Douglas Elliman Inc. Q2 FY2025 earnings call

Industry Updates - In the first half of 2025, revenues increased by 8% to $524.8 million, the strongest first half revenue performance since 2022. - Notable reduction in operating losses compared to first half of 2024. ### Recent Accomplishments - Launched Elliman Capital in July 2025, an innovative mortgage platform initially in Florida with plans to expand, providing licensing revenue and enhancing service offering. - Launched Elliman International in June 2025, extending bespoke service to global luxury markets, starting with core services for existing clients. - Development marketing division has a pipeline of approximately $28.1 billion of gross transaction value, with $18.8 billion in Florida and $5.9 billion coming to market by September 2026. ### Luxury Market Trends - Luxury home sales pricing remains strong, with year-to-date best price per transaction at $1.92 million vs $1.72 million in 2024, and last 12 months average price per transaction at $1.77 million vs $1.64 million in 2024. - Agents sold 340 homes >$5 million in Q2 2025 and 683 homes >$5 million in H1 2025, a 38% increase from H1 2024; 100 homes >$10 million in Q2 2025 and 204 homes >$10 million in H1 2025, a 32% increase from H1 2024. ### Expense Structure - Managed investments with focus on ROI; operating expenses excluding certain items changed from 2024 period; compensation expense increased due to investment in development marketing and bonus accruals from increased revenues.

In the first half of 2025, revenues increased by 8% year-over-year to $524.8 million. Revenues from existing home sales in New York and Northeast markets increased by $16.8 million or 7.9% from the first half of 2024. Development marketing's first half revenue increased by $17.7 million from the first half of 2024. In the second quarter of 2025, revenues were $271.4 million compared to $285.8 million in the second quarter of 2024. For the 6 months ended June 30, 2025, revenues were $524.8 million, up from $486 million in the 2024 period.

Future Outlook - Optimistic about Q3 and second half of 2025 due to encouraging trends like continued demand for luxury homes, rising average transaction values, and strong development marketing pipeline. - Focused on executing strategic growth initiatives including Elliman Capital and Elliman International launches.

Headwinds - During Q2 2025, exogenous economic pressures and industry-specific headwinds impacted results. - Heightened volatility in international financial markets driven by geopolitical uncertainties caused caution among buyers and sellers. - Elevated mortgage rates dampened market activity as higher borrowing costs led to delayed selling/purchasing decisions.

Q: A: Q: A: Operator indicated there were no questions during the call