F
inancial Health of U.S. Brokerages Shows Resilience Amid Market Challenges
AccountTECH, a leading provider of accounting software and services for real estate brokerages since 1991, has released its May 2025 EBITDA Margin Index, benchmarking profitability across over 150 U.S. brokerages. The index stands at 3.4962%, reflecting continued resilience in a market with high interest rates and decreased transaction sides.
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 May
Year EBITDA Margin (%)
2025 3.4962
2024 3.3019
2023 4.1044
2022 5.5947
2021 5.7587
2020 3.8506
2019 6.5368
These figures suggest that while the market has not returned to peak profitability, brokerages have stabilized after a volatile period.
Profit Leaders vs Struggling Firms
AccountTECH's May 2025 index analysis includes separate indices for both profitable and unprofitable brokerages. The EBITDA index is 5.9121% for firms with positive EBITDA, showing consistent strength among well-managed offices. In contrast, brokerages operating at a loss reported an average EBITDA margin of -5.0003%.
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 increases. May is historically one of the stronger months for profitability.
The seven-year average EBITDA margin for May is 4.69%, positioning May 2025's result below the seasonal norm. However, it represents the peak month for brokerage earnings in the past 12 months, outpacing all months since May 2024.
Trends and Insights
Despite a lower number of closed transaction sides and sustained operational cost pressures, the May 2025 Index represents the highest EBITDA margin of the past 12 months. Month-by-month performance this year shows a steady climb from winter lows:
Month EBITDA Margin (%)
Jan 2025 -3.442
Feb 2025 -2.702
Mar 2025 0.815
Apr 2025 1.9174
May 2025 3.4962
The improvement in profitability signals that brokerages have begun adjusting to new market conditions.
Commentary
"Real estate brokerages are proving remarkably adaptable," said Mark Blagden, CEO of AccountTECH and veteran real estate finance consultant. "After the challenging market conditions of 2022 and early 2023, we're now seeing signs of stabilization and cautious optimism."
The firms who are thriving now are the ones who invested in automation, restructured their compensation models, and improved their backend operations.
About the AccountTECH Index
The AccountTECH Real Estate Brokerage Financial Health Index Series provides monthly benchmarks across key financial indicators. With three decades of specialized accounting focus in real estate, AccountTECH offers one of the most comprehensive and trusted datasets in the industry.
