Douglas Elliman Inc. Reports Third Quarter 2024 Financial Results

Executing strategic plan focused on growing and diversifying the business to deliver value

Created strategic M&A and business development unit to explore complementary acquisitions in ancillary businesses and bolster core brokerage business

Building a future-focused company based on a culture of integrity, connectivity and entrepreneurialism

Douglas Elliman Inc. (“Douglas Elliman” or the “Company”) (NYSE:DOUG) today announced financial results for the three and nine months ended September 30, 2024.

“I am excited to be leading Douglas Elliman into a new era,” said Michael S. Liebowitz, Chairman and Chief Executive Officer of Douglas Elliman. “We’re expanding our company culture of connectivity and entrepreneurialism and executing a clear plan to grow and diversify the business to deliver long-term value to all stakeholders. As part of this, we’ve created a strategic M&A and business development unit to explore complementary acquisitions in ancillary businesses – such as title, escrow, staging, insurance brokerage and property management – while remaining opportunistic in our core brokerage business. In fact, we’re already in discussions to expand our property management business into Florida. We’re also analyzing all investments to ensure they hit our ROI targets. By doing this, we will build Douglas Elliman into a profitable growth engine for the benefit of our stockholders, agents, staff and clients.”

Bryant Kirkland, Chief Financial Officer of Douglas Elliman, added, “Douglas Elliman delivered strong revenue growth this quarter and year-to-date as compared to the same periods in 2023, along with a meaningful improvement in Adjusted EBITDA. We continue to lead the industry in reported average sales price per transaction, reflecting the strength of our luxury markets, our best-in-class agents, and the gradual stabilization of home purchasing activity. With fresh perspectives, a strong balance sheet and an entrepreneurial spirit, we are positioning Douglas Elliman for long-term success as the real estate market recovers.”

GAAP Financial Results

Three months ended September 30, 2024. Third quarter 2024 revenues were $266.3 million, compared to revenues of $251.5 million in the third quarter of 2023. The Company recorded an operating loss of $7.4 million in the third quarter of 2024, compared to $8.8 million in the third quarter of 2023. Net loss attributed to Douglas Elliman for the third quarter of 2024 was $27.2 million, or $0.33 per diluted common share, compared to $4.9 million, or $0.06 per diluted common share, in the third quarter of 2023. Net loss attributed to Douglas Elliman for the third quarter of 2024 includes a charge of $20.2 million for changes in fair value of derivatives embedded within convertible debt.

Nine months ended September 30, 2024. For the nine months ended September 30, 2024, revenues were $752.3 million, compared to revenues of $741.4 million for the nine months ended September 30, 2023. The Company recorded an operating loss of $52.6 million for the nine months ended September 30, 2024, compared to $40.9 million for the nine months ended September 30, 2023. Net loss attributed to Douglas Elliman for the nine months ended September 30, 2024 was $70.3 million, or $0.84 per diluted common share, compared to $27.7 million, or $0.34 per diluted common share, for the nine months ended September 30, 2023. The results for the nine months ended September 30, 2024 include a charge of $20.2 million for changes in fair value of derivatives embedded within convertible debt, $17.75 million litigation settlement charge, of which $7.75 million was paid on June 12, 2024 and up to two additional $5 million contingent payments through December 31, 2027.

Non-GAAP Financial Measures

Non-GAAP financial measures include adjustments for stock-based compensation, equity in losses from equity method investments, restructuring, change in fair value of derivatives embedded within convertible debt, non-cash amortization of debt discount on convertible debt (for purposes of Adjusted Net Loss) and other, net (for purposes of Adjusted EBITDA). Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three and nine months ended September 30, 2024 and 2023 and LTM ended September 30, 2024 are included in Tables 2 and 3.

Three months ended September 30, 2024 compared to the three months ended September 30, 2023

Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of $1.4 million for the third quarter of 2024, compared to a loss of $3.0 million for the third quarter of 2023.

Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were $3.8 million for the third quarter of 2024, compared to $1.5 million for the third quarter of 2023.

Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was $6.5 million, or $0.08 per diluted share, for the third quarter of 2024, compared to $4.7 million, or $0.06 per diluted share, for the third quarter of 2023.

Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of $17.3 million for the nine months ended September 30, 2024, compared to a loss of $23.2 million for the nine months ended September 30, 2023.

Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of $3.8 million for the nine months ended September 30, 2024, compared to a loss of $9.0 million for the nine months ended September 30, 2023.

Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was $31.3 million, or $0.38 per diluted share, for the nine months ended September 30, 2024, compared to $26.4 million, or $0.32 per diluted share, for the nine months ended September 30, 2023.

Gross Transaction Value

For the three months ended September 30, 2024, Douglas Elliman’s subsidiary, Douglas Elliman Realty, LLC, achieved gross transaction value of approximately $9.8 billion, compared to approximately $9.3 billion for the three months ended September 30, 2023. For the three months ended September 30, 2024, Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.61 million.

For the nine months ended September 30, 2024, Douglas Elliman Realty, LLC achieved gross transaction value of approximately $27.6 billion, compared to approximately $26.5 billion for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, Douglas Elliman’s real estate brokerage segment reported an average price per transaction of $1.68 million. Further detail on Gross Transaction Value is included in Table 4.

Consolidated Balance Sheet

Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of $151.4 million at September 30, 2024.

Conference Call to Discuss Third Quarter 2024 Results

As previously announced, the Company will host a conference call and webcast to discuss its third quarter 2024 results on Thursday, November 7, 2024 at 8:00 a.m. (ET).

Investors may access the call via live webcast at https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Third-Quarter-2024-Conference-Call. Please join the webcast at least 10 minutes prior to the start time.

A replay of the webcast will be available shortly after the call ends on November 7, 2024 through November 21 at https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Third-Quarter-2024-Conference-Call.

Non-GAAP Financial Measures

Adjusted EBITDA attributed to Douglas Elliman, Adjusted Net Loss attributed to Douglas Elliman, and financial measures for the last twelve months (“LTM”) ended September 30, 2024 (referred to as the “Non-GAAP Financial Measures”) are financial measures not prepared in accordance with generally accepted accounting principles (“GAAP”). The Company believes that the Non-GAAP Financial Measures are important measures that supplement discussion and analysis of its results of operations and enhance an understanding of its operating performance.

The Company believes the Non-GAAP Financial Measures provide investors and analysts with a useful measure of operating results unaffected by differences in capital structures and ages of related assets among otherwise comparable companies.

Management uses the Non-GAAP Financial Measures as measures to review and assess operating performance of the Company’s business, and management does and investors should review both the overall performance (GAAP net income) and the operating performance (the Non-GAAP Financial Measures) of the Company’s business. While management considers the Non-GAAP Financial Measures to be important, they should be considered in addition to, but not as substitutes for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating income, net income and cash flows from operations. In addition, the Non-GAAP Financial Measures are susceptible to varying calculations and the Company’s measurement of the Non-GAAP Financial Measures may not be comparable to those of other companies. Attached hereto as Tables 2 and 3 is information relating to the Company’s Non-GAAP Financial Measures for the three and nine months ended September 30, 2024 and 2023 and the LTM ended September 30, 2024.

About Douglas Elliman Inc.

Douglas Elliman Inc. (NYSE: DOUG, “Douglas Elliman”) owns Douglas Elliman Realty, LLC, which is one of the largest residential brokerage companies in the United States with operations in New York City, Long Island, Westchester, Connecticut, New Jersey, the Hamptons, Massachusetts, Florida, California, Texas, Colorado, Nevada, Maryland, Virginia, and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets. Additional information concerning Douglas Elliman is available on its website, investors.elliman.com.

Investors and others should note that we may post information about Douglas Elliman on our website at investors.elliman.com or, if applicable, on our accounts on Facebook, Instagram, LinkedIn, TikTok, X, YouTube or other social media platforms. It is possible that the postings or releases could include information deemed to be material information. Therefore, we encourage investors, the media and others interested in Douglas Elliman to review the information we post on our website at investors.elliman.com and on our social media accounts.

Forward-Looking and Cautionary Statements

This press release includes forward-looking statements within the meaning of the federal securities law. All statements other than statements of historical or current facts made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may be,” “continue” “could,” “potential,” “objective,” “plan,” “seek,” “predict,” “project” and “will be” and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.

Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the year ended December 31, 2023 and, when filed, our Quarterly Reports on Form 10-Q filed thereafter. We undertake no responsibility to publicly update or revise any forward-looking statement, except as required by applicable law.

[Financial Tables Follow]

TABLE 1 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in Thousands, Except Per Share Amounts)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

Commissions and other brokerage income

$

254,074

 

 

$

239,255

 

 

$

714,652

 

 

$

703,780

 

Property management

 

8,960

 

 

 

8,697

 

 

 

27,701

 

 

 

26,849

 

Other ancillary services

 

3,282

 

 

 

3,596

 

 

 

9,953

 

 

 

10,813

 

Total revenues

 

266,316

 

 

 

251,548

 

 

 

752,306

 

 

 

741,442

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Real estate agent commissions

 

199,133

 

 

 

185,845

 

 

 

564,606

 

 

 

546,749

 

Sales and marketing

 

19,240

 

 

 

20,770

 

 

 

62,691

 

 

 

64,170

 

Operations and support

 

18,774

 

 

 

17,121

 

 

 

55,572

 

 

 

53,338

 

General and administrative

 

28,659

 

 

 

28,817

 

 

 

80,530

 

 

 

92,371

 

Technology

 

6,025

 

 

 

5,602

 

 

 

17,301

 

 

 

17,777

 

Depreciation and amortization

 

1,898

 

 

 

1,999

 

 

 

5,808

 

 

 

6,031

 

Litigation settlement

 

—

 

 

 

—

 

 

 

17,750

 

 

 

—

 

Restructuring

 

18

 

 

 

215

 

 

 

616

 

 

 

1,932

 

Operating loss

 

(7,431

)

 

 

(8,821

)

 

 

(52,568

)

 

 

(40,926

)

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

Interest expense

 

(1,461

)

 

 

(4

)

 

 

(1,475

)

 

 

(22

)

Interest income

 

1,551

 

 

 

1,789

 

 

 

3,989

 

 

 

4,282

 

Equity in earnings (losses) from equity-method investments

 

62

 

 

 

10

 

 

 

49

 

 

 

(143

)

Change in fair value of derivative embedded within convertible debt

 

(20,166

)

 

 

—

 

 

 

(20,166

)

 

 

—

 

Investment (loss) and other gains

 

(4

)

 

 

27

 

 

 

625

 

 

 

109

 

Loss before provision for income taxes

 

(27,449

)

 

 

(6,999

)

 

 

(69,546

)

 

 

(36,700

)

Income tax (benefit) expense

 

—

 

 

 

(1,869

)

 

 

1,368

 

 

 

(8,552

)

 

 

 

 

 

 

 

 

Net loss

 

(27,449

)

 

 

(5,130

)

 

 

(70,914

)

 

 

(28,148

)

 

 

 

 

 

 

 

 

Net loss attributed to non-controlling interest

 

269

 

 

 

264

 

 

 

595

 

 

 

439

 

 

 

 

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(27,180

)

 

$

(4,866

)

 

$

(70,319

)

 

$

(27,709

)

 

 

 

 

 

 

 

 

Per basic common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.33

)

 

$

(0.06

)

 

$

(0.84

)

 

$

(0.34

)

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.33

)

 

$

(0.06

)

 

$

(0.84

)

 

$

(0.34

)

TABLE 2 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (Unaudited) (Dollars in Thousands)

 

LTM

 

Year Ended

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

December 31,

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(85,162

)

 

$

(42,552

)

 

$

(27,180

)

 

$

(4,866

)

 

$

(70,319

)

 

$

(27,709

)

Interest expense

 

1,481

 

 

 

28

 

 

 

1,461

 

 

 

4

 

 

 

1,475

 

 

 

22

 

Interest income

 

(5,548

)

 

 

(5,841

)

 

 

(1,551

)

 

 

(1,789

)

 

 

(3,989

)

 

 

(4,282

)

Income tax (benefit) expense

 

(5,133

)

 

 

(15,053

)

 

 

—

 

 

 

(1,869

)

 

 

1,368

 

 

 

(8,552

)

Net loss attributed to non-controlling interest

 

(770

)

 

 

(614

)

 

 

(269

)

 

 

(264

)

 

 

(595

)

 

 

(439

)

Depreciation and amortization

 

7,803

 

 

 

8,026

 

 

 

1,898

 

 

 

1,999

 

 

 

5,808

 

 

 

6,031

 

EBITDA

$

(87,329

)

 

$

(56,006

)

 

$

(25,641

)

 

$

(6,785

)

 

$

(66,252

)

 

$

(34,929

)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) losses from equity-method investments

 

(24

)

 

 

168

 

 

 

(62

)

 

 

(10

)

 

 

(49

)

 

 

143

 

Change in fair value of derivatives embedded within convertible debt

 

20,166

 

 

 

—

 

 

 

20,166

 

 

 

—

 

 

 

20,166

 

 

 

—

 

Stock-based compensation expense

 

14,126

 

 

 

13,075

 

 

 

3,887

 

 

 

3,442

 

 

 

10,717

 

 

 

9,666

 

Litigation settlement

 

17,750

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,750

 

 

 

—

 

Restructuring

 

1,061

 

 

 

2,377

 

 

 

18

 

 

 

215

 

 

 

616

 

 

 

1,932

 

Other, net

 

(1,149

)

 

 

(633

)

 

 

4

 

 

 

(27

)

 

 

(625

)

 

 

(109

)

Adjusted EBITDA

 

(35,399

)

 

 

(41,019

)

 

 

(1,628

)

 

 

(3,165

)

 

 

(17,677

)

 

 

(23,297

)

Adjusted EBITDA attributed to non-controlling interest

 

607

 

 

 

326

 

 

 

182

 

 

 

138

 

 

 

344

 

 

 

63

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(34,792

)

 

$

(40,693

)

 

$

(1,446

)

 

$

(3,027

)

 

$

(17,333

)

 

$

(23,234

)

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss by Segment:

 

 

 

 

 

 

 

 

 

 

 

Real estate brokerage

$

(48,305

)

 

$

(36,769

)

 

$

454

 

 

$

(1,992

)

 

$

(31,885

)

 

$

(20,349

)

Corporate and other

 

(27,834

)

 

 

(27,728

)

 

 

(7,885

)

 

 

(6,829

)

 

 

(20,683

)

 

 

(20,577

)

Total

$

(76,139

)

 

$

(64,497

)

 

$

(7,431

)

 

$

(8,821

)

 

$

(52,568

)

 

$

(40,926

)

 

 

 

 

 

 

 

 

 

 

 

 

Real estate brokerage segment

 

 

 

 

 

 

 

 

 

 

 

Operating loss (income)

$

(48,305

)

 

$

(36,769

)

 

$

454

 

 

$

(1,992

)

 

$

(31,885

)

 

$

(20,349

)

Depreciation and amortization

 

7,803

 

 

 

8,026

 

 

 

1,898

 

 

 

1,999

 

 

 

5,808

 

 

 

6,031

 

Stock-based compensation

 

4,795

 

 

 

4,539

 

 

 

1,258

 

 

 

1,175

 

 

 

3,611

 

 

 

3,355

 

Litigation settlement

 

17,750

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,750

 

 

 

—

 

Restructuring

 

1,061

 

 

 

2,377

 

 

 

18

 

 

 

215

 

 

 

616

 

 

 

1,932

 

Adjusted EBITDA

 

(16,896

)

 

 

(21,827

)

 

 

3,628

 

 

 

1,397

 

 

 

(4,100

)

 

 

(9,031

)

Adjusted EBITDA attributed to non-controlling interest

 

607

 

 

 

326

 

 

 

182

 

 

 

138

 

 

 

344

 

 

 

63

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(16,289

)

 

$

(21,501

)

 

$

3,810

 

 

$

1,535

 

 

$

(3,756

)

 

$

(8,968

)

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other segment

 

 

 

 

 

 

 

 

 

 

 

Operating loss

$

(27,834

)

 

$

(27,728

)

 

$

(7,885

)

 

$

(6,829

)

 

$

(20,683

)

 

$

(20,577

)

Stock-based compensation

 

9,331

 

 

 

8,536

 

 

 

2,629

 

 

 

2,267

 

 

 

7,106

 

 

 

6,311

 

Adjusted EBITDA attributed to Douglas Elliman Inc.

$

(18,503

)

 

$

(19,192

)

 

$

(5,256

)

 

$

(4,562

)

 

$

(13,577

)

 

$

(14,266

)

TABLE 3 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED NET LOSS (Unaudited) (Dollars in Thousands, Except Per Share Amounts)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

Net loss attributed to Douglas Elliman Inc.

$

(27,180

)

 

$

(4,866

)

 

$

(70,319

)

 

$

(27,709

)

 

 

 

 

 

 

 

 

Restructuring

 

18

 

 

 

215

 

 

 

616

 

 

 

1,932

 

Change in fair value of derivatives embedded within convertible debt

 

20,166

 

 

 

—

 

 

 

20,166

 

 

 

—

 

Non-cash amortization of debt discount on convertible debt

 

487

 

 

 

—

 

 

 

487

 

 

 

—

 

Litigation settlement

 

—

 

 

 

—

 

 

 

17,750

 

 

 

—

 

Total adjustments

 

20,671

 

 

 

215

 

 

 

39,019

 

 

 

1,932

 

 

 

 

 

 

 

 

 

Tax expense related to adjustments

 

—

 

 

 

(66

)

 

 

—

 

 

 

(589

)

Adjusted net loss attributed to Douglas Elliman Inc.

$

(6,509

)

 

$

(4,717

)

 

$

(31,300

)

 

$

(26,366

)

 

 

 

 

 

 

 

 

Per diluted common share:

 

 

 

 

 

 

 

Adjusted net loss applicable to common shares attributed to Douglas Elliman Inc.

$

(0.08

)

 

$

(0.06

)

 

$

(0.38

)

 

$

(0.32

)

TABLE 4 DOUGLAS ELLIMAN INC. AND SUBSIDIARIES REVENUES AND GROSS TRANSACTION VALUE (Unaudited) (Dollars in Thousands, Except for Gross Transaction Value)

 

LTM

 

Year Ended

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

December 31,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2023

 

2024

 

2023

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Commissions and other brokerage income

$

916,941

 

$

906,069

 

$

254,074

 

$

239,255

 

$

714,652

 

$

703,780

Property management

 

36,394

 

 

35,542

 

 

8,960

 

 

8,697

 

 

27,701

 

 

26,849

Other ancillary services

 

13,107

 

 

13,967

 

 

3,282

 

 

3,596

 

 

9,953

 

 

10,813

Total revenues

$

966,442

 

$

955,578

 

$

266,316

 

$

251,548

 

$

752,306

 

$

741,442

 

 

 

 

 

 

 

 

 

 

 

 

Statistical Measures (Non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

Gross transaction value (in billions)

$

35.5

 

$

34.4

 

$

9.8

 

$

9.3

 

$

27.6

 

$

26.5

Total transactions

 

21,466

 

 

21,606

 

 

6,081

 

 

5,913

 

 

16,444

 

 

16,584

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106235277/en/

Stephen Larkin, Douglas Elliman Inc. 917-902-2503 Columbia Clancy/Catherine Livingston, FGS Global, 212-687-8080 J. Bryant Kirkland III, Douglas Elliman Inc. 305-579-8000