What was the net income (loss) for Engel & Volkers in 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shares | Amount | Capital | Deficit | Loss | Total | |
|---|---|---|---|---|---|---|
| Balance - January 1, 2022 | 17,143 | $ 171,430 | $ 34,285,342 | $ (18,911,739) | $ (8,582) | $15,536,451 |
| Net income | - | - | - | 3,560,109 | - | 3,560,109 |
| Other comprehensive loss: | - | - | - | - | (54,080) | (54,080) |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2022 | 17,143 | 171,430 | 34,285,342 | (15,351,630) | (62,662) | 19,042,480 |
| Net income | - | - | - | 1,761,556 | - | 1,761,556 |
| Other comprehensive income: | - | - | - | - | 30,285 | 30,285 |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2023 | 17,143 | 171,430 | 34,285,342 | (13,590,074) | (32,377) | 20,834,321 |
| Net loss | - | - | - | (4,048,100) | - | (4,048,100) |
| Other comprehensive loss: | - | - | - | - | (141,272) | (141,272) |
| Foreign currency translation | ||||||
| adjustment | ||||||
| BALANCE - DECEMBER 31, | 17,143 | $ 171,430 | $ 34,285,342 | $ (17,638,174) | $ (173,649) | $16,644,949 |
| 2024 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company experienced a net loss of $4,048,100 in 2024. This figure is part of the consolidated statements of comprehensive income (loss) for the years ending December 31, 2024, 2023, and 2022. It's important to note that this loss is reflected in the cash flow statement under cash flows from operating activities.
For a prospective franchisee, this net loss could signal potential financial instability or challenges within the Engel & Volkers organization. While a single year's loss doesn't necessarily indicate long-term problems, it warrants careful consideration and further investigation. Franchisees should inquire about the reasons for the loss, the company's plans to address it, and its overall financial health.
It's also worth noting that Engel & Volkers' financial statements include adjustments to reconcile the net loss to net cash provided by operating activities, such as depreciation and amortization, non-cash lease expenses, and changes in various operating assets and liabilities. These adjustments provide a more comprehensive view of the company's cash flow situation, which can be a better indicator of its ability to meet its financial obligations and support its franchisees.
In comparison, Engel & Volkers reported a net income of $1,761,556 in 2023 and $3,560,109 in 2022. The significant shift to a net loss in 2024 highlights the importance of analyzing financial trends over multiple years rather than relying on a single year's performance. Prospective franchisees should carefully review the entire financial statement and seek professional advice to fully understand the implications for their investment.