Second quarter 2026
Filed Aug 7, 2026Second Quarter Revenues up 4.5% Year over Year (8.6% YoY on Comparable Basis); Operating Loss Narrows to $3.4M; Net Loss Narrows to $2.7M
Second-quarter revenue, gross transaction value, operating loss, net loss and adjusted EBITDA improved year over year, but six-month revenue and adjusted EBITDA declined year over year and the six-month operating loss widened.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $283.4 million | – | 4.5% |
| Operating lossGAAP | $3.4 million | – | – |
| Net loss attributed to Douglas Elliman Inc.GAAP | $2.7 million | – | – |
| Net loss per diluted common shareGAAP | $0.03 per diluted common share | – | – |
| Adjusted EBITDA attributed to Douglas Elliman Inc.non-GAAP | a loss of $1.0 million | – | – |
| Adjusted Net Loss attributed to Douglas Elliman Inc.non-GAAP | $3.9 million | – | – |
| Adjusted Net Loss per diluted sharenon-GAAP | $0.05 per diluted share | – | – |
| Gross transaction valueother | approximately $10.8 billion | – | 5.9% |
| Average price per transactionother | $1.86 million | – | – |
| Cash receipts from existing home sales in Mayother | up 15% | – | up 15% compared to the prior year period |
| Cash receipts from existing home sales in Juneother | up 16% | – | up 16% compared to the prior year period |
| Revenues for the six months ended June 30GAAP | $497.8 million | – | – |
| Operating loss for the six months ended June 30GAAP | $20.9 million | – | – |
| Net loss attributed to Douglas Elliman Inc. for the six months ended June 30GAAP | $19.0 million | – | – |
| Net loss per diluted common share for the six months ended June 30GAAP | $0.22 per diluted common share | – | – |
| Adjusted EBITDA attributed to Douglas Elliman Inc. for the six months ended June 30non-GAAP | a loss of $11.4 million | – | – |
| Adjusted Net Loss attributed to Douglas Elliman Inc. for the six months ended June 30non-GAAP | $16.3 million | – | – |
| Adjusted Net Loss per diluted share for the six months ended June 30non-GAAP | $0.19 per diluted share | – | – |
| Gross transaction value for the six months ended June 30other | approximately $19.4 billion | – | – |
| Average price per transaction for the six months ended June 30other | $1.90 million | – | – |
Second half of 2026 outlook
- Notedevelopment marketing pipeline of approximately $26.1 billion
- Noteincluding $18.9 billion in Florida alone
- Noteanother $9.7 billion scheduled to come to market through September 30, 2027
- NoteAI transformation that is underway and that is expected to gradually lead to significant savings in non-commission operating expenses over the next three years
What drove it
- Second-quarter revenue grew 8.6% year over year on a comparable basis after excluding property management revenues from the second quarter of 2025 comparison.
- The Company disposed of its property management business in October 2025.
- The Company launched a company-wide technology infrastructure transformation and Elius, a newly formed intelligence company.
- Google Cloud technology, including its AI models and enterprise infrastructure, was selected to power the transformation.
- The Company expanded into Paris, bringing its French network to fifteen offices across France, Monaco, and Saint-Barthélemy.
- The Company expanded into New Hampshire, opened a new Georgetown office, and added high level agents in key markets during the quarter.
- Elliman Capital launched in California in May and extended into Texas in July.
Concerns
- Revenue for the six months ended June 30, 2026 was $497.8 million, compared to $524.8 million for the six months ended June 30, 2025.
- Operating loss for the six months ended June 30, 2026 was $20.9 million, compared to an operating loss of $10.9 million for the six months ended June 30, 2025.
- Adjusted EBITDA loss for the six months ended June 30, 2026 was $11.4 million, compared to a loss of $4.5 million for the six months ended June 30, 2025.
- Management said the six-month revenue comparison was impacted by an unusually strong first quarter of 2025.
- The Company expects AI-related savings in non-commission operating expenses to occur gradually over the next three years.
What to watch
- Cash receipts from existing home sales were up 15% in May and 16% in June compared to the prior year periods.
- Execution of the AI transformation and its expected effect on the non-commission-based cost structure.
- Development marketing pipeline conversion, including approximately $26.1 billion in pipeline and another $9.7 billion scheduled to come to market through September 30, 2027.
- Expansion of the international, domestic and Elliman Capital footprints.
Balance sheet and cash flow
- cash and cash equivalents of approximately $105.2 million as of June 30, 2026
- no long-term debt as of June 30, 2026
Analysis
Douglas Elliman reported improved second-quarter operating results. Revenue was $283.4 million versus $271.4 million in the second quarter of 2025, while the company described revenue growth as 8.6% year over year on a comparable basis after excluding property management revenues from the prior-year comparison. Gross transaction value increased to approximately $10.8 billion from approximately $10.2 billion, and average price per transaction was $1.86 million versus $1.84 million. Management also cited year-over-year cash-receipt growth from existing home sales in May and June.
The quarter's losses narrowed on both GAAP and non-GAAP measures. Operating loss was $3.4 million compared with $5.5 million, net loss attributed to Douglas Elliman Inc. was $2.7 million compared with $22.7 million, and adjusted EBITDA loss was $1.0 million compared with $3.6 million. Adjusted Net Loss was $3.9 million, compared with $7.3 million. These results contrast with the six-month picture, where revenue was $497.8 million versus $524.8 million and the operating loss was $20.9 million versus $10.9 million.
The balance sheet remains a central support for the strategic plan, with cash and cash equivalents of approximately $105.2 million and no long-term debt as of June 30, 2026. The filing did not report dividends, share repurchases, operating cash flow, or free cash flow. Management is directing strategic attention toward technology, agent recruitment, geographic expansion, and lending through Elliman Capital rather than disclosing capital-return activity.
The outlook is qualitative rather than a financial earnings guide. Management highlighted a development marketing pipeline of approximately $26.1 billion, including $18.9 billion in Florida, plus another $9.7 billion scheduled to come to market through September 30, 2027. The Company expects its AI transformation to gradually lead to significant savings in non-commission operating expenses over the next three years. The key execution items are conversion of the development pipeline, realization of the stated cost-structure savings, and progress from the expanded international, domestic, and lending footprints.
Management, verbatim
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.
Michael S. Liebowitz, President and Chief Executive Officer of Douglas Elliman Inc.
With no long-term debt and more than $100 million in cash, we are operating from a position of financial strength.
Michael S. Liebowitz, President and Chief Executive Officer of Douglas Elliman Inc.
Through our AI transformation we are actively seeking to reshape our cost structure with a dedicated AI team already on the ground. We believe this transformation will be a meaningful driver of margin improvement over time.
Michael S. Liebowitz, President and Chief Executive Officer of Douglas Elliman Inc.
Not in the filing
stated, not guessed- Segment revenue and segment operating results
- Gross margin
- Operating expenses
- Tax rate
- Operating cash flow
- Free cash flow
- Dividends
- Share repurchases
- Total debt beyond the statement of no long-term debt
- Quantitative revenue guidance
- Quantitative gross-margin guidance
- Quantitative operating-expense guidance
- Quantitative tax-rate guidance
- Previous-release outlook for comparison
- CFO commentary
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.