Douglas Elliman (DOUG) - 2025 Q1 - Quarterly Results

Executive Summary & Business Highlights First Quarter 2025 Performance Overview Douglas Elliman Inc. reported strong first-quarter 2025 financial results, achieving 27% year-over-year revenue growth and significant improvements in net loss and Adjusted EBITDA, driven by strategic investments and disciplined expense management. This marks the highest first-quarter revenue since 2022 Q1 2025 Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $253.4 million | $200.2 million | +26.6% | | Operating Loss | $(5.3) million | $(41.5) million | -87.2% | | Net Loss attributed to Douglas Elliman | $(6.0) million | $(41.5) million | -85.5% | | Diluted EPS | $(0.07) | $(0.50) | -86.0% | | Adjusted EBITDA attributed to Douglas Elliman | $1.1 million | $(17.6) million | N/A (swing to positive) | | Adjusted Net Loss attributed to Douglas Elliman | $(2.4) million | $(23.1) million | -89.6% | Management Commentary and Strategic Focus Management highlighted the strength of the luxury brand and the success of focusing on high-impact areas like Development Marketing. The company is committed to continued investment in agent experience and new technologies, supported by a strong balance sheet, to drive long-term growth and enhance stockholder value - Strategic Focus: - Driving growth by focusing on high-impact areas like Development Marketing - Reinforcing position as a leader in the luxury market - Committed to staying nimble in the core business - Continued investment in agent experience and new technologies[3] Balance Sheet Strength | Metric | Amount | | :--- | :--- | | Cash and Cash Equivalents | $137 million | Financial Performance GAAP Financial Results The company reported significant improvements in its GAAP financial results for Q1 2025 compared to Q1 2024, with substantial revenue growth and a considerable reduction in operating and net losses Condensed Consolidated Statements of Operations Douglas Elliman's Q1 2025 condensed consolidated statements of operations show a strong increase in total revenues, primarily driven by commissions and other brokerage income, alongside a significant reduction in operating loss and net loss compared to the prior year Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues: | | | | Commissions and other brokerage income | $241,143 | $188,265 | | Property management | $9,492 | $9,047 | | Other ancillary services | $2,768 | $2,927 | | Total revenues | $253,403 | $200,239 | | Expenses: | | | | Real estate agent commissions | $186,525 | $149,016 | | Sales and marketing | $19,739 | $21,298 | | Operations and support | $17,728 | $18,799 | | General and administrative | $27,325 | $27,016 | | Technology | $5,535 | $5,843 | | Depreciation and amortization | $1,900 | $1,981 | | Litigation settlement | $— | $17,750 | | Operating loss | $(5,349) | $(41,464) | | Net loss attributed to Douglas Elliman Inc. | $(5,985) | $(41,475) | | Per diluted common share | $(0.07) | $(0.50) | Non-GAAP Financial Measures Douglas Elliman utilizes Non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Loss, to provide a supplementary view of its operating performance, unaffected by certain non-recurring or non-cash items. These measures show significant year-over-year improvements, reflecting the company's operational efficiency and strategic adjustments Adjusted EBITDA Adjusted EBITDA attributed to Douglas Elliman Inc. swung to a positive $1.1 million in Q1 2025 from a loss of $17.6 million in Q1 2024, indicating a substantial improvement in operational profitability after adjustments for non-GAAP items Adjusted EBITDA (Q1 2025 vs Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributed to Douglas Elliman Inc. | $(5,985) | $(41,475) | | EBITDA | $(4,215) | $(39,885) | | Adjusted EBITDA attributed to Douglas Elliman Inc. | $1,108 | $(17,601) | Adjusted Net Loss Adjusted Net Loss attributed to Douglas Elliman Inc. significantly decreased to $2.4 million, or $0.03 per diluted share, for Q1 2025, compared to $23.1 million, or $0.28 per diluted share, for Q1 2024, reflecting improved underlying profitability Adjusted Net Loss (Q1 2025 vs Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributed to Douglas Elliman Inc. | $(5,985) | $(41,475) | | Total adjustments | $3,588 | $18,395 | | Adjusted net loss attributed to Douglas Elliman Inc. | $(2,397) | $(23,080) | | Adjusted net loss per diluted common share | $(0.03) | $(0.28) | Explanation of Non-GAAP Measures Non-GAAP financial measures are presented to supplement GAAP results, offering investors and analysts a clearer view of operating performance by excluding certain non-cash or non-recurring items. Management uses these measures for internal assessment, but they should not be considered substitutes for GAAP measures - Purpose of Non-GAAP Measures: - Supplement discussion and analysis of results of operations - Enhance understanding of operating performance - Provide a useful measure of operating results unaffected by differences in capital structures and asset ages - Limitations: - Not prepared in accordance with GAAP - Should be considered in addition to, not as substitutes for or superior to, GAAP measures - Susceptible to varying calculations and may not be comparable to those of other companies[12][13][14] Key Operational Metrics & Balance Sheet Douglas Elliman demonstrated strong operational performance in Q1 2025, marked by a significant increase in gross transaction value and a healthy cash position, reinforcing its market leadership and financial stability Gross Transaction Value and Total Transactions Douglas Elliman Realty, LLC achieved a substantial increase in gross transaction value for Q1 2025, alongside an increase in total transactions, reflecting robust market activity and the company's strong presence Gross Transaction Value and Total Transactions (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Gross transaction value (in billions) | $9.9 | $7.1 | +39.4% | | Total transactions | 4,908 | 4,477 | +9.6% | | Average price per transaction | $2.0 million | N/A | N/A | Consolidated Balance Sheet Highlights The company maintained a strong financial position with a significant amount of cash and cash equivalents at the end of the first quarter 2025 Cash and Cash Equivalents (as of March 31, 2025) | Metric | Amount | | :--- | :--- | | Cash and Cash Equivalents | $136.8 million | Additional Information Conference Call Details Douglas Elliman Inc. hosted a conference call and webcast to discuss its first quarter 2025 results, with replay options available for investors - Conference Call Details: - Date: Friday, May 2, 2025 - Time: 8:00 AM (ET) - Live Webcast: https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-First-Quarter-2025-Earnings-Call - Webcast Replay Availability: May 2, 2025, through May 16, 2025, at the same link[10][11] About Douglas Elliman Inc. Douglas Elliman Inc. is a leading residential brokerage company in the United States, operating across numerous states and offering a range of real estate services, including development marketing, property management, and investments in PropTech solutions - Company Overview: - Core Business: One of the largest residential brokerage companies in the U.S - Geographic Presence: Operations in New York City, Long Island, Westchester, Connecticut, New Jersey, the Hamptons, Massachusetts, Florida, California, Texas, Colorado, Nevada, Maryland, Virginia, Washington, D.C., Arizona, New Hampshire, and Michigan - Other Services: Development marketing, property management, settlement and escrow services - Strategic Investments: Sources, uses, and invests in early-stage, disruptive property technology ("PropTech") solutions and companies[15] Forward-Looking and Cautionary Statements This section serves as a standard disclaimer, indicating that the press release contains forward-looking statements that are subject to inherent uncertainties and risks, and actual results may differ materially. The company does not undertake to update these statements publicly - Key aspects of Forward-Looking Statements: - All statements other than statements of historical or current facts are forward-looking - Identified by words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may be," "continue," "could," "potential," "objective," "plan," "seek," "predict," "project" and "will be" and similar words or phrases or their negatives - Reflect current expectations and are inherently uncertain - Actual results could differ materially due to various risks and uncertainties described in the Annual Report on Form 10-K and Quarterly Report on Form 10-Q - The company undertakes no responsibility to publicly update or revise any forward-looking statement except as required by applicable law[17][18] Investor Communications Douglas Elliman encourages investors and the media to review information posted on its investor relations website and social media accounts, as these platforms may contain material information - Investors are encouraged to review information on: - Company website: investors.elliman.com - Company accounts on Facebook, Instagram, LinkedIn, TikTok, X, YouTube or other social media platforms - These postings or releases could include information deemed to be material information[16]