Douglas Elliman Q2 Earnings Call Highlights

Revenue rose 4.4% year over year to $283.4 million, while the net loss narrowed to $2.7 million from $22.7 million. Excluding the divested property-management business, revenue increased 8.6%.

Existing-home-sale cash receipts increased 15% in May, 16% in June and 8% in July, with a three-month weighted average gain of 13%, led by several key markets including Florida, the Hamptons and Texas.

Douglas Elliman launched an AI modernization program and its Elius data venture, expanded internationally into Paris, and grew its lending platform. The company expects meaningful technology-related cost savings beginning in 2027 and ended July with $121 million in cash.

Douglas Elliman NYSE: DOUG reported second-quarter revenue growth and a substantially narrower net loss as the luxury real estate brokerage pointed to improving transaction-related cash receipts beginning in May. Revenue for the three months ended June 30, 2026, totaled $283.4 million, compared with $271.4 million a year earlier. Excluding revenue from the property management business that the company disposed of in October 2025, revenue rose 8.6% from $260.9 million in the prior-year quarter.

The company recorded a net loss of $2.7 million, or $0.03 per diluted share, compared with a net loss of $22.7 million, or $0.27 per diluted share, in the second quarter of 2025. The prior-year loss included $17 million in non-cash interest expense related to the decline in fair value of derivatives embedded in convertible debt that was retired in October 2025. Adjusted EBITDA was a loss of $986,000, improving from a $3.6 million loss a year earlier. Adjusted net loss was $3.9 million, or $0.05 per share, compared with $7.3 million, or $0.09 per share, in the 2025 quarter.

CFO Bryant Kirkland said the company began seeing positive momentum in May, when cash receipts from existing-home sales increased 15% year over year. Cash receipts rose 16% in June and 8% in July from their respective 2025 levels. Across the three months from May through July, weighted average cash receipts from existing-home sales increased 13% from the comparable 2025 period, led by Florida, the Hamptons, Texas, Nevada and Boston, Kirkland said.

“Despite elevated mortgage rates, our luxury home buyers are beginning to look past the macroeconomic and geopolitical uncertainties that were present in early 2026,” Kirkland said. The company’s average price per transaction was approximately $1.9 million through the first six months of 2026, consistent with the prior-year period. Its last-12-month average price per transaction was $1.85 million, up from $1.77 million for the 12 months ended June 30, 2025.

For the six months ended June 30, Douglas Elliman reported revenue of $497.8 million, down from $524.8 million a year earlier. Excluding the former property management operation, revenue declined 1.4% from $504.8 million in the 2025 period. Kirkland noted that the comparison was affected by an unusually strong first quarter in 2025. Net loss for the first half was $19 million, or $0.22 per diluted share, compared with a $28.7 million loss, or $0.34 per diluted share, a year earlier. The prior-year result included a $17.7 million non-cash charge associated with convertible debt that was retired in 2025. Adjusted EBITDA loss widened to $11.4 million for the six-month period from $4.5 milli...