Executive Summary

Q1 2025 delivered 27% YoY revenue growth to $253.4M, the highest first-quarter revenue since 2022, with operating loss narrowing sharply to $5.3M and adjusted EBITDA turning positive at $1.1M, reflecting mix-shift to higher-margin markets and Development Marketing strength .
Adjusted net loss improved to $2.4M ($0.03 per share) from $23.1M ($0.28 per share) in Q1 2024; New York City existing home sales revenue rose $17M (+34% YoY) and Development Marketing revenue rose $14.6M (+222% YoY) .
Liquidity remained strong with $136.8M–$137.0M in cash and equivalents; first-quarter cash outflow improved (~$8.7M vs $28.4M in Q1 2024), supporting growth investments in technology and agent experience .
No quantitative guidance issued; management flagged April Q2-to-date average daily cash receipts up ~~4% YoY and highlighted robust Development Marketing pipeline (~~$28.3B actively marketed; ~$18.7B in Florida), positioning near- to medium-term revenue visibility .
Potential stock reaction catalysts: positive adjusted EBITDA, mix-shift to luxury/NYC, technology rollouts (AI-driven Elliman.com and “Elliman Inspirations”), and litigation expenses normalizing .

What Went Well and What Went Wrong

What Went Well

Mix-shift and Development Marketing momentum: “New York City’s revenues from existing home sales increased by $17 million or 34%… and Development Marketing’s… increased by $14.6 million or 222%” .
Profitability trajectory: “Adjusted EBITDA… was positive $1.1 million… compared to a loss of $17.6 million” and operating loss reduced to $5.3M from $41.5M YoY .
Luxury leadership and pricing power: “Our industry-best average price per transaction rose to $2 million per home sale compared to $1.6 million” ; Q1 average transaction price reported at $2.0M .

What Went Wrong

GAAP losses persist: Net loss of $6.0M ($0.07) despite improvements; operating loss remains negative .
Litigation and non-GAAP adjustments still notable: Q1 included ~$1.9M of unusual litigation/settlement-related expenses and $0.746M derivative fair value change .
Macro headwinds remain: Management cited elevated mortgage rates, low inventory, soft transaction volume, and geopolitical uncertainty as ongoing constraints .

Financial Results

Headline P&L vs prior year and prior quarter

Metric	Q1 2024	Q4 2024	Q1 2025
Revenues ($USD Millions)	$200.239	$243.321	$253.403
Operating Loss ($USD Millions)	$(41.464)	$(16.258)	$(5.349)
Net Loss ($USD Millions)	$(41.685)	$(6.088)	$(6.284)
Net Loss to DOUG ($USD Millions)	$(41.475)	$(5.997)	$(5.985)
Diluted EPS ($USD)	$(0.50)	$(0.07)	$(0.07)
Adjusted EBITDA ($USD Millions)	$(17.733)	$(5.403)	$1.108
Adjusted Net Loss ($USD Millions)	$(23.080)	$2.376	$(2.397)
Operating Margin (%)	−20.7%	−6.7%	−2.1%

Notes: Operating Margin (%) derived from operating loss divided by revenues; underlying figures cited in each cell.

Revenue Composition

Revenue Line ($USD Millions)	Q1 2024	Q4 2024	Q1 2025
Commissions & Brokerage	$188.265	$231.905	$241.143
Property Management	$9.047	$9.084	$9.492
Other Ancillary Services	$2.927	$2.332	$2.768
Total Revenues	$200.239	$243.321	$253.403

KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Gross Transaction Value ($USD Billions)	$7.1	$8.8	$9.9
Total Transactions (Units)	4,477	5,337	4,908
Average Price per Transaction ($USD Millions)	$1.6	$1.64	$2.0
≥$5M Homes Sold (Units)	198 (implied; +73% to 343)	N/A	343
≥$10M Homes Sold (Units)	59 (implied; +76% to 104)	N/A	104

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative Financial Guidance (Revenue/EPS/Margins)	FY/Q2 2025	None disclosed	None disclosed	Maintained (no guidance)
Average Daily Cash Receipts (April)	Q2-to-date 2025	N/A	~+4% YoY	New qualitative datapoint
Development Marketing Pipeline (GTV)	2025–2030 closings	~$27.6B LTM Q3 reference	~$28.3B active; +$4.2B coming by Jun-2026; ~$18.7B in FL	Raised visibility

Notes: No formal numerical guidance ranges issued in press release/8-K or call; management provided qualitative indicators only .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Development Marketing	Momentum began in Q4 2024; segment revenue tailwind, pipeline contributing	Revenue +$14.6M YoY to $21.1M; pipeline ~$28.3B active, $18.7B FL; $4.2B coming by Jun-2026	Strengthening
NYC Existing Home Sales	Stabilization, high ASP leadership	NYC revenue +$17M (+34% YoY)	Improving
Luxury Pricing/ASP	Leading industry ASP (~$1.61–$1.68M in 2024)	Average price per transaction rose to $2.0M vs $1.6M LY	Improving
Macro Headwinds	Mortgage rates, inventory constraints cited	Elevated rates, low inventory, soft volumes, tariffs/geopolitics reiterated	Persistent headwind
Expense Discipline	Cost reductions progressing	Operating expenses reduced by ~$3M YoY ex commissions/D&A/stock comp/litigation/restructuring	Improving
M&A/Ancillary Expansion	New strategic M&A unit; property management expansion discussions	Continued evaluation of title, escrow, insurance brokerage, property management	Ongoing
Technology/AI	Notable initiatives in Q4/Q1; foundation set	Launch of AI-powered Elliman.com “Elliman Inspirations” and “World of Elliman”	Accelerating
Regulatory/Litigation	2024 litigation settlement and expenses	Q1 unusual litigation expense $1.898M; derivative fair value change $0.746M	Normalizing vs 2024 peak

Management Commentary

CEO tone: “Delivering our highest first-quarter revenue since 2022 with significant reductions in operating losses… With our strong balance sheet… and new technologies, I am confident that we will continue to build long-term growth and enhance stockholder value” .
CFO emphasis: “Results enhanced by a favorable sales mix… Development Marketing and existing home sales in New York City… average price per home sale transaction rose to $2 million… pipeline of actively marketed projects of approximately $28.3 billion” .
Strategy: Focus on agent experience, technology, disciplined ROI-based investments, M&A in complementary ancillary services (title, escrow, insurance brokerage, property management) .

Q&A Highlights

No Q&A during the call; operator closed without analyst questions .

Estimates Context

Wall Street consensus via S&P Global for Q1 2025 appeared unavailable for EPS and revenue; no # of estimates were returned. Actual revenue recorded at $253.4M; EPS actual was $(0.07) diluted . Values retrieved from S&P Global.*

Metric	Consensus Q1 2025	Actual Q1 2025	Beat/Miss	Notes
Revenue ($USD Millions)	N/A*	$253.403	N/A	Consensus unavailable; actual from press release
Primary EPS ($USD)	N/A*	$(0.07)	N/A	Consensus unavailable; actual diluted EPS

*Values retrieved from S&P Global.

Implication: With consensus unavailable, estimate revisions will likely focus on sustained mix benefits, Development Marketing pipeline conversion, and litigation normalization rather than headline beats/misses.

Key Takeaways for Investors

Revenue growth and mix-driven margin trajectory: Operating margin improved from −20.7% (Q1’24) to −2.1% (Q1’25) as luxury/NYC and Development Marketing contributed; adjusted EBITDA turned positive .
Strong luxury pipeline and pricing: $2.0M average transaction price and rising high-ticket sales (343 ≥$5M; 104 ≥$10M) underscore demand resilience in served luxury markets .
Liquidity supports execution: ~~$137M cash and improved seasonal cash outflow (~~$8.7M vs $28.4M YoY) provide flexibility for technology and ancillary M&A initiatives .
Technology differentiation: Launch of AI-powered Elliman.com and “Elliman Inspirations” could deepen agent-client engagement and conversion, offering potential productivity uplift .
Litigation expenses normalizing: Q1 unusual litigation expense at ~$1.9M vs 2024 peaks; residual derivative fair value impacts remain a swing factor quarter-to-quarter .
Near-term trading lens: Positive adjusted EBITDA and strong KPIs may be viewed constructively, but lack of numeric guidance and macro housing headwinds temper near-term visibility .
Medium-term thesis: Conversion of Development Marketing pipeline (2025–2030 closings), ancillary expansion, and tech adoption present multi-year margin and revenue optionality as market conditions stabilize .

Douglas Elliman Inc. (DOUG)·Q1 2025 Earnings Summary