Douglas Elliman Narrows Losses to $6M

Michael Liebowitz is pushing Douglas Elliman from bad to better.

In the chief executive’s first full quarter at the helm, the firm significantly narrowed its losses and increased its revenue, buoyed by an uptick in residential deals.

“The results of the last two quarters show we are continuing our turnaround and performing extremely well,” Liebowitz said on the firm’s earnings call on Friday. “We are very excited about our future.”

The company lost just $6 million in the first three months of the year, down from the nearly $42 million it lost in the same period last year. Its 2024 losses were compounded by an $18 million agreement to settle class-action lawsuits alleging the brokerage, along with others, violated antitrust laws with its commission policies.

Elliman reported $253 million in revenue compared to $200 million a year ago. The firm has notched revenue gains over the last few months, including closing out 2024 with $1 billion, up from $960 million in 2023.

Much of the firm’s improvement is likely attributed to a boost in the housing market at the start of the year, though the company could be reaping the benefits of a two-year-long cost-cutting mission, including $20 million worth of reductions in 2024.

“The first quarter results were enhanced by a favorable sales mix resulting from the strength of our highest gross margin markets, the development marketing division and existing home sales in New York City,” the firm’s chief financial officer, Bryant Kirkland, said on the call.

The company’s income from transactions in the city rose 34 percent year-over-year, while its development marketing revenue more than doubled. Kirkland noted that the firm’s development marketing pipeline is worth more than $28 billion in gross transaction value, with nearly $19 billion from projects in Florida.

Elliman posted $1.1 million in adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — compared to a nearly $18 million loss in the first quarter last year. The firm ended the quarter with $137 million in cash.

Liebowitz took over as Elliman’s CEO in October, following the sudden retirement of its longtime chairman and CEO Howard Lorber. In his new role, Liebowitz promised to take the firm “in a different direction” after a series of quarterly losses.

“We are charting a new future,” Liebowitz told The Real Deal in the weeks following his promotion. “It is a new day at Douglas Elliman, it’s a departure from the past and a new generation of leadership.”

When he took over, Liebowitz laid out his goals for the company, which included a focus on international expansion and diversifying its revenue stream through acquisitions of ancillary businesses. He established a strategic M&A and business development unit to find opportunities for the firm to invest in staging, title and insurance companies among others.

The executive added recruitment to his list of priorities detailed on the first-quarter earnings call.

“By balancing strategic investments with thoughtful cost management, we are well positioned to capitalize on future opportunities to expand our revenue base, particularly in recruiting,” Liebowitz said. “We believe our ongoing efforts are transforming Douglas Elliman into a more diversified, resilient, and forward-looking real estate services company.”

This article has been updated with quotes from Douglas Elliman’s first-quarter earnings call.