Douglas Elliman’s Revenue Drops Amid ‘transitional Year’

For Douglas Elliman, 2025 has been a “transitional year,” according to brokerage leaders, as the firm goes through a “bold evolution” of its brand and business model. And like many transitions, this one has been rocky. 

During the third quarter of 2025, Douglas Elliman saw revenue drop from $266.3 million a year ago to $262.8 million. The firm attributed this decrease to a decline in commissions and other brokerage income, as well as income from ancillary services dropping from a year prior. Despite these declines, the company’s net loss for the quarter was $24.942 million, an improvement over the $27.449 million net loss recorded a year prior. Additionally, Douglas Elliman agents reported a gross transaction value of roughly $10 billion, up from $9.8 billion in Q3 2024. 

“Our focus has been on building the foundation for sustainable long-term growth and positioning the company to capture opportunities as market conditions improve. We have taken decisive steps to sharpen our competitive edge, enhance our service offerings and expand our reach,” Michael Liebowitz, Douglas Elliman’s CEO and president, said during his firm’s Q3 2025 earnings call with investors and analysts Tuesday morning. 

Some of these decisive steps include launching Elliman International, launching an in-house mortgage platform, as well as Elliman Private Listings and the new Estate, Trust & Probate division, and the sale of Douglas Elliman’s property management division. 

The firm also made investments into AI technology, including the recent launch of Elli AI, an AI-powered assistant app, that the firm said streamlines daily workflow of agents.

“We intend to continue to partner with leading technology providers, scale our internal talent pool and maintain rigorous governance to ensure our AI road map supports both growth and trust,” Liebowitz said. “We believe 2026 will mark the beginning of a new growth phase as the investments and strategic moves we have made in 2025 begin to yield results.”

Looking ahead, Liebowitz is confident his firm is now ready to tackle any challenge that may lay ahead. Much of this confidence stems from a much improved balance sheet, which as of the end of October 2025, included a cash balance of $125.6 million and no debt. 

“We are strategically positioned to capitalize on market opportunities in our evolving industry. We are now uniquely positioned both financially and strategically to pursue further geographic expansion, technological advancement and strategic acquisitions from a position of strength,” Liebowitz said. “Our strategy is clear. To be the preeminent luxury pure-play residential real estate brokerage platform, powered by the best-in-class innovative technology with a global reach.”