Douglas Elliman Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Second quarter 2026 revenues were $283.4 million, a 4.5% increase year-over-year from $271.4 million in Q2 2025; excluding property management revenues, Q2 2026 revenues were $283.4 million compared to $260.9 million in Q2 2025 (8.6% YoY growth on a comparable basis).
• Six months ended June 30, 2026 revenues were $497.8 million, down from $524.8 million in the same period of 2025; excluding property management revenues, six-month 2026 revenues were $497.8 million compared to $504.8 million in 2025.
• Operating loss for Q2 2026 narrowed to $3.4 million from $5.5 million in Q2 2025; for the six months ended June 30, 2026, the operating loss was $20.9 million compared to $10.9 million in the prior year period.
• Net loss attributed to Douglas Elliman Inc. for Q2 2026 was $2.7 million ($0.03 per diluted share), narrowing from $22.7 million ($0.27 per diluted share) in Q2 2025; for the six months ended June 30, 2026, net loss was $19.0 million ($0.22 per diluted share) compared to $28.7 million ($0.34 per diluted share) in 2025.
• Adjusted EBITDA loss for Q2 2026 was $1.0 million, improving from a loss of $3.6 million in Q2 2025; for the six months ended June 30, 2026, Adjusted EBITDA loss was $11.4 million compared to $4.5 million in 2025.
• Adjusted Net Loss for Q2 2026 was $3.9 million ($0.05 per diluted share), compared to $7.3 million ($0.09 per diluted share) in Q2 2025; for the six months ended June 30, 2026, Adjusted Net Loss was $16.3 million ($0.19 per diluted share) compared to $11.6 million ($0.14 per diluted share) in 2025.
• Gross Transaction Value (GTV) for Q2 2026 was $10.8 billion, up 5.9% from $10.2 billion in Q2 2025, with an average price per transaction of $1.86 million versus $1.84 million in the prior year period.
• GTV for the six months ended June 30, 2026 was $19.4 billion, down from $20.1 billion in the prior year period, with an average price per transaction of $1.90 million versus $1.92 million.
• Cash and cash equivalents were $105.2 million as of June 30, 2026, with no long-term debt.
• The Company disposed of its property management business in October 2025, resulting in a gain on disposal of $408,000 in Q2 2026.

Guidance and Future Outlook

• The Company enters the second half of 2026 with a development marketing pipeline of approximately $26.1 billion, including $18.9 billion in Florida alone.
• An additional $9.7 billion in development marketing is scheduled to come to market through September 30, 2027.
• Management expects the AI transformation to gradually lead to significant savings in non-commission operating expenses over the next three years.
• Management believes the platform is well-positioned to deliver long-term stockholder value through superior agent talent, global market presence, and a brand commanding the industry's highest average sales price.

Business Segments and Product Lines

• The Company launched "Elius," a new intelligence company designed to build proprietary real estate intelligence capabilities beyond traditional brokerage, powered by Google Cloud technology.
• The Company initiated a company-wide technology infrastructure transformation to reshape its cost structure and improve efficiency, utilizing a dedicated AI team.
• Elliman Capital expanded its footprint into California in May through a strategic relationship with Mark Cohen and Cohen Financial Group, and into Texas in July with dedicated loan officers in Dallas-Fort Worth, Houston, and Austin.
• The French network expanded to 15 offices with the opening of a Paris office in June, covering France, Monaco, and Saint-Barthélemy.
• Domestic expansion included a new office in New Hampshire and a Georgetown office (the fourth in the Mid-Atlantic region) during the second quarter.
• The Company continues to recruit high-level agents in key markets.

Market and Competitive Landscape

• The Company maintains a focus on the luxury residential real estate market, citing its brand as commanding the industry's highest average sales price.
• Cash receipts from existing home sales were up 15% in May and 16% in June 2026 compared to the prior year periods.
• The Company has extended its geographic reach into international markets including Canada, France, Monaco, and the Caribbean since 2025.

Risks and Challenges

• The six-month revenue comparison was impacted by a difficult comparable due to an unusually strong first quarter of 2025.
• The Company notes that actual results could differ materially from forward-looking statements due to various risks and uncertainties described in its Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent Quarterly Reports on Form 10-Q.
• Non-GAAP financial measures are susceptible to varying calculations and may not be comparable to those of other companies.

Management Commentary and Tone

• CEO Michael S. Liebowitz stated that top and bottom-line results reflect "strong and building momentum," highlighting the 8.6% comparable revenue growth and increased cash receipts.
• Management emphasized operating from a position of financial strength with no long-term debt and over $100 million in cash.
• The CEO described the team as "energized and laser-focused on creating value for all stakeholders" through strategic initiatives in technology, talent, capital, and geography.
• Management expressed confidence that the AI transformation will be a "meaningful driver of margin improvement over time."

Other Key Points

• The Company disposed of its property management business (Residential Management Group, LLC) in October 2025.
• The Company incurred an antitrust litigation settlement expense of $2,041,000 during the first quarter of 2026, reclassified as a separate line item for the six-month period.
• The Company utilizes Google Cloud technology, including AI models and enterprise infrastructure, to power its transformation.
• A conference call and webcast to discuss the results was held on August 7, 2026, at 8:00 a.m. (ET).