Welcome to Douglas Element's Fourth Quarter and Full Year 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 An archived version of the webcast will be available on the Investor Relations section of the company's website located at investors.elliman.com for 1 year. I would like to turn the conference over to Douglas Elliman's Vice President of Finance, Heather Capriola.

Thank you, and good morning. On the call with me today is Michael Liebowitz, President and CEO of Douglas Elliman Inc.; and Bryant Kirkland, CFO of Douglas Elliman Inc. During this call, the terms adjusted EBITDA and adjusted net loss or income will be used. 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. Liebowitz.

Thank you, Heather. Good morning, and thank you for joining us. Douglas Elliman continues to build on the strong momentum established by the decisive steps we took in 2025. Including strategic alignment and disciplined financial management, underpinned by our unwavering commitment to luxury service. The fourth quarter was a period of bold execution and meaningful progress on our long-term vision to be the leading independent luxury real estate brokerage driven by innovation, talent and a relentless focus on our clients and agents. This progress positions Douglas Elliman well 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 3 months and year ended December 31, 2025. All numbers presented this morning will be as of December 31, 2025, unless otherwise stated. Before we turn to our results, I want to highlight several key developments from the past quarter that underscore our differentiated strategy and the unique strengths that set Douglas Elliman apart. First, we continue to actively pursue opportunities to deepen our footprint in existing markets while strategically entering new high potential regions. We continued expanding our brand internationally with our recent entry into the French Alps, building on our successful launches in Bordeaux, the French Riviera and Monaco. Under the leadership of Rich Green, our brand's presence in these globally recognized luxury destinations is already generating significant interest from high net worth clients seeking exclusive cross-border expertise. By partnering with seasoned industry leaders and local specialists, we believe we have further enhanced our ability to deliver best-in-class service and bespoke solutions in the world's most coveted markets. We currently operate in nine markets in the United States and believe there is a significant opportunity to further expand our presence as well as the…

Thank you, Michael, and good morning. We are confident that our positive momentum is continuing and has positioned Douglas Elliman for long-term success. As Michael discussed, we believe our strong balance sheet provides Douglas Elliman with a competitive advantage as we implement our plans to grow in our existing markets, expand in the new markets where appropriate, and strengthen our services platform as opportunities arise in our ever-changing industry. And the results from the year ended December 31, 2025 indicate that our core operations are starting to reflect the impact of strategic actions we have taken over the past 2 years. In particular, results from operations for the year ended December 31, 2025, benefited from favorable sales mix, highlighted by strong contributions from development marketing in the Northeast region. Specifically, revenues from our development marketing division increased by $12.6 million from the prior year as we began to see the benefits of the investments we have made in this division in recent years. As a reminder, we recognized commission income for development market contracts when the underlying its close. I would now like to discuss a few key trends. First, Douglas Elliman continues to set the standard in the luxury market with luxury home pricing remaining strong. Our average price per transaction in 2025 increased to $1.86 million per home sold compared to $1.67 million per home sold in 2024. In the fourth quarter of 2025, our agent sold 282 homes priced at more than $5 million, representing 5.4% of total transactions and 1,282 such homes during the year ended December 31, 2025. That's a 25% increase compared to the year ended December 31, 2024. We also sold 102 homes for more than $10 million in the fourth quarter and 392 in 2025. Those are increases of 31% and 28%,…

Thanks, Bryant. We have implemented strategic initiatives to advance our market leadership, elevate our service offerings and expand our reach. both domestically and internationally. Our 2025 results demonstrate that our recent investments are already delivering tangible benefits, and we expect these positive impacts to continue into 2026 and beyond. Thank you for your continued trust in Douglas Elliman. With that, we will turn the call over to the operator. Operator?

Thank you for joining us on Douglas Element's quarterly earnings conference call. We hope you have a good day, and this will conclude our call.