Douglas Elliman (NYSE:DOUG) reported a third-quarter profit as a prior-year charge tied to convertible debt fell away, but its adjusted loss widened and revenue declined from a year earlier.
The luxury residential brokerage posted net income of $7.4 million, or $0.08 per diluted share, for the quarter ended Sept. 30, 2026, compared with a net loss of $24.7 million, or $0.29 per share, a year earlier. The 2025 loss included a $15.4 million non-cash expense related to the increased fair value of derivatives in convertible debt that was retired in October 2025, Chief Financial Officer Bryant Kirkland said.
Revenue fell to $252.1 million from $262.8 million. Excluding the property management business Douglas Elliman sold in October 2025, revenue was nearly flat with the prior-year quarter’s $253.4 million.
Adjusted EBITDA, a non-GAAP measure, was a loss of $5.3 million, compared with income of $1 million a year earlier. Adjusted net loss widened to $8 million, or $0.09 per share, from $1.4 million, or $0.02 per share.
Nine-Month Loss Narrows
For the first nine months of 2026, revenue was $749.9 million, down from $787.6 million a year earlier. Excluding the disposed property management business, revenue declined 1.1% from $758.2 million. Kirkland said the comparison was affected by an unusually strong first quarter of 2025.
The company’s nine-month net loss narrowed to $11.6 million, or $0.14 per diluted share, from $53.3 million, or $0.63 per share. The prior-year loss included a $33.2 million non-cash charge associated with the retired convertible debt.
On an adjusted basis, the nine-month EBITDA loss widened to $16.7 million from $3.4 million, while adjusted net loss increased to $24.3 million from $13 million.
Development Pipeline and October Trends
Kirkland said Douglas Elliman’s Development Marketing division had approximately $26 billion of gross transaction value in actively marketed projects, with another $11.8 billion expected to come to market through December 2027. The company would recognize commission income if the projects close, generally expected between 2026 and 2032, he said.
Florida accounted for approximately $19.5 billion of the actively marketed pipeline. Kirkland said the company receives progress payments for most Florida projects but defers related revenue and commission expense until the underlying sales close.
Net contract liabilities, which Kirkland described as an indicator of potential future Development Marketing earnings, rose to $48 million at Sept. 30 from $35.4 million at the end of 2025.
The company’s average price per home sale for the first nine months was approximately $1.88 million, consistent with the same period in 2025. Average daily cash receipts from existing-home sales rose 1.9% in October from a year earlier, although total receipts fell 2.7% because the month had one fewer sales day, Kirkland said.
Technology and Capital Plans
President and Chief Executive Officer Michael Liebowitz said Douglas Elliman is advancing an AI and technology transformation aimed partly at simplifying internal workflows. He said the company expects to gradually realize meaningful efficiencies in non-commission operating expenses beginning in 2027 and is also working to reduce lease obligations.
The company added Sharon Milz as head of AI technology transformation and Nick Patino as director of AI enablement. Jamie Gagliano returned as chief operations officer of brokerage at Douglas Elliman Realty, Liebowitz said.
Liebowitz also pointed to opportunities to expand services around development projects and residential financing, including through Elliman Capital. Internationally, he said Douglas Elliman is increasingly being paid for use of its brand rather than paying others to extend its reach.
Douglas Elliman held $103 million in cash and cash equivalents and $20 million in a U.S. Treasury bill maturing in March 2027 as of Sept. 30. Kirkland said the board had authorized a share repurchase program of up to $10 million.
About Douglas Elliman (NYSE:DOUG)
Douglas Elliman Inc (NYSE: DOUG) is a real estate services company and the parent of Douglas Elliman Realty, one of the largest residential real estate brokerage firms in the United States. The company provides brokerage services for buyers and sellers of residential properties, including luxury homes, condominiums, cooperatives and rental properties.
In addition to residential brokerage, Douglas Elliman offers new-development marketing and sales, commercial real estate services, property management, relocation assistance and related advisory services.
