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Financial services

Financial Health of U.S. Brokerages Shows Continued Stabilization Amid Market Pressures

Strategic Insights

— 1 min read

Financial health in the US brokerage sector has been gradually stabilizing, with the recent EBITDA margin index reaching 3.3793% in July 2025. This increase of 0.5% over July 2024's index and 49% higher than the July 2022 index suggests a resilience in the industry. Despite ongoing market pressures, including high interest rates and reduced transaction volumes, brokerages are showing signs of improved profitability through operational discipline and smart financial management.

Key Takeaways:

  • The AccountTECH EBITDA margin index for July 2025 stands at 3.3793%, marking a 0.5% improvement over July 2024's index and a 49% increase over the July 2022 index.
  • The index has now reached 57% of the July 2021 level and 40% of the July 2020 level, indicating that while the market has not yet recovered to its pre-recession peak, brokerages continue to stabilize after recent years of volatility.
  • July 2025's EBITDA margin of 3.3793% is consistent with the prior year but remains below the seven-year July average, indicating that the industry is gradually recovering from the highs of 2019-2021.
  • The seasonal rebound into positive territory by midsummer highlights the importance of disciplined cash flow management and strategic planning in brokerage operations.
  • Brokerages are showing signs of stronger operational discipline, including tightening expenses, managing agent splits, and investing in efficiency.

Statistics:

  • EBITDA margin index for July 2025: 3.3793%
  • July 2025 index represents a 0.5% improvement over July 2024's index and a 49% increase over the July 2022 index
  • EBITDA marginal is 57% of the July 2021 level and 40% of the July 2020 level
  • Seasonal EBITDA margin for January 2025: -3.442%
  • Seasonal EBITDA margin for February 2025: -2.702%
  • Peak profitability in June 2025: 3.8491%

Sources:

  • AccountTECH EBITDA Margin Index (July 2025)
  • AccountTECH EBITDA Index (presenting earnings before interest, taxes, depreciation, and amortization as a percentage of revenue)
  • AccountTECH Real Estate Brokerage Financial Health Index Series (monthly benchmarks across key financial indicators)

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