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1. Company Snapshot

1.a. Company Description

Marcus & Millichap, Inc., an investment brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada.The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, industrial, single-tenant net lease, seniors housing, self-storage, hospitality, medical office, and manufactured housing.It also operates as a financial intermediary that provides commercial real estate capital markets solutions, including senior debt, mezzanine debt, joint venture, and preferred equity, as well as loan sales and consultative/due diligence services to commercial real estate owners, developers, investors, and capital providers.


In addition, the company provides various ancillary services, including research, advisory, and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions.Marcus & Millichap, Inc.was founded in 1971 and is headquartered in Calabasas, California.

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1.b. Last Insights on MMI

Marcus & Millichap's recent performance was negatively impacted by a lack of significant earnings growth, despite a strong pipeline of transactions. The company's Q4 2024 earnings call transcript revealed a cautious outlook, with management citing a slowdown in commercial real estate activity. Additionally, the recent sale of a luxury multifamily asset in Los Angeles, while a positive development, may not have had a significant impact on the company's overall performance. Furthermore, the company's expansion into Canada through its IPA Capital Markets Division may have added complexity to its operations, potentially contributing to the negative drivers.

1.c. Company Highlights

2. Marcus & Millichap's Q3 2025 Earnings: A Strong Quarterly Performance

Marcus & Millichap delivered a robust third quarter with total revenue increasing 15% to $194 million, driven by a 14% year-over-year growth in real estate brokerage commissions to $162 million. The company's adjusted EBITDA for the quarter was $6.9 million, a significant improvement from breakeven in the prior year period. Earnings per share (EPS) came in at $0.09, below analyst estimates of $0.25. The revenue growth was broad-based, with private client brokerage business revenue up 17%, and financing revenue growing 28% year-over-year to $26 million.

Publication Date: Nov -18

📋 Highlights
  • Total Revenue Growth:: Q3 2025 revenue rose 15% YoY to $194 million, driven by a 17% increase in private client brokerage revenue and 35% growth in mid-market segment revenue.
  • Adjusted EBITDA Turnaround:: Adjusted EBITDA reached $7 million ($6.9 million reported) in Q3 2025, compared to breakeven in Q3 2024, with year-to-date EBITDA nearly breakeven versus a $8.7 million loss prior year.
  • Private Client Expansion:: Private client transactions surged 24% in volume and 22% in count, contributing $102 million in revenue (63% of brokerage), up from $87.5 million in Q3 2024.
  • Financing Business Surge:: Financing revenue jumped 28% YoY to $26 million, supported by a 34% rise in transaction volume ($2.9 billion) across 406 deals and 1,100+ closed transactions with 350 lenders.
  • Strong Balance Sheet & Shareholder Returns:: Held $382 million in cash/equivalents, returned $77 million in share repurchases (2.4M shares at $32.03 avg) and $10 million in dividends since Q3 2024, totaling $200 million in 3 years.

Business Segment Performance

The private client business accounted for 63% of brokerage revenue, with transactions growing 22% in count and 24% in volume. The financing business, including MMCC, saw a 34% increase in transaction volume to $2.9 billion across 406 financing transactions. The company's loan sales and advisory division, Mission Capital, also posted solid revenue growth. As Hessam Nadji noted, "We closed over 1,100 financing transactions with nearly 350 separate lenders, enabling our team to pivot when lenders move in and out of the market."

Operating Expenses and Profitability

Total operating expense for the quarter was $196 million, up from $180 million a year ago, largely due to higher cost of services resulting from increased revenue. Adjusted EBITDA margin was 3.6%, an improvement from the prior year period. The company's balance sheet remains strong, with no debt and $382 million in cash, cash equivalents, and marketable securities.

Valuation and Outlook

With a P/S Ratio of 1.47 and an EV/EBITDA of 175.57, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 15.6%. Given the company's strong quarterly performance and signs of market stabilization, including improved listing activity and a stronger pipeline, the outlook appears positive. The company's auction business is also growing, with a team of experts in place to manage and execute auctions. The current P/E Ratio of -166.08 and ROE of -1.09% indicate that the market is still cautious, but the Dividend Yield of 1.76% provides some support to the stock.

3. NewsRoom

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Marcus & Millichap: Cautious Optimism As Q3 2025 Gets Out Of The Red

Nov -25

Source: seekingalpha.com

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Institutional Property Advisors Brokers $107M Sale, $71M in Financing for San Gabriel Valley Multifamily Asset

Nov -24

Source: businesswire.com

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AI, Product Innovation, and Next-Generation Investors Set the Course for the Future of Asset and Wealth Management, MMI-Broadridge Survey Finds

Nov -21

Source: prnewswire.com

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Marcus & Millichap's IPA Capital Markets Arranges $48.4 Million Refinance of Industrial Property in Oklahoma City

Nov -11

Source: businesswire.com

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

Nov -07

Source: seekingalpha.com

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Institutional Property Advisors Brokers $110M Scottsdale Multifamily Asset Sale

Nov -06

Source: businesswire.com

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Canada One Provides Exploration Review of Boundary Zone, Copper Dome Project

Nov -05

Source: newsfilecorp.com

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Institutional Property Advisors Brokers $44M Sale and Arranges $27.4M Financing for LA Multifamily Asset

Oct -30

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.19%)

6. Segments

Real Estate Brokerage Commissions

Expected Growth: 4.83%

Marcus & Millichap's 4.83% growth in Real Estate Brokerage Commissions is driven by increasing commercial property transactions, rising property values, and a strong economy. Additionally, the company's expansion into new markets, strategic acquisitions, and investments in technology have enhanced its market share and revenue growth.

Financing Fees

Expected Growth: 8.27%

Marcus & Millichap's 8.27% growth in Financing Fees is driven by increasing commercial property transactions, expansion of debt and equity financing services, and strategic partnerships. Additionally, the company's diversified client base, experienced financing professionals, and proprietary technology platform contribute to its growth momentum.

Other

Expected Growth: 4.83%

Marcus & Millichap's 4.83% growth is driven by increasing demand for commercial real estate services, expansion into new markets, and strategic acquisitions. The company's diversified revenue streams, including brokerage, financing, and investment sales, contribute to its growth. Additionally, the company's strong brand reputation and experienced professionals enable it to capitalize on market opportunities.

7. Detailed Products

Investment Sales

Marcus & Millichap provides investment sales services for commercial properties, including office buildings, retail centers, apartments, and industrial facilities.

Financing

The company offers financing services, including debt and equity placement, for commercial property owners and investors.

Research and Advisory

Marcus & Millichap provides research and advisory services, including market analysis and valuation services, to help clients make informed investment decisions.

Property Management

The company offers property management services, including leasing, accounting, and maintenance, for commercial properties.

Auction Services

Marcus & Millichap provides auction services for commercial properties, allowing buyers to bid on properties in a competitive process.

8. Marcus & Millichap, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Marcus & Millichap, Inc. is medium due to the presence of alternative commercial real estate investment options, but the company's strong brand and reputation help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Marcus & Millichap, Inc. due to the company's strong market position and the fragmented nature of the commercial real estate market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Marcus & Millichap, Inc. due to the company's dependence on a few large suppliers of commercial real estate services, but the company's scale and market position help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Marcus & Millichap, Inc. due to the high barriers to entry in the commercial real estate market, including the need for significant capital and expertise.

Intensity Of Rivalry

The intensity of rivalry is high for Marcus & Millichap, Inc. due to the competitive nature of the commercial real estate market, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.97%
Debt Cost 3.95%
Equity Weight 88.03%
Equity Cost 9.97%
WACC 9.25%
Leverage 13.60%

11. Quality Control: Marcus & Millichap, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kennedy-Wilson Holdings

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Value: 5.7

Growth: 3.7

Quality: 3.5

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

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Yield: 2.0

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A-Score: 4.0/10

Value: 9.6

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Quality: 5.4

Yield: 0.0

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Volatility: 0.7

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A-Score: 3.9/10

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Quality: 6.5

Yield: 0.0

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Marcus Millichap

A-Score: 3.9/10

Value: 5.1

Growth: 1.4

Quality: 5.0

Yield: 3.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.93$

Current Price

28.93$

Potential

-0.00%

Expected Cash-Flows