Douglas Elliman 2025 Q3 Earnings Narrowed Net Loss of $24.94M 9.1% Improvement

Douglas Elliman reported Q3 2025 results with a 1.3% revenue decline to $262.84M and a 9.1% reduction in net loss to $24.94M. The stock dipped 6.14% premarket despite improved adjusted EBITDA. Management highlighted strategic shifts in luxury focus, AI tools, and international expansion.

Revenue

Commissions and other brokerage income accounted for the lion’s share at $250.35 million, while property management and other ancillary services contributed $9.44 million and $3.05 million respectively. Total revenue fell 1.3% year-over-year, reflecting lower existing home sales and Development Marketing division revenues.

Earnings/Net Income

Douglas Elliman narrowed its net loss to $24.94 million in Q3 2025, a 9.1% improvement from $27.45 million in Q3 2024. EPS improved to -$0.29 from -$0.33, though the company remains unprofitable.

Post-Earnings Price Action Review

The stock price surged 4.56% intraday but declined 1.56% weekly and 15.44% month-to-date. A post-earnings buy-and-hold strategy yielded a 5% annualized return over 30 days, lagging the S&P 500’s 8%. The strategy faced a 10% drawdown during a market correction and a beta above 1, indicating higher volatility than the broader market. While initial gains reached 15%, a subsequent 60-day decline eroded returns, suggesting the strategy suits short-term, tactical investors but not long-term stability seekers.

CEO Commentary

CEO Michael Liebowitz emphasized a “pivotal transitional year” for Douglas Elliman, highlighting the sale of the property management division, elimination of debt, and international expansion into France and Monaco. He stated, “We are now uniquely positioned to pursue geographic expansion, technological advancement, and strategic acquisitions.” The company also launched Elli AI, an AI-powered tool for agents, and Elliman Capital, an in-house mortgage platform.

Guidance

Management did not provide explicit numerical guidance for upcoming quarters but expressed confidence in 2026 growth driven by development marketing pipelines and international expansion.

Additional News

Douglas Elliman sold its property management division for $85 million, securing an after-tax gain of approximately $75 million. The company expanded operations to France and Monaco, entering key luxury markets in Bordeaux, the French Riviera, and St. Barths. It also launched Elli AI, an AI assistant for agents, and Elliman Capital, an in-house mortgage platform.