Marcus Millichap 2025 Q3 Earnings Record Revenue, Net Income Reverses 104.5% Loss

Marcus & Millichap (MMI) delivered a strong performance in Q3 2025, surpassing revenue expectations while returning to profitability. The company reported a 15.9% year-over-year revenue increase to $188.46 million, with net income swinging to $240,000—a 104.5% improvement from a $5.38 million loss in 2024 Q3. Guidance for Q4 points to sequential revenue growth, aligning with normal seasonality, though cost pressures and a $4 million legal reserve remain near-term headwinds.

Revenue

Marcus & Millichap’s total revenue surged 15.9% to $188.46 million in Q3 2025, driven by robust performance across its core segments. Real estate brokerage commissions accounted for the lion’s share, reaching $162.17 million, a 14.2% year-over-year increase. Financing fees also contributed significantly, growing 27.7% to $26.29 million, reflecting improved lending conditions. Other revenue, including leasing and advisory services, added $5.43 million. The firm’s private client brokerage business saw a 17% revenue increase and a 22% rise in transaction volume, underscoring its role as a key growth driver.

Earnings/Net Income

The company’s profitability rebounded sharply, with net income jumping to $240,000 in Q3 2025, compared to a $5.38 million loss in the prior-year period. Earnings per share (EPS) improved from -$0.14 to $0.01, marking a 107.1% positive swing. This turnaround reflects cost discipline and strategic investments, though a $4 million legal reserve charge in the quarter dampened results. The EPS result, while a significant improvement, still missed the $0.05 consensus estimate.

Post-Earnings Price Action Review

The stock price of Marcus & Millichap dipped 4.06% during the latest trading day but edged up 0.21% for the week and climbed 3.61% month-to-date. A post-earnings strategy of buying shares on the report date and holding for 30 days yielded modest gains, with an average annual return of approximately 5%. However, this underperformed the S&P 500’s 15% return over the same period, highlighting the strategy’s limited effectiveness compared to broader market trends.

CEO Commentary

CEO Hessam Nadji emphasized the company’s resilience, noting a 15% YoY revenue increase driven by private client brokerage growth and mid-market expansion. Challenges included a 12% decline in $20M+ deals due to tough prior-year comparisons. Strategic priorities include expanding institutional client outreach, integrating sales and financing teams, and leveraging AI for efficiency. Nadji expressed cautious optimism about Fed rate cuts, asset price adjustments, and reduced construction as tailwinds for 2026.

Guidance

The company expects Q4 2025 revenue to grow sequentially, aligning with normal year-end seasonality. Cost of services as a percentage of revenue is projected to rise with growth, while SG&A expenses will increase modestly, excluding the $4M legal reserve. Tax expenses are forecasted between $4M–$6M for Q4. Management anticipates continued sequential business improvement as market alignment and transaction activity normalize.

Additional News

Marcus & Millichap’s auction division, launched in 2022, closed 191 sales in Q3, capturing an estimated 25% share of U.S. commercial property auctions. The firm also added two senior executives to its IPA division: Andrew Laehy (Multifamily) and Dags Chen (Research), both with over 20 years of institutional experience. Meanwhile, a $4 million legal reserve charge—stemming from a litigation case the company plans to appeal—impacted Q3 results. The balance sheet remains strong, with $382 million in cash and equivalents, up $49 million from the previous quarter.