Douglas Elliman eyes ‘long-term strategy’ after Q1 revenue dip
Though losses mounted and revenue fell, the luxury brokerage’s CEO says he has more confidence in the company’s future now “than at any point in my tenure.”
Following a profitable fourth quarter of 2025, Douglas Elliman tipped into the red in early 2026.
The luxury brokerage saw revenue decline year-over-year to $214.3 million in Q1, a dip it attributed in part in a May 8 news release to "an unusually strong first quarter of 2025." And after posting a net income gain of $68.6 million in Q4, the company reported a loss of $16.3 million by the end of the first quarter.
But Douglas Elliman projected confidence in its Q1 earnings report released on May 8, saying it is now "positioned for long-term growth as a leaner, more powerful platform built for luxury."
What Douglas Elliman had to say
On expansion: Since launching international operations in mid-2025, Douglas Elliman has expanded into Canada, France, Monaco and the Caribbean — moves that allow its agents to reach more high-net-worth clients, the brokerage noted in a news release. As it continues expanding its global footprint, the firm said it will focus on an "opportunity-driven approach" to areas where luxury demand is growing.
Douglas Elliman's momentum in this moment of accelerated industry consolidation "gives me greater confidence in the Company's trajectory than at any point in my tenure," President and CEO Michael Liebowitz said in a news release.
On discipline: Liebowitz characterized the firm's recent moves as "disciplined" and focused on "long-term strategy."
"Through disciplined expenses management and meaningful investment in technology, talent, and geography, we have created a leaner, more powerful platform engineered for strategic growth — as demonstrated by the additions at Douglas Elliman Realty of Lena Johnson as President of Brokerage Operations and Areeje Oriol as Chief of Staff," Liebowitz said.
Citing cost savings and other measures taken in 2025, the firm's management said it believes Douglas Elliman has a strong foundation for growth as the market continues to normalize.
On tech and AI: The firm continued to cultivate tools aimed at improving the agent and client experience in Q1 by refining Elli AI, its AI agent assistant, and developing a consolidated agent mobile app "that will serve as a single source of entry for agent productivity," the company noted.
Key numbers
Revenue: $214.3 million, down from $253.4 million in Q1 of 2025.
Cash and cash equivalents: $96 million with no long-term debt compared with $136.8 million at the end of Q1 of 2025.
Net loss: A loss of $16.3 million compared to a net loss of $6 million one year earlier.
Adjusted EBITDA (earnings before interest, taxes depreciation and amortization): A loss of $10.4 million compared to a loss of $0.9 million in Q1 of 2025.
Transactions: Gross transaction value of about $8.6 billion during the three months ended March 31, down from $9.9 billion at the end of Q1 of 2025.
Notable moves
In January, Douglas Elliman expanded its in-house mortgage platform, Elliman Capital, into New York. The platform debuted in Florida last summer.
In addition to its international growth efforts, the brokerage opened a new office in Richmond, Virginia, in February and expanded into California's Wine Country in April.
"As others in our industry navigate consolidation, we remain singularly focused on building the preeminent luxury residential real estate platform in the world," Liebowitz said.