Marcus & Millichap (MMI) investor relations material

Executive summary

• Q3 2025 revenue increased 15.1% year-over-year to $193.9 million, marking the fifth consecutive quarter of growth and a return to profitability with net income of $0.2 million, up from a loss last year.

• Adjusted EBITDA for Q3 was $6.9 million, up from break-even or negative last year, with results impacted by a $4 million litigation accrual.

• Year-to-date revenue rose 12.1% to $511.2 million, with a net loss of $15.2 million, improved from a $20.9 million loss in the prior year.

• Private client brokerage and financing segments drove performance, with notable gains in transaction count and revenue.

• Strategic investments in technology, talent, and branding continued, while cost management and capital returns remained a focus.

Financial highlights

• Q3 revenue was $193.9 million, up 15.1% from $169 million in Q3 2024; year-to-date revenue reached $511.2 million.

• Brokerage commissions grew 14.2% to $162.2 million; financing fees rose 27.7% to $26.3 million.

• Q3 sales volume was $12.2 billion across 2,289 transactions; year-to-date sales volume totaled $33.9 billion with 6,065 closings.

• Operating expenses for Q3 were $196.3 million, mainly due to higher cost of services and a $4 million litigation accrual.

• Cash, cash equivalents, and marketable securities totaled $381.5 million at quarter-end.

Outlook and guidance

• Management expects continued market volatility and near-term challenges, but is optimistic for long-term growth, supported by anticipated Fed rate reductions and improved trading environment.

• Sequential revenue growth is expected in Q4, with cost of services as a percentage of revenue likely to remain elevated.

• Tax expense for Q4 projected at $4–$6 million.

• The company is focused on technology, AI, strategic acquisitions, and expanding its brand.

• Sufficient liquidity is available to meet operating requirements for at least the next 12 months.