#United States #Boston #Real Estate #AccountTECH #EBITDA Index

AccountTECH's July 2025 EBITDA Margin Index

AccountTECH, a recognized leader in accounting solutions for real estate brokerages since 1991, has unveiled its EBITDA Margin Index for July 2025. This comprehensive index benchmarks the profitability of over 150 brokerages across the United States, capturing the current state of the industry amid ongoing economic challenges.

Current Findings

As of July 2025, the EBITDA margin stands at 3.3793%, indicating a slight improvement from 3.3631% recorded in July 2024. This increment showcases the resilience of brokerages in a climate characterized by high interest rates and subdued transaction volumes. The latest figures highlight that while a return to the peak earnings of 2019-2021 has not been achieved, a path towards stabilization is apparent following years of financial turmoil.

Historical Context

The AccountTECH EBITDA Index tracks earnings before interest, taxes, depreciation, and amortization, expressed as a percentage of revenue. To qualify for inclusion, brokerages must adhere to GAAP-compliant financial reporting and represent a diverse range of scales and affiliations, including national franchise operations and independent entities. The historical comparisons reveal a mixed bag:

• - 2025: 3.3793%
• - 2024: 3.3631%
• - 2023: 3.3174%
• - 2022: 2.2683%
• - 2021: 5.9444%
• - 2020: 8.4893%
• - 2019: 5.8514%

Despite the current ache of transaction limitations, the data indicates that July 2025’s margins are 49% higher than the same figure from July 2022, indicating a resilient recovery trend.

Seasonal Trends in EBITDA Margins

The nature of real estate brokerage earnings is inherently seasonal, peaking in late spring and summer as homebuyers actively engage in the market. As expected, July often emerges as a robust month following a flurry of contract closings initiated in the spring. While July’s performance aligns closely with last year's outcomes, it still falls short of the seven-year average for this month. Notably, the margins from 2025 continue to reflect the post-pandemic recovery trajectory.

In contrast, the winter months typically register dismal margin figures. For instance, January and February 2025 saw margins dip significantly to -3.442% and -2.702%, respectively. The subsequent rebound observed by mid-summer reinforces the necessity for effective cash flow management and strategic foresight within brokerage operations.

Emerging Trends and Insights

The July 2025 index accentuates a pattern of gradual profitability increase, despite ongoing cost management pressures and reduced transaction activity. Brokers are increasingly exhibiting operational discipline by strategically managing expenses, recalibrating agent split structures, and investing in technology to drive efficiency.

January through July 2025 data reveals a clear trajectory:

• - January: -3.4420%
• - February: -2.7020%
• - March: 0.8150%
• - April: 1.9174%
• - May: 3.4962%
• - June: 3.8491%
• - July: 3.3793%

The overarching pattern illustrates a robust recovery from winter’s negative margins to a stable positive outlook by July.

Expert Commentary

Mark Blagden, CEO of AccountTECH, emphasizes, "Real estate brokerages are showcasing their capacity to adapt within an often-challenging market landscape. The results from July confirm that firms are making solid strides, even when transaction numbers dwindle, by refining financial management practices."

He further adds, "Those brokerages that are finding stability now are those that have modernized operations by embracing automation, reconsidering commission models, and making data-driven decisions. This index is not merely theoretical; it encapsulates tangible, GAAP-compliant financials from brokerages nationwide."

About AccountTECH

The AccountTECH Real Estate Brokerage Financial Health Index Series serves as a monthly performance benchmark focused on key financial indicators, including EBITDA margins, gross profit margins, and labor costs. With three decades of specialized expertise in the real estate accounting sector, AccountTECH provides one of the most extensive and reliable datasets in the industry.