebowitz described as a modest net incremental investment because a substantial portion of the spending will replace existing technology expenditures.

The company also expanded its international network into Paris in June, bringing its French network to 15 offices across France, Monaco and St. Barts. In the U.S., it launched Elliman Capital in California through a partnership with Mark Cohen and Cohen Financial Group, and expanded the lending platform into Texas, serving the Dallas-Fort Worth, Houston and Austin markets.

Development Pipeline and Balance Sheet

The company’s development marketing division had approximately $26.1 billion in gross transaction value among actively marketed projects as of June 30, including about $18.9 billion in Florida. Douglas Elliman also cited another $9.7 billion in gross transaction value expected to come to market through September 2027.

The company said commissions from these development projects are generally expected to be recognized when transactions close, with closings anticipated between 2026 and 2032.

Douglas Elliman ended June with $105 million in cash and had $121 million in cash and cash equivalents as of July 31. The July increase included a net $13 million receipt from the settlement of a stockholder derivative action lawsuit.

Liebowitz said the company’s cash position and recent trend in cash receipts leave it positioned for the second half of 2026 and beyond.

About Douglas Elliman (NYSE:DOUG)

Douglas Elliman NYSE: DOUG is one of the largest residential real estate brokerages in the United States, offering an array of services that span property sales, leasing and management. Founded in 1911 and headquartered in New York City, the firm has built a reputation for representing high-end residential properties and guiding clients through complex real estate transactions. Over the course of its history, Douglas Elliman has expanded its offerings to include specialized support for developers, investors and individual homeowners.

The company's core business activities include residential brokerage, new development marketing, and property management.

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