Financial Data and Key Metrics Changes - For the first nine months of 2025, revenues increased by 5% year over year to $787.6 million, compared to $752.3 million in the same period last year [6][25] - The operating loss was reduced to $21.5 million from $52.6 million in the same period last year, indicating progress towards profitability [6] - Net loss for the nine months ended 09/30/2025 was $53.3 million or $0.63 per diluted share, compared to $70.3 million or $0.84 per diluted share in the previous year [24] - Adjusted EBITDA for the nine months ended 09/30/2025 was $2.9 million compared to a loss of $12.4 million in the 2024 period, an increase of $15.3 million [24][25] Business Line Data and Key Metrics Changes - Revenues from the development marketing division increased by $17.2 million from the first nine months of 2024, benefiting from a favorable sales mix [16] - Revenues from existing home sales in the Northeast market increased by $12.4 million or 9% from the first nine months of 2024 [17] - The development marketing division's nine-month revenues increased from $42.3 million in 2024 to $59.5 million in 2025 [20] Market Data and Key Metrics Changes - The average price per transaction year to date rose to $1.87 million compared to $1.68 million per home in the same period last year [18] - In 2025, the company sold 333 homes priced at more than $5 million, representing a 20% increase over last year [18] - The company sold 87 homes for more than $10 million in the third quarter, a 1928% increase from the previous year [19] Company Strategy and Development Direction - The company is focused on building a more focused pure play luxury brokerage, aiming for long-term success and value creation [5] - Strategic initiatives include the sale of the property management division for $85 million, which is expected to yield an after-tax gain of approximately $75 million [10] - The launch of Element International aims to expand the brand into key global markets, with recent entry into France and plans for further expansion [8][9] - The introduction of Element Capital, an in-house mortgage platform, is designed to streamline the home financing process for clients [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positive momentum and long-term success, highlighting the strength of the balance sheet as a competitive advantage [14][15] - The company anticipates that investments and strategic moves made in 2025 will yield results in 2026 and beyond [13][26] - Management acknowledged ongoing challenges from economic pressures, including geopolitical uncertainties and elevated mortgage rates [17] Other Important Information - The company had cash balances of approximately $126.5 million as of 10/31/2025 and no debt, positioning it to capitalize on market opportunities [11][25] - The company has introduced new specialized client services, including an estate, trust, and probate division, and an AI-powered assistant app for agents [12][13] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a Q&A segment [27]

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]