AccountTech Data Uncovers a Surprising Financial Change in September 2025

BOSTON, Dec. 23, 2025 — A new analysis from AccountTech’s industry index discloses an unexpected and compelling narrative: while gross profit margins in the real estate brokerage sector have tightened notably, EBITDA performance has soared. The figures depict a complex yet revealing portrayal of how brokerages are adapting in 2025.

A concerning Margin Decline That’s Difficult to Overlook

In September 2024, the average gross profit margin was at 19.583%. By September 2025, that figure dropped to 17.9637%, a decrease of nearly 2 percentage points.

This decline is remarkable as it reflects the average across both profitable and unprofitable companies. Moreover, what’s more astonishing is that unprofitable companies hardly moved at all. The shift is originating from the broader, healthier market—indicating real structural pressure.

Gross profit margin represents the amount remaining after paying agents their commissions. It’s what brokerages depend on to cover operating expenses and keep the business running. And now there’s simply less of it.

The Paradox: Gross Profit Down, EBITDA Up

Despite the squeeze on gross profit, net profitability is increasing. If brokerages have less left after paying agents, yet are still reporting higher net profits, one conclusion becomes obvious:

Brokerages are aggressively reducing internal expenses.

This operational tightening seems to be the key driver behind the stronger EBITDA performance. Companies aren’t necessarily earning more—they’re just spending less.

Agent Split Pressure Intensifies

The drop in gross profit margin also highlights an industry reality:
brokerage owners are facing growing pressure from agents demanding higher splits.

Margin compression—especially from rising agent payouts—has been a multi-year trend. The September 2025 data shows it’s not just continuing; it’s accelerating.

Seven-Year Trend Signals a Turning Point

AccountTech’s 7-Year Gross Profit Margin Index shows stability from 2021 through late 2024, with only minor fluctuations (notably a small dip in 2022).

But the sudden two-point drop in September 2025 marks the sharpest decline in years. This is the statistic that stands out—the one industry leaders can’t afford to ignore.

A New Financial Reality for Brokerages

With EBITDA up and gross profit down, one thing is abundantly clear:
brokerages are becoming leaner, more cost-controlled organizations out of necessity.

The current market doesn’t reward inefficiency. Companies that are thriving are doing so because they’re adapting faster than ever—optimizing operations, tightening expenses, and recalibrating their models in response to intense margin pressure.

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SOURCE AccountTECH