For the first time in many years, auction house Sotheby’s has registered a net profit of $53 million, indicating a recovering art market.
The news was first reported by the Financial Times after analyzing the auction house’s tax returns. The net profit of $53 million in 2025 is a significant improvement over the $190 million loss it registered in 2024. The total sales rose 20 percent to $7.1 billion; of this, the auction sales brought $1 billion, a major 26 percent increase over the prior year.
Sotheby’s garnered revenues of $1.4 billion in 2025, 21 percent higher than the previous year. The adjusted EBITDA of $363 million, on the other hand, was one of the best the auction house has ever seen. The increase in profit and revenues seen by Sotheby’s is indicative of a strengthening market. After shrinking for 2 continous years, the global art market saw a rise of 4 percent in 2025. Auction sales fared better, increasing by 9 percent.
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Despite the positive news, Sotheby’s has introduced new policies to better manage its cash flows. One of it were the “extended settlement terms”, a program launched in 2025 which allowed buyers an option to pay via installments. The program is only applicable for transactions above $5 million and charges an interest of 7 percent. It is noteworthy that Sotheby’s has to pay roughly $765 million in debt, acquired via Patrick Drahi‘s 2019 leverage buyout, due in 2027. There is also a new lawsuit filed by Cushman & Wakefield, which alleges Sotheby’s failed to pay a $10.2 million commission tied to the $510 million sale of its former York Avenue headquarters.
