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Douglas Elliman Inc. (DOUG)
NYSE:DOUG
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Douglas Elliman Inc. (DOUG) AI Stock Analysis

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DOUG

Douglas Elliman Inc.

(NYSE:DOUG)

Rating:51Neutral
Price Target:
$2.00
▼(-10.71% Downside)
Douglas Elliman Inc. receives a score of 51.25, primarily influenced by financial challenges and weak valuation metrics. While strategic initiatives and some revenue growth offer potential, ongoing profitability and cash flow issues, coupled with technical weakness, present significant risks.

Douglas Elliman Inc. (DOUG) vs. SPDR S&P 500 ETF (SPY)

Douglas Elliman Inc. Business Overview & Revenue Model

Company DescriptionDouglas Elliman Inc. (DOUG) is one of the largest residential real estate brokerage firms in the United States. The company operates primarily in the real estate sector, providing a range of services including residential sales and leasing, property marketing, and management. Douglas Elliman is renowned for its extensive reach with operations spanning major markets such as New York City, Florida, California, and other key regions. The company is also recognized for its luxury real estate offerings and its comprehensive approach to real estate services.
How the Company Makes MoneyDouglas Elliman Inc. makes money primarily through commissions earned on real estate transactions. When a property is sold or leased, Douglas Elliman receives a percentage of the transaction value as a commission, which constitutes a significant portion of its revenue. Additionally, the company generates income through its property management services, which involve managing residential properties on behalf of owners for a fee. The company might also engage in strategic partnerships and alliances with other real estate entities to expand its market reach and service offerings, contributing to its revenue streams. Furthermore, its presence in luxury real estate markets allows Douglas Elliman to command higher commissions on high-value property transactions.

Douglas Elliman Inc. Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -18.55%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed financial performance with strong growth in certain areas, like luxury home sales and development marketing, and the introduction of strategic initiatives. However, these were offset by declines in second quarter revenue and increased net losses, influenced by external economic pressures.
Q2-2025 Updates
Positive Updates
Revenue Growth in First Half of 2025
Revenues increased by 8% year-over-year to $524.8 million, marking the strongest first half revenue performance since 2022.
Development Marketing Performance
Development marketing's revenue increased to $35.4 million from $17.7 million in the first half of 2024.
Luxury Home Sales
The average price per transaction rose to $1.92 million per home sale, and there was a 38% increase in sales of homes over $5 million in the first half of 2025 compared to the same period in 2024.
Launch of Elliman Capital and Elliman International
Elliman Capital is an innovative mortgage platform expected to provide a licensing revenue stream. Elliman International extends their service to key global markets.
Negative Updates
Second Quarter Revenue Decline
Revenues for the second quarter decreased to $271.4 million from $285.8 million in the same period of 2024.
Net Loss in Second Quarter
Net loss for the second quarter was $22.7 million compared to a $1.7 million loss in the second quarter of 2024.
Impact of Economic Pressures
The company faced challenges due to exogenous economic pressures and industry-specific headwinds, including elevated mortgage rates.
Company Guidance
During Douglas Elliman's Second Quarter 2025 Earnings Conference Call, the company reported a robust 8% year-over-year increase in revenues for the first half of 2025, reaching $524.8 million, marking their strongest first half revenue performance since 2022. However, the second quarter saw a revenue decline to $271.4 million from $285.8 million in the same quarter of 2024, largely due to reduced closing transactions in May and early June 2025. Despite this, the company improved its profitability, with net loss for the first half of 2025 narrowing significantly to $28.7 million compared to $43.1 million in the same period of 2024. The adjusted EBITDA for the first half of 2025 turned positive at $259,000, a substantial improvement from a loss of $14.7 million in 2024. Notably, the average price per luxury home sale rose to $1.92 million, and sales of homes priced over $10 million increased by 32% year-over-year. Douglas Elliman also launched two strategic growth initiatives, Elliman Capital and Elliman International, aimed at expanding their service offerings and global presence, further positioning the company for long-term success.

Douglas Elliman Inc. Financial Statement Overview

Summary
Douglas Elliman Inc. is experiencing financial challenges with revenue growth that is modest and below its peak. While gross profit and EBIT margins have improved, the company still faces negative net profit and EBITDA margins, indicative of ongoing profitability issues. The balance sheet shows increased leverage and decreased equity, and cash flow remains a concern due to operational inefficiencies.
Income Statement
55
Neutral
Douglas Elliman Inc. shows a mixed financial performance with recent challenges. The company experienced a slight revenue increase of 4.19% from 2023 to 2024, yet it remains below its 2021 peak. Gross profit margin improved significantly, indicating better cost management, climbing from 18.71% in 2023 to 92.93% in 2024. However, net profit margin is negative, reflecting ongoing profitability issues. EBIT margin turned positive, improving from -6.75% in 2023 to 72.82% in 2024, but EBITDA remains negative, pointing to underlying operational challenges.
Balance Sheet
60
Neutral
The balance sheet reflects a stable yet cautious outlook. The debt-to-equity ratio increased to 1.15 in 2024 from 0.57 in 2023, suggesting higher leverage. Return on equity remains negative at -47.47%, indicating profitability challenges. The equity ratio dropped to 32.83% in 2024, down from 47.29% in 2023, highlighting a shift towards greater liabilities. The company retains a decent cash position, though with a reduced equity base.
Cash Flow
50
Neutral
Cash flow analysis shows operational weaknesses. Operating cash flow remains negative, although slightly improved from 2023. Free cash flow growth is negative, though the decline slowed, indicating cautious progress. Operating cash flow to net income ratio indicates cash generation issues, while the free cash flow to net income ratio remains unfavorable, pointing to ongoing cash management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.05B995.63M955.58M1.15B1.35B773.99M
Gross Profit239.51M251.81M178.81M216.98M270.09M227.04M
EBITDA160.73M-65.21M-54.09M26.93M110.66M39.38M
Net Income-41.13M-76.32M-42.55M-5.62M98.84M-46.37M
Balance Sheet
Total Assets493.94M493.89M493.42M550.40M595.17M453.98M
Cash, Cash Equivalents and Short-Term Investments136.77M149.54M119.81M163.86M211.62M94.42M
Total Debt151.53M156.28M132.94M142.84M164.87M192.47M
Total Liabilities335.77M331.46M259.26M279.94M313.30M290.39M
Stockholders Equity158.24M162.19M233.23M268.92M279.93M163.59M
Cash Flow
Free Cash Flow-8.78M-31.50M-36.56M-23.28M123.72M25.74M
Operating Cash Flow-4.29M-25.96M-30.41M-14.74M127.83M31.86M
Investing Cash Flow4.15M-6.79M-5.24M-12.74M-8.86M-4.09M
Financing Cash Flow45.45M45.45M-6.21M-30.00M3.20M-143.00K

Douglas Elliman Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.24
Price Trends
50DMA
2.57
Negative
100DMA
2.21
Positive
200DMA
2.06
Positive
Market Momentum
MACD
-0.08
Positive
RSI
41.83
Neutral
STOCH
21.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOUG, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.57, and above the 200-day MA of 2.06, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOUG.

Douglas Elliman Inc. Risk Analysis

Douglas Elliman Inc. disclosed 41 risk factors in its most recent earnings report. Douglas Elliman Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Douglas Elliman Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$21.19B33.216.53%2.05%34.99%28.80%
70
Outperform
$812.43M-31.81%83.50%8.45%
66
Neutral
€2.67B-3.223.48%6.24%0.91%40.79%
63
Neutral
$262.35M17.102.21%-5.21%
59
Neutral
$563.50M-6.89%2.74%-118.94%
57
Neutral
$1.44B-41.33%2.36%-23.60%
51
Neutral
$198.71M-36.97%8.64%1.60%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DOUG
Douglas Elliman Inc.
2.24
0.34
17.89%
HOUS
Anywhere Real Estate ate
5.04
0.89
21.45%
RMAX
Re/Max Holdings
8.05
-0.83
-9.35%
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.56
3.02
20.77%
OPEN
Opendoor Technologies
1.95
0.35
21.87%
REAX
Real Brokerage
3.94
-1.78
-31.12%

Douglas Elliman Inc. Corporate Events

Shareholder Meetings
Douglas Elliman Inc. Holds Annual Stockholder Meeting
Neutral
Jun 26, 2025

On June 25, 2025, Douglas Elliman Inc. held its annual meeting of stockholders where several proposals were voted upon. The meeting resulted in the election of directors, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and an advisory vote on executive compensation, all of which were approved by the stockholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025