Douglas Elliman (NYSE:DOUG) executives highlighted international expansion, new service offerings, and a strengthened balance sheet while reviewing fourth-quarter and full-year 2025 results, emphasizing that the company views 2025 as a year of strategic transformation and expects its investments to begin contributing to a new growth phase in 2026.
Strategic updates: international growth, lending platform expansion, and leadership hires
President and CEO Michael S. Liebowitz said the company is “building on the strong momentum” established through steps taken in 2025, including strategic alignment and disciplined financial management with a focus on luxury service. He described the fourth quarter as a period of “bold execution and meaningful progress” toward the company’s long-term goal of being the leading independent luxury real estate brokerage.
- International expansion: Douglas Elliman entered the French Alps, following prior launches in Bordeaux, the French Riviera, and Monaco. Liebowitz said the expansion, led by Rich Green, is generating interest from high-net-worth clients seeking cross-border expertise.
- Growth teams: The company launched a market growth team focused on expanding within current markets and a new markets team tasked with domestic and international expansion. Liebowitz said the teams will recruit agents by emphasizing the company’s luxury-sector positioning.
- Elliman Capital expansion: The company expanded its Elliman Capital offering into New York after debuting in Florida. Liebowitz said the platform leverages a strategic alliance with Associated Mortgage Bankers to provide lending solutions and an “integrated real estate and financing experience.”
- Leadership appointments: The brokerage subsidiary appointed Wendy Purvey as Chief Strategy Officer, welcomed back Natalie Passerini as Chief Marketing Officer, and added Chris Reyes as Chief Technology Officer, moves Liebowitz said are aimed at growth, innovation, and agent support.
- Technology and data initiatives: Liebowitz cited a new market data report program and continued rollout of agent-focused tools, including Elli AI and Elliman Private Listings, along with enhanced marketing tools.
Full-year 2025: revenue growth and operating income supported by property management sale
For the year ended Dec. 31, 2025, the company reported revenue of $1.033 billion, up 3.8% from $995.6 million in 2024. Liebowitz said Douglas Elliman reported operating income of $45.5 million, improving from an operating loss of $68.8 million in 2024. He noted operating income was positively impacted by an $81.7 million gain from the sale of the property management division in October.
Chief Financial Officer J. Bryant Kirkland III said excluding revenue from the disposed property management business in both periods, full-year revenue increased 4.4% to $1.0 billion from $958.8 million.
Net income for 2025 was $15.2 million, or $0.17 per diluted share, compared with a net loss of $76.3 million, or $0.91 per diluted share, in 2024. Kirkland said 2025 net income included the $81.7 million gain on the property management sale, offset by a $28.5 million non-cash charge related to an increase in the fair value of derivatives embedded within the company’s convertible debt. In 2024, net loss included a $17.75 million litigation settlement charge and a $15 million non-cash charge tied to the same derivative fair value item.
On a non-GAAP basis, adjusted EBITDA for 2025 was a loss of $14.0 million, improving from a loss of $24.1 million in 2024, with both measures excluding operations of the disposed property management business. Adjusted net loss for 2025 was $27.1 million, or $0.32 per share, compared with $29.6 million, or $0.35 per share, in 2024.
Fourth quarter: reported profit driven by divestiture gain; adjusted results remained negative
In the fourth quarter, Douglas Elliman reported revenue of $245.4 million compared with $243.3 million in the prior-year period. Excluding the disposed property management business in both periods, Kirkland said revenue increased 3.8% to $243.3 million from $234.2 million.
Net income for the quarter was $68.6 million, or $0.68 per diluted share, compared with a net loss of $6.0 million, or ($0.07) per diluted share, a year earlier. Kirkland attributed the quarter’s net income to the $81.7 million gain from the property management disposal and a $4.7 million non-cash benefit tied to a decline in the fair value of derivatives embedded within convertible debt. The prior-year quarter included a $5.2 million non-cash benefit from the same derivative valuation item.
Adjusted EBITDA for the quarter (excluding the property management business) was a loss of $10.6 million, compared with a loss of $6.6 million in the fourth quarter of 2024. Adjusted net loss was $14.2 million, or $0.17 per share, compared with adjusted net income of $1.3 million, or $0.01 per share, in the year-ago quarter.
Operational trends: luxury pricing, development marketing pipeline, and early 2026 receipts
Kirkland said 2025 results were helped by a “favorable sales mix,” including strong contributions from development marketing in the Northeast. Revenue from development marketing rose $12.6 million year over year, and he reminded listeners that the company recognizes commission income from development marketing contracts when underlying units close.
He also pointed to continued strength at the high end of the market. Douglas Elliman’s average price per transaction increased to $1.86 million in 2025 from $1.67 million in 2024. In the fourth quarter, agents sold 282 homes priced above $5 million, representing 5.4% of total transactions, and the company sold 1,282 such homes in 2025, a 25% increase from 2024. For homes priced above $10 million, the company reported 102 sales in the fourth quarter and 392 in 2025, up 31% and 28%, respectively, compared with the prior year.
In development marketing, Kirkland said the active project pipeline totaled $25.3 billion in gross transaction value, including $17.5 billion in Florida. He added that $7.5 billion of gross transaction value is expected to come to market through December 2026, with commission income generally recognized upon closing, “generally between 2026 and 2031.” Development marketing revenue increased to $80.4 million in 2025 from $67.8 million in 2024.
Kirkland said each geographic market posted higher revenues from existing home sales in 2025, with the Northeast leading—up $17.5 million, or 9.2%, from 2024—even as the company navigated geopolitical uncertainty and elevated mortgage rates. He noted that while not included in fourth-quarter results, cash receipts from existing home sales in January and February 2026 were 11% lower than the same months in 2025, and total brokerage cash receipts (including development marketing) were 12.4% lower. He also cautioned that the first quarter of 2025 represented a difficult comparison because it was the highest-revenue quarter since 2022.
Expenses and balance sheet: cost focus amid inflation, debt redemption after divestiture
On expenses, Kirkland said the company continued targeting costs tied to office leases, professional services, and technology, while noting inflation and higher personnel expenses pressured the expense structure. He attributed higher personnel expenses primarily to continued investment in development marketing and higher bonus accruals tied to improved revenue performance.
Both Liebowitz and Kirkland emphasized liquidity and financial flexibility. The company ended 2025 with approximately $115.5 million in cash and cash equivalents and no long-term debt. Kirkland said that in October 2025, in connection with the property management sale, Douglas Elliman agreed to repay and redeem all convertible notes for an aggregate payment of $95 million, including accrued interest.
Looking ahead, Liebowitz said the company believes 2026 will mark the start of a new growth phase as 2025 investments begin to yield results, supported by a stronger balance sheet and expanded operational capabilities.
About Douglas Elliman (NYSE:DOUG)
Douglas Elliman (NYSE: DOUG) is one of the largest residential real estate brokerages in the United States, offering an array of services that span property sales, leasing and management. Founded in 1911 and headquartered in New York City, the firm has built a reputation for representing high-end residential properties and guiding clients through complex real estate transactions. Over the course of its history, Douglas Elliman has expanded its offerings to include specialized support for developers, investors and individual homeowners.
The company’s core business activities include residential brokerage, new development marketing, and property management.
