Marcus Millichap 2025 Q2 Earnings Wider Losses Amid Revenue Growth

Marcus & Millichap (MMI) reported its fiscal 2025 Q2 earnings on August 7, 2025, showing an 8.8% year-over-year revenue increase to $172.3 million, but wider net losses of $0.28 per share, reflecting ongoing challenges in the commercial real estate market and operational expenses. The company's performance fell short of expectations, with no material guidance adjustments provided.

Revenue
Marcus & Millichap’s total revenue for Q2 2025 increased by 8.8% year-over-year to $172.3 million. Real estate brokerage commissions rose by 4.4% to $141.4 million, driven by an 11.8% increase in total sales volume. The Private Client Market segment saw a 10.3% revenue increase to $93.5 million, while the combined Middle Market and Larger Transaction Market revenue declined by 6.6% to $42.3 million, reflecting a challenging comparison to the prior year’s rapid growth. Financing fees surged by 43.5% to $26.3 million, fueled by an 86.0% increase in total financing volume. Despite these gains, the average commission rate and fee rate both declined slightly, impacting overall profitability.

Earnings/Net Income
Marcus & Millichap’s net loss widened to $11.04 million, or $0.28 per diluted share, in Q2 2025, a 99.3% increase from $5.54 million, or $0.14 per diluted share, in the same period the prior year. The loss per share included $0.19 related to a change in tax methodology. Operating expenses rose to $181.3 million from $166.4 million, driven by higher cost of services and selling, general, and administrative expenses. The company reported Adjusted EBITDA of $1.5 million, a marginal improvement compared to $1.4 million in Q2 2024. The EPS result reflects deteriorating performance amid rising costs and a challenging market environment.

Price Action
The stock price of Marcus & Millichap has experienced a significant downturn, dropping 7.05% during the latest trading day, 7.77% over the most recent full trading week, and 8.79% month-to-date. This continued sell-off highlights investor skepticism about the company’s ability to improve profitability in the near term.

Post-Earnings Price Action Review
Following its Q2 2025 earnings report, Marcus & Millichap shares were down -28.69% over the 30-day period, significantly underperforming the benchmark return of 51.69%. The investment strategy of buying shares after a revenue raise on the report date has been unprofitable, with a CAGR of -10.81% and no maximum drawdown. The volatility of 31.40% underscores the market's uncertainty around the company's outlook and its ability to deliver consistent returns.

CEO Commentary
Hessam Nadji, President and Chief Executive Officer of Marcus & Millichap, emphasized the company’s resilience in a volatile global market and tariff uncertainty. He noted a notable increase in activity within the Private Client segment and strong performance in the financing business, attributing these gains to improving capital availability and narrowing bid/ask spreads. Despite the uneven recovery and cautious investor sentiment, Mr. Nadji expressed optimism about a growing pipeline of listings and incremental gains in transaction activity. He emphasized the company’s focus on operational efficiency, strategic investment, and long-term value creation, positioning Marcus & Millichap to adapt to evolving market conditions.

Guidance
Marcus & Millichap did not provide specific quantitative guidance for future periods but remained optimistic about its core private client and larger transaction segments. The company expects to continue benefiting from healthy real estate fundamentals, steady demand, and disciplined new supply in most sectors. Management emphasized its commitment to strategic investment in its platform and long-term value creation for clients and shareholders as it navigates the current market environment.

Additional News
Marcus & Millichap announced a semi-annual regular dividend of $0.25 per share, totaling approximately $10.2 million, to be paid on October 6, 2025. The company also repurchased 242,821 shares of common stock at an average price of $30.47 per share during the six months ended June 30, 2025, totaling $7.4 million. Since August 2022, the company has repurchased 2,384,243 shares at an average price of $32.06 per share, totaling $76.4 million. The board has approximately $63.6 million remaining under its share repurchase program, which has no time limit. These capital allocation moves reflect the company’s commitment to returning value to shareholders, even as it continues to face earnings challenges.