How does Corcoran disaggregate its revenue?

According to Corcoran's 2025 Franchise Disclosure Document, revenue is disaggregated by major revenue categories on the Consolidated Statements of Operations and further broken down by business segment. The company's business segments include Franchise Group, Owned Brokerage Group, and Title Group. For example, the net revenues from external customers for the Franchise Group were $668, the Owned Brokerage Group was $4,628, and the Title Group was $340, totaling $5,636.

Within the Franchise Group, revenue primarily consists of royalty and marketing fees from franchisees, with royalties based on a percentage of the franchisee's gross commission income. These royalties are recorded when the franchisee earns the revenue upon closing a homesale transaction. Initial franchise fees are recognized as revenue upon the execution or opening of a new franchisee office.

For international franchisees, Corcoran utilizes direct and master franchise models, collecting initial area development fees (ADF) and ongoing royalties. ADFs are recorded as deferred revenue and recognized over the 25-year franchise agreement. In the event of early termination, the unamortized deferred revenue is immediately recognized. The company also recognizes a deferred asset for commissions paid to franchise sales employees, amortized over 30 years for domestic agreements and the agreement term for international agreements.

Through Cartus, Corcoran offers relocation services with various revenue streams, including fees from real estate brokers and moving companies, recognized upon completion of services. Outsourcing management fees are deferred when billed and recognized over the average time to complete the transferee's move, typically 3 to 6 months.