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- **Revenue Growth**: 15% YoY to $194 million, driven by private client (24% volume growth) and financing (28% growth).
- **Profitability**: Non-GAAP EPS $1.08 (15% increase), with $4M legal reserve reducing GAAP net to $0.01/share.
- **Auction Expansion**: 25% market share in commercial auctions, 191 sales.
- **Strategic Investments**: $100M+ in talent retention/amortization to unlock future leverage.
- **Market Recovery**: 15%-20% below pre-pandemic levels, but improving lender activity and pricing.

**【CEO Summary Section】**
- Total revenue increased 15% YoY to $194 million, driven by private client brokerage (up 24% in volume and 22% in transactions) and financing revenue (up 28%).
- Gross margin improved due to cost control, excluding a $4 million legal reserve.
- Auction division grew with 191 sales, accounting for 25% of U.S. commercial property auctions.
- IPA division expanded with new executives, targeting institutional clients.

**【CFO Financial Commentary】**
- GAAP net income: $240,000 ($0.01/share) vs. -$5.4 million (-$0.14/share) last year.
- Non-GAAP EPS: $1.08 (up 15%) vs. $0.94.
- Operating expenses: $196 million (10% YoY increase), with SG&A down 4% ex-reserve.
- Adjusted EBITDA: $6.9 million (vs. breakeven last year).
- $4 million legal reserve for a litigation matter.

**【Q&A Key Highlights】**
- **Hiring Strategy**: Added 29 brokers, focusing on experienced talent for private and institutional markets.
- **Auction Growth**: 25% share of U.S. commercial property auctions, with 191 sales.
- **Legal Reserve**: One-time $4 million reserve for a litigation matter, with strong appeal grounds.
- **Market Outlook**: 15%-20% below pre-pandemic transaction levels, but improving lender participation and price alignment.
- **Scalability**: Amortization of $100 million+ in talent investments will drive operating leverage as market normalizes.

Marcus & Millichap, Inc. (MMI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MMI

MMI fundamentals

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