F
inancial Health of U.S. Brokerages Shows Continued Stabilization Amid Market Pressures
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 over 150 U.S. brokerages. The 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.
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
These figures suggest that while the market has not returned to peak profitability, brokerages continue to stabilize after recent years of volatility.
Seasonality of EBITDA Margins in Real Estate Brokerages
EBITDA margins 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. The July 2025 index is consistent with the prior year but remains below the seven-year July average.
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 and July, and a return to predictable seasonal patterns.
Commentary
"Real estate brokerages continue to demonstrate adaptability in a challenging environment," said Mark Blagden, CEO of AccountTECH. "July's results confirm that firms are achieving steady gains, even with fewer transactions, through smarter financial management."
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.
