Douglas Elliman (DOUG) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Q2 & H1 2025 Performance Overview 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] - Significant improvements in first-half Net Loss, Adjusted Net Loss and Adjusted EBITDA[1] CEO & CFO Commentary 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] - 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] Financial Performance GAAP Financial Results 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) 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) 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 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) 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) 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 Gross Transaction Value 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 Balance Sheet Highlights 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] Company Overview About Douglas Elliman Inc. 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] - Operations span major markets including New York City, Long Island, Florida, California, Texas, and Colorado, among others[19] - The company also invests in early-stage, disruptive property technology (PropTech) solutions and offers development marketing, property management, and settlement/escrow services[19] Additional Information Conference Call Details 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] - 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] Non-GAAP Financial Measures Explanation 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][17] - These measures provide insights into operating results unaffected by differences in capital structures and asset ages among comparable companies[17] - 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] Forward-Looking and Cautionary Statements 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] - 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] - The company undertakes no responsibility to publicly update or revise any forward-looking statement except as required by applicable law[22]