Marcus & Millichap Inc. reported third‑quarter 2025 revenue of $193.9 million, a 15.1 % year‑over‑year increase that fell slightly below the consensus estimate of $195.7 million. Net income turned positive at $0.2 million, translating to a GAAP earnings per share of $0.01, a miss of $0.04 against the $0.05 consensus. The company’s brokerage commissions rose 14.2 % to $162.2 million, while financing fees grew 27.7 % to $26.3 million, reflecting a stronger mix toward higher‑margin private‑client transactions.
The revenue growth was driven by a 14.2 % increase in brokerage commissions, largely from a higher volume of private‑client deals and a modest lift in average commission rates. Financing fees, which are a key high‑margin segment, expanded 27.7 % as the firm secured more loan‑to‑value transactions and leveraged its institutional relationships. Despite these gains, the cost of services climbed to 62.4 % of revenue, up 20 basis points from the same period last year, indicating rising operating expenses that offset some of the revenue upside.
Operating income improved to a modest $5.4 million, a turnaround from the $5.4 million loss reported in Q2 2025. The improvement was largely due to the higher mix of private‑client and financing work, which have higher gross margins, and to incremental cost controls in the brokerage division. However, the cost of services increase and the impact of a $4 million litigation accrual—recorded as an $0.08 per‑share charge—kept GAAP EPS below expectations.
Adjusted figures paint a more favorable picture. Adjusted earnings per share were $0.09, and adjusted EBITDA reached $6.9 million, a significant beat over the $600,000 consensus estimate. The adjusted numbers exclude the litigation accrual and other one‑time items, highlighting the underlying operational strength of the business. The discrepancy between GAAP and adjusted results underscores the material effect of the litigation charge on the reported earnings.
Management noted that the company’s “remain on offense” strategy is delivering results, citing continued investment in technology platforms and talent acquisition. CEO Hessam Nadji emphasized that the firm is focusing on expanding its private‑client and institutional market presence, while CFO Steve DeGennaro highlighted the importance of cost discipline amid rising operating expenses. The company did not provide new forward guidance, but the strong adjusted EBITDA beat suggests confidence in sustaining profitability as the commercial‑real‑estate market recovers.
The market reaction was muted, with the stock trading flat after the release. Investors weighed the revenue growth against the GAAP EPS miss driven by the litigation accrual and the slight revenue shortfall relative to consensus. The adjusted EBITDA beat, however, provided a positive signal about the company’s core operating performance.
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