Marcus & Millichap Reports 8.8% Revenue Growth but Incurred $11M Net Loss in Q2 2025

Marcus & Millichap, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $172.3 million, an increase of 8.8% from $158.4 million in the same period last year. The growth was primarily driven by a rise in real estate brokerage commissions, which reached $141.4 million, up from $135.4 million, and a significant increase in financing fees, which surged 43.5% to $26.3 million. However, other revenue sources saw a slight decline, totaling $4.6 million compared to $4.7 million in the prior year. Despite the revenue growth, the company reported a net loss of $11.0 million, a substantial increase from a loss of $5.5 million in the previous year.

In the first half of 2025, total revenue rose to $317.3 million, marking a 10.4% increase from $287.5 million in the same period of 2024. Real estate brokerage commissions accounted for the majority of this revenue, totaling $265.0 million, up 8.2% year-over-year. Financing fees also contributed significantly, increasing by 35.7% to $44.4 million. Operating expenses for the first half of the year were $344.1 million, up from $315.6 million, primarily due to higher costs associated with services and selling, general, and administrative expenses.

The company experienced notable operational changes, including a reduction in cash and cash equivalents, which fell to $86.0 million from $153.4 million at the end of 2024. This decrease was attributed to cash flows used in operating activities, which totaled $31.8 million for the first half of 2025, a significant improvement from $50.2 million in the same period of 2024. The company also reported a decrease in its employee headcount, with 1,640 investment sales and financing professionals as of June 30, 2025, down from 1,620 a year earlier.

Strategically, Marcus & Millichap continues to focus on expanding its market presence, operating over 80 offices across the U.S. and Canada. The company has also maintained a strong position in the private client market, which contributed approximately 66% of its real estate brokerage commissions during the second quarter. The firm is actively managing its investments in marketable debt securities, with a fair value of $246.7 million as of June 30, 2025, and has recorded an allowance for credit losses of $1.6 million.

Looking ahead, Marcus & Millichap's management expressed cautious optimism regarding the commercial real estate market, citing potential challenges from economic uncertainties, interest rate fluctuations, and evolving investor sentiment. The company anticipates that its strategic initiatives, including a focus on talent acquisition and retention, will position it well for future growth. However, the outlook remains contingent on broader economic conditions and market dynamics, which could impact transaction volumes and overall performance.