Marcus & Millichap, Inc. Reports Preliminary Results for First Quarter 2026
MMI
Revenue growth of 18.2% in the First Quarter 2026 compared to First Quarter 2025.
Published on 05/07/2026 at 08:02 am EDT
Marcus & Millichap, Inc. (the “Company”, “Marcus & Millichap”, or “MMI”) (NYSE: MMI), a leading national real estate services firm specializing in commercial real estate investment sales, financing services, research and advisory services, reported its first quarter financial results today.
First Quarter 2026 Highlights Compared to First Quarter 2025
“We delivered a strong first quarter, with broad-based growth across the business, reflecting investments in talent, business development and platform expansion as well as improving market conditions,” said Hessam Nadji, President and Chief Executive Officer of Marcus & Millichap. “Our Private Client business continued to build momentum while our institutional segment also posted gains as bid/ask spreads narrowed due to gradual price adjustments and improvements in the lending environment. Our financing business had an exceptional quarter as capital availability grew and we leveraged our market leading lender network to achieve revenue growth of 48%.”
Mr. Nadji continued, "We are encouraged by the improvement we are seeing and the fundamentals supporting continued recovery - driven by more realistic pricing and an increasingly liquid credit environment. Geopolitical developments and energy price volatility have introduced near-term uncertainty, which we are navigating with the same discipline that has served us well through the extended market disruption. Our strong balance sheet and broad capital deployment plan enabled us to accelerate share buybacks while continuing our dividend policy and having ample capital for strategic acquisitions and platform investments.”
First Quarter 2026 Results Compared to First Quarter 2025
Total revenue for the first quarter 2026 was $171.5 million, an increase of 18.2% compared to $145.0 million for the first quarter 2025.
For real estate brokerage commissions, revenue was $138.1 million, an increase of 11.7% compared to the same period in the prior year. The increase was primarily attributed to an 18.5% increase in total sales volume, partially offset by an 11 basis point decrease in the average commission rate earned compared to the first quarter 2025. The decrease in the average commission rate was due to revenue shifting from the Private Client Market to the Larger Transaction Market, which generally earns lower commission rates. The Larger Transaction Market revenue increased by 24.9%, while the Private Client Market revenue increased by 13.4%.
For financing fees, revenue was $26.8 million, an increase of 48.1% compared to the same period in the prior year. The increase was primarily attributed to a 60.1% increase in total financing volume, partially offset by a four basis point decrease in the average fee rate earned, compared to the first quarter 2025.
Total operating expenses for the first quarter 2026 were $177.2 million compared to $162.7 million for the same period in the prior year. The change was primarily due to an increase of $15.3 million in cost of services. Cost of services as a percentage of total revenue decreased by 40 basis points to 60.5% compared to the same period during the prior year, primarily due to our senior investment sales and financing professionals earning higher commissions in 2025.
Selling, general and administrative expenses remained relatively consistent at $71.2 million for the first quarter 2026 compared to $71.6 million for the same period in 2025.
Net loss for the first quarter 2026 was $3.1 million, or $0.08 per common share, diluted, compared to a net loss of $4.4 million, or $0.11 per common share, diluted, for the same period in 2025. Adjusted EBITDA for the first quarter 2026 was $2.9 million, compared to $(8.7) million for the same period in the prior year, primarily as a result of the decrease in operating losses.
Capital Allocation
On February 10, 2026, the Board of Directors declared a semi-annual regular dividend of $0.25 per share, which was paid on April 3, 2026, to stockholders of record at the close of business on March 13, 2026.
During the three months ended March 31, 2026, the Company repurchased 895,532 shares of common stock at an average price of $26.22 for a total purchase price of $23.5 million. Since August 2022, the Company has repurchased and retired 3,970,069 shares of common stock at an average price of $30.08 per share for a total price of $119.4 million.
On April 30, 2026, the Company's Board of Directors approved an additional $70 million to repurchase common stock under its stock repurchase program. After accounting for shares repurchased through May 4, 2026 and the increased authorization, the Company has approximately $90 million available to repurchase shares under its program. No time limit has been established for the completion of the program, and the repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
Business Outlook
Despite ongoing price discovery and wider than normal bid/ask spreads, the Company believes the commercial real estate transaction market is poised to overcome the near-term challenges which are currently expected to extend through 2026. Accordingly, the Company believes it remains well-positioned to return to long-term growth.
The Company benefits from its experienced management team, infrastructure investments, industry-leading market research and proprietary technology. The size and fragmentation of the Private Client Market continue to offer long-term growth opportunities through consolidation. This highly fragmented market segment consistently accounts for over 80% of all U.S. commercial property transactions and over 60% of the commission pool. The top 10 brokerage firms led by MMI had an estimated 18% share of this segment by transaction count in 2025.
Key factors that may influence the Company’s business during the remainder of 2026 include:
Webcast and Call Information
Marcus & Millichap will host a live webcast today to discuss the financial results at 7:30 a.m. Pacific Time/10:30 a.m. Eastern Time. The webcast will be accessible through the Investor Relations section of Marcus & Millichap's website at ir.marcusmillichap.com and will be archived upon completion of the call. The Company encourages the use of the webcast due to potential extended wait times to access the conference call via dial-in.
For those unable to access the webcast, callers from the United States and Canada should dial 1-877-407-9208 ten minutes prior to the scheduled call time. International callers should dial 1-201-493-6784.
ReplayInformation
For those unable to participate during the live broadcast, a telephonic replay of the call will also be available from 1:30 p.m. Eastern Time on Thursday, May 7, 2026 through 11:59 p.m. Eastern Time on Thursday, May 21, 2026 by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally and entering passcode 13759354.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc. is a leading national real estate services firm specializing in commercial real estate investment sales, financing services, research and advisory services. As of December 31, 2025, the Company had 1,808 investment sales and financing professionals in more than 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory, and leasing services to its clients. Marcus & Millichap, Inc. closed 8,818 transactions in 2025, with a sales volume of $50.8 billion. For additional information, please visit www.MarcusMillichap.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements, including our expectations regarding the long-term outlook of the commercial real estate transaction market, and our positioning within it, our belief relating to the Company’s long-term growth, our assessment of the key factors influencing the Company’s business outlook, including the expectation for future interest rate cuts or rising inflation and likely impact of such cuts or inflation on commercial real estate demand, and the execution of our capital return program, including a semi-annual dividend and stock repurchase program. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:
In addition, in this release, words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “goal,” “expect,” “predict,” “potential,” “should,” and similar expressions, as they relate to our Company, our business and our management, are intended to identify forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. We have not filed our Quarterly Report on Form 10-Q (“Form 10-Q”) for the quarter ended March 31, 2026. As a result, all financial results described in this release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 10-Q.
MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
2026
2025
Revenue:
Real estate brokerage commissions
$
138,112
$
123,622
Financing fees
26,846
18,130
Other revenue
6,509
3,286
Total revenue
171,467
145,038
Operating expenses:
Cost of services
103,637
88,348
Selling, general and administrative
71,215
71,552
Depreciation and amortization
2,391
2,849
Total operating expenses
177,243
162,749
Operating loss
(5,776
)
(17,711
)
Other income, net
3,763
3,979
Interest expense
(153
)
(187
)
Loss before benefit for income taxes
(2,166
)
(13,919
)
Provision (benefit) for income taxes
934
(9,497
)
Net loss
$
(3,100
)
$
(4,422
)
Loss per share:
Basic
$
(0.08
)
$
(0.11
)
Diluted
$
(0.08
)
$
(0.11
)
Weighted average common shares outstanding:
Basic
38,201
38,930
Diluted
38,201
38,930
MARCUS & MILLICHAP, INC. KEY OPERATING METRICS SUMMARY (Unaudited)
Total sales volume was approximately $12.1 billion for the three months ended March 31, 2026, encompassing 2,022 transactions consisting of $7.9 billion for real estate brokerage (1,348 transactions), $3.1 billion for financing (398 transactions) and $1.1 billion in other transactions, including consulting and advisory services (276 transactions). As of March 31, 2026, the Company had 1,621 investment sales professionals and 103 financing professionals. Key metrics for real estate brokerage and financing activities (excluding other transactions) are as follows:
Three Months Ended March 31,
Real Estate Brokerage
2026
2025
Average number of investment sales professionals
1,636
1,578
Average number of transactions per investment sales professional
0.82
0.74
Average commission per transaction
$
102,457
$
105,210
Average commission rate
1.75
%
1.86
%
Average transaction size (in thousands)
$
5,854
$
5,668
Total number of transactions
1,348
1,175
Total brokerage sales volume (in millions)
$
7,891
$
6,659
Three Months Ended March 31,
Financing (1)
2026
2025
Average number of financing professionals
101
102
Average number of transactions per financing professional
3.94
3.30
Average fee per transaction
$
55,187
$
42,702
Average fee rate
0.71
%
0.75
%
Average transaction size (in thousands)
$
7,754
$
5,721
Total number of transactions
398
337
Total financing sales volume (in millions)
$
3,086
$
1,928
(1)
Operating metrics exclude certain financing fees not directly associated to transactions.
The following table sets forth the number of transactions, sales volume and revenue by commercial real estate market for real estate brokerage:
Three Months Ended March 31,
2026
2025
Change
Real Estate Brokerage
Number
Volume
Revenue
Number
Volume
Revenue
Number
Volume
Revenue
(in millions)
(in thousands)
(in millions)
(in thousands)
(in millions)
(in thousands)
<$1 million
201
$
118
$
5,335
199
$
123
$
5,026
2
$
(5
)
$
309
Private Client Market
($1 – <$10 million)
990
3,283
88,137
832
2,688
77,705
158
595
10,432
Middle Market
($10 – <$20 million)
80
1,038
19,656
85
1,202
20,889
(5
)
(164
)
(1,233
)
Larger Transaction Market (≥$20 million)
77
3,452
24,984
59
2,646
20,002
18
806
4,982
1,348
$
7,891
$
138,112
1,175
$
6,659
$
123,622
173
$
1,232
$
14,490
MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for shares and par value)
March 31, 2026 (unaudited)
December 31, 2025
Assets
Current assets:
Cash, cash equivalents, and restricted cash (restricted cash of $11,488 and $11,253 at March 31, 2026 and December 31, 2025, respectively)
$
136,509
$
161,921
Commissions receivable
12,750
14,851
Prepaid expenses
9,908
10,424
Income tax receivable
802
1,962
Marketable debt securities, available-for-sale (amortized cost of $56,560 and $90,557 at
March 31, 2026 and December 31, 2025, respectively, and $0 allowance for credit losses)
56,527
90,564
Advances and loans, net
14,406
15,299
Other assets, current
14,200
14,189
Total current assets
245,102
309,210
Property and equipment, net
24,403
23,877
Operating lease right-of-use assets, net
70,818
74,333
Marketable debt securities, available-for-sale (amortized cost of $142,322 and $145,570
at March 31, 2026 and December 31, 2025, respectively, and $0 allowance for credit losses)
141,512
145,701
Assets held in rabbi trust
13,165
13,476
Deferred tax assets, net
44,035
44,586
Goodwill and other intangible assets, net
41,172
41,662
Advances and loans, net
146,743
147,215
Other assets, non-current
28,013
27,120
Total assets
$
754,963
$
827,180
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses
$
11,241
$
11,021
Deferred compensation and commissions
33,707
57,463
Operating lease liabilities
18,320
18,796
Accrued bonuses and other employee related expenses
10,985
23,856
Other liabilities, current
18,275
10,311
Total current liabilities
92,528
121,447
Deferred compensation and commissions
29,371
35,416
Operating lease liabilities
56,714
59,459
Other liabilities, non-current
7,297
7,755
Total liabilities
185,910
224,077
Commitments and contingencies
—
—
Stockholders’ equity:
Preferred stock, $0.0001 par value:
Authorized shares – 25,000,000; issued and outstanding shares – none at March 31, 2026
and December 31, 2025, respectively
—
—
Common stock, $0.0001 par value:
Authorized shares – 150,000,000; issued and outstanding shares – 37,821,936 and
38,422,993 at March 31, 2026 and December 31, 2025, respectively
4
4
Additional paid-in capital
196,296
192,945
Retained earnings
373,270
409,753
Accumulated other comprehensive (loss) income
(517
)
401
Total stockholders’ equity
569,053
603,103
Total liabilities and stockholders’ equity
$
754,963
$
827,180
MARCUS & MILLICHAP, INC. OTHER INFORMATION (Unaudited)
Adjusted EBITDA Reconciliation
Adjusted EBITDA, which the Company defines as net loss before (i) interest income and other, including interest on marketable debt securities, available-for-sale and cash, cash equivalents, and restricted cash, and net realized gains (losses) on marketable debt securities, available-for-sale, (ii) interest expense, (iii) provision (benefit) for income taxes, (iv) depreciation and amortization, and (v) stock-based compensation. The Company uses Adjusted EBITDA in its business operations to evaluate the performance of its business, develop budgets and measure its performance against those budgets, among other things. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate its overall operating performance. However, Adjusted EBITDA has material limitations as a supplemental metric and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under U.S. generally accepted accounting principles (“U.S. GAAP”). The Company finds Adjusted EBITDA to be a useful management metric to assist in evaluating performance, because Adjusted EBITDA eliminates items related to capital structure, taxes and non-cash items. Considering the foregoing limitations, the Company does not rely solely on Adjusted EBITDA as a performance measure and also considers its U.S. GAAP results. Adjusted EBITDA is not a measurement of the Company’s financial performance under U.S. GAAP and should not be considered as an alternative to net loss, operating loss or any other measures calculated in accordance with U.S. GAAP. Because Adjusted EBITDA is not calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.
A reconciliation of the most directly comparable U.S. GAAP financial measure, net loss, to Adjusted EBITDA is as follows (in thousands):
Three Months Ended March 31,
2026
2025
Net loss
$
(3,100
)
$
(4,422
)
Adjustments:
Interest income and other (1)
(4,052
)
(4,038
)
Interest expense
153
187
Provision (benefit) for income taxes
934
(9,497
)
Depreciation and amortization
2,391
2,849
Stock-based compensation
6,616
6,179
Adjusted EBITDA
$
2,942
$
(8,742
)
(1)
Other includes net realized gains (losses) on marketable debt securities available-for-sale.
Glossary of Terms
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