Persistent cash burn is evident, with the firm reporting a $19.6M free cash flow outflow in 2026Q1, further depleting liquidity reserves to $100.5M.
| Cash from Operations | -27.6M | -13.88M | -25.96M | -30.41M | -14.74M | 127.83M | 31.86M | 7.58M |
| Operating CF Margin % | - | -1.34% | -2.61% | -3.18% | -1.28% | 9.45% | 4.12% | 0.97% |
| Operating CF Growth % | -394.91% | 46.54% | 14.64% | -106.29% | -111.53% | 301.15% | 320.55% | - |
| Net Income | 4.93M | 14.31M | -77M | -43.17M | -6.4M | 98.65M | -46.37M | 8.46M |
| Depreciation & Amortization | 8.48M | 8.38M | 7.74M | 8.03M | 8.01M | 8.56M | 25.86M | 8.64M |
| Stock-Based Compensation | 6.54M | 8.58M | 6.57M | 13.07M | 11.14M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 977K | -15.44M | 4.19M | -73K | 78K | 225K |
| Other Non-Cash Items | -27.16M | -25.8M | 36.84M | 26.65M | 23.07M | 23.92M | 59.1M | 8.36M |
| Working Capital Changes | -19.78M | -19.34M | -1.09M | -19.56M | -54.76M | -3.23M | -6.81M | -18.1M |
| Change in Receivables | -6.97M | -335K | 124K | -999K | 3.38M | -10.48M | -4.82M | -2.28M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -8.79M | -18.96M |
| Change in Payables | 2.31M | 1.53M | -6.9M | 9.68M | -22.73M | -2.16M | 3.53M | 1.91M |
| Cash from Investing | 81.29M | 90.46M | -6.79M | -5.24M | -12.74M | -8.86M | -4.09M | -1.51M |
| Capital Expenditures | -2.58M | -3.35M | -5.53M | -6.14M | -8.54M | -4.11M | -6.13M | -8.08M |
| CapEx % of Revenue | 0.26% | 0.32% | 0.56% | 0.64% | 0.74% | 0.3% | 0.79% | 1.03% |
| Acquisitions | 0 | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 82.49M | 0 | 0 | 0 | -300K | 88K | 0 | 8.62M |
| Cash from Financing | -96.09M | -96.09M | 45.45M | -6.21M | -30M | 3.2M | -143K | -19.12M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - |
| Equity Issued (Net) | -85K | 0 | -1.3M | -1.99M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -4.22M | -16.25M | -31.47M | 0 | -18.75M |
| Share Repurchases | -85K | 0 | -1.3M | -1.99M | 0 | 0 | 0 | 0 |
| Other Financing | -1.94M | -2.03M | -2M | 0 | -1.23M | 35.03M | -80K | -216K |
| Net Change in Cash | -42.41M | -19.51M | 12.7M | -41.87M | -57.48M | 122.16M | 27.63M | -13.05M |
| Free Cash Flow | -30.18M | -17.23M | -31.5M | -36.56M | -23.28M | 123.72M | 25.74M | -502K |
| FCF Margin % | -3.04% | -1.67% | -3.16% | -3.83% | -2.02% | 9.14% | 3.33% | -0.06% |
| FCF Growth % | -243.94% | 45.29% | 13.85% | -57.03% | -118.82% | 380.67% | 5227.29% | - |
| FCF per Share | -0.35 | -0.19 | -0.38 | -0.44 | -0.32 | 1.45 | 0.30 | -0.01 |
| FCF Conversion (FCF/Net Income) | -6.12x | -0.91x | 0.34x | 0.71x | 2.62x | 1.29x | -0.69x | 0.90x |
| Interest Paid | 0 | 0 | 0 | 0 | 177K | 24K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 11.08M | 681K | 0 | 0 |
Transaction volume and margin compression
According to recent financial disclosures, Douglas Elliman's operating cash flow frequently diverges from net income, as evidenced by the 2026Q1 period where the firm reported a net loss of $16.3M alongside an even larger $19.3M outflow from operations, signaling poor quality of earnings and persistent cash burn.
The consistent inability of the core brokerage business to generate positive operating cash flow suggests that accounting losses are not merely non-cash paper adjustments but reflect actual cash leakage. Investors should monitor the recurring gap between net income and operating cash flow, which appears to be exacerbated by the firm's inability to scale its high fixed-cost base during periods of low transaction velocity.
As reported in quarterly filings, Douglas Elliman's free cash flow trajectory remains deeply negative, with the company posting a $19.6M outflow in 2026Q1, a trend that underscores the structural difficulty of achieving self-sustaining cash generation within the current luxury residential brokerage operating model.
The persistent negative free cash flow indicates that the company is currently reliant on its existing balance sheet liquidity to fund ongoing operations rather than internal cash generation. This trajectory warrants further investigation into whether the firm can reach a breakeven point without further eroding its capital base or requiring external financing.
Based on the provided cash flow statements, working capital fluctuations have become a significant drag on liquidity, highlighted by a $11.3M outflow in 2026Q1 that reflects the inherent difficulty in managing cash cycles within a commission-based business model sensitive to closing delays.
The erratic nature of working capital changes suggests that the timing of commission receipts and agent payouts is creating meaningful friction in the firm's cash management. This volatility appears to be a primary driver of the company's inconsistent operating cash flow, complicating efforts to stabilize the firm's liquidity position.
Data from recent financial statements indicates that Douglas Elliman maintains a low capital intensity, with CapEx/Revenue ratios consistently below 1.0%, yet this limited investment in physical assets has not prevented the firm from experiencing significant cash flow deterioration during the current market downturn.
While the low capital expenditure requirements suggest an asset-light model, the lack of significant investment may also indicate a strategic hesitation to commit capital to infrastructure or technology during a period of negative operating margins. Investors should monitor whether this low level of spending is sufficient to maintain the firm's competitive positioning in the luxury brokerage space.
Quick answers to the most common questions about buying DOUG stock.
Douglas Elliman Inc. (DOUG) generated $-13.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Douglas Elliman Inc. (DOUG) reported negative free cash flow of $17.2M in 2025, indicating capital requirements exceeded cash from operations.
Douglas Elliman Inc. (DOUG) spent $3.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.