Douglas Elliman (NYSE:DOUG) turned a corner in fiscal 2025, moving from a steep loss to a net profit.
For the fiscal year ended December 31, 2025, the New York-based luxury brokerage reported total revenues of $1.033 billion, a 3.8% increase from the $995.6 million recorded in 2024.
More notably, the company reported full-year net income of $15.2 million, or $0.17 per diluted share—a dramatic improvement from the $76.3 million net loss reported in the prior year.
The pivot to profitability was largely driven by a blockbuster fourth quarter, during which the company recognized an approximately $75 million after-tax gain from the $85 million sale of its property management division in October.
This divestiture allowed Douglas Elliman to simultaneously redeem $95 million in convertible notes, effectively eliminating its corporate debt and clearing a long-standing overhang on the stock.
In the fourth quarter alone, net income hit $68.6 million, or $0.68 per diluted share, compared to a $6 million loss in the fourth quarter of 2024.
While quarterly revenues saw a modest uptick to $245.4 million, the brokerage side of the business continued to face headwinds from elevated interest rates and tight inventory in key markets like New York City and Florida.
To offset the volatility of the resale market, management has doubled down on its Development Marketing division.
The company enters 2026 with an active pipeline of approximately $28.3 billion in gross transaction value, with an additional $4.2 billion expected to hit the market by mid-year.
This division remains a critical "future income" engine, as commissions are recognized upon the closing of units, many of which are slated for 2026 and 2027.