Marcus & Millichap, Inc.

Second-quarter total revenue was $203 million, up 18% from $172 million a year ago; first-half revenue was $374 million, also up 18% from $317 million. Brokerage commissions were $167 million, up 18%, with 1,530 brokerage transactions totaling $10 billion, up 11% and 18%, respectively. Financing revenue was $30 million, up 15%, and adjusted EBITDA was $12 million versus $1.5 million last year; net income was $4 million, or $0.10 per share, versus a $11 million loss, or $0.28 per share, last year. For the first half, EPS was $0.02 versus a loss of $0.40, and adjusted EBITDA was $15 million versus a $7 million loss. For Q3, management said pipeline growth is modest year over year, cost of services should be sequentially higher as revenue builds, SG&A should increase modestly, and income tax expense should be $1.5 million to $2 million.

Hessam Nadji characterized the quarter as a strong continuation of Q1 momentum and said it was the company’s best first half since 2022. He emphasized that growth is broadening across private client, middle market, larger transactions, and financing, helped by price discovery, more lender participation, and a more functional market. His tone was constructive but measured: he repeatedly noted that the recovery remains choppy because interest-rate volatility still extends transaction timelines.

Steve DeGennaro highlighted the hard numbers: $203 million of Q2 revenue, $167 million of brokerage commissions, $30 million of financing revenue, $201 million of operating expense, and $12 million of adjusted EBITDA. He said cost of services was 62.4% of revenue, SG&A was 35% of revenue, and the company ended with $345 million in cash, cash equivalents and marketable securities, up from $335 million in Q1. He also noted $24 million of share repurchases in the quarter at an average price of $26.22, a remaining buyback authorization of about $90 million, and a declared semiannual dividend of $0.25 per share payable October 6, 2026.

Analysts asked about competition in private client brokerage, and management said it is seeing nothing unusual beyond normal local and regional competition; it also said the firm is attracting more semi-experienced professionals because the platform and training are gaining recognition. Questions also focused on diversification, margin expansion, and whether prior peak EBITDA levels are achievable; management said it is actively exploring leasing, appraisals, investment management, and further finance expansion, while stressing that revenue leverage and cost discipline should improve profitability as the market normalizes. On staffing, management said around 25% of hires come in with some experience and that internships and fellowships are becoming more important sources of organic growth.