Financial Health of U.S. Brokerages Shows Continued Stabilization Amid Market Pressures
BOSTON, Aug. 19, 2025 /PRNewswire/ — AccountTECH, a leading provider of accounting software and services for real estate brokerages since 1991, has released its July 2025 EBITDA Margin Index, benchmarking profitability across more than 150 U.S. brokerages. The AccountTECH EBITDA margin index stands at 3.3793% for July 2025, reflecting resilience and incremental improvement in a market still navigating high interest rates and lower transaction volumes.
The AccountTECH EBITDA Index tracks earnings before interest, taxes, depreciation, and amortization (EBITDA) as a percentage of revenue for qualified U.S. real estate brokerages. To be included, brokerages must demonstrate consistent GAAP-compliant financial reporting and span a wide range of sizes and affiliations, including both independent firms and national franchises.
Historical Comparison: EBITDA Margins for July
|
Year |
EBITDA Margin |
|
2025 |
3.3793 |
|
2024 |
3.3631 |
|
2023 |
3.3174 |
|
2022 |
2.2683 |
|
2021 |
5.9444 |
|
2020 |
8.4893 |
|
2019 |
5.8514 |
- +0.5% improvement over July 2024 index
- 49% higher than the July 2022 index
- EBITDA margin is 57% of the July 2021 index
- EBITDA margin is 40% of the July 2020 index
These figures suggest that while the market has not returned to the peak profitability of the 2019–2021 period, brokerages continue to stabilize after recent years of volatility.
Seasonality of EBITDA Margins in Real Estate Brokerages
EBITDA margins in the residential real estate industry are highly seasonal, with performance typically rising in late spring and summer as home buying activity peaks. July is historically a strong month, following the surge of closings from contracts signed in the spring.
In this context, July 2025’s EBITDA margin of 3.3793% is consistent with the prior year but remains below the seven-year July average. While margins do not yet reflect the highs of 2019 through 2021, they demonstrate a continued recovery trend. Importantly, July represents one of the most profitable months of the past 12 months, further underscoring the normalization of seasonal patterns.
The lowest margins are typically observed in the winter months. For example, in January and February 2025, margins fell to -3.442% and -2.702%, respectively. The seasonal rebound into positive territory by midsummer highlights the importance of disciplined cash flow management and strategic planning in brokerage operations.
Trends and Insights
Despite lower transaction counts and ongoing cost pressures, the July 2025 index reinforces a pattern of incremental profitability improvement across the industry. Brokerages are showing signs of stronger operational discipline—tightening expenses, managing agent splits, and investing in efficiency.
Month-by-month performance for 2025 highlights the seasonal rebound from winter lows:
|
Month 2025 |
EBITDA Margin (%) |
|
January |
-3.4420 |
|
February |
-2.7020 |
|
March |
0.8150 |
|
April |
1.9174 |
|
May |
3.4962 |
|
June |
3.8491 |
|
July |
3.3793 |
This trajectory illustrates:
- A sharp recovery from negative winter margins into positive territory by spring.
- Peak profitability in June 2025 (3.8491%), followed closely by May and July.
- A return to predictable seasonal patterns, after recent years of volatility.
Commentary
“Real estate brokerages continue to demonstrate adaptability in a challenging environment,” said Mark Blagden, CEO of AccountTECH and veteran real estate finance consultant. “July’s results confirm that firms are achieving steady gains, even with fewer transactions, through smarter financial management.”
“The firms that are stabilizing now are those who have modernized their operations—embracing automation, rethinking compensation models, and applying data-driven management practices,” added Blagden. “This index isn’t hypothetical—it reflects real, GAAP-compliant financials from brokerages across the country.”
About the AccountTECH Index
The AccountTECH Real Estate Brokerage Financial Health Index Series provides monthly benchmarks across key financial indicators, including EBITDA margin, gross profit margin, and labor cost. With three decades of specialized accounting focus in real estate, AccountTECH offers one of the most comprehensive and trusted datasets in the industry.
Authored by Mark Blagden, CEO of AccountTECH
www.accounttech.com (978) 947-3600
For sales inquiries, please contact:
Theresa Hurt – [email protected] – (978) 710-0071
Media contact:
Rizza Batol – [email protected] – (978) 947-3600
SOURCE AccountTECH
