Douglas Elliman Inc.

Welcome to Douglas Elliman's second quarter 2025 earnings conference call. This call is being recorded and simultaneously webcast. An archived version of the webcast will be available on the investor relations section of the company's website located at investors.elliman.com for one year. I would now like to turn the conference over to Douglas Elliman Vice President of Finance, Heather Capriola.

Thank you and good morning. On the call with me today is Michael Leibowitz, President and CEO of Douglas Elliman, Inc. and Brian Kirkland, CFO of Douglas Elliman, Inc. During this call, the terms adjusted EBITDA and adjusted net loss will be used, as well as last 12 months or LTM metrics. These terms are non-GAAP financial measures and should be considered in addition to, but not as a substitute for, other measures of financial performance prepared in accordance with GAAP. Reconciliations to adjusted EBITDA and adjusted net loss are contained in the company's earnings release, which has been posted to the investor relations section of the company's website. Before the call begins, I would like to read a safe harbor statement. The statements made during this conference call that are not historical facts are forward-looking statements that are subject to risk and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks are described in more detail in the company's securities and exchange commission filings. Now, I would like to turn the call over to the Chief Executive Officer of Douglas Elliman, Michael S. Leibowitz.

Thank you, Heather. Good morning, and thank you for joining us. I am pleased to share that Douglas Elliman continues to make meaningful progress as we execute our strategy to drive growth, improve profitability and position the company for long-term success. On today's call, we will discuss the current operating environment and Douglas Elliman's financial results for the three and six months ended June 30th, 2025. All numbers presented this morning will be as of June 30th, 2025. unless otherwise stated. We will then provide closing comments and open the call for questions. Before we turn to our second quarter 2025 results, I would like to begin by providing industry updates and summarizing some of our recent accomplishments. In the first half of 2025, our revenues increased by 8% year over year to $524.8 million, marking our strongest first half revenue performance since 2022. We also delivered significant improvement towards restoring our profitability with notable reductions in operating losses when compared to the first half of 2024. Our agents and employees remain at the center of everything we do. Their hard work and commitment to excellence drive our success. We are proud to support them with the tools and technology they need to excel in today's market. After a challenging period in the middle of the second quarter, which Bryant will discuss later, we remain optimistic about the third quarter and second half of 2025, thanks to encouraging recent trends, including continued demand for luxury homes, rising average transaction values, and a strong development marketing pipeline. These results reflect the strength of our iconic brand, the dedication of our agents, and the resilience of the luxury markets we serve. Now, let us look to the future. We are focused on executing our strategic growth initiatives, including the recent launches of Element Capital and Element International. In July 2025, we were pleased to announce the creation of Element Capital, an innovative mortgage platform developed with associated mortgage bankers, which we expect to provide a licensing revenue stream and represents a transformative advancement in our comprehensive service offering. The platform was initially launched in Florida, and we hope to expand it to all states where Douglas Elliman operates. Elliman Capital will provide our clients with access to an extensive and creative range of financing products. This new platform fosters convenience and oversight throughout the entire real estate transaction process, enabling our agents to provide seamless support from initial property search through closing. In June, 2025, we were also incredibly proud to launch Element International, which extends our renowned, bespoke service to key global markets. This initiative will enable us to directly serve the growing international real estate needs of our clients without any intermediaries. Initial focus will be on high-end luxury demand in Latin America, the Middle East, Europe, Asia Pacific, and other emerging wealth centers. Our international expansion will begin with immediate activation of certain core services for existing clients and will showcase our preeminent development marketing division. Given the scarcity of listing inventory of ultra-luxury homes in many of our markets, our development marketing division continues to be a cornerstone of our long-term growth strategy. Bryant will discuss the successes of this division later in the call. Moving forward, we continue to evaluate complementary transactions and ancillary businesses, such as title, escrow, insurance brokerage, and property management. Now, I would like to discuss our industry and will briefly address the practice of private listings. At Douglas Elliman, we have a long-standing commitment to offering clients greater choice and flexibility, while continuing to promote equal access to listings and uphold a transparent, fair housing market. The decision to list property privately must originate from the seller. Our brokerage does not push, incentivize, or default to private listings. With a larger percentage of luxury homes in our inventory, private listings may be the right fit because there are valid, seller-driven reasons to withhold a property from public view, including personal privacy, timing, or a desire to test the market. Our approach differs from brokerage-led exclusivity models in that we offer private listings as one option among many, empowering clients to make informed decisions based on their unique needs rather than applying a one-size-fits-all model. Additionally, we believe co-broking remains the most effective path for most sellers, as broad exposure and the most reliable way to maximize value, drive competition, and fulfill our fiduciary obligation to act in our clients' best interest. Any Douglas Elliman private listing platform will require sellers to review and sign acknowledging the potential risk of reduced exposure. The platform will also include strong guardrails to ensure compliance with other listing platforms, such as broker oversight, audit logs, and technical controls. We believe this transparent, Client-first approach sets us apart from our competitors and builds long-term trust and value. In summary, our growth initiatives, coupled with a disciplined approach to capital allocation, cost management, and investment are transforming Douglas Elliman into a more diversified, resilient, and growth-oriented real estate services company to deliver sustainable, long-term value for stockholders. With the launch of Element International, we're very excited to extend our renowned service beyond the US and build a direct presence in key international luxury markets, further advancing our evolution into a truly global brand. With that, I will turn it over to Bryant, who will provide more details on our financial performance and the trend shaping the residential real estate market.