# EDGAR Filing Document

**Accession Number:** 0001878897
**File Stem:** 0001878897-25-000060
**Filing Date:** 2025-10
**Character Count:** 30166
**Document Hash:** 5fd13bcff899881e794dac22e80eaa0a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001878897-25-000060.hdr.sgml**: 20251024

**ACCESSION NUMBER**: 0001878897-25-000060

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251024

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251024

**DATE AS OF CHANGE**: 20251024

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Douglas Elliman Inc.
- **CENTRAL INDEX KEY:** 0001878897
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 872176850
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41054
- **FILM NUMBER:** 251417003

**BUSINESS ADDRESS:**
- **STREET 1:** 4400 BISCAYNE BLVD
- **STREET 2:** FLOOR 10
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33137
- **BUSINESS PHONE:** 3055798000

**MAIL ADDRESS:**
- **STREET 1:** 4400 BISCAYNE BLVD
- **STREET 2:** FLOOR 10
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33137

?xml version='1.0' encoding='ASCII'? doug-20251024

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): October 24, 2025**

**DOUGLAS ELLIMAN INC.**

(Exact Name of Registrant as Specified in Its Charter)

---

| |
|:---|
| **Delaware** |
| (State or Other Jurisdiction of Incorporation) |

---

---

| | | | |
|:---|:---|:---|:---|
| **001-41054** | **001-41054** | **001-41054** | **87-2176850** |
| (Commission File Number) | (Commission File Number) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| **4400 Biscayne Boulevard** | **Miami** | **Florida** | **33137** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

(305) 579-8000

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities Registered Pursuant to 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading** | **Name of each exchange** |
| | **Symbol(s)** | **on which registered:** |
| **Common stock, par value $0.01 per share** | DOUG | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

***Item 1.01 Entry into a Material Definitive Agreement***

On October 24, 2025, following unanimous approval by the Board of Directors (with the exception of Mr. David K. Chene, a principal of KLIM, holder of the Convertible Notes (each as defined below), who recused himself from deliberations and such resolutions) of Douglas Elliman Inc. (the "<u>Company</u>"), Douglas Elliman Realty, LLC ("<u>DER</u>"), a New York limited liability company and indirect subsidiary of the Company, entered into an Equity Purchase Agreement, dated as of October 24, 2025 (the "<u>Equity Purchase Agreement</u>"), by and among Residential Management Group, LLC, a Delaware limited liability company and indirect subsidiary of the Company that conducts business as Douglas Elliman Property Management ("<u>DEPM</u>"), PMG Holdings, Inc., a Texas corporation (the "<u>Purchaser</u>"), and DER, whereby DER agreed to sell all of the equity interests in DEPM held by DER to the Purchaser (the "<u>DEPM Sale</u>"). The closing of the DEPM Sale (the "<u>Closing</u>") occurred concurrently with the execution of the Equity Purchase Agreement on October 24, 2025 (the "<u>Closing Date</u>").

Pursuant to the Equity Purchase Agreement, DER agreed to sell, transfer, assign and convey to the Purchaser all of the equity interests in DEPM in exchange for a base purchase price of $85 million, subject to customary adjustments for cash, indebtedness, transaction expenses and working capital amounts at Closing. In connection with the DEPM Sale and the redemption of the Convertible Notes as described below under Item 8.01 of this Current Report on Form 8-K, the Company expects to recognize more than a $75 million after-tax gain in the fourth quarter of 2025.

The Equity Purchase Agreement includes customary representations and warranties for a transaction of this type. DER provided standard seller representations and warranties including, but not limited to, representations and warranties as to valid title to the equity interests in DEPM, due formation, valid existence and good standing, and due authorization to execute the Equity Purchase Agreement and consummate the DEPM Sale. DEPM provided similar standard representations and warranties, as well as validity of material permits and compliance with applicable laws. The Purchaser provided standard buyer representations and warranties including, but not limited to, representations and warranties regarding due organization, valid existence and good standing, due authorization to execute the Equity Purchase Agreement and perform its obligations thereunder, solvency and investment intent in consummation of the DEPM Sale. The Purchaser has obtained a representations and warranties insurance policy with such coverage serving as the Purchaser's sole remedy with respect to any breach of representations and warranties by DEPM and DER, except for claims related to fraud and specific indemnities.

The Equity Purchase Agreement contains a five-year non-competition covenant applicable to DER in specified territories and a five-year non-solicitation covenant, in each case subject to customary exceptions. Pursuant to the non-competition covenant, DER has agreed not to own, manage, operate or control any entity engaged in the management of cooperative, condominium and rental apartment buildings in New York and Texas, as well as the other locations where the Purchaser and its affiliates provide services. Under the non-solicitation covenants, DER may not intentionally encourage, solicit or intentionally induce any material customers from purchasing property-management services from another provider and may not solicit, induce, employ or engage certain employees of DEPM, the Purchaser or its affiliates. The parties to the Equity Purchase Agreement further agreed to certain employee transition covenants, as well as a customary director and officer insurance and indemnification covenant for the benefit of DEPM's managers and officers.

DER and DEPM also entered into a trademark license agreement pursuant to which DER will continue to own all right, title and interest in and to certain trademarks and names of DER and DEPM, including the trademark and name "Douglas Elliman," as well as all logos used by DEPM as of the Closing Date. DEPM will have the right, from the Closing Date, to use certain trade names, marks and logos in connection with certain commercial and real estate property management services and other ancillary services as conducted on, and for a five year period running from, the Closing Date.

In connection with the DEPM Sale, the Purchaser and DEPM have agreed to maintain a referral arrangement with the Company during the term of the trademark license to continue DEPM's long-standing business relationship with the Company.

------

The foregoing description of the Equity Purchase Agreement contained in Item 1.01 of this Current Report on Form 8-K does not purport to be complete and is qualified in its entirety by reference to the full text of the Equity Purchase Agreement, a copy of which will be filed by the Company in a future annual or periodic report under the Securities Exchange Act of 1934, as amended.

BofA Securities served as exclusive financial advisor to the Company. Sullivan & Cromwell LLP and Greenberg Traurig, LLP served as the Company's legal advisors.

***Forward-Looking and Cautionary Statements***

This Current Report on Form 8-K includes forward-looking statements within the meaning of the federal securities law. All statements other than statements of historical or current facts made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may be," "continue" "could," "potential," "objective," "plan," "seek," "predict," "project" and "will be" and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.

Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. We undertake no responsibility to publicly update or revise any forward-looking statement except as required by applicable law.

***Item 2.01 Completion of Acquisition or Disposition of Assets***

On the Closing Date, DER entered into the Equity Purchase Agreement pursuant to which DER consummated the DEPM Sale as described above under Item 1.01 of this Current Report on Form 8-K. DEPM is engaged in the management of cooperative, condominium and rental apartment buildings in New York City, Nassau County, Long Island City and Westchester County. From the Closing, the Company will no longer include the financial results of DEPM in its consolidated financial statements.

Filed as Exhibit 99.1 to this Current Report on Form 8-K is the unaudited pro forma condensed consolidated balance sheet of the Company as of June 30, 2025 and the unaudited pro forma condensed consolidated statements of operations of the Company for the six months ended June 30, 2025, and the year ended December 31, 2024, in each case giving effect to the DEPM Sale and the Repayment (as defined under Item 8.01 of this Current Report on Form 8-K below).

***Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Compensatory Arrangements with Certain Officers.***

On the Closing Date, effective immediately after the Closing, David K. Chene, as the KLIM-designated director under the securities purchase agreement for the Convertible Notes as described below under Item 8.01 of this Current Report on Form 8-K, resigned from the Board of Directors of the Company (the "<u>Board</u>") and all committees thereof. The resignation did not result from any dispute or disagreement with the Company or the Board on any matter related to the operations, policies or practices of the Company.

***Item 8.01 Other Events***

In connection with and upon consummation of the DEPM Sale, the Company agreed to repay and redeem all of the Company's senior secured convertible promissory notes due July 2, 2029 (the "<u>Convertible Notes</u>"), previously issued pursuant to the Securities Purchase Agreement dated as of July 2, 2024, by and among the Company, Kennedy Lewis Investment Management LLC ("<u>KLIM</u>"), certain entities advised or managed by KLIM (the "<u>Noteholders</u>"), and Alter Domus (US), LLC (the "<u>Collateral Agent</u>") for an aggregate payment of $95 million, including approximately $1.4 million of accrued interest to the Closing Date (the "<u>Repayment</u>"). The Repayment was effected because the Noteholders informed the Company that they were not willing to waive their contractual redemption rights with respect to the Convertible Notes but would agree to a redemption of the Convertible Notes pursuant to Section 8(a) thereof in connection with the consummation of the DEPM Sale. After giving effect to the DEPM Sale and the Repayment, the Company had approximately $130 million of unrestricted cash and cash equivalents as of the Closing Date.

------

***Item 9.01 Financial Statements and Exhibits***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pro Forma Financial Information

The unaudited pro forma consolidated financial information of the Company required by Article 11 of Regulation S-X is attached hereto and is incorporated by reference herein. The unaudited pro forma condensed consolidated balance sheet of Douglas Elliman Inc. as of June 30, 2025 and the unaudited pro forma condensed consolidated statements of operations of Douglas Elliman Inc. for the six months ended June 30, 2025 and the year ended December 31, 2024, are filed as Exhibit 99.1 to this Current Report on Form 8-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Exhibit |
| <u>[99.1](exhibit991proformafs.htm)</u> | Unaudited pro forma condensed consolidated balance sheet of Douglas Elliman Inc. as of June 30, 2025 and the unaudited pro forma condensed consolidated statements of operations of Douglas Elliman Inc. for the six months ended June 30, 2025 and the year ended December 31, 2024. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| DOUGLAS ELLIMAN INC. | DOUGLAS ELLIMAN INC. |
| By: | /s/ J. Bryant Kirkland III |
|  | J. Bryant Kirkland III |
|  | Executive Vice President, Treasurer and<br>Chief Financial Officer |

---

Date: October 24, 2025

## Exhibit 99.1

**Exhibit 99.1**

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

The unaudited pro forma condensed consolidated financial information presented below consists of an unaudited pro forma condensed consolidated balance sheet as of June 30, 2025 and unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025 and for the year ended December 31, 2024. The unaudited pro forma condensed consolidated financial information presented below has been derived from the historical annual and interim condensed consolidated financial statements of Douglas Elliman Inc. (NYSE:DOUG) (the "<u>Company</u>"). The following unaudited pro forma condensed consolidated financial information should be read in conjunction with the Company's consolidated financial statements, their accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025.

The following unaudited pro forma condensed consolidated financial information has been prepared to reflect adjustments to the Company's historical financial information to depict the accounting under generally accepted accounting principles in the United States of America ("<u>GAAP</u>") for the following transaction accounting adjustments (the "Pro Forma Transactions"):

• The disposal of the Company's property management business, Residential Management Group, LLC, a Delaware limited liability company that conducts business as Douglas Elliman Property Management ("DEPM"), which was previously owned and operated by the Company through its subsidiary, Douglas Elliman Realty, LLC ("DER"). The purchase consideration was comprised of a cash payment of $85 million paid at closing, subject to certain adjustments.

• The impact of, and transactions contemplated by, the redemption and repayment of the Company's $50 million aggregate principal amount of senior secured convertible promissory notes due July 2, 2029 (the "<u>Convertible Notes</u>"). The Convertible Notes were redeemed for $95 million, including accrued interest to the date of redemption, which was funded from proceeds from the sale of DEPM and cash on hand.

The unaudited pro forma condensed consolidated balance sheet as of June 30, 2025 has been prepared giving effect to the Pro Forma Transactions as if the Pro Forma Transactions had occurred on June 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025, and for the year ended December 31, 2024 have been prepared giving effect to the Pro Forma Transactions as if the Pro Forma Transactions had occurred on January 1, 2024.

The pro forma financial information does not purport to show the results that would have occurred had the Pro Forma Transactions been completed as of the date and for the period presented or which may occur in the future. The unaudited pro forma condensed consolidated financial information has been prepared by the Company based upon assumptions deemed appropriate by the Company's management. The unaudited pro forma condensed consolidated financial information constitutes forward-looking information and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** |
| **Unaudited Pro Forma Condensed Consolidated Balance Sheet** | **Unaudited Pro Forma Condensed Consolidated Balance Sheet** | **Unaudited Pro Forma Condensed Consolidated Balance Sheet** | **Unaudited Pro Forma Condensed Consolidated Balance Sheet** | **Unaudited Pro Forma Condensed Consolidated Balance Sheet** | **Unaudited Pro Forma Condensed Consolidated Balance Sheet** |
| **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| | **Douglas Elliman Inc.** | **DEPM** | **Other Transaction Accounting Adjustments** | | **Pro Forma Douglas Elliman Inc.** |
| **ASSETS:** | | | | | |
| Current assets: |  |  |  |  |  |
| Cash and cash equivalents | $136334 | $2163 | $85000 | (a) | $122271 |
|  |  |  | (95000) | (b) |  |
|  |  |  | (1900) | (c) |  |
| Receivables | 20728 | 1252 |  |  | 19476 |
| Agent receivables, net | 9896 |  |  |  | 9896 |
| Restricted cash and cash equivalents | 5892 | 666 |  |  | 5226 |
| Other current assets | 19584 | 1264 |  |  | 18320 |
| Total current assets | 192434 | 5345 | (11900) |  | 175189 |
| Property and equipment, net | 36016 | 766 |  |  | 35250 |
| Operating lease right-of-use assets | 91459 | 1869 |  |  | 89590 |
| Long-term investments | 10683 |  |  |  | 10683 |
| Contract assets, net | 44934 |  |  |  | 44934 |
| Goodwill | 32230 | 3 |  |  | 32227 |
| Other intangible assets, net | 71981 |  |  |  | 71981 |
| Equity-method investments | 2219 |  |  |  | 2219 |
| Other assets | 7047 |  |  |  | 7047 |
| **Total assets** | $489003 | $7983 | $(11900) |  | $469120 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY:** | **LIABILITIES AND STOCKHOLDERS' EQUITY:** | **LIABILITIES AND STOCKHOLDERS' EQUITY:** | **LIABILITIES AND STOCKHOLDERS' EQUITY:** | **LIABILITIES AND STOCKHOLDERS' EQUITY:** | **LIABILITIES AND STOCKHOLDERS' EQUITY:** |
| Current liabilities: |  |  |  |  |  |
| Current operating lease liabilities | $21394 | $896 | $— |  | $20498 |
| Current portion of antitrust litigation settlement | 5000 |  |  |  | 5000 |
| Accounts payable | 3109 |  |  |  | 3109 |
| Income taxes payable, net | 81 |  | 4750 | (d) | 4831 |
| Commissions payable | 22317 |  |  |  | 22317 |
| Accrued salaries and benefits | 5795 | 68 |  |  | 5727 |
| Contract liabilities | 14145 |  |  |  | 14145 |
| Due to parent |  | 3374 | 3374 | (e) |  |
| Other current liabilities | 25024 | 2144 | (292) | (f) | 22588 |
| Total current liabilities | 96865 | 6482 | 7832 |  | 98215 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Notes payable and other obligations less current portion | 33982 |  | (33982) | (g) |  |
| Fair value of derivative embedded within convertible debt | 47968 |  | (47968) | (h) |  |
| Non-current operating lease liabilities | 91714 | 1527 |  |  | 90187 |
| Contract liabilities | 74779 |  |  |  | 74779 |
| Antitrust litigation settlement | 5000 |  |  |  | 5000 |
| Other liabilities | 1106 | 963 |  |  | 143 |
| Total liabilities | 351414 | 8972 | (74118) |  | 268324 |
| **Stockholders' equity:** |  |  |  |  |  |
| Preferred stock, par value $.01 per share, 10,000,000 shares authorized |  |  |  |  |  |
| Common stock, par value $0.01 per share, 250,000,000 shares authorized, 88,723,101 and 88,853,150 shares issued and outstanding | 887 |  |  |  | 887 |
| Additional paid-in capital | 289242 | (989) | 62218 | (i) | 352449 |
| Accumulated deficit | (152526) |  |  |  | (152526) |
| Total Douglas Elliman Inc. stockholders' equity | 137603 | (989) | 62218 |  | 200810 |
| Non-controlling interest | (14) |  |  |  | (14) |
| Total stockholders' equity | 137589 | (989) | 62218 |  | 200796 |
| **Total liabilities and stockholders' equity** | $489003 | $7983 | $(11900) |  | $469120 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** |
| **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** |
| **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** |
| **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| | **Douglas Elliman Inc.** | **DEPM** | **Other Transaction Accounting Adjustments** | | **Pro Forma Douglas Elliman Inc.** |
| **Revenues:** | | | | | |
| Commissions and other brokerage income | $499159 | $— | $— |  | $499159 |
| Property management | 19957 | 19957 |  |  |  |
| Other ancillary services | 5653 |  |  |  | 5653 |
| Total revenues | 524769 | 19957 |  |  | 504812 |
| **Expenses:** |  |  |  |  |  |
| Real estate agent commissions | 391119 |  |  |  | 391119 |
| Sales and marketing | 39808 | 5 |  |  | 39803 |
| Operations and support | 35503 | 1736 |  |  | 33767 |
| General and administrative | 53502 | 12494 |  |  | 41008 |
| Intercompany corporate allocation |  | 1054 | (1054) | (j) |  |
| Technology | 11301 | 1124 |  |  | 10177 |
| Depreciation and amortization | 4119 | 141 |  |  | 3978 |
| Restructuring | 298 |  |  |  | 298 |
| **Operating (loss) income** | (10881) | 3403 | 1054 |  | (15338) |
| Other income (expenses): | Other income (expenses): | Other income (expenses): | Other income (expenses): | Other income (expenses): | Other income (expenses): |
| Interest expense | (3075) |  | (3075) | (k) |  |
| Interest income | 2620 | 92 | 238 | (l) | 2290 |
| Equity in earnings from equity-method investments | 201 |  |  |  | 201 |
| Change in fair value of derivative embedded within convertible debt | (17715) |  | (17715) | (m) |  |
| Investment and other (losses) gains | (59) | 36 |  |  | (95) |
| **(Loss) income before provision for income taxes** | (28909) | 3531 | (19498) |  | (12942) |
| Income tax expense |  |  |  |  |  |
| Net (loss) income | (28909) | 3531 | (19498) |  | (12942) |
| Net loss attributed to non-controlling interest | 251 |  |  |  | 251 |
| **Net (loss) income attributed to Douglas Elliman Inc.** | $(28658) | $3531 | $(19498) |  | $(12691) |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** | **Douglas Elliman Inc.** |
| **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** | **Unaudited Pro Forma Condensed Consolidated Statement of Operations** |
| **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
| **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| | **Douglas Elliman Inc.** | **DEPM** | **Other Transaction Accounting Adjustments** | | **Pro Forma Douglas Elliman Inc.** |
| **Revenues:** | | | | | |
| Commissions and other brokerage income | $946557 | $— | $— |  | $946557 |
| Property management | 36785 | 36785 |  |  |  |
| Other ancillary services | 12285 |  |  |  | 12285 |
| Total revenues | 995627 | 36785 |  |  | 958842 |
| **Expenses:** |  |  |  |  |  |
| Real estate agent commissions | 743819 |  |  |  | 743819 |
| Sales and marketing | 82606 | 12 |  |  | 82594 |
| Operations and support | 70342 | 2898 |  |  | 67444 |
| General and administrative | 117773 | 25616 |  |  | 92157 |
| Intercompany corporate allocation |  | 1946 | (1946) | (j) |  |
| Technology | 23386 | 2187 |  |  | 21199 |
| Depreciation and amortization | 7736 | 423 |  |  | 7313 |
| Antitrust litigation settlement expense | 17750 |  |  |  | 17750 |
| Restructuring | 1041 |  |  |  | 1041 |
| **Operating (loss) income** | (68826) | 3703 | 1946 |  | (74475) |
| Other income (expenses): |  |  |  |  |  |
| Interest expense | (2939) |  | (2939) | (k) |  |
| Interest income | 5533 | 285 | 536 | (l) | 4712 |
| Equity in earnings from equity-method investments | 36 |  |  |  | 36 |
| Change in fair value of derivative embedded within convertible debt | (14978) |  | (14978) | (m) |  |
| Investment and other gains | 5289 |  |  |  | 5289 |
| **(Loss) income before provision for income taxes** | (75885) | 3988 | (15435) |  | (64438) |
| Income tax expense | 1117 |  |  |  | 1117 |
| Net (loss) income | (77002) | 3988 | (15435) |  | (65555) |
| Net loss attributed to non-controlling interest | 686 |  |  |  | 686 |
| **Net (loss) income attributed to Douglas Elliman Inc.** | $(76316) | $3988 | $(15435) |  | $(64869) |

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| | |
|:---|:---|
| **Douglas Elliman Inc.** | **Douglas Elliman Inc.** |
| **Notes to Unaudited Pro Form Condensed Consolidated Financial Statements** | **Notes to Unaudited Pro Form Condensed Consolidated Financial Statements** |
| **(in thousands)** | **(in thousands)** |
| (a) | Amount received from the sale of DEPM before closing adjustments and estimated expenses. |
| (b) | Amount remitted to redeem the Convertible Notes before estimated expenses. |
| (c) | Amount of estimated expenses and closing adjustments, net, from the sale of DEPM and redemption of the Convertible Notes. |
| (d) | Estimated income taxes payable associated with the disposal of DEPM. |
| (e) | Elimination of the intercompany liability of DEPM for previous corporate allocation. |
| (f) | Accrued interest associated with the Convertible Notes, which have been redeemed. |
| (g) | Redemption of Convertible Notes. |
| (h) | Elimination of "Fair value of derivative embedded within convertible debt" associated with the Convertible Notes. |
| (i) | Increases to stockholders' equity resulting from the sale of DEPM and redemption of the Convertible Notes. |
| (j) | Corporate allocation to DEPM, the disposed subsidiary. The expenses associated with this allocation are anticipated to continue at DER after the disposal. |
| (k) | Interest expense on the Convertible Notes that were redeemed immediately following the disposal. |
| (l) | Estimated loss in interest income of the Company after giving effect to the Pro Forma Transactions. |
| (m) | Elimination of change in fair value of derivatives embedded within convertible debt of the Convertible Notes that were redeemed. |

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