Marcus & Millichap, Inc. · NYSE:MMI
Marcus & Millichap — Q2 2025 Earnings Presentation
38 slides from Marcus & Millichap's earnings presentation, Aug 7, 2025
Slide 1: Second Quarter 2025 Earnings Conference Call
2025 Earnings Conference Call August 7, 2025 Second Quarter 2025 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements, including our expectations regarding the long-term outlook of the commercial real estate transaction market and our positioning within it, our belief relating to the Company’s long- term growth, our assessment of the k
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Hessam Nadji President, Chief Executive Officer and Director Steve DeGennaro Chief Financial Officer 3
Slide 4: MMI Financial Highlights
MMI Financial Highlights
Slide 5: 2025 Second Quarter Highlights
2025 SECOND QUARTER HIGHLIGHTS Financial Highlights YoY Revenue $172.3 million 8.8% Net Loss $(11.0) million 99.3% Adjusted EBITDA(1) $1.5 million 1.0% Operational Highlights YoY Sales Volume $12.3 billion 29.9% Transaction Closings 2,070 15.0% Number of Investment Sales and Financing 1,640 (5.0)% P
Slide 6: 2025 Year to Date Highlights
2025 YEAR TO DATE HIGHLIGHTS Financial Highlights YoY Revenue $317.3 million 10.4% Net Loss $(15.5) million (0.4)% Adjusted EBITDA(1) $(7.3) million 15.7% Operational Highlights YoY Sales Volume $21.7 billion 13.0% Transaction Closings 3,776 12.2% Number of Investment Sales and Financing 1,640 (5.0)
Slide 7: 2025 Second Quarter Brokerage Highlights
2025 SECOND QUARTER BROKERAGE HIGHLIGHTS YoY Sales Volume $8.0 billion 11.8% Transaction Closings 1,375 8.1% Number of Investment Sales Professionals as 1,540 (5.2)% of June 30, 2025 Real Estate Brokerage Commissions Revenue $141.4 million 4.4% Revenue by Transactions by Transactions by Transaction
Slide 8: 2025 Year to Date Brokerage Highlights
2025 YEAR TO DATE BROKERAGE HIGHLIGHTS YoY Sales Volume $14.7 billion 14.4% Transaction Closings 2,550 7.4% Number of Investment Sales Professionals as 1,540 (5.2)% of June 30, 2025 Real Estate Brokerage Commissions Revenue $265.0 million 8.2% Revenue by Transactions by Transactions by Transaction S
Slide 9: 2025 Second Quarter Financing Highlights
2025 SECOND QUARTER FINANCING HIGHLIGHTS YoY Sales Volume $3.4 billion 86.0% Transaction Closings 409 50.4% Number of Financing Professionals as of 100 (1.0)% June 30, 2025 Financing Fees Revenue $26.3 million 43.5% Transactions by Transactions by Property Type Region Southeast, 14% Northeast / Othe
Slide 10: 2025 Year to Date Financing Highlights
2025 YEAR TO DATE FINANCING HIGHLIGHTS YoY Sales Volume $5.3 billion 52.7% Transaction Closings 746 47.4% Number of Financing Professionals as of 100 (1.0)% June 30, 2025 Financing Fees Revenue $44.4 million 35.7% Transactions by Transactions by Property Type Region Northeast / Other, 20% Mid-Atlant
Slide 11: Market Highlights
Market Highlights
Slide 12: Job Gains Have Slowed; Unemployment Rate
JOB GAINS HAVE SLOWED IN ALIGNMENT WITH THE FEDERAL RESERVE’S STRATEGY; RECENT TRADE-RELATED CONCERNS MAY CAUSE MORE DECELERATION Annual Employment Growth Unemployment Rate 10 7% 2023: 2.6M 2024: 2.0M 2025*: 1.1M 5 6% Employment Growth (Millions) Unemployment Rate 0 5% -5 4% -10 3% 21 22 23 24 ** 18
Slide 13: Federal Reserve Taking Cautious Approach in 2025
THE FEDERAL RESERVE TAKING CAUTIOUS APPROACH IN 2025 AS THEY AWAIT POLICY CLARITY; 10-YEAR TREASURY LIKELY TO REMAIN RANGE- BOUND 10-Year Treasury vs. The Federal Reserve Funds Rate Inflation Adjusted Federal Reserve Balance Sheet 10-Year Treasury Federal Reserve Funds Rate Notes & Bonds MBS 6.0% TI
Slide 14: Inflation Has Trended Lower; Higher Tariffs Pose Some Risk
INFLATION HAS TRENDED LOWER; HIGHER TARIFFS POSE SOME INFLATION RISK Inflation vs. 10-Year Treasury CPI Inflation 10-Year Treasury Core PCE 10.0% 7.5% Rate 5.0% 2.5% 0.0% * 19 20 21 22 16 23 17 24 18 25 20 20 20 20 20 20 20 20 20 20 * Through June 14 Sources: BLS, Federal Reserve, BEA
Slide 15: Private Investors Dominate U.S. Commercial Real Estate
PRIVATE PRIVATEINVESTORS DOMINATE INVESTORS DOMINATE U.S. U.S. COMMERCIAL COMMERCIAL REAL REAL ESTATE; ESTATE; INSTITUTIONAL INVESTORSGRADUALLY INSTITUTIONAL INVESTORS MORE HESITANT IN CURRENT RE-ENTERING WINDOW THE MARKET 100% 3% 5% 4% 4% 5% 4% 4% 5% 3% 6% 7% 7% 10% 7% 90% 9% 9% 9% 7% 13% 12% 10% 9
Slide 16: Retail Sales Growth Remains Positive; Space Demand Gaining
RETAIL SALES GROWTH REMAINS POSITIVE; SPACE DEMAND GAINING IN MOST PROPERTY TYPES Core Retail Sales Growth Trends • Wage gains and robust savings have 10.0% sustained retail sales; despite Y-O-Y Percent Change expectations of a slowdown, consumer 7.5% strength remains positive. • Uncertainty surroun
Slide 17: Property Fundamentals Generally Sound; Variations Widening
PROPERTY FUNDAMENTALS GENERALLY SOUND BY HISTORICAL STANDARDS; Occupancy Trends HOWEVER, VARIATIONS WIDENING 100% • Multifamily and industrial aggressively delivered record new completions over the past few years, but seeing 95% major pullback. Risk of over-supply limited to select Occupancy (%) loc
Slide 18: Maturing CRE Loan Volumes Concerning but Unlikely Disruptive
MATURING CRE LOAN VOLUMES CONCERNING BUT UNLIKELY TO BECOME DISRUPTIVE AS LENDERS Commercial Real Estate Loan Maturities* CONTINUE WORKOUTS; RISKS VARY WIDELY BY PROPERTY TYPE 1,000 • With the exception of office properties, rent Other Dollar Volume (Billions) 750 growth and appreciation has been he
Slide 19: Bid/Ask Spread Began to Tighten in First Quarter
BID/ASK SPREAD BEGAN TO TIGHTEN IN FIRST QUARTER, BUT RECENT WAVE Annual U.S. Commercial Real Estate Sales Trends(1) OF UNCERTAINTY SLOWING PROGRESS 60 • Transaction count in 1H 2025 grew an estimated Total Transactions (000s) 45 15% year-over-year while dollar volume increased 16% year-over-year. 3
Slide 20: CRE Yield Spreads Challenged; Pricing Recalibrating
COMMERCIAL REAL ESTATE YIELD SPREADS CHALLENGED; PRICING Cap Rate/10-Year Treasury Spreads RECALIBRATING TO HIGHER CRE Cap Rate 10-Year Treasury Rate INTEREST RATES 12% • Rapid rise of interest rates, tightened lender 10% underwriting, and slowing economic growth 8% ahead fueled uncertainty in valua
Slide 21: MMI Market Position
MMI Market Position
Slide 22: MMI Well-Aligned with the CRE Market
MMI WELL-ALIGNED WITH THE CRE MARKET Private Client Segment Boasts Largest Transaction and Commission Pool Opportunity • Private client market typically consists of sales $1 million to • Influenced by personal drivers that result in buying/selling/ <$10 million. refinancing properties, as well as ma
Slide 23: MMI Financial Details
MMI Financial Details
Slide 24: Total Revenue
TOTAL REVENUE ($ IN MILLIONS) Q2'24 vs Q2'25 Year-to-Date ‘24 vs ‘25 250 400 10.4% $317.3 200 300 $287.5 8.8 % $172.3 $158.4 150 200 100 100 50 0 0 Q2'24 Q2'25 YTD '24 YTD '25 24
Slide 25: Brokerage Operating Metrics Q2
BROKERAGE OPERATING METRICS Q2 2024 vs Q2 2025 Total Sales Volume Total Number of Transactions ($ in billions) 15 2,000 1,500 8.1% 1,375 1,272 10 11.8% $8.0 $7.2 1,000 5 500 0 0 Q2'24 Q2'25 Q2'24 Q2'25 Average Number of Investment Sales Professionals Average Commission Per Transaction ($ in thousand
Slide 26: Brokerage Operating Metrics Year-to-Date
BROKERAGE OPERATING METRICS YEAR-TO-DATE 2024 vs 2025 Total Sales Volume Total Number of Transactions ($ in billions) 30 5,000 25 4,000 7.4% 20 14.4% $14.7 3,000 2,374 2,550 15 $12.8 2,000 10 5 1,000 0 0 YTD '24 YTD '25 YTD '24 YTD '25 Average Number of Investment Sales Professionals Average Commiss
Slide 27: Brokerage Revenue by Market Segment Q2
BROKERAGE REVENUE BY MARKET SEGMENT Q2 2024 vs Q2 2025 <$1 million Private Client Market ($1 - <$10 million) ($ in thousands) ($ in thousands) 7,500 150,000 5.6% $5,651 $5,352 10.3% 5,000 100,000 $93,514 $84,816 2,500 50,000 0 0 Q2'24 Q2'25 Q2'24 Q2'25 Middle Market ($10 - <$20 million) Larger Trans
Slide 28: Brokerage Revenue by Market Segment Year-to-Date
BROKERAGE REVENUE BY MARKET SEGMENT YEAR-TO-DATE 2024 vs 2025 <$1 million Private Client Market ($1 - <$10 million) ($ in thousands) ($ in thousands) 17,500 300,000 15,000 250,000 12,500 5.5% 8.4% $10,116 $10,676 200,000 $171,219 10,000 $157,979 150,000 7,500 100,000 5,000 50,000 2,500 0 0 YTD '24 Y
Slide 29: Operating Expense
OPERATING EXPENSE ($ IN MILLIONS) Q2'24 vs Q2'25 Year-to-Date ‘24 vs ‘25 200 400 $181.3 $344.1 $166.4 350 $315.6 150 300 $106.6 61.9% of Rev 250 $195.0 61.4% of Rev 61.9% of Rev $98.1 60.9% of Rev $174.9 100 200 150 $71.5 41.5% of Rev $143.1 45.1% of Rev 41.1% of Rev $65.0 46.6% of Rev $133.9 50 100
Slide 30: Net Loss and Adjusted EBITDA Performance Q2
NET LOSS AND ADJUSTED EBITDA PERFORMANCE Q2 2024 vs Q2 2025 Net Loss Adjusted EBITDA ($ in millions) ($ in millions) $— $2.0 $(2.0) 1.0% $1.6 $1.4 $1.5 $(4.0) $1.2 99.3% $(6.0) $(5.5) $0.8 $(8.0) $0.4 $(10.0) $(11.0) $(12.0) $— Q2'24 Q2'25 Q2'24 Q2'25 30
Slide 31: Net Loss and Adjusted EBITDA Performance Year-to-Date
NET LOSS AND ADJUSTED EBITDA PERFORMANCE YEAR-TO-DATE 2024 vs 2025 Net Loss Adjusted EBITDA ($ in millions) ($ in millions) $— $— $(2.0) $(5.0) $(4.0) $(10.0) $(6.0) 15.7% (0.4)% $(15.0) $(7.3) $(15.5) $(15.5) $(8.0) $(8.6) $(20.0) $(10.0) YTD '24 YTD '25 YTD '24 YTD '25 31
Slide 32: Cash Flows Provided By (Used In) Operating Activities
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES QTD Cash Flows Provided By YTD Cash Flows Used In Operating Activities Operating Activities (1) ($ in millions) ($ in millions) $25.0 $— $21.0 $(10.0) $20.0 $(20.0) 2522.4% $15.0 (36.6)% $(30.0) $(31.8) $10.0 $(40.0) $5.0 $(50.0) $(50.2) $.8 $— $
Slide 33: Liquidity Position
LIQUIDITY POSITION Cash and Cash Equivalents and Marketable Debt Securities, Available-For-Sale ($ in millions) 500 (15.6)% $394.2 400 $332.6 300 $240.8 200 $246.6 100 $153.4 $86.0 0 12/31/2024 6/30/2025 Cash and Cash Equivalents Marketable Debt Securities, Available-For-Sale Liquidity position as o
Slide 34: Appendix
Appendix
Slide 35: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Adjusted EBITDA, which the Company defines as net loss before (i) Three Months Ended Six Months Ended interest income and other, including net realized gains (losses) on June 30, June 30, marketable debt securities, available-for-sale and cash, cash equivalents, and re
Slide 36: Company Overview
NATIONAL PLATFORM FOCUSED ON REAL ESTATE INVESTMENT BROKERAGE • Over 50 years of experience dedicated to perfecting real estate investment brokerage • Designed to maximize real estate value, facilitate investment options by geography and property type, and create liquidity for investors MARKET LEADE
Slide 37: Illustrative MMI Earnings Model
ILLUSTRATIVE MMI EARNINGS MODEL Investment Productivity Transaction Commission Sales Agents Value Rate Revenue Investment Financing & Cost of Sales Other SG&A(1) EBITDA(2) Services Revenue Revenue 1. Includes stock-based compensation 2. EBITDA is not a measurement of our financial performance under
Slide 38: Second Quarter 2025
2025 Second Quarter 2025