Marcus & Millichap Reports $145M Revenue in Q1 2025, Operating Loss Improves

Marcus & Millichap, Inc. reported a total revenue of $145.0 million for the first quarter of 2025, marking a 12.3% increase from $129.1 million in the same period of 2024. The growth was primarily driven by a rise in real estate brokerage commissions, which increased to $123.6 million from $109.5 million, reflecting a 12.9% year-over-year increase. Financing fees also saw a significant boost, rising 25.7% to $18.1 million, while other revenue decreased by 36.8% to $3.3 million, largely due to a drop in leasing fees. Despite the increase in revenue, the company reported an operating loss of $17.7 million, an improvement from the $20.1 million loss in the prior year.

The company's total operating expenses rose to $162.7 million, up 9.1% from $149.2 million in the previous year. This increase was mainly attributed to a $11.5 million rise in the cost of services, which includes variable commissions paid to investment sales professionals. Selling, general, and administrative expenses also increased by 3.8% to $71.6 million, driven by higher compensation-related costs and investments in business development. The net loss for the quarter was $4.4 million, a significant reduction from the $10.0 million loss reported in the same quarter of 2024.

In terms of operational metrics, Marcus & Millichap closed 1,706 investment sales and financing transactions during the quarter, with a total sales volume of approximately $9.4 billion. The company operates over 80 offices across the United States and Canada, employing 1,668 investment sales and financing professionals. The average commission per transaction increased to $105,210, while the average transaction size rose to $5.7 million. The company continues to dominate the private client market, which accounted for approximately 63% of its real estate brokerage commissions.

Looking ahead, Marcus & Millichap remains cautious about the economic landscape, particularly in light of recent trade policy changes and their potential impact on commercial real estate demand. The company anticipates that economic uncertainty may affect investor sentiment and transaction activity in the near term. However, it also notes that the fundamentals of the commercial real estate market remain strong, with positive absorption rates across various property types. The company is committed to maintaining its market leadership and is focused on strategic initiatives to enhance its service offerings and expand its market share.