Marcus & Millichap Q2 Earnings Call Highlights

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Sat, August 8, 2026 at 10:03 PM GMT+3 6 min read

MMI -0.66%

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Strong Q2 recovery: Revenue rose 18% to $203 million, while net income improved to $4 million from an $11 million loss a year earlier. Adjusted EBITDA increased to $12 million from $1.5 million.
Broad-based transaction growth: Brokerage revenue climbed 18% to $167 million, supported by higher private-client, middle-market and large-deal activity. Financing revenue increased 15% as loan transactions rose 17%, with refinancings making up 47% of quarterly financing revenue.
Cautious but active outlook: Management cited interest-rate volatility and geopolitical and inflation risks as factors extending deal timelines, but said improved liquidity and more realistic pricing are narrowing bid-ask spreads. The company also authorized additional share repurchases, leaving approximately $90 million available, and declared a $0.25 semiannual dividend.

Marcus & Millichap (NYSE:MMI) reported second-quarter 2026 revenue growth of 18%, supported by gains across its brokerage and financing operations, as commercial real estate transaction activity improved from prior-year levels.

Total revenue rose to $203 million from $172 million in the second quarter of 2025. Net income was $4 million, or $0.10 per share, compared with a net loss of $11 million, or $0.28 per share, a year earlier. Adjusted EBITDA increased to $12 million from $1.5 million.

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For the first half, revenue increased 18% to $374 million. Year-to-date adjusted EBITDA was $15 million, compared with a $7 million loss in the prior-year period, while earnings were $0.02 per share versus a loss of $0.40 per share.

Broad-Based Brokerage Growth

President and Chief Executive Officer Hessam Nadji said the company delivered its best first half since 2022, with growth across private-client, middle-market and larger transactions. Brokerage revenue increased 18% year over year to $167 million and represented 82% of total quarterly revenue.

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Marcus & Millichap completed 1,530 brokerage transactions totaling $10 billion in volume during the quarter, representing increases of 11% in transaction count and 18% in volume from the year-earlier period.

Private-client brokerage revenue rose 14% to $106 million.
Middle-market revenue increased 13% to $22 million.
Revenue from transactions above $20 million climbed 43% to $33 million.

Nadji said private-client multifamily and single-tenant retail activity continued to improve as pricing adjusted to higher interest rates and banks and credit unions became more active in lending. Over the past 12 months, private-client multifamily revenue grew 19%, while single-tenant retail revenue rose 16%.

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In the larger-deal market, Nadji said investors have become increasingly selective, favoring top-tier assets in top-tier markets. He said further price adjustments, maturing loans and operating challenges across certain markets and property types have brought more inventory to market at what he described as more realistic prices.

Financing Business Expands

Financing revenue increased 15% to $30 million, driven by a 17% increase in transaction count to 480 loans. Financing dollar volume rose 5% to $4 billion. For the first half, financing revenue rose 29% to $57 million.

Nadji said the company's expansion of IPA Capital Markets, agency-financing capabilities, technology investments and lender relationships contributed to growth. He said Marcus & Millichap has become Freddie Mac and Fannie Mae's largest non-direct multifamily debt originator through its partnership with M&T Bank.

Refinancings accounted for 47% of financing revenue in the quarter, up from 39% a year earlier, as more owners secured new loans. The financing team closed with 207 separate lenders during the quarter and 304 lenders in the first half, according to Nadji.

Costs, Staffing and Capital Returns

Total operating expenses were $201 million, compared with $181 million a year earlier. Cost of services rose to $127 million, or 62.4% of revenue, reflecting higher commissions paid to more senior investment sales and financing professionals.

Selling, general and administrative expenses were essentially flat year over year at $72 million. As a percentage of revenue, SG&A declined to 35% from 42%, which Chief Financial Officer Steve DeGennaro attributed to operating leverage from revenue growth.

The company ended the quarter with 1,575 investment sales professionals, modestly higher than a year earlier. Nadji said the company has increased its reliance on internship and fellowship programs for organic recruiting while continuing to recruit experienced professionals and teams. He said about 25% of hires generally enter with some prior experience.

During the question-and-answer session, DeGennaro said transactions per agent were up approximately 9% to 10% year to date. Nadji said Marcus & Millichap has also been attracting semi-experienced professionals from boutique and regional firms that see advantages in its training and support systems.

The company ended the quarter with $345 million in cash equivalents and marketable securities, up from $335 million at the end of the first quarter. It repurchased approximately 913,000 shares year to date for $24 million at an average price of $26.22 per share, DeGennaro clarified during the call. The board approved additional repurchase authorization, bringing the remaining authorization to about $90 million.

The board also declared a semiannual dividend of $0.25 per share, payable Oct. 6 to shareholders of record on Sept. 15. The company said it has returned more than $251 million to shareholders through dividends and repurchases during the past four years.

Outlook and Strategic Priorities

Management said it entered the third quarter with modest year-over-year pipeline growth, citing recent interest-rate volatility. Nadji said higher Treasury yields and uncertainty related to the Middle East war, energy prices and inflation have extended transaction timelines by making underwriting and deal execution more difficult.

Still, he said seller motivation, improved liquidity and more realistic pricing expectations are helping narrow bid-ask spreads. DeGennaro said third-quarter cost of services as a percentage of revenue is expected to increase sequentially under the company's usual seasonal pattern, while SG&A is expected to rise modestly in dollar terms. Third-quarter income tax expense is expected to range from $1.5 million to $2 million.

Nadji also outlined potential expansion opportunities in leasing, financing, appraisal and consulting, and investment management. He said leasing in multi-tenant retail and industrial could leverage the company's existing brokerage platform, while financing remains a major area for continued expansion. The company is also evaluating strategic acquisitions, particularly in financing-related businesses.

About Marcus & Millichap (NYSE:MMI)

Marcus & Millichap (NYSE: MMI) is a leading commercial real estate brokerage firm focused on investment sales, financing, research and advisory services. Founded in 1971 by George M. Marcus and William A. Millichap, the company has grown to specialize in the marketing of multifamily, retail, office, industrial, hospitality and other commercial property types. Through an extensive network of investment specialists, Marcus & Millichap connects property owners and investors with tailored transactions across a range of asset classes.

The firm offers comprehensive capital markets solutions, including debt and equity placement, structured finance, and customized financing programs.

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