Douglas Elliman Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues reached $266.3 million, an increase from $251.5 million in the same period of 2023. This growth was primarily driven by higher commissions and brokerage income, which amounted to $254.1 million, up from $239.3 million year-over-year. However, the company experienced a net loss of $27.4 million for the quarter, significantly higher than the $5.1 million loss reported in Q3 2023. The operating loss improved slightly to $7.4 million from $8.8 million in the prior year, reflecting increased revenues offset by higher operating expenses, which rose to $273.7 million from $260.4 million.

For the nine months ended September 30, 2024, total revenues were $752.3 million, compared to $741.4 million in the same period of 2023. The net loss for this period also increased to $70.9 million from $28.1 million in the previous year, with operating losses widening to $52.6 million from $40.9 million. The increase in losses was attributed to a litigation settlement of $17.8 million and rising real estate brokerage commissions.

The company’s total assets grew to $502.7 million as of September 30, 2024, up from $493.4 million at the end of 2023. Current assets also increased to $205.5 million, with cash and cash equivalents rising to $151.4 million. However, total liabilities surged to $328.7 million from $259.3 million, leading to a decline in stockholders' equity to $173.9 million from $234.2 million.

Strategically, Douglas Elliman has made significant management changes, including the resignation of its Chairman, President, and CEO on October 21, 2024, which resulted in the cancellation of 2.97 million unvested shares. The company also terminated its Aircraft Lease Agreements effective November 16, 2024. Additionally, it issued $50 million in convertible notes in July 2024, with a maturity date in 2029, to bolster its financial position.

The company is also navigating ongoing litigation, having settled several antitrust lawsuits for a total of $17.8 million, which includes contingent payments due by the end of 2027. Despite these challenges, Douglas Elliman reported a reduction in operating expenses in its real estate brokerage segment, indicating efforts to streamline operations amidst a competitive market.