Douglas Elliman Inc.

Welcome to the Douglas Elliman's third 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 An archived version of the webcast will be available on the investor relations section of the company's website located at investors.elliman.com for one year.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 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 income or 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 income or 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 risks 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. Any forward-looking statements made during this call are made as of today, and the company undertakes no duty to update or revise any such statement, whether as a result of new information, future events, or otherwise, except as required by law. 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. We have strong momentum as a result of the decisive steps we have taken this year to build a more focused, pure play luxury brokerage. While others in the industry are pursuing consolidation and platform integration, we remain committed to deepening our leadership in the luxury segment, a category that is synonymous with our brand. This strategic focus positions Douglas Ellman Wells for long-term success and value creation for our stakeholders. On today's call, we will discuss the current operating environment, and Douglas Elliman's financial results for the three and nine months ended September 30th, 2025. All numbers presented this morning will be as of September 30th, 2025 unless otherwise stated. We will then provide closing comments. Before we turn to our third quarter 2025 results, I would like to begin by discussing some of our recent strategic initiatives. For the first nine months of 2025, our revenues increased by 5% year-over-year to $787.6 million. We also made considerable progress toward restoring profitability, reducing our operating loss to $21.5 million from $52.6 million in the same period last year. Taking a step back, 2025 has been a pivotal transitional year for Douglas Elliman so far. Our focus has been on building the foundation for sustainable long-term growth and positioning the company to capture opportunities as market conditions improve. We have taken decisive steps to sharpen our competitive edge, enhance our service offerings, and expand our reach. The groundwork we have laid, in particular, selling our property management division and eliminating the overhang of the in-the-money convertible debt, expanding our brand internationally, and making investments in artificial intelligence that is helping our agents do what they do best, position us for accelerated growth and value creation in 2026 and beyond. 2025 marked a bold evolution in our brand and our business model. Earlier this year, we announced the launch of Element International, extending our renowned service and network into key global markets. We are already making strides with our entry into France announced last week, which brings the Douglas Ellman brand and our high standard of service to the prestigious markets of Bordeaux, the French Riviera, Monaco, and St. Barts, with plans to expand into Paris and the French Alps in the near future. Our expansion into France and Monaco, led by industry veterans Philippe Cruchet, Frederic Lelot, and Edouard Desmalais-Morgan, is just the tip of the iceberg. Our international growth is complemented by the launch of new global property distribution partnerships, including Propco Luxury and Nikkei, and expanding our reach to millions of high-net-worth individuals worldwide. This strategy answers the growing demand from American and international buyers for seamless cross-border luxury real estate expertise. We have also taken decisive steps to sharpen our business focus. strengthen our financial foundation, and expand our suite of specialized client services. A major recent milestone was the sale of Douglas Elliman Property Management for $85 million to Associa, the nation's largest community association management firm. We believe we will recognize an after-tax gain of approximately $75 million on the sale. This transaction sharpens our focus as a pure-play luxury residential brokerage and eliminates operational complexity. With cash balances of approximately 126.5 million at October 31st, 2025, and no debt, we are strategically positioned to capitalize on market opportunities in our evolving industry. We are now uniquely positioned, both financially and strategically, to pursue further geographic expansion, technological advancement, and strategic acquisitions from a position of strength. We have also introduced Element Capital, our in-house mortgage platform developed in strategic alliance with associated mortgage bankers. This innovative platform is designed to streamline the home financing process for clients seeking both traditional and non-traditional loan products. Our clients benefit from competitive rates, a diverse range of loan products, and the seamless integration that comes from working with a single, trusted source for both their real estate and financing needs. Our new estate, trust, and probate division, along with the launch of Element Private Listings, provides even more specialized client-centric services, reinforcing our total commitment to choice, privacy, and exceptional service for our discerning clientele. Central pillar of our strategy has always been investing in the agent experience. empowering our professionals with some of the most advanced tools in the industry. We recognize that real estate is and always will be a people business. That is why our approach to artificial intelligence is focused on augmenting, not replacing, the agent expertise relationships that define business elements. Earlier this month, we launched LEAI, a first-of-its-kind AI-powered assistant app designed to streamline the daily workflow of our agents. LEAI enables natural language MLS searches, generates branded reports and lifestyle maps, and aggregates real-time data from MLS, public records, and the web, giving our agents the insights they need to deliver truly personalized, data-driven service. Our new Element Inspirations platform on element.com takes this even further, offering an AI-powered home discovery tool that personalizes property searches and deepens agent-client collaboration. By putting advanced technology in the hands of our agents, we are freeing them from repetitive tasks, equipping them with real-time market intelligence, and enabling them to focus on what matters most, building relationships and delivering exceptional outcomes for clients. We intend to continue to partner with leading technology providers, scale our internal talent pool, and maintain rigorous governance to ensure our AI roadmap supports both growth and trust. We believe 2026 will mark the beginning of a new growth phase as the investments and strategic moves we have made in 2025 begin to yield results. We are confident that our focus on innovation, international expansion, and luxury service will drive sustainable value for our clients, agents, and stockholders. With that, I will turn it over to Brian, who will provide more details on our financial performance and the trend shaping the residential real estate market. Brian?