Core Insights - The real estate brokerage industry is undergoing significant consolidation, leading to shares being perceived as a major bargain [1] Industry Summary - The consolidation trend in the real estate brokerage sector is creating opportunities for investors as valuations appear attractive [1]

Core Viewpoint - A Wall Street watchdog is investigating trading activities related to a failed takeover bid for Douglas Elliman, focusing on who had prior knowledge of the offer before it was made public [1] Group 1: Investigation Details - The investigation is centered on the luxury real estate brokerage Douglas Elliman and its trading activities prior to the announcement of the takeover bid [1] - The regulatory body is seeking to determine if any individuals or entities had insider information regarding the bid before it became public knowledge [1] Group 2: Implications for the Company - The scrutiny from the watchdog may impact Douglas Elliman's reputation and operational integrity within the luxury real estate market [1] - Potential outcomes of the investigation could lead to regulatory actions or changes in trading practices for the company [1]

Group 1 - The article discusses the recent surge in shares of Douglas Elliman (NYSE: DOUG) due to takeover rumors, indicating a significant interest in the real estate brokerage company [1] - The context of the previous analysis in June highlights the volatility and potential for growth in the company's stock price [1]

Core Insights - Douglas Elliman Inc. has expanded its presence in Western Florida by welcoming The Schemmel Soda Group to its Sarasota office, enhancing its luxury real estate offerings in the region [1][6] Group 1: Company Expansion - The Schemmel Soda Group, previously with Premier Sotheby's International Realty, is led by Joel Schemmel and Donna Soda, along with agents Sharon Chiodi and Patti Tebo [1] - This team has been recognized as the 1 team in Sarasota and Manatee Counties since 2019 and ranked among the Top 100 Agents and Teams Worldwide for Sotheby's International Realty from 2021 to 2025 [2] Group 2: Leadership and Expertise - Joel Schemmel, an attorney and former CPA, is noted for his extensive knowledge of Sarasota real estate and has consistently ranked in the top 1% of REALTORS® in the area since 2008 [3] - Donna Soda brings decades of experience and is known for her exceptional market knowledge and client service, particularly in the Greater Lakewood Ranch area [4] Group 3: Strategic Benefits - The partnership with Douglas Elliman is seen as a strategic win, providing the Schemmel Soda Group with enhanced global reach and marketing capabilities while maintaining a personalized service approach [4][6] - The team aims to leverage Douglas Elliman's resources to better serve clients and the community, emphasizing their commitment to integrity and results [5]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Douglas%20Elliman%20Inc.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements and detailed notes for Douglas Elliman Inc. for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) | Metric | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $489,003 | $493,888 | | Total Liabilities | $351,414 | $331,463 | | Total Stockholders' Equity | $137,589 | $162,425 | - Total assets decreased by **$4,885** (approximately **1%**) from December 31, 2024, to June 30, 2025. Total liabilities increased by **$19,951** (approximately **6%**) over the same period, while total stockholders' equity decreased by **$24,836** (approximately **15%**)[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | Metric | Three Months Ended June 30, 2025 (in Thousands) | Three Months Ended June 30, 2024 (in Thousands) | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total Revenues | $271,366 | $285,751 | $524,769 | $485,990 | | Operating Loss | $(5,532) | $(3,673) | $(10,881) | $(45,137) | | Net Loss attributed to Douglas Elliman Inc. | $(22,673) | $(1,664) | $(28,658) | $(43,139) | | Basic EPS | $(0.27) | $(0.02) | $(0.34) | $(0.52) | - For the three months ended June 30, 2025, total revenues decreased by **$14,385** (**5.0%**) YoY, and net loss attributed to Douglas Elliman Inc. significantly widened from **$(1,664)** to **$(22,673)**. For the six months ended June 30, 2025, total revenues increased by **$38,779** (**8.0%**) YoY, and net loss attributed to Douglas Elliman Inc. improved from **$(43,139)** to **$(28,658)**[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | Metric | June 30, 2025 (in Thousands) | June 30, 2024 (in Thousands) | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Total Douglas Elliman Inc. Stockholders' Equity | $137,603 | $196,911 | | Total Stockholders' Equity | $137,589 | $197,508 | - Total stockholders' equity decreased by **$59,919** (**30.3%**) from June 30, 2024, to June 30, 2025, primarily due to accumulated deficit increasing from **$(90,691)** to **$(152,526)**[13](index=13&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | Metric | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(4,975) | $(25,973) | | Net cash provided by (used in) investing activities | $7,548 | $(629) | | Net cash used in financing activities | $(85) | $(11) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $2,488 | $(26,613) | | Cash, cash equivalents and restricted cash, end of period | $144,709 | $102,904 | - Cash used in operating activities significantly decreased from **$(25,973)** in 2024 to **$(4,975)** in 2025. Investing activities shifted from cash used to cash provided, primarily due to short-term investment sales and purchases. Overall cash, cash equivalents, and restricted cash increased by **$2,488** in 2025, a positive change compared to a decrease of **$26,613** in 2024[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=8&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Douglas Elliman Inc. operates in real estate services and PropTech investment. The condensed consolidated financial statements include DER Holdings LLC and DOUG Ventures, LLC. The company adopted a single operating and reporting segment effective January 1, 2025, reflecting a change in how the CEO (CODM) reviews operating performance[21](index=21&type=chunk)[25](index=25&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) Loss Per Share (EPS) Data | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributed to Douglas Elliman Inc. (in Thousands) | $(22,673) | $(1,664) | $(28,658) | $(43,139) | | Weighted-average shares for basic and diluted EPS | 84,464,283 | 83,336,516 | 84,417,308 | 83,335,308 | - The company's goodwill and trademark intangible assets were qualitatively assessed for impairment as of June 30, 2025, with no impairment charges resulting. Related party transactions with Vector Group Ltd. for transition services and aircraft leases were terminated in late 2024. Real estate commissions from Vector Group-owned development projects increased significantly in 2025[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Related Party Real Estate Commissions | Period | 2025 (in Thousands) | 2024 (in Thousands) | | :----------------------- | :------------------ | :------------------ | | Three Months Ended June 30 | $2,284 | $793 | | Six Months Ended June 30 | $8,983 | $2,017 | [2. Revenue Recognition](index=12&type=section&id=2.%20REVENUE%20RECOGNITION) Disaggregated Revenue by Service Line and Geography (Three Months Ended June 30) | Revenue Type | New York City (2025) | Northeast (2025) | Southeast (2025) | West (2025) | Total (2025) | New York City (2024) | Northeast (2024) | Southeast (2024) | West (2024) | Total (2024) | | :------------------------------------------ | :------------------- | :--------------- | :--------------- | :---------- | :----------- | :------------------- | :--------------- | :--------------- | :---------- | :----------- | | Commission - existing home sales | $71,039 | $49,789 | $72,872 | $50,055 | $243,755 | $78,786 | $50,620 | $78,082 | $53,685 | $261,173 | | Commission - development marketing | $6,835 | $111 | $5,174 | $2,141 | $14,261 | $6,202 | $156 | $3,597 | $1,185 | $11,140 | | Property management revenue | $10,273 | $192 | — | — | $10,465 | $9,508 | $186 | — | — | $9,694 | | Escrow and title fees | $123 | $7 | — | $2,755 | $2,885 | $210 | $108 | $19 | $3,407 | $3,744 | | **Total Revenue** | **$88,270** | **$50,099** | **$78,046** | **$54,951** | **$271,366** | **$94,706** | **$51,070** | **$81,698** | **$58,277** | **$285,751** | Disaggregated Revenue by Service Line and Geography (Six Months Ended June 30) | Revenue Type | New York City (2025) | Northeast (2025) | Southeast (2025) | West (2025) | Total (2025) | New York City (2024) | Northeast (2024) | Southeast (2024) | West (2024) | Total (2024) | | :------------------------------------------ | :------------------- | :--------------- | :--------------- | :---------- | :----------- | :------------------- | :--------------- | :--------------- | :---------- | :----------- | | Commission - existing home sales | $137,256 | $92,784 | $142,271 | $91,451 | $463,762 | $128,026 | $85,206 | $135,712 | $93,938 | $442,882 | | Commission - development marketing | $15,005 | $263 | $17,548 | $2,581 | $35,397 | $10,921 | $221 | $4,922 | $1,632 | $17,696 | | Property management revenue | $19,555 | $402 | — | — | $19,957 | $18,354 | $387 | — | — | $18,741 | | Escrow and title fees | $199 | $15 | — | $5,439 | $5,653 | $421 | $257 | $19 | $5,974 | $6,671 | | **Total Revenue** | **$172,015** | **$93,464** | **$159,819** | **$99,471** | **$524,769** | **$157,722** | **$86,071** | **$140,653** | **$101,544** | **$485,990** | - For the three months ended June 30, 2025, total revenue declined by **$14,385** (**5.0%**) YoY, primarily due to decreased existing home sales across all regions. Development marketing revenue increased by **$3,121** (**28.0%**) YoY. For the six months ended June 30, 2025, total revenue increased by **$38,779** (**8.0%**) YoY, driven by growth in existing home sales in New York City, Northeast, and Southeast, and a significant increase in development marketing revenue[43](index=43&type=chunk) [3. Current Expected Credit Losses](index=14&type=section&id=3.%20CURRENT%20EXPECTED%20CREDIT%20LOSSES) Allowance for Credit Losses on Real Estate Broker Agent Receivables | Metric | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | | Allowance for credit losses | $5,890 | $4,783 | - The allowance for credit losses on real estate broker agent receivables increased by **$1,107** (**23.1%**) from December 31, 2024, to June 30, 2025, reflecting an increased provision for credit losses of **$2,444** during the six months ended June 30, 2025[46](index=46&type=chunk)[47](index=47&type=chunk) [4. Leases](index=15&type=section&id=4.%20LEASES) Total Lease Cost | Metric | Three Months Ended June 30, 2025 (in Thousands) | Three Months Ended June 30, 2024 (in Thousands) | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total lease cost | $8,451 | $8,916 | $17,208 | $18,683 | - Total lease cost decreased by **$465** (**5.2%**) for the three months ended June 30, 2025, and by **$1,475** (**7.9%**) for the six months ended June 30, 2025, compared to the respective prior year periods. The weighted average remaining lease term for operating leases was **5.39 years** as of June 30, 2025, with a weighted average discount rate of **8.63%**[49](index=49&type=chunk) [5. Long-Term Investments](index=16&type=section&id=5.%20LONG-TERM%20INVESTMENTS) Long-Term Investments Breakdown | Investment Type | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :---------------------------------------------------------------------------------------------------------------- | :----------------------------- | :----------------------------- | | PropTech convertible trading debt securities | $1,210 | $1,254 | | Long-term investment securities at fair value | $3,073 | $3,127 | | PropTech investments at cost | $6,400 | $6,400 | | PropTech investments under equity method | $813 | $619 | | **Total investments** | **$11,496** | **$11,400** | | Total long-term investments (net of current portion and equity method) | $10,683 | $9,527 | Net Realized and Unrealized (Losses) Gains on Long-Term Investment Securities | Metric | Three Months Ended June 30, 2025 (in Thousands) | Three Months Ended June 30, 2024 (in Thousands) | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :---------------------------------------------------------------------------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net realized losses recognized on PropTech convertible trading debt securities | $(44) | — | $(44) | — | | Net unrealized (losses) gains recognized on long-term investments at fair value | $(15) | $39 | $(136) | $128 | | Net gains recognized on long-term investment securities without a readily determinable fair value | — | $981 | $78 | $501 | | **Net realized and unrealized (losses) gains** | **$(59)** | **$1,020** | **$(102)** | **$629** | - The company recorded net realized and unrealized losses of **$(59) thousand** for the three months ended June 30, 2025, a significant decline from gains of **$1,020 thousand** in the prior year. For the six months ended June 30, 2025, net losses were **$(102) thousand**, compared to gains of **$629 thousand** in the prior year. The company has unfunded commitments of **$505 thousand** related to long-term investment securities at fair value as of June 30, 2025[50](index=50&type=chunk)[52](index=52&type=chunk) [6. Equity Method Investments](index=17&type=section&id=6.%20EQUITY%20METHOD%20INVESTMENTS) Equity Method Investments | Investment Type | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :---------------------- | :----------------------------- | :----------------------------- | | Ancillary services ventures | $2,219 | $2,020 | | Maximum exposure to loss | $2,219 | N/A | - Equity method investments, primarily in ancillary services ventures, increased by **$199** (**9.9%**) from December 31, 2024, to June 30, 2025. The company's maximum exposure to loss from these investments was **$2,219 thousand** as of June 30, 2025[56](index=56&type=chunk)[58](index=58&type=chunk) [7. Notes Payable and Other Obligations](index=17&type=section&id=7.%20NOTES%20PAYABLE%20AND%20OTHER%20OBLIGATIONS) Notes Payable and Other Obligations | Metric | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :---------------------------------------------------- | :----------------------------- | :----------------------------- | | Convertible Notes, net of unamortized discount | $33,982 | $32,670 | | Fair value of derivative embedded within convertible debt | $47,968 | $30,253 | | Estimated Fair Value of Notes Payable | $37,644 | $41,002 | - The company issued **$50,000 aggregate principal amount** of **7.0% Convertible Notes** due July 2, 2029, in a private placement on July 2, 2024. The conversion feature of these notes is classified as a derivative liability, with its fair value increasing from **$30,253 thousand** at December 31, 2024, to **$47,968 thousand** at June 30, 2025, resulting in a **$17,715 thousand loss** from changes in fair value for the six months ended June 30, 2025[59](index=59&type=chunk)[60](index=60&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - The Convertible Notes are senior secured obligations, convertible at **$1.50 per share**, and subject to certain redemption rights and covenants. The company was in compliance with all covenants as of June 30, 2025[61](index=61&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[67](index=67&type=chunk) [8. Contingencies](index=20&type=section&id=8.%20CONTINGENCIES) - The company settled nationwide antitrust class action lawsuits (Gibson and Umpa cases) related to brokerage commissions for home sellers, with final court approval on November 4, 2024. The settlement involved an initial payment of **$7,750 thousand** and two contingent payments of **$5,000 thousand** each by December 31, 2027, and required business practice changes[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - A new national class action lawsuit (Lutz case) was filed by home buyers in June 2024, alleging anticompetitive behavior. All claims against the company in the Lutz case were dismissed on July 15, 2025, with the federal antitrust claim dismissed with prejudice. However, plaintiffs' counsel intends to file an amended complaint[83](index=83&type=chunk) - The company is also a defendant in a lawsuit alleging sexual assault and related wrongdoing by former real estate salespersons, with claims under the New York Gender-Motivated Violence Act and negligence. Legal expenses for the three and six months ended June 30, 2025, were **$4,723 thousand** and **$9,082 thousand**, respectively, significantly higher than the prior year[84](index=84&type=chunk)[85](index=85&type=chunk) [9. Income Taxes](index=22&type=section&id=9.%20INCOME%20TAXES) - The company did not record a provision for income taxes for the three or six months ended June 30, 2025, as a valuation allowance was established for the full amount of deferred tax assets. In the prior year, a valuation allowance was also established, resulting in a charge of **$503 thousand** for the three months and **$9,021 thousand** for the six months ended June 30, 2024[87](index=87&type=chunk) [10. Fair Value Measurements](index=22&type=section&id=10.%20FAIR%20VALUE%20MEASUREMENTS) Fair Value Measurements as of June 30, 2025 (in Thousands) | Description | Total | Level 1 | Level 2 | Level 3 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | **Assets:** | | | | | | Money market funds | $80,513 | $80,513 | — | — | | U.S. treasury bills | $43,813 | $43,813 | — | — | | Certificates of deposit | $507 | — | $507 | — | | PropTech convertible trading debt securities | $1,210 | — | — | $1,210 | | Long-term investment securities at fair value | $3,073 | — | — | — | | **Total assets** | **$129,116** | **$124,326** | **$507** | **$1,210** | | **Liabilities:** | | | | | | Fair value of derivatives embedded within convertible debt | $47,968 | — | — | $47,968 | | **Total liabilities** | **$47,968** | **—** | **—** | **$47,968** | - The fair value of Level 3 PropTech convertible trading debt securities decreased by **$44 thousand** from January 1, 2025, to June 30, 2025. The fair value of Level 3 derivatives embedded within convertible debt increased by **$17,715 thousand** over the same period, reflecting changes in interest rates, stock price, volatility, and dividend yield[95](index=95&type=chunk)[96](index=96&type=chunk) [11. Segment Information](index=26&type=section&id=11.%20SEGMENT%20INFORMATION) - Effective January 1, 2025, Douglas Elliman Inc. transitioned from two reportable segments (Real Estate Brokerage and Corporate Activities and Other) to a single operating and reporting segment. This change reflects the new CEO's (CODM) review of the company's operating performance as a whole, including PropTech investments, to assess performance and identify trends[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk) Key Financials for Single Segment Reporting | Metric | Three Months Ended June 30, 2025 (in Thousands) | Three Months Ended June 30, 2024 (in Thousands) | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total Revenue | $271,366 | $285,751 | $524,769 | $485,990 | | Operating Loss | $(5,532) | $(3,673) | $(10,881) | $(45,137) | | Net Loss attributed to Douglas Elliman Inc. | $(22,673) | $(1,664) | $(28,658) | $(43,139) | [12. Escrow Funds in Holding](index=28&type=section&id=12.%20ESCROW%20FUNDS%20IN%20HOLDING) Escrow Funds on Deposit | Metric | June 30, 2025 (in Thousands) | December 31, 2024 (in Thousands) | | :---------------------- | :----------------------------- | :----------------------------- | | Escrow funds on deposit | $53,674 | $37,967 | - Escrow funds administered by Portfolio Escrow Inc., a subsidiary, increased by **$15,707** (**41.4%**) from December 31, 2024, to June 30, 2025. These funds are not assets of Portfolio Escrow Inc. and are excluded from the consolidated balance sheets[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of Douglas Elliman Inc.'s financial condition, operations, key metrics, and liquidity [Overview](index=29&type=section&id=Overview) - Douglas Elliman Realty operates as the largest residential brokerage in the New York metropolitan area, with operations extending across multiple states. The company also manages an investment business focused on PropTech opportunities through its DOUG Ventures subsidiary[112](index=112&type=chunk) [Change in Reportable Segments](index=29&type=section&id=Change%20in%20Reportable%20Segments) - Effective January 1, 2025, the company began reporting its financial results as a single operating and reportable segment, a change driven by the CEO's (CODM) holistic review of the company's performance, including PropTech investments[113](index=113&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=29&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key Business Metrics | Metric | Last Twelve Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year Ended December 31, 2024 | | :------------------------------------------ | :------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total transactions | 21,857 | 10,438 | 10,362 | 21,781 | | Gross transaction value (in billions) | $38.6 | $20.1 | $17.8 | $36.4 | | Average transaction value per transaction (in thousands) | $1,767.4 | $1,923.1 | $1,718.7 | $1,669.6 | | Number of Principal Agents | 4,714 | 4,714 | 5,107 | 5,264 | | Annual Retention | 86% | N/A | N/A | 89% | | Net loss attributed to Douglas Elliman Inc. (in Thousands) | $(61,835) | $(28,658) | $(43,139) | $(76,316) | | Net loss margin | (5.98)% | (5.46)% | (8.88)% | (7.67)% | | Adjusted EBITDA attributed to Douglas Elliman (in Thousands) | $(2,816) | $259 | $(14,708) | $(17,783) | | Adjusted EBITDA attributed to Douglas Elliman Margin | (0.27)% | 0.05% | (3.03)% | (1.79)% | - For the six months ended June 30, 2025, total transactions increased slightly to **10,438** from **10,362** YoY, and gross transaction value rose to **$20.1 billion** from **$17.8 billion** YoY. The number of Principal Agents decreased from **5,107** in June 2024 to **4,714** in June 2025. Adjusted EBITDA attributed to Douglas Elliman improved significantly to **$259 thousand** for the six months ended June 30, 2025, compared to a loss of **$(14,708) thousand** in the prior year[115](index=115&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Three Months Ended June 30, 2025 vs. 2024 (in Thousands) | Metric | 2025 | 2024 | Change | % Change | | :------------------------------------------ | :----- | :----- | :----- | :------- | | Revenue | $271,366 | $285,751 | $(14,385) | (5.0%) | | Real estate agent commissions | $204,594 | $216,457 | $(11,863) | (5.5%) | | Sales and marketing | $20,069 | $22,153 | $(2,084) | (9.4%) | | Operating loss | $(5,532) | $(3,673) | $(1,859) | 50.6% | | Other (expense) income | $(17,093) | $2,066 | $(19,159) | (927.4%) | | Net loss attributed to Douglas Elliman Inc. | $(22,673) | $(1,664) | $(21,009) | (1262.6%) | Six Months Ended June 30, 2025 vs. 2024 (in Thousands) | Metric | 2025 | 2024 | Change | % Change | | :------------------------------------------ | :----- | :----- | :----- | :------- | | Revenue | $524,769 | $485,990 | $38,779 | 8.0% | | Real estate agent commissions | $391,119 | $365,473 | $25,646 | 7.0% | | Sales and marketing | $39,808 | $43,451 | $(3,643) | (8.4%) | | Operating loss | $(10,881) | $(45,137) | $34,256 | (75.9%) | | Other (expense) income | $(18,028) | $3,040 | $(21,068) | (693.0%) | | Net loss attributed to Douglas Elliman Inc. | $(28,658) | $(43,139) | $14,481 | (33.6%) | - For the three months ended June 30, 2025, revenues declined due to lower existing home sales, partially offset by increased development marketing. Operating loss increased, and net loss widened significantly, primarily driven by a **$16,969 thousand loss** from changes in the fair value of derivative embedded within convertible debt[126](index=126&type=chunk)[127](index=127&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - For the six months ended June 30, 2025, revenues increased due to higher existing home sales and development marketing. Operating loss significantly decreased, and net loss improved, primarily due to increased revenues and the absence of the **$17,750 thousand** antitrust litigation settlement expense incurred in 2024[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[143](index=143&type=chunk) [Summary of PropTech Investments](index=34&type=section&id=Summary%20of%20PropTech%20Investments) - As of June 30, 2025, DOUG Ventures held approximately **$11,496 thousand** in PropTech investments, representing about **2%** of Douglas Elliman's total assets. In July 2025, the company monetized its remaining investment in Bilt Technologies for **$1,533 thousand**, expecting a gain of **$1,225 thousand** in Q3 2025[147](index=147&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Cash, Cash Equivalents and Restricted Cash | Metric | Six Months Ended June 30, 2025 (in Thousands) | Six Months Ended June 30, 2024 (in Thousands) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net increase (decrease) | $2,488 | $(26,613) | | End of period balance | $144,709 | $102,904 | - Cash used in operations decreased significantly to **$4,975 thousand** for the six months ended June 30, 2025, from **$25,973 thousand** in the prior year, driven by reduced operating loss and lower liability payments. Investing activities provided **$7,548 thousand** in cash, a reversal from **$629 thousand** used in the prior year, primarily due to proceeds from short-term investment sales[149](index=149&type=chunk)[150](index=150&type=chunk) - The company had **$136,334 thousand** in cash and cash equivalents as of June 30, 2025, which, along with expected cash flows and available financings, is anticipated to meet liquidity needs for the next twelve months. The company continues to evaluate its capital structure and potential strategic transactions[153](index=153&type=chunk)[158](index=158&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company has outstanding letters of credit totaling **$2,990 thousand** as of June 30, 2025, collateralized by certificates of deposit, primarily for office lease security deposits. Escrow funds held by Portfolio Escrow Inc. amounted to **$53,674 thousand** as of June 30, 2025, which are not included on the consolidated balance sheets[161](index=161&type=chunk)[162](index=162&type=chunk) [Market Risk](index=36&type=section&id=Market%20Risk) - The company is primarily exposed to market risks from fluctuations in interest rates and aims to minimize these risks through regular operating and financing activities and its long-term investment strategy[163](index=163&type=chunk) [New Accounting Pronouncements](index=36&type=section&id=New%20Accounting%20Pronouncements) - The company is evaluating the impact of ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses), which are effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively[40](index=40&type=chunk)[41](index=41&type=chunk) [Legislation and Regulation](index=37&type=section&id=Legislation%20and%20Regulation) - There are no material changes to the Legislation and Regulation section from the company's 2024 Annual Report[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are incorporated by reference, primarily addressing exposure to interest rate fluctuations - The company's market risk disclosures are incorporated by reference from the MD&A section, indicating exposure primarily to interest rate fluctuations[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures with no material changes in internal control over financial reporting - Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[173](index=173&type=chunk) - There have been no material changes in the company's internal control over financial reporting during the quarterly period[174](index=174&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 8, 'Contingencies,' for detailed legal proceedings, including antitrust lawsuits and other litigation - Information regarding legal proceedings is incorporated by reference from Note 8, 'Contingencies,' in the condensed consolidated financial statements[176](index=176&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) Highlights new risk factors, focusing on international expansion and the launch of Elliman International - The company launched Elliman International in June 2025, aiming to serve international real estate needs, initially focusing on luxury destinations in Latin America, the Middle East, Europe, Asia Pacific, and other emerging wealth centers[177](index=177&type=chunk) - International expansion presents significant risks, including exposure to diverse economic conditions, foreign laws and regulations, political instability, trade policies, economic instability, difficulties in managing international operations, and challenges in establishing brand recognition[177](index=177&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - Expansion may involve acquisitions, joint ventures, or strategic arrangements with local operators, which could lead to inconsistent business interests or disputes[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered equity sales and details issuer purchases of common stock for tax withholdings - No unregistered equity securities were issued or sold during the three months ended June 30, 2025[181](index=181&type=chunk) Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------ | :----------------------------- | :--------------------------- | | May 1 to May 31, 2025 | 25,657 | $2.21 | | June 1 to June 30, 2025 | 9,933 | $2.85 | | **Total** | **35,590** | **$2.53** | - The purchases represent shares withheld as payment for payroll tax liabilities related to the vesting of employees' restricted stock, which were immediately canceled[182](index=182&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - No directors or officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[183](index=183&type=chunk) - Certain officers or directors may have made elections to withhold shares for tax liabilities or option exercise prices, which may be designed to satisfy Rule 10b5-1(c) conditions[183](index=183&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including certifications, XBRL instance documents, and taxonomy extensions - Exhibits include the company's Insider Trading Policy, CEO and CFO certifications (pursuant to Exchange Act Rule 13a-14(a) and 18 U.S.C. Section 1350), and various XBRL documents for interactive data filing[184](index=184&type=chunk) [SIGNATURE](index=42&type=section&id=SIGNATURE)

Core Insights - Douglas Elliman reported a 5% year-over-year decline in revenue for Q2 2025, totaling $271.4 million compared to $285.8 million in Q2 2024 [1][5] - The company experienced a significant increase in net loss, reaching $22.7 million, with a diluted loss per share of $0.27 [6] - Adjusted EBITDA swung from a positive $2.9 million in the prior year to a negative $(0.8) million, indicating underlying operational challenges [6][12] Financial Performance - Revenue for Q2 2025 was $271.4 million, down from $285.8 million in Q2 2024, reflecting a 5% decrease [2][5] - Gross Transaction Value (GTV) decreased to $10.2 billion from $10.6 billion, a decline of 3.8% year-over-year [2][7] - The number of transactions fell to 5,530 from 5,885, although the average price per transaction remained strong at $1.84 million [7][11] Profitability Metrics - Net loss expanded to $22.7 million, with an adjusted net loss of $4.7 million compared to $0.5 million in the prior year [6][11] - Adjusted EPS (Non-GAAP, Diluted) was $(0.06), a deterioration from $(0.01) in Q2 2024, reflecting a 500% increase in losses [2][6] - Operating expenses remained high, with real estate agent commissions at $204.6 million and sales and marketing expenses at $20.1 million [9][10] Business Strategy and Focus - The company aims to strengthen its luxury brand and expand in growth markets while leveraging property technology (PropTech) [4][11] - Management emphasized the importance of maintaining a trusted reputation and attracting top-tier agents to drive transaction volume [4][11] - There were no updates on agent recruitment, new office openings, or PropTech rollouts during the quarter [11][12] Future Outlook - Management did not provide specific forward guidance for revenue or earnings for the remainder of fiscal 2025 [12] - The focus remains on long-term value creation and investments in core markets and technology, but without clear financial targets for the second half of the year [12][13] - Future results will depend on market dynamics and the company's ability to convert its brand strength into transaction growth [13]

Financial Data and Key Metrics Changes - In Q2 2025, revenues increased by 8% year-over-year to $524.8 million, marking the strongest first half revenue performance since 2022 [6][23] - The net loss for Q2 2025 was $22.7 million or $0.27 per diluted share, compared to a net loss of $1.7 million or $0.02 per diluted share in Q2 2024 [22] - Adjusted EBITDA for Q2 2025 was a loss of $849,000, compared to a positive $2.9 million in Q2 2024 [22] - For the six months ended June 30, 2025, net loss was $28.7 million or $0.34 per diluted share, an improvement from a net loss of $43.1 million or $0.52 per diluted share in the same period of 2024 [23] Business Line Data and Key Metrics Changes - Revenues from existing home sales in New York and Northeast markets increased by $16.8 million or 7.9% compared to the first half of 2024 [15] - Development marketing's revenue for the first half of 2025 increased by $17.7 million compared to the first half of 2024, reaching $35.4 million [15][20] Market Data and Key Metrics Changes - The average price per transaction for luxury home sales rose to $1.92 million in 2025 from $1.72 million in 2024 [18] - Sales of homes priced over $5 million increased by 38% year-to-date compared to the same period in 2024, with 340 homes sold in 2025 [18][19] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, including the launch of Element Capital and Element International, aimed at expanding service offerings and entering global markets [8][10] - Element Capital is expected to provide a licensing revenue stream and enhance the comprehensive service offering [8] - The company aims to build a direct presence in key international luxury markets, starting with Latin America, the Middle East, Europe, and Asia Pacific [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third quarter and the remainder of 2025, citing encouraging trends in luxury home demand and rising average transaction values [7] - The company acknowledged challenges faced in May and early June due to economic pressures and elevated mortgage rates, which dampened market activity [16] Other Important Information - The company maintains ample liquidity with cash and cash equivalents of approximately $136 million as of June 30, 2025 [21] - The increase in net loss for Q2 2025 included a non-cash charge of $17 million related to the increase in fair value of derivatives embedded within convertible debt [22] Summary of Q&A Session - There were no questions during the Q&A session, and the call concluded without further inquiries [26]

Financial Data and Key Metrics Changes - In the first half of 2025, revenues increased by 8% year over year to $524.8 million, marking the strongest first half revenue performance since 2022 [6] - The net loss for the second quarter was $22.7 million or $0.27 per diluted share, compared to a net loss of $1.7 million or $0.02 per diluted share in the second quarter of 2024 [22] - Adjusted EBITDA for the second quarter was a loss of $849,000 compared to a positive $2.9 million in the second quarter of 2024 [22] - For the six months ended June 30, 2025, adjusted net loss was $7.1 million or $0.08 per share compared to $23.6 million or $0.28 per share in the 2024 period [24] Business Line Data and Key Metrics Changes - Revenues from existing home sales in New York and Northeast markets increased by $16.8 million or 7.9% from the first half of 2024 [14] - Development marketing's first half revenue increased by $17.7 million from the first half of 2024, reaching $35.4 million [20] - The average price per transaction rose to $1.92 million per home sale compared to $1.72 million in the comparable 2024 period [18] Market Data and Key Metrics Changes - The company reported a 38% increase in year-to-date sales of homes priced over $5 million compared to the first half of 2024 [18] - There were 204 home sales of more than $10 million in the first half of 2025, a 32% increase from 2024 [19] - The active pipeline for development marketing has a gross transaction value of approximately $28.1 billion, with $18.8 billion located in Florida [19] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, including the launch of Element Capital and Element International [8] - Element Capital is an innovative mortgage platform expected to provide a licensing revenue stream and enhance service offerings [8] - Element International aims to serve international real estate needs directly, focusing on high-end luxury demand in key global markets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third quarter and 2025, citing encouraging trends such as continued demand for luxury homes and rising average transaction values [7] - The company acknowledges challenges faced in May and early June due to economic pressures and elevated mortgage rates, which dampened market activity [15] - Management believes the foundation of business and the development marketing pipeline bode well for future revenue recognition [19] Other Important Information - The company maintains ample liquidity with cash and cash equivalents of approximately $136 million as of June 30, 2025 [21] - The increase in net loss for the second quarter included a non-cash charge of $17 million related to the increase in fair value of derivatives embedded within convertible debt [22] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [27]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 & H1 2025 Performance Overview](index=1&type=section&id=Q2%20%26%20H1%202025%20Performance%20Overview) Douglas Elliman Inc. reported an 8% year-over-year revenue growth for the six months ended June 30, 2025, accompanied by significant improvements in first-half Net Loss, Adjusted Net Loss, and Adjusted EBITDA - Company reports **8% year-over-year revenue growth** for the six months ended June 30, 2025[1](index=1&type=chunk) - Significant improvements in first-half Net Loss, Adjusted Net Loss and Adjusted EBITDA[1](index=1&type=chunk) [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) CEO Michael S. Liebowitz highlighted strong first-half momentum and improved Adjusted EBITDA, while CFO Bryant Kirkland noted solid revenue and a strong $136 million cash position for strategic investments - CEO Michael S. Liebowitz noted strong momentum, revenue growth, significantly narrowed operating losses, and improved adjusted EBITDA performance compared to H1 2024, driven by investing in agents and focusing on key luxury markets[3](index=3&type=chunk) - CFO Bryant Kirkland highlighted solid first-half revenue, further narrowed operating losses, and a strong cash position of **$136 million** as of June 30, 2025, enabling strategic investments and long-term value creation[3](index=3&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) Douglas Elliman's GAAP financial results for Q2 2025 showed a decrease in revenue and an increased operating and net loss compared to Q2 2024, but H1 2025 revenues increased, and operating and net losses significantly narrowed year-over-year [Three Months Ended June 30, 2025 (Q2)](index=1&type=section&id=Three%20months%20ended%20June%2030%2C%202025) Q2 2025 GAAP Financial Results (vs. Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Revenues | $271.4 | $285.8 | -5.0% | | Operating Loss | $(5.5) | $(3.7) | -48.6% | | Net Loss attributed to Douglas Elliman | $(22.7) | $(1.7) | -1235.3% | | Diluted EPS | $(0.27) | $(0.02) | -1250.0% | [Six Months Ended June 30, 2025 (H1)](index=1&type=section&id=Six%20months%20ended%20June%2030%2C%202025) H1 2025 GAAP Financial Results (vs. H1 2024) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Revenues | $524.8 | $486.0 | +8.0% | | Operating Loss | $(10.9) | $(45.1) | +75.9% | | Net Loss attributed to Douglas Elliman | $(28.7) | $(43.1) | +33.4% | | Diluted EPS | $(0.34) | $(0.52) | +34.6% | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company's non-GAAP results show a decline in Adjusted EBITDA and an increase in Adjusted Net Loss for Q2 2025 compared to Q2 2024, but H1 2025 Adjusted EBITDA improved from a loss to income, and Adjusted Net Loss significantly narrowed year-over-year [Three Months Ended June 30, 2025 (Q2)](index=2&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20three%20months%20ended%20June%2030%2C%202024) Q2 2025 Non-GAAP Financial Results (vs. Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Adjusted EBITDA attributed to Douglas Elliman | $(0.8) | $2.9 | -127.6% | | Adjusted Net Loss attributed to Douglas Elliman | $(4.7) | $(0.5) | -840.0% | | Adjusted Diluted EPS | $(0.06) | $(0.01) | -500.0% | [Six Months Ended June 30, 2025 (H1)](index=2&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202024) H1 2025 Non-GAAP Financial Results (vs. H1 2024) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Adjusted EBITDA attributed to Douglas Elliman | $0.3 | $(14.7) | +102.0% | | Adjusted Net Loss attributed to Douglas Elliman | $(7.1) | $(23.6) | +69.9% | | Adjusted Diluted EPS | $(0.08) | $(0.28) | +71.4% | [Operational Metrics](index=2&type=section&id=Operational%20Metrics) [Gross Transaction Value](index=2&type=section&id=Gross%20Transaction%20Value) Douglas Elliman Realty, LLC reported a slight decrease in gross transaction value for Q2 2025 but a significant increase for H1 2025, with average price per transaction also increasing for both periods Gross Transaction Value and Average Price per Transaction | Metric | Q2 2025 | Q2 2024 | Change (YoY) | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | :-------- | :-------- | :----------- | | Gross Transaction Value (Billions) | $10.2 | $10.6 | -3.8% | $20.1 | $17.8 | +12.9% | | Average Price per Transaction (Millions) | $1.840 | N/A | N/A | $1.923 | N/A | N/A | [Financial Position](index=2&type=section&id=Financial%20Position) [Balance Sheet Highlights](index=2&type=section&id=Consolidated%20Balance%20Sheet) Douglas Elliman maintained a strong balance sheet, reporting **$136.3 million** in cash and cash equivalents as of June 30, 2025 - Cash and cash equivalents stood at **$136.3 million** as of June 30, 2025, indicating a strong balance sheet[13](index=13&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) [About Douglas Elliman Inc.](index=4&type=section&id=About%20Douglas%20Elliman%20Inc.) Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, a leading residential brokerage company in the U.S., also investing in PropTech solutions and offering various real estate services - Douglas Elliman Inc. (NYSE: DOUG) owns Douglas Elliman Realty, LLC, a leading residential brokerage company in the United States[19](index=19&type=chunk) - Operations span major markets including New York City, Long Island, Florida, California, Texas, and Colorado, among others[19](index=19&type=chunk) - The company also invests in early-stage, disruptive property technology (PropTech) solutions and offers development marketing, property management, and settlement/escrow services[19](index=19&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Details](index=2&type=section&id=Conference%20Call%20to%20Discuss%20Second%20Quarter%202025%20Results) Douglas Elliman Inc. will host a conference call and webcast on Friday, August 1, 2025, at 8:00 AM (ET) to discuss its Q2 2025 results, with a replay available until August 14, 2025 - Conference call and webcast for Q2 2025 results scheduled for Friday, August 1, 2025, at 8:00 AM (ET)[14](index=14&type=chunk) - Live webcast accessible via https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Second-Quarter-2025-Earnings-Call[14](index=14&type=chunk) - A replay will be available from August 1, 2025, through August 14, 2025, at the same webcast link[15](index=15&type=chunk) [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Non-GAAP Financial Measures (Adjusted EBITDA, Adjusted Net Loss, LTM measures) to supplement GAAP results, providing a useful understanding of operating performance by excluding certain non-recurring or non-cash items - Non-GAAP Financial Measures (Adjusted EBITDA, Adjusted Net Loss, LTM measures) are used to supplement GAAP results, enhancing understanding of operating performance[16](index=16&type=chunk)[17](index=17&type=chunk) - These measures provide insights into operating results unaffected by differences in capital structures and asset ages among comparable companies[17](index=17&type=chunk) - Non-GAAP measures should be considered in addition to, not as substitutes for or superior to, GAAP measures like operating income/loss, net income/loss, and cash flows from operations[18](index=18&type=chunk) [Forward-Looking and Cautionary Statements](index=4&type=section&id=Forward-Looking%20and%20Cautionary%20Statements) The press release contains forward-looking statements reflecting inherently uncertain current expectations, with actual results potentially differing due to risks detailed in SEC filings, and the company does not undertake to publicly update these statements except as required by law - The press release includes forward-looking statements, identifiable by terms like 'anticipate,' 'believe,' 'expect,' and 'will be,' reflecting current expectations that are inherently uncertain[21](index=21&type=chunk) - Actual results could differ materially due to risks and uncertainties described in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q[22](index=22&type=chunk) - The company undertakes no responsibility to publicly update or revise any forward-looking statement except as required by applicable law[22](index=22&type=chunk)

Core Insights - Douglas Elliman Real Estate has launched Elliman Capital, an in-house mortgage platform aimed at simplifying the home financing process for both traditional and non-traditional borrowers [1][2] - The platform will initially be available in Florida, with plans for expansion to all states where Douglas Elliman operates [1][3] Company Overview - Douglas Elliman Inc. is one of the largest residential brokerage companies in the United States, with operations in multiple states including New York, Florida, California, and Texas [5] - The company is also involved in early-stage property technology solutions and offers various real estate services [5] Product Offering - Elliman Capital provides a wide range of loan products, including conventional loans, jumbo loans, construction loans, investment property financing, bridge loans, commercial lending, second home mortgages, FHA loans, VA loans, and USDA loans [2][4] - The platform is designed to cater to diverse borrower needs, including self-employed individuals, investors, and foreign nationals [2][3] Technology and Process - The new mortgage platform incorporates advanced technology to streamline the mortgage application and approval process, allowing agents to track loan progress and receive real-time updates [4][6] - This integration aims to enhance the overall client experience from property search to closing [4] Competitive Advantage - Douglas Elliman's established reputation for luxury service and market expertise positions Elliman Capital to become a significant player in the residential lending market [4] - The company leverages strong lender relationships to offer competitive rates and optimal terms for clients [6]