Marcus & Millichap Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw 18% revenue growth, strong gains in brokerage and financing, and a significant improvement in adjusted EBITDA. The company maintained a robust balance sheet, increased share repurchases, and expects continued growth amid ongoing market recovery.
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GDP growth in 2026 is forecast at 2.5%-3%, powered by AI and fiscal stimulus, but job growth will remain weak. Real estate fundamentals are stabilizing, with apartments and retail strong, office recovering, and industrial normalizing. Capital flows are improving as cap rates adjust and supply tightens.
Fiscal Year 2025
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Revenue grew 8.5% in 2025 with significant gains in Adjusted EBITDA and broker headcount. Private Client and financing segments led growth, while large transactions declined. Strong liquidity and disciplined capital returns support a cautiously optimistic 2026 outlook.
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Q3 2025 saw 15% revenue growth and a return to profitability, driven by strong private client and financing segments, despite a $4M legal reserve. Market conditions are improving, with increased lending activity and better price alignment, supporting cautious optimism for continued growth.
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Q2 2025 revenue grew 9% year-over-year to $172 million, with strong gains in financing and private client brokerage, but a decline in large transactions due to market volatility. Net loss widened to $11 million, impacted by a tax methodology change, while the balance sheet remains strong and capital returns continue.
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Revenue rose 12% to $145 million, with strong growth in brokerage and financing segments, though market disruption and tight lending continued to impact private client transactions. Strategic investments and management changes aim to position for recovery, while capital returns to shareholders remain robust.
Fiscal Year 2024
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Q4 2024 saw a 44% revenue surge and a return to profitability, driven by strong brokerage and financing growth, especially in larger transactions. Interest rate volatility and market uncertainty persist, but investments in technology and talent position the firm for long-term growth.
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Third quarter revenue grew 4% year-over-year to $169 million, with adjusted EBITDA at break-even and net loss narrowing to $5.4 million. Institutional capital is returning, financing activity is up, and management expects gradual recovery, though interest rate volatility and restrictive lending remain challenges.
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Q2 revenue declined slightly year-over-year but improved sequentially, with middle market and larger transactions showing growth while private client activity remained challenged. Strong liquidity and continued investments position the company for recovery as interest rates are expected to fall.