Douglas Elliman Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenues were $252.1 million, compared to $262.8 million in the third quarter of 2025; excluding property management revenues, Q3 2025 revenues were $253.4 million.
• Nine months ended September 30, 2026, revenues were $749.9 million, compared to $787.6 million for the same period in 2025; excluding property management revenues, nine months 2025 revenues were $758.2 million.
• Operating income for the third quarter of 2026 was $6.3 million, compared to an operating loss of $10.7 million in the third quarter of 2025.
• Operating loss for the nine months ended September 30, 2026, was $14.6 million, compared to an operating loss of $21.5 million for the nine months ended September 30, 2025.
• Net income attributed to Douglas Elliman Inc. for the third quarter of 2026 was $7.4 million ($0.08 per diluted share), compared to a net loss of $24.7 million ($0.29 per diluted share) in the third quarter of 2025.
• Net loss attributed to Douglas Elliman Inc. for the nine months ended September 30, 2026, was $11.6 million ($0.14 per diluted share), compared to a net loss of $53.3 million ($0.63 per diluted share) for the nine months ended September 30, 2025.
• Adjusted EBITDA attributed to Douglas Elliman Inc. for the third quarter of 2026 was a loss of $5.3 million, compared to an income of $1.0 million in the third quarter of 2025.
• Adjusted EBITDA attributed to Douglas Elliman Inc. for the nine months ended September 30, 2026, was a loss of $16.7 million, compared to a loss of $3.4 million for the nine months ended September 30, 2025.
• Adjusted Net Loss attributed to Douglas Elliman Inc. for the third quarter of 2026 was $8.0 million ($0.09 per diluted share), compared to $1.4 million ($0.02 per diluted share) in the third quarter of 2025.
• Adjusted Net Loss attributed to Douglas Elliman Inc. for the nine months ended September 30, 2026, was $24.3 million ($0.28 per diluted share), compared to $13.0 million ($0.15 per diluted share) for the nine months ended September 30, 2025.
• The Company disposed of its property management business in October 2025.
• Cash, cash equivalents, and a U.S. Treasury Bill totaled approximately $123 million as of September 30, 2026, with no long-term debt.
• Cash and cash equivalents were approximately $102.7 million, with an additional $20 million in a U.S. Treasury Bill as of September 30, 2026.

Guidance and Future Outlook:

• The Company has a development marketing pipeline of approximately $26 billion, with an additional $11.8 billion scheduled to come to market through December 31, 2027.
• AI transformation is expected to gradually drive significant savings in non-commission operating expenses over the next three years.
• The Company expects to gradually realize efficiencies in non-commission operating expenses beginning in 2027.

Business Segments and Product Lines:

• The Company continues to focus on its luxury residential real estate business while investing in people, technology, operations, and related capabilities.
• The Company added dedicated leadership for AI transformation: Sharon Milz as Head of AI Technology Transformation and Nick Patino as Director of AI Enablement.
• Jamie Gagliano was appointed Chief Operations Officer, Brokerage, to focus on national brokerage operations, simplifying processes, strengthening agent support, and building a scalable organization.
• The Company is modernizing workflows, processes, and infrastructure to improve efficiency and provide agents with better tools.

Market and Competitive Landscape:

• Gross transaction value for the third quarter of 2026 was approximately $10.0 billion with an average price per transaction of $1.83 million, compared to $10.0 billion with an average price of $1.77 million in the third quarter of 2025.
• Gross transaction value for the nine months ended September 30, 2026, was approximately $29.4 billion with an average price per transaction of $1.88 million, compared to $30.1 billion with an average price of $1.87 million for the nine months ended September 30, 2025.
• Total transactions for the third quarter of 2026 were 5,494, compared to 5,661 in the third quarter of 2025.
• Total transactions for the nine months ended September 30, 2026, were 15,673, compared to 16,099 for the nine months ended September 30, 2025.
• The Company operates in New York City, Long Island, the Hamptons, Westchester, Connecticut, New Jersey, Massachusetts, New Hampshire, Florida, California, Texas, Colorado, Nevada, Maryland, Virginia, and Washington, D.C.

Risks and Challenges:

• Forward-looking statements are subject to risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and Quarterly Reports on Form 10-Q filed thereafter.
• Actual results could differ materially due to factors including market conditions, cash flow, liquidity needs, regulatory and legal requirements, and other factors affecting the share repurchase program.

Management Commentary and Tone:

• CEO Michael S. Liebowitz stated the Company has succeeded in creating a "stronger, more focused company" over the past two years.
• Management highlighted a sharpened focus on core strengths, investing in people and technology, modernizing the operating platform, and pursuing opportunities to reinforce leadership in luxury residential real estate.
• The Board's approval of the share repurchase program reflects confidence in Douglas Elliman and a commitment to delivering long-term value for stockholders.
• The Company is focused on positioning itself to deliver long-term stockholder value by strengthening operational efficiency and pursuing disciplined growth in key luxury markets.

Other Key Points:

• The Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $10 million of its common stock.
• Stock repurchases may be funded from cash on hand and made through open market or privately negotiated transactions, including the use of derivative contracts and Rule 10b5-1 and Rule 10b-18 trading plans.
• The authorization does not obligate the Company to repurchase any particular amount of common stock during any period and may be modified or suspended at any time.
• The Company had approximately 91 million shares of common stock outstanding as of November 4, 2026.
• A conference call and webcast to discuss the third quarter 2026 results was scheduled for Tuesday, November 10, 2026, at 8:00 a.m. (ET).
• The Company provides other real estate services including development marketing, mortgage, and settlement and escrow services in select markets, and invests in early-stage property technology solutions.