Douglas Elliman Inc. (NYSE:DOUG) reported a wider first-quarter loss as revenue fell year-over-year, reflecting a challenging comparison with a stronger prior-year period and the absence of contributions from its former property management business.
The luxury residential real estate brokerage posted an adjusted loss of $0.14 per share for the quarter ended March 31, compared with an adjusted loss of $0.05 per share in the same period last year.
Revenue and Transaction Activity Decline
Quarterly revenue decreased 15% year-over-year to $214.3 million from $253.4 million in the first quarter of 2025.
Excluding the previously divested property management business, which contributed $9.5 million in revenue during the prior-year quarter, revenue declined 12% from $243.9 million.
Douglas Elliman generated approximately $8.6 billion in gross transaction value during the quarter, down from $9.9 billion a year earlier.
The average transaction price also declined slightly to $1.96 million from $2.02 million in the prior-year period.
Losses Widen as Operating Performance Weakens
The company reported an operating loss of $17.5 million, compared with a loss of $5.3 million in the same quarter last year.
Adjusted EBITDA loss widened significantly to $10.4 million from $0.9 million in the prior-year quarter.
Despite the weaker financial performance, management highlighted improving momentum in recruiting and market positioning.
“The momentum we are seeing across recruitment and the broader competitive landscape gives me greater confidence in the Company’s trajectory than at any point in my tenure,” said President and Chief Executive Officer Michael S. Liebowitz.
Company Highlights Strong Balance Sheet and Development Pipeline
Douglas Elliman said it ended the quarter with approximately $96 million in cash and no long-term debt.
The company also pointed to a development marketing pipeline valued at approximately $27.2 billion, including $19.5 billion tied to projects in Florida.
An additional $8.4 billion of developments are expected to enter the market through March 31, 2027.
Expansion Into New Markets Continues
During the quarter, Douglas Elliman continued expanding both internationally and domestically.
The brokerage entered international markets including Canada, France, Monaco and the Caribbean, while also expanding into U.S. regions such as California Wine Country, Richmond, Virginia and Rye, New York.