Financial Data and Key Metrics Changes - The company reported record shipments for Q2, 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, with significant margin improvements, reflecting a 500 basis point increase from the same quarter last year and an 83% increase over Q4 2024 [5][6] - Cash balance has improved, with a trade receivables balance of around $25 million as of June 30 [22][33] Business Line Data and Key Metrics Changes - The company faced operational challenges due to a tropical storm that restricted barging capacity, resulting in a loss of approximately 1,400 tonnes per barge [7] - Despite these challenges, the company is targeting a production of around 5 million tonnes in the second half of the year, aiming to recover from the previous quarter's tonnage loss [20] Market Data and Key Metrics Changes - The bauxite market is experiencing structural stability, with alumina pricing stabilizing around RMB 3,000 per tonne, allowing most customers to maintain profitability [12] - Record bauxite imports were noted, with over 100 million tonnes imported in the first half of the year, indicating strong demand despite some price volatility [14][15] Company Strategy and Development Direction - The company is focusing on expansion and exploration activities, including greenfield projects and pit extensions, to enhance its operational capacity [25][26] - The management is optimistic about cash generation potential and aims to achieve a net cash position on the balance sheet by the third quarter [49] Management Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the bauxite market, particularly due to government actions in Guinea affecting production capacity [16][17] - The company expects to see a reduction in site costs as production rates increase, targeting mid-25s for site costs in Q3 [47] Other Important Information - The company has successfully paid all deferred royalties amounting to $9 million, marking a significant milestone [23] - A restructuring of the hedge book for foreign exchange has been completed, improving the company's position relative to current spot rates [24] Q&A Session Summary Question: Discussion on 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 [30][31] Question: Confirmation of trade receivables balance - The trade receivables balance of approximately $25 million as of June 30 was confirmed [33] Question: State royalty payments structure - State royalties are based on FOB revenue and will continue for the life of the mine [34] Question: Solutions for silt buildup in the river - The company conducts regular bed leveling and is exploring options for dredging to address silt buildup, which impacts operations [35][41][43] Question: Grade expectations for Pit 5 - Pit 5 is expected to provide more flexibility in operations due to areas of low silica material, enhancing grade control [44] Question: Expectations for FX hedging - The company expects to be fully hedged for sales through the balance of calendar 2025 [46] Question: Anticipated reduction in site costs - A reduction in site costs is expected as production rates increase, with a target of mid-25s for Q3 [47]

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]

Core Insights - Bold Ventures Inc. has reported positive results from a Mobile Metal Ion (MMI) soil survey on its Burchell Gold and Copper Property, indicating potential for gold and copper mineralization in the area [1][6] Survey Results - The MMI soil survey was conducted in the northwest corner of the Burchell Property, designed to infill and extend previous soil lines, particularly testing the Moss Trend adjacent to Goldshore Resources' Moss Gold Property [1] - Notable anomalies were found, with gold response ratios (RRs) reaching up to 60 times background levels, copper RRs up to 136, and molybdenum RRs up to 70 [2] - The best gold anomaly from the 2025 survey was recorded at an RR of 65, located along a magnetic low trend [2][3] Historical Context - Historical diamond drilling by Newmont in the area has previously yielded gold anomalies, including a notable intersection of 0.9 g/t Au over 6.4 meters [3] - The soil anomalies are expected to assist in more accurately targeting gold-bearing horizons for future diamond drilling [3] Survey Methodology - A total of 82 samples were collected during the summer field program, contributing to a combined survey total of 156 samples, with specific sampling protocols followed [4][7] Future Prospects - The company is awaiting final results from another area known as the 111 Zone, which has shown promising gold values in previous grab samples [5] - The management expressed optimism regarding the exploration potential of the property, highlighting the underexplored nature of the area and the potential for new discoveries [6] Company Overview - Bold Ventures Inc. focuses on exploring precious, battery, and critical metals in Canada, particularly in regions with active gold and battery metal camps [10]

[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]