Marcus & Millichap, Inc. · NYSE:MMI

Marcus & Millichap — Q3 2025 Earnings Presentation

38 slides from Marcus & Millichap's earnings presentation, Nov 7, 2025

  1. Slide 1: Third Quarter 2025 Earnings Conference Call

    2025 Earnings Conference Call November 7, 2025 Third Quarter 2025 1

  2. 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

  3. Slide 3: Conference Call Participants

    CONFERENCE CALL PARTICIPANTS Hessam Nadji President, Chief Executive Officer and Director Steve DeGennaro Chief Financial Officer 3

  4. Slide 4: MMI Financial Highlights

    MMI Financial Highlights

  5. Slide 5: 2025 Third Quarter Highlights

    2025 THIRD QUARTER HIGHLIGHTS Financial Highlights YoY Revenue $193.9 million 15.1% Net Income $0.2 million 104.5% Adjusted EBITDA(1) $6.9 million N/A(2) Operational Highlights YoY Sales Volume $12.2 billion 1.7% Transaction Closings 2,289 15.2% Number of Investment Sales and Financing 1,669 (0.5)%

  6. Slide 6: 2025 Year to Date Highlights

    2025 YEAR TO DATE HIGHLIGHTS Financial Highlights YoY Revenue $511.2 million 12.1% Net Loss $(15.2) million 27.2% Adjusted EBITDA(1) $(0.4) million 95.4% Operational Highlights YoY Sales Volume $33.9 billion 8.6% Transaction Closings 6,065 13.3% Number of Investment Sales and Financing 1,669 (0.5)%

  7. Slide 7: 2025 Third Quarter Brokerage Highlights

    2025 THIRD QUARTER BROKERAGE HIGHLIGHTS YoY Sales Volume $8.4 billion (2.0)% Transaction Closings 1,586 19.2% Number of Investment Sales Professionals as 1,569 (0.3)% of September 30, 2025 Real Estate Brokerage Commissions Revenue $162.2 million 14.2% Revenue by Transactions by Transactions by Trans

  8. Slide 8: 2025 Year to Date Brokerage Highlights

    2025 YEAR TO DATE BROKERAGE HIGHLIGHTS YoY Sales Volume $23.0 billion 7.8% Transaction Closings 4,136 11.6% Number of Investment Sales Professionals as 1,569 (0.3)% of September 30, 2025 Real Estate Brokerage Commissions Revenue $427.2 million 10.4% Revenue by Transactions by Transactions by Transac

  9. Slide 9: 2025 Third Quarter Financing Highlights

    2025 THIRD QUARTER FINANCING HIGHLIGHTS YoY Sales Volume $2.9 billion 34.4% Transaction Closings 406 27.7% Number of Financing Professionals as of 100 (3.8)% September 30, 2025 Financing Fees Revenue $26.3 million 27.7% Transactions by Transactions by Property Type Region Northeast / Other, 17% Mid-

  10. Slide 10: 2025 Year to Date Financing Highlights

    2025 YEAR TO DATE FINANCING HIGHLIGHTS YoY Sales Volume $8.2 billion 45.8% Transaction Closings 1,152 39.8% Number of Financing Professionals as of 100 (3.8)% September 30, 2025 Financing Fees Revenue $70.7 million 32.6% Transactions by Transactions by Property Type Region Northeast / Other, 20% Mid

  11. Slide 11: Market Highlights

    Market Highlights

  12. Slide 12: Job Gains Have Slowed; Trade-Related Concerns May Cause More Deceleration

    JOB GAINS HAVE SLOWED; 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% ** 24 23 22 21 18 17 16 15 14 13 12 20 1 10 * 20 4 20 3 22 20 1 20 20 9 1

  13. Slide 13: Fed Tempered December Rate Cut Expectations; 10-Year Treasury Range-Bound

    THE FED TEMPERED DECEMBER RATE CUT EXPECTATIONS, PACE OF FUTURE CUTS UNCLEAR; 10-YEAR TREASURY LIKELY 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% TIPS/TIPS Inflatio

  14. Slide 14: Headline Inflation Trending Modestly Higher; Tariffs Pose Risk

    HEADLINE INFLATION TRENDING MODESTLY HIGHER; TARIFFS STILL POSE ADDITIONAL INFLATION RISK, KEEPING FED CAUTIOUS Inflation vs. 10-Year Treasury CPI Inflation 10-Year Treasury Core PCE 10.0% 7.5% Rate 5.0% 2.5% 0.0% 24 * 23 22 21 20 19 18 16 17 25 20 20 20 20 20 20 20 20 20 20 * Through September 2025

  15. 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 INMOMENTUM GAINING CURRENT WINDOW 100% 5% 4% 4% 5% 4% 4% 5% 3% 3% 6% 7% 7% 7% 9% 9% 9% 9% 7% 90% 13% 12% 10% 9% 7% 17%

  16. Slide 16: Retail Sales Remain Healthy; Space Demand Positive in Most Property Types

    RETAIL SALES REMAINS HEALTHY; SPACE DEMAND REMAINS POSITIVE 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 surrou

  17. Slide 17: Property Fundamentals Generally Sound by Historical Standards

    PROPERTY FUNDAMENTALS GENERALLY SOUND BY HISTORICAL STANDARDS; Occupancy Trends VARIATIONS WIDENING 100% • Multifamily and industrial aggressively delivered record new completions over the past few years, but seeing 95% significant pullback. Risk of over-supply limited to select Occupancy (%) local

  18. Slide 18: Maturing CRE Loan Volumes Unlikely to Become Disruptive

    MATURING CRE LOAN VOLUMES UNLIKELY TO BECOME DISRUPTIVE AS LENDERS CONTINUE WORKOUTS; RISKS Commercial Real Estate Loan Maturities* VARY WIDELY BY PROPERTY TYPE 1,000 • With the exception of office and self-self- Other Dollar Volume (Billions) 750 storage properties, rent growth and Healthcare appre

  19. Slide 19: CRE Transaction Flow Gaining Momentum, But Uncertainty Weighing

    CRE TRANSACTION FLOW GAINING MOMENTUM, BUT UNCERTAINTY WEIGHING ON PROGRESS Annual U.S. Commercial Real Estate Sales Trends(1) 60 • Transaction count YTD through 3Q 2025 grew an estimated 16% year-over-year while dollar volume Total Transactions (000s) 45 increased 18% year-over-year. • The Federal

  20. Slide 20: CRE Yield Spreads Beginning to Expand; Pricing Still Recalibrating

    COMMERCIAL REAL ESTATE YIELD SPREADS BEGINNING TO EXPAND; Cap Rate/10-Year Treasury Spreads PRICING STILL RECALIBRATING CRE Cap Rate 10-Year Treasury Rate 12% • Recent downturn of interest rates and modestly 10% rising capital flows offering increased prospect 8% of higher transaction flow. Caution,

  21. Slide 21: MMI Market Position

    MMI Market Position

  22. 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

  23. Slide 23: MMI Financial Details

    MMI Financial Details

  24. Slide 24: Total Revenue

    TOTAL REVENUE ($ IN MILLIONS) Q3'24 vs Q3'25 Year-to-Date ‘24 vs ‘25 250 600 12.1% $511.2 500 200 $193.9 $456.0 15.1 % $168.5 400 150 300 100 200 50 100 0 0 Q3'24 Q3'25 YTD '24 YTD '25 24

  25. Slide 25: Brokerage Operating Metrics Q3

    BROKERAGE OPERATING METRICS Q3 2024 vs Q3 2025 Total Sales Volume Total Number of Transactions ($ in billions) 15 2,000 19.2% 1,586 (2.0)% 1,500 1,331 10 $8.5 $8.4 1,000 5 500 0 0 Q3'24 Q3'25 Q3'24 Q3'25 Average Number of Investment Sales Professionals Average Commission Per Transaction ($ in thousa

  26. 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 11.6% 4,136 7.8% 25 $23.0 3,705 $21.4 4,000 20 3,000 15 2,000 10 5 1,000 0 0 YTD '24 YTD '25 YTD '24 YTD '25 Average Number of Investment Sales Professionals Average Commiss

  27. Slide 27: Brokerage Revenue by Market Segment Q3

    BROKERAGE REVENUE BY MARKET SEGMENT Q3 2024 vs Q3 2025 <$1 million Private Client Market ($1 - <$10 million) ($ in thousands) ($ in thousands) 10,000 125,000 16.9% $102,323 41.9% $7,356 100,000 $87,494 7,500 $5,183 75,000 5,000 50,000 2,500 25,000 0 0 Q3'24 Q3'25 Q3'24 Q3'25 Middle Market ($10 - <$2

  28. 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) 20,000 $18,032 375,000 17.9% 11.4% $15,299 300,000 $273,542 15,000 $245,473 225,000 10,000 150,000 5,000 75,000 0 0 YTD '24 YTD '25 YTD '24 YTD '25 Mi

  29. Slide 29: Operating Expense

    OPERATING EXPENSE ($ IN MILLIONS) Q3'24 vs Q3'25 Year-to-Date ‘24 vs ‘25 250 600 $540.3 $495.6 $196.2 500 200 $180.0 400 $316.0 150 $279.7 61.3% of Rev 61.8% of Rev 62.2% of Rev $121.0 62.4% of Rev $104.8 300 100 200 $204.6 $215.6 41.9% of Rev $70.7 $72.5 37.4% of Rev 44.9% of Rev 42.2% of Rev 50 10

  30. Slide 30: Net Income (Loss) and Adjusted EBITDA Performance

    NET INCOME (LOSS) AND ADJUSTED EBITDA PERFORMANCE Q3 2024 vs Q3 2025 Net Income (Loss) Adjusted EBITDA ($ in millions) ($ in millions) $2.0 $8.00 $6.9 104.5% $7.00 $0.2 $6.00 $— $5.00 $4.00 $(2.0) $3.00 $2.00 $(4.0) $1.00 $— $(0.02) $(5.4) $(6.0) $(1.00) Q3'24 Q3'25 Q3'24 Q3'25 30

  31. Slide 31: Net Loss and Adjusted EBITDA Performance

    NET LOSS AND ADJUSTED EBITDA PERFORMANCE YEAR-TO-DATE 2024 vs 2025 Net Loss Adjusted EBITDA ($ in millions) ($ in millions) $— $— 95.4% $(0.4) $(5.0) $(2.0) $(10.0) $(4.0) 27.2% $(15.0) $(6.0) $(15.2) $(20.0) $(8.0) $(20.9) $(8.7) $(25.0) $(10.0) YTD '24 YTD '25 YTD '24 YTD '25 31

  32. 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 Provided By (Used In) Operating Activities Operating Activities (1) ($ in millions) ($ in millions) $60.0 $30.0 $52.2 $20.4 $50.0 $20.0 243.4% $10.0 158.3% $40.0 $— $30.0 $(10.0) $20.0 $15.2 $(20.0) $10.0

  33. Slide 33: Liquidity Position

    LIQUIDITY POSITION Cash and Cash Equivalents and Marketable Debt Securities, Available-For-Sale ($ in millions) 500 (3.2)% $394.2 400 $381.5 300 $240.8 $264.1 200 100 $153.4 $117.4 0 12/31/2024 9/30/2025 Cash and Cash Equivalents Marketable Debt Securities, Available-For-Sale Liquidity position as o

  34. Slide 34: Appendix

    Appendix

  35. Slide 35: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION Adjusted EBITDA, which the Company defines as net income (loss) Three Months Ended Nine Months Ended before (i) interest income and other, including net realized gains September 30, September 30, (losses) on marketable debt securities, available-for-sale and cash, cash

  36. 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

  37. 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

  38. Slide 38: Third Quarter 2025

    2025 Third Quarter 2025

Marcus & Millichap — Q3 2025 Earnings Presentation on 6ix