Financial Data and Key Metrics Changes - The company reported record shipments for Q2 2025, achieving a production rate of 7 million tonnes, which is up 19% year on year [4] - The net FOB unit revenue increased by approximately 41% to $72 per tonne, contributing to a significant margin improvement [5][6] - The cash balance has built up nicely, with a trade receivables balance of around $25 million as of June 30 [25][36] Business Line Data and Key Metrics Changes - Operational results showed a reasonable performance despite challenges, with a target of 1 to 1.9 million tonnes more volume this year [9] - The company faced channel restrictions due to a tropical storm, impacting shipping capacity and resulting in a loss of approximately 1,400 tonnes per barge [7][8] Market Data and Key Metrics Changes - The bauxite market is structurally positive, with significant volatility observed in alumina pricing, affecting customer profitability [10][12] - Record imports of bauxite into China were noted, with over 100 million tonnes imported in the first half of the year, indicating strong demand [14] - The Guinea government's restrictions on mining leases have increased, now affecting around 70 million tonnes of annualized capacity, leading to potential market volatility [17][18] Company Strategy and Development Direction - The company is focusing on executing its expansion plans and expects to maintain a favorable market position despite anticipated volatility [50] - Exploration activities are set to commence, including greenfield projects and pit extensions, to enhance resource availability [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in cash generation potential and margin improvements, anticipating a reduction in site costs as production rates increase [24][49] - The company is preparing for potential volatility in the bauxite market but believes its cost structure will allow it to weather pricing fluctuations [50][51] Other Important Information - The company has fully paid all deferred royalties, marking a significant milestone [26] - A restructuring of the hedge book on foreign exchange has been completed, improving the company's position relative to current spot rates [27] Q&A Session Summary Question: What caused the drop in shipping costs? - The drop in shipping costs is attributed to long-term contracts signed last year and reduced penalties due to improved contract specifications [32][34] Question: Confirmation of the trade receivables balance? - The trade receivables balance of approximately $25 million as of June 30 is confirmed [36] Question: Are state royalties based on FOB or CIF revenue? - State royalties are based on FOB revenue and will continue for the life of the mine [37] Question: Is there a permanent solution for silt buildup in the river? - The company is exploring options for maintenance and potential dredging programs to address silt buildup, but no immediate solutions are expected [38][46] Question: Expectations for site costs in the next quarter? - A reduction in site costs is anticipated as production rates increase, with expectations to reach mid-25s [49]

Bold Ventures Reports Positive Results of MMI(TM) Soil Survey on Its Burchell Property July 21, 2025 8:00 AM EDT | Source: Bold Ventures Inc. concentrations for 53 elements. The technical information in this news release was reviewed and approved by Coleman Robertson, B.Sc., P. Geo., the Company's V.P. Exploration and a qualified person (QP) for the purposes of NI 43-101. Toronto, Ontario--(Newsfile Corp. - July 21, 2025) - Bold Ventures Inc. (TSXV: BOL) (the "Company" or "Bold") is pleased to report that t ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial information, including statements, management's analysis, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Marcus & Millichap's unaudited condensed consolidated financial statements for Q1 2025, showing a net loss of $4.4 million, an improvement from the prior year [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $802.0 million and liabilities to $184.5 million by March 31, 2025, primarily due to changes in marketable securities and deferred compensation Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents, and restricted cash | $149,704 | $153,445 | | Marketable debt securities, available-for-sale (current & non-current) | $180,494 | $240,814 | | Total assets | $802,024 | $869,800 | | **Liabilities** | | | | Deferred compensation and commissions (current) | $29,523 | $67,197 | | Total liabilities | $184,471 | $238,982 | | **Stockholders' equity** | | | | Total stockholders' equity | $617,553 | $630,818 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues increased to $145.0 million in Q1 2025, resulting in a net loss of $4.4 million, a significant improvement from the prior year Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $145,038 | $129,104 | | Real estate brokerage commissions | $123,622 | $109,475 | | Financing fees | $18,130 | $14,427 | | Total operating expenses | $162,749 | $149,206 | | Operating loss | $(17,711) | $(20,102) | | Net loss | $(4,422) | $(9,987) | | Diluted loss per share | $(0.11) | $(0.26) | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss improved to $4.1 million in Q1 2025, driven by a smaller net loss and positive other comprehensive income Comprehensive Loss Summary (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss | $(4,422) | $(9,987) | | Total other comprehensive income (loss) | $353 | $(508) | | **Comprehensive loss** | **$(4,069)** | **$(10,495)** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to $617.6 million in Q1 2025, primarily due to net loss and dividend payments, partially offset by stock-based compensation - Key activities affecting stockholders' equity in Q1 2025 included a net loss of **$4.4 million**, dividends of **$10.2 million**, and stock-based compensation of **$6.2 million**[18](index=18&type=chunk) - The company repurchased **12,538 shares** of common stock for **$425,000** during the quarter[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $52.8 million, while investing activities provided $57.2 million, leading to a $3.7 million decrease in cash and equivalents Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(52,841) | $(51,021) | | Net cash provided by (used in) investing activities | $57,168 | $(21,601) | | Net cash used in financing activities | $(8,072) | $(7,500) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(3,741)** | **$(80,197)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, single segment operations, and commitments, including a strategic alliance with MTRCC - The company's revenue is primarily from real estate brokerage commissions, recognized upon transaction completion, and financing fees, recognized when a loan closes[36](index=36&type=chunk)[37](index=37&type=chunk) - The company operates as a single reportable segment: commercial real estate services[127](index=127&type=chunk) - As part of a strategic alliance with MTRCC, the company has a maximum aggregate loan guarantee obligation of **$326.3 million** as of March 31, 2025, for which it has recorded an allowance for loss-sharing of **$159,000**[133](index=133&type=chunk) - On February 6, 2025, the Board declared a semi-annual dividend of **$0.25 per share**, totaling **$10.2 million**[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting a 12.3% revenue increase, key market factors, and the company's liquidity position [Overview](index=31&type=section&id=Overview) The company, a leading commercial real estate services firm, closed 1,706 transactions totaling $9.4 billion in Q1 2025, with private client market as a key revenue driver Q1 2025 Real Estate Brokerage Transactions by Market (dollars in millions) | Market Segment | Number of Transactions | Sales Volume | Revenue (thousands) | | :--- | :--- | :--- | :--- | | <$1 million | 199 | $123 | $5,026 | | Private Client ($1 – <$10M) | 832 | $2,688 | $77,705 | | Middle Market ($10 – <$20M) | 85 | $1,202 | $20,889 | | Larger Transaction (≥$20M) | 59 | $2,646 | $20,003 | | **Total** | **1,175** | **$6,659** | **$123,623** | [Factors Affecting Our Business](index=31&type=section&id=Factors%20Affecting%20Our%20Business) Business performance is influenced by economic uncertainty, sturdy real estate fundamentals, capital market volatility, and increased transaction activity - Economic uncertainty increased in Q2 2025 due to new global trade policies and dramatic tariff increases, spurring caution among consumers and businesses[149](index=149&type=chunk) - Commercial real estate fundamentals remain sturdy, with positive space absorption for most property types in Q1 2025. Apartment demand was particularly robust[151](index=151&type=chunk) - Interest rate volatility has increased due to aggressive trade policies and threats to Federal Reserve independence, leading to increased lender caution despite strong debt capital liquidity[159](index=159&type=chunk) - Commercial real estate transaction activity rose by **7%** in Q1 2025 compared to Q1 2024, reflecting a narrowing of the buyer-seller expectation gap[163](index=163&type=chunk) [Key Financial Measures and Indicators](index=34&type=section&id=Key%20Financial%20Measures%20and%20Indicators) Key metrics show increased transactions per professional in both real estate brokerage and financing activities for Q1 2025 Key Operating Metrics: Q1 2025 vs Q1 2024 | Metric (Real Estate Brokerage) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average Number of Investment Sales Professionals | 1,578 | 1,638 | | Average Number of Transactions per Professional | 0.74 | 0.67 | | Average Commission per Transaction | $105,210 | $99,343 | | Average Commission Rate | 1.86% | 1.93% | | **Metric (Financing)** | **Q1 2025** | **Q1 2024** | | Average Number of Financing Professionals | 102 | 99 | | Average Number of Transactions per Professional | 3.30 | 2.36 | | Average Fee per Transaction | $42,702 | $47,178 | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenue increased 12.3% to $145.0 million in Q1 2025, narrowing the operating loss to $17.7 million and reducing net loss to $4.4 million Q1 2025 vs Q1 2024 Results of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $145,038 | $129,104 | $15,934 | 12.3% | | Cost of services | $88,348 | $76,868 | $11,480 | 14.9% | | Selling, general and administrative | $71,552 | $68,916 | $2,636 | 3.8% | | Operating loss | $(17,711) | $(20,102) | $2,391 | (11.9)% | | Net loss | $(4,422) | $(9,987) | $5,565 | (55.7)% | | Adjusted EBITDA | $(8,742) | $(10,082) | $1,340 | 13.3% | - The increase in real estate brokerage commissions was driven by a **17.6%** increase in total sales volume, partially offset by a lower average commission rate due to a shift in transaction mix towards larger deals[185](index=185&type=chunk) - The effective income tax rate was **68.2%** in Q1 2025, compared to **32.2%** in Q1 2024, primarily due to the relationship of permanent items and changes in the valuation allowance relative to the pre-tax loss[194](index=194&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $149.7 million in cash and equivalents, an unused credit facility, and sufficient resources for the next 12 months Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(52,841) | $(51,021) | | Net cash provided by (used in) investing activities | $57,168 | $(21,601) | | Net cash used in financing activities | $(8,072) | $(7,500) | - The company has a **$10 million** senior secured revolving credit facility maturing June 1, 2025, which was undrawn as of March 31, 2025[204](index=204&type=chunk) - The company has an off-balance sheet maximum aggregate guarantee obligation of **$326.3 million** related to its strategic alliance with MTRCC, with a recorded allowance for losses of **$159,000**[205](index=205&type=chunk) [Critical Accounting Estimates](index=41&type=section&id=Critical%20Accounting%20Estimates) No significant changes were made to critical accounting estimates during Q1 2025 compared to the prior annual report - No significant changes were made to critical accounting estimates from the company's 2024 Annual Report on Form 10-K[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its $180.5 million marketable debt securities portfolio, with foreign currency risk deemed immaterial - The company's main market risk exposure is interest rate risk on its investment portfolio, valued at **$180.5 million** as of March 31, 2025[212](index=212&type=chunk) Interest Rate Sensitivity Analysis on Investment Portfolio (in thousands) | Change in Interest Rates | Approximate Change in Fair Value of Investments | | :--- | :--- | | 2% Decrease | $3,657 | | 1% Decrease | $1,829 | | 1% Increase | $(1,830) | | 2% Increase | $(3,660) | [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[216](index=216&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[217](index=217&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity security sales, and exhibits [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal actions, mostly insured, with no expected material adverse financial impact - The company is involved in ordinary course legal actions, most of which are covered by insurance, and does not expect a material adverse effect on its financial condition[219](index=219&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the quarter - No material changes from the risk factors described in the 2024 Form 10-K were reported[220](index=220&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 12,538 shares of common stock in Q1 2025, with $70.5 million remaining for future repurchases Share Repurchase Activity for Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 12,538 | $33.89 | $70,526,870 | | Feb 1 - Feb 28, 2025 | 0 | $0.00 | $70,526,870 | | Mar 1 - Mar 31, 2025 | 0 | $0.00 | $70,526,870 | | **Total** | **12,538** | | **$70,526,870** | [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) CFO Steven F. DeGennaro adopted a Rule 10b5-1 trading plan on February 19, 2025, to sell up to 10,000 shares of common stock - On February 19, 2025, CFO Steven F. DeGennaro adopted a Rule 10b5-1 trading plan to sell up to **10,000 shares** of common stock[224](index=224&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and Inline XBRL financial statements - Filed exhibits include CEO/CFO certifications and Inline XBRL data files[225](index=225&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $145 million, a 12% increase compared to $129 million in the prior year quarter [17] - Adjusted EBITDA was negative $8.7 million, reflecting a 13% improvement over the previous year [6][21] - The company reported a net loss of $4.4 million or $0.11 per share, an improvement from a net loss of $10 million or $0.26 per share in the prior year [21] Business Line Data and Key Metrics Changes - Brokerage revenue accounted for 85% of total revenue, amounting to $124 million, which is a 13% year-over-year increase [17] - Private client transactions represented 63% of revenue, totaling $78 million, compared to 67% and $73 million last year [18] - Financing revenue grew 26% to $18 million, driven by a 16% increase in volume and a 12% increase in the average commission rate [19] Market Data and Key Metrics Changes - The first quarter saw an 18% growth in transaction volume, totaling $6.7 billion across 1,175 transactions [17] - The average transaction size increased to $5.7 million from $5.1 million a year ago, indicating a shift towards middle and larger transactions [18] - The company noted that the private client segment faced challenges due to tightened underwriting and a lingering bid-ask spread [8] Company Strategy and Development Direction - The company is focused on strategic investments in technology, talent acquisition, and expanding its brand to navigate market disruptions [10][12] - Management emphasized the importance of recruiting experienced professionals and teams to mitigate turnover and enhance market coverage [15] - The company is exploring potential strategic acquisitions in core and adjacent business lines to drive growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding a sustained market recovery, citing strong economic fundamentals and low unemployment as potential catalysts [10][11] - The company anticipates a continued recovery in transactional activity for the year, albeit at a moderated pace until there is greater clarity on trade and tax policies [25] - Management highlighted ongoing investments in systems and talent as positioning the company well for future growth [26] Other Important Information - The company declared a semiannual dividend of $0.25 per share, totaling approximately $10 million [24] - The company has repurchased nearly 174,000 shares for $5.4 million, with $66 million remaining on the current share repurchase authorization [24] Q&A Session Summary Question: Insights on client sentiment regarding different product types - Management noted consistent enthusiasm for retail properties, with improvements in both multi-tenant and single-tenant demand [28] - Multifamily properties are experiencing a bifurcation, with smaller multifamily transactions facing challenges while larger multifamily transactions are more active [29] Question: Geographical distinctions based on recent tariff announcements - Management observed consistent trends across the country, with growth markets like Georgia, Florida, and Texas attracting investor interest due to migration [31] Question: Rating of Southern California among markets - Management indicated that California is showing signs of recovery, with increased capital interest despite local political issues [33] Question: Foreign investment sentiment - Management stated that foreign investments have not significantly impacted the commercial real estate market, with private capital remaining a small portion of their business [35] Question: Appetite for further stock repurchases - Management confirmed ongoing stock repurchases and emphasized a balanced capital allocation strategy that includes returning capital to shareholders and investing in technology [38]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $145 million, a 12% increase compared to $129 million in the same quarter of the previous year [5][17] - Adjusted EBITDA was negative $8.7 million, reflecting a 13% improvement over the previous year [6][21] - The net loss for the quarter was $4.4 million, or $0.11 per share, an improvement from a net loss of $10 million, or $0.26 per share, in the prior year [21] Business Line Data and Key Metrics Changes - Brokerage revenue accounted for 85% of total revenue, amounting to $124 million, which is a 13% year-over-year increase [17] - Private client brokerage revenue grew 6% during the quarter, while middle market and larger transactions saw a 30% increase in dollar volume [7][19] - Financing revenue grew 26% to $18 million, driven by a 16% increase in volume and a 12% increase in the average commission rate [19] Market Data and Key Metrics Changes - The company noted that higher interest rates continue to impact sales force productivity, with listings taking longer to market [6] - The private client segment is particularly affected by tightened underwriting and limited lending, while larger transactions are seeing increased activity [7][8] - The company observed a notable recovery in the office market and continued demand for retail properties [29] Company Strategy and Development Direction - The company is focused on strategic investments in technology, talent acquisition, and expanding its brand despite current market disruptions [10][12] - Management emphasized the importance of recruiting experienced professionals and teams to mitigate turnover and enhance market coverage [14] - The company is exploring potential strategic acquisitions in core and adjacent business lines to drive growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding a sustained market recovery, citing strong economic fundamentals and low unemployment as positive indicators [10][11] - The company anticipates a continued recovery in transactional activity, albeit at a moderated pace until there is greater clarity on trade and tax policies [25] - Management highlighted ongoing investments in systems and talent as key to capturing growth as market conditions improve [26] Other Important Information - The company declared a semiannual dividend of $0.25 per share, totaling approximately $10 million [23] - The company repurchased nearly 174,000 shares for $5.4 million, with $66 million remaining on the current share repurchase authorization [23] Q&A Session Summary Question: Insights on client sentiment regarding different property types - Management noted consistent enthusiasm for retail properties and a bifurcated sentiment in multifamily, with larger multifamily transactions seeing more institutional capital [28][29] Question: Geographical distinctions based on recent tariff announcements - Management observed consistent trends across the country, with growth markets like Georgia, Florida, and Texas attracting investor interest due to demographic forecasts [32][33] Question: Rating of Southern California among markets - Management indicated that California is experiencing a positive recovery, with increased capital interest despite local political issues [34][35] Question: Impact of foreign investments on business - Management stated that foreign investments have not significantly impacted the commercial real estate market, with private capital remaining a small portion of total transactions [36][37] Question: Appetite for further stock repurchases - Management confirmed ongoing stock repurchases and emphasized a balanced capital allocation strategy that includes returning capital to shareholders and investing in technology [38][39]

Financial Performance - Revenue reached $145 million, a 12.3% increase year-over-year[13] - Net loss was $(4.4) million, a 55.7% improvement year-over-year[13] - Adjusted EBITDA was $(8.7) million, a 13.3% improvement year-over-year[13] Operational Highlights - Sales volume totaled $9.4 billion, a decrease of 3.5% year-over-year[13] - Transaction closings numbered 1,706, a 9.1% increase year-over-year[13] - The number of investment sales and financing professionals was 1,668 as of March 31, 2025, a 3.1% decrease year-over-year[13] Brokerage Performance - Brokerage sales volume was $6.7 billion, a 17.6% increase year-over-year[14] - Brokerage transaction closings numbered 1,175, a 6.6% increase year-over-year[14] - Real estate brokerage commissions revenue reached $123.6 million, a 12.9% increase year-over-year[14] Financing Performance - Financing sales volume was $1.9 billion, a 16.1% increase year-over-year[16] - Financing transaction closings numbered 337, a 44.0% increase year-over-year[16] - Financing fees revenue reached $18.1 million, a 25.7% increase year-over-year[16]

[Financial & Operational Highlights for Q1 2025](index=1&type=section&id=Marcus%20%26%20Millichap%2C%20Inc.%20Reports%20Results%20for%20First%20Quarter%202025) Marcus & Millichap reported a 12.3% revenue increase to $145.0 million in Q1 2025, narrowing net loss and improving Adjusted EBITDA [Overview of Q1 2025 Performance](index=1&type=section&id=First%20Quarter%202025%20Highlights%20Compared%20to%20First%20Quarter%202024) Q1 2025 saw a 12.3% revenue increase to $145.0 million, with net loss narrowed and Adjusted EBITDA loss improved Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $145.0 million | $129.1 million | | Brokerage Commissions | $123.6 million | $109.5 million | | Financing Fees | $18.1 million | $14.4 million | | Net Loss | $(4.4) million | $(10.0) million | | Diluted Net Loss per Share | $(0.11) | $(0.26) | | Adjusted EBITDA | $(8.7) million | $(10.1) million | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes improved performance to strategic execution, focusing on client value, talent, and productivity tools - Performance was driven by the expansion of **exclusive inventory**, narrowing of the **bid/ask spread**, and targeted investments in **talent and business development**[3](index=3&type=chunk) - Management acknowledges **market uncertainty** due to **trade policy's** potential impact on inflation and job growth but sees continued **strong capital demand**[3](index=3&type=chunk) - The company's top priorities are enhancing **client value**, investing in **experienced talent**, and deploying tools to increase **sales force productivity**[3](index=3&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section analyzes the company's revenue, operating expenses, and profitability for the quarter [Revenue Analysis](index=2&type=section&id=First%20Quarter%202025%20Results%20Compared%20to%20First%20Quarter%202024) Total revenue rose 12.3% to $145.0 million, driven by brokerage commissions and financing fees growth - Real estate brokerage commissions increased by **12.9% YoY**, primarily due to a **17.6% increase in total sales volume**, partially offset by a **7 basis point decrease** in the average commission rate[6](index=6&type=chunk) - Revenue from the combined Middle Market and Larger Transaction Market segments increased by **29.6%**, while Private Client Market revenue grew by **6.2%**[6](index=6&type=chunk) - Financing fees increased by **25.7% YoY**, attributed to a **16.1% increase in financing volume** and an **8 basis point rise** in the average fee rate[7](index=7&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses increased to $162.7 million, driven by higher cost of services and SG&A - Total operating expenses increased to **$162.7 million**, mainly due to an **$11.5 million rise** in cost of services and a **$2.6 million increase** in SG&A[8](index=8&type=chunk) - Cost of services as a percentage of total revenue increased by **140 basis points** to **60.9%** compared to Q1 2024[8](index=8&type=chunk) - The increase in SG&A was primarily due to **higher compensation-related costs** and increased **investment in business development, marketing, and support for talent acquisition and retention**[9](index=9&type=chunk) [Profitability](index=2&type=section&id=Profitability) The company significantly narrowed its net loss to $4.4 million and improved Adjusted EBITDA loss Profitability Comparison (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(4.4) million | $(10.0) million | | Diluted Net Loss per Share | $(0.11) | $(0.26) | | Adjusted EBITDA | $(8.7) million | $(10.1) million | [Capital Allocation](index=2&type=section&id=Capital%20Allocation) This section details the company's capital return approach through dividends and share repurchases [Dividends and Share Repurchases](index=2&type=section&id=Dividends%20and%20Share%20Repurchases) The company declared a $0.25 semi-annual dividend and repurchased shares, with $65.5 million remaining for buybacks - A semi-annual regular dividend of **$0.25 per share** was declared on February 6, 2025, and paid on April 4, 2025[11](index=11&type=chunk) - In Q1 2025, the Company repurchased **12,538 shares** of common stock for a total of **$0.4 million**[12](index=12&type=chunk) - Approximately **$65.5 million** remains available for share repurchases under the existing program with no set time limit[13](index=13&type=chunk) [Business Outlook and Risk Factors](index=2&type=section&id=Business%20Outlook%20and%20Risk%20Factors) This section outlines market expectations and identifies key factors and risks influencing future business performance [Market Outlook](index=2&type=section&id=Business%20Outlook) The company anticipates near-term market challenges through 2025 but sees long-term growth in Private Client Market consolidation - The company expects **near-term market challenges**, including **price discovery** and **wide bid/ask spreads**, to extend through **2025**[14](index=14&type=chunk) - **Long-term growth opportunities** exist through **consolidation** in the fragmented **Private Client Market**, which represents over **80% of U.S. commercial property transactions** and over **60% of the commission pool**[15](index=15&type=chunk) - In 2024, the **top 10 brokerage firms**, led by **MMI**, had an estimated **19% share** of the **Private Client Market** by transaction count, indicating **significant room for market share gains**[15](index=15&type=chunk) [Key Influencing Factors & Risks](index=4&type=section&id=Key%20factors%20that%20may%20influence%20the%20Company%27s%20business%20during%20the%20remainder%20of%202025) Key risks for 2025 include debt capital volatility, interest rate uncertainty, recession, policy changes, rising expenses, and geopolitical instability - Key factors include **volatility in debt capital costs**, **interest rate uncertainty**, the **heightened bid-ask spread**, and risks of a **potential recession**[20](index=20&type=chunk) - Potential market impact from the **new U.S. presidential administration's tariff, immigration, and other policy changes** is a noted risk[20](index=20&type=chunk) - Other risks include **increases in operating expenses** (labor, insurance, taxes), **global geopolitical uncertainty**, and the ability to **attract and retain qualified professionals**[20](index=20&type=chunk)[25](index=25&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of operations, key operating metrics, and balance sheets [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported Q1 2025 total revenues of $145.0 million, a net loss of $4.4 million, and a narrowed operating loss Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$145,038** | **$129,104** | | Real estate brokerage commissions | $123,622 | $109,475 | | Financing fees | $18,130 | $14,427 | | **Total Operating Expenses** | **$162,749** | **$149,206** | | Cost of services | $88,348 | $76,868 | | Selling, general and administrative | $71,552 | $68,916 | | **Operating Loss** | **$(17,711)** | **$(20,102)** | | **Net Loss** | **$(4,422)** | **$(9,987)** | | **Net Loss Per Share, Diluted** | **$(0.11)** | **$(0.26)** | [Key Operating Metrics](index=7&type=section&id=KEY%20OPERATING%20METRICS%20SUMMARY) Q1 2025 saw total sales volume of $9.4 billion across 1,706 transactions, with increased brokerage and financing volumes Real Estate Brokerage Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 1,175 | 1,102 | | Total Sales Volume | $6,659 million | $5,661 million | | Average Commission Rate | 1.86% | 1.93% | | Average Transaction Size | $5.67 million | $5.14 million | Financing Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 337 | 234 | | Total Financing Volume | $1,928 million | $1,660 million | | Average Fee Rate | 0.75% | 0.67% | | Average Transaction Size | $5.72 million | $7.09 million | Brokerage Revenue by Market Segment (Q1 2025, in thousands) | Market Segment | Revenue | Change vs Q1 2024 | | :--- | :--- | :--- | | Private Client Market ($1-<$10M) | $77,705 | +$4,542 | | Middle Market ($10-<$20M) | $20,889 | +$5,796 | | Larger Transaction Market (≥$20M) | $20,003 | +$3,548 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were $802.0 million, liabilities $184.5 million, and stockholders' equity $617.6 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $149,704 | $153,445 | | **Total Current Assets** | **$325,103** | **$410,319** | | **Total Assets** | **$802,024** | **$869,800** | | **Total Current Liabilities** | **$86,247** | **$133,017** | | **Total Liabilities** | **$184,471** | **$238,982** | | **Total Stockholders' Equity** | **$617,553** | **$630,818** | [Non-GAAP Financial Measures & Other Information](index=9&type=section&id=OTHER%20INFORMATION) This section provides reconciliation of non-GAAP financial measures and defines key terms and adjusted metrics [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation shows Q1 2025 Adjusted EBITDA loss improved to $8.7 million from a net loss of $4.4 million Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss** | **$(4,422)** | **$(9,987)** | | Interest income and other | $(4,038) | $(4,765) | | Interest expense | $187 | $199 | | Benefit for income taxes | $(9,497) | $(4,746) | | Depreciation and amortization | $2,849 | $3,422 | | Stock-based compensation | $6,179 | $5,795 | | **Adjusted EBITDA** | **$(8,742)** | **$(10,082)** | [Glossary and Adjusted Metrics](index=9&type=section&id=Glossary%20of%20Terms) This section defines key market segments and confirms adjusted brokerage metrics were not impacted by large transactions - The report defines its key transaction markets by value: **Private Client ($1M-<$10M)**, **Middle Market ($10M-<$20M)**, and **Larger Transaction Market (≥$20M)**[37](index=37&type=chunk) - Adjusted metrics for Q1 2025 confirm that there were **no real estate brokerage transactions in excess of $300 million**, meaning the **actual and adjusted metrics for sales volume, commission rate, and transaction size changes are identical**[38](index=38&type=chunk)

Financial Performance - The company experienced a significant decline in revenues in 2024 and 2023 compared to 2022, resulting in operating losses [67]. - The annual inflation rate in the U.S. peaked at 9.1% in June 2022, but decreased to 3.4% in December 2023 and further to 2.9% as of December 2024, impacting client demand for commercial real estate [80]. - Significant fluctuations in revenue and net income may hinder the company's ability to achieve steady earnings growth, impacting stock price stability [148]. - The company plans capital and operating expenditures based on future revenue expectations, which may lead to adverse effects if revenues fall short [149]. Market Conditions - The Federal Reserve raised interest rates by an aggregate of 425 basis points in 2022 and an additional 100 basis points in 2023, contributing to a market slowdown [77]. - Increased interest rates may place downward pressure on commercial real estate prices, negatively impacting investment activity [76]. - The commercial real estate market is cyclical and sensitive to general economic conditions, which have shown significant volatility recently [67]. - The trend of hybrid work has led to lower office real estate occupancy rates, potentially decreasing demand for traditional office spaces [72]. - The availability of debt and equity capital is restricted, which has significantly reduced the volume of commercial real estate transactions since the second half of 2022 [78]. Competition - The company faces intense competition in the commercial real estate industry, particularly in the $1 million to $10 million private client market [56]. - The company faces competition from larger firms and local service providers, which may affect its ability to maintain current fee arrangements and margin levels [84]. Regulatory Environment - The company is subject to numerous federal, state, and local regulations, and non-compliance could result in fines or loss of licenses, impacting operations [89]. - Changes in tax laws, particularly regarding like-kind exchanges, could adversely affect client transactions and subsequently reduce commission income [87]. - The company must continuously enhance its technology infrastructure to remain competitive; failure to do so could negatively impact growth prospects and operational results [122]. - The company is subject to complex and evolving privacy and cybersecurity regulations, which could increase operational costs and compliance risks [131]. Human Resources - The recruitment and retention of qualified investment sales and financing professionals are critical for growth, with competition for talent increasing [95]. - A downturn in the commercial real estate market could lead to a temporary reduction in experienced professionals, complicating recruitment efforts [100]. - The loss of senior management could hinder the execution of the company's business strategy and negatively impact financial performance [101]. - The concentration of sales among top investment sales and financing professionals poses a risk, as they are responsible for a significant percentage of revenue, which could adversely impact the company's financial condition if they leave or if an economic downturn occurs [103]. Client Relationships - Retaining existing clients and developing new ones is critical, as long-term client relationships are essential for revenue generation; failure to do so could adversely affect financial condition [115]. Technology and Cybersecurity - Cybersecurity breaches or disruptions to information technology systems could harm the company's ability to provide services effectively, damaging its reputation and operating results [124]. - The company has experienced an increase in cyber-attack vulnerabilities, including hacking and ransomware, which could compromise sensitive data and impact operations [126]. - The company relies significantly on third-party technologies and data, which may lead to potential disruptions and affect its ability to provide services [125]. - The company's reliance on third-party data storage providers increases exposure to security breaches, which could adversely affect its reputation [129]. Corporate Governance - The founder, George M. Marcus, owns approximately 39% of the company's outstanding common stock, potentially limiting other shareholders' influence on corporate decisions [138]. Growth and Acquisitions - The company plans to expand its specialty groups and financing services, but there is no assurance that these efforts will yield corresponding returns, potentially harming financial condition [108]. - The company’s ability to grow through acquisitions depends on the availability of suitable candidates, and failure to find or successfully negotiate these acquisitions could limit growth [110]. - The company may incur high transaction and integration costs from future acquisitions, which could disrupt business operations and affect financial results [112]. - If the company experiences significant growth, it may face challenges in managing additional demands on its administrative, operational, and financial resources [109]. Financial Risks - The company may need to secure additional financing to meet indemnification obligations under agreements with M&T Realty Capital Corporation, which could impact financial condition [81]. - The company has invested in marketable debt securities, which are subject to risks that could affect its financial condition and cash flows [136]. - Future sales of common stock could depress the market price of shares, impacting the company's ability to raise capital [150]. - The company may issue shares as consideration for future acquisitions, potentially leading to substantial share issuance [151]. - The size of future common stock issuances is unpredictable, and significant sales could adversely affect market prices [152].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $240 million, up 44% from $166 million in Q4 2023, with adjusted EBITDA of $18 million and net income of $8.5 million [9][29] - For the full year, revenue grew 8% to approximately $700 million, with adjusted EBITDA of $9.4 million and a net loss of $12 million, an improvement from a net loss of $34 million in the previous year [9][37] Business Line Data and Key Metrics Changes - Brokerage revenue increased by 40% in Q4, with transaction count up 23% and volume growth of 41% [10][30] - Financing revenue nearly doubled in Q4 to $31 million, a 97% increase from $16 million in the previous year [12][33] - The private client business contributed 59% of brokerage revenue in Q4, down from 66% the previous year, while middle market and larger transactions accounted for 38% of brokerage revenue, up from 31% [33] Market Data and Key Metrics Changes - The company closed 7,800 transactions in 2024, reflecting gains of 4% in transaction count and 14% in volume over 2023 [16] - Average transaction size increased to approximately $7 million in Q4 from $6.2 million a year ago, driven by a greater mix of revenue from larger transactions [31] Company Strategy and Development Direction - The company aims to increase investor outreach and client contact while focusing on individual producer productivity and business plans [23][24] - Investments in technology, including AI, are being made to enhance underwriting and support processes [24] - The company is pursuing strategic acquisitions in core and adjacent business lines, although valuation concerns have hindered some potential deals [25][62] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rate volatility remains a significant challenge, impacting buyer and seller engagement [18] - There is cautious optimism for incremental growth in transactions, driven by situational distress and realistic pricing as sellers adjust to market conditions [19][20] - The company expects Q1 2025 revenue to be sequentially lower than Q4 2024, following typical seasonal trends [40] Other Important Information - The company has a strong balance sheet with no debt and $394 million in cash and marketable securities, having returned $170 million to shareholders since 2022 [27][39] - A semi-annual dividend of $0.25 per share was declared, payable on April 4, 2025 [39] Q&A Session Summary Question: Can you discuss the different transaction size buckets for commission revenue and any notable changes in buyers and sellers? - Management highlighted a trend of increased capital in larger transactions, driven by institutional investors and entrepreneurial private investors seeking higher returns [46][48] Question: What impact have the recent fires in Greater LA had on multifamily transactions? - Management noted that insurance costs have risen significantly, affecting operating costs and market sentiment, but overall, the macro view remains favorable for pricing in California [52][54][59] Question: Can you provide updates on external growth opportunities and strategic initiatives? - Management indicated ongoing discussions for strategic acquisitions but noted valuation concerns as a barrier; however, they continue to attract experienced individuals to the firm [60][62] Question: How does the company approach capital allocation between share repurchases, dividends, and investments? - Management stated that their strategy is multi-pronged, balancing investments in technology, M&A, dividends, and share repurchases based on cash flow generation [66][69]

2024 Fourth Quarter 2024 Earnings Conference Call February 14, 2025 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 key factors influencing the Company's business outlook, including the expectation for future interest rates and likely impact of potential rate ...