Douglas Elliman Inc. (NYSE:DOUG) reported a smaller adjusted loss for the second quarter on Friday as higher revenue, stronger transaction activity and continued operational improvements helped narrow losses compared with a year earlier.
Shares rose around 1.7% in pre-market trading following the earnings release.
Revenue and Transaction Volumes Improve
The luxury real estate brokerage posted an adjusted loss of $0.05 per share, improving from a loss of $0.09 per share in the second quarter of 2025.
Revenue increased 4.5% year over year to $283.4 million from $271.4 million. Excluding the divested property management business, comparable revenue rose 8.6%, increasing from $260.9 million in the prior-year quarter.
Gross transaction value climbed 5.9% to $10.8 billion, reflecting continued activity in the luxury residential property market.
Losses Narrow Significantly
Douglas Elliman continued to improve profitability during the quarter.
Adjusted EBITDA loss narrowed to $1.0 million from $3.6 million a year earlier, while the company’s net loss attributable to shareholders declined to $2.7 million, or $0.03 per diluted share, compared with $22.7 million, or $0.27 per diluted share, in the same period last year.
President and Chief Executive Officer Michael S. Liebowitz said, “Our second quarter top and bottom-line results reflect strong and building momentum: revenue grew 8.6% year over year on a comparable basis and cash receipts from existing home sales were up 15% and 16% in May and June, respectively, compared to the prior year periods.”
Strong Balance Sheet Supports Growth Plans
The company ended the quarter with $105.2 million in cash and no long-term debt, maintaining a solid financial position.
Its development marketing pipeline reached $26.1 billion, including $18.9 billion of projects in Florida. A further $9.7 billion of developments is expected to enter the market by the end of September 2027.
AI Initiative and Geographic Expansion
Douglas Elliman also announced a new artificial intelligence transformation programme aimed at improving efficiency over the next three years.
The initiative includes the development of Elius, a proprietary real estate intelligence platform built using Google Cloud technology. Management expects the programme to reshape the company’s non-commission cost base over time.
The brokerage also continued expanding internationally, increasing its French network to 15 offices with the opening of a new location in Paris. In addition, its Elliman Capital lending platform was extended into California and Texas.
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