PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, detailing financial position and performance - The company is a real estate services firm specializing in commercial real estate investment sales, financing, research, and advisory services, operating over **80 offices** in the United States and Canada as of March 31, 2024[23](index=23&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$878.4 million** to **$826.7 million** due to lower cash, while total liabilities and stockholders' equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$826,651** | **$878,411** | | Cash, cash equivalents, and restricted cash | $90,556 | $170,753 | | Marketable debt securities, available-for-sale | $255,714 | $236,340 | | **Total Liabilities** | **$201,096** | **$233,137** | | Deferred compensation and commissions | $67,815 | $103,540 | | **Total Stockholders' Equity** | **$625,555** | **$645,274** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 net loss increased to **$10.0 million** on a **16.6%** revenue decline to **$129.1 million**, leading to a larger operating loss Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share amounts) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $129,104 | $154,792 | | Real estate brokerage commissions | $109,475 | $135,046 | | Total Operating Expenses | $149,206 | $170,853 | | Operating Loss | $(20,102) | $(16,061) | | **Net Loss** | **$(9,987)** | **$(5,833)** | | **Diluted Loss Per Share** | **$(0.26)** | **$(0.15)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$51.0 million**, with overall cash and equivalents decreasing by **$80.2 million** Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(51,021) | $(101,207) | | Net cash (used in) provided by investing activities | $(21,601) | $117,356 | | Net cash used in financing activities | $(7,500) | $(24,015) | | **Net decrease in cash** | **$(80,197)** | **$(7,847)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, investments, stock-based compensation, related-party transactions, and commitments, including a **$0.25 per share** dividend - Revenue from real estate brokerage commissions and financing fees is recognized when the transaction closes, as the company's performance is complete at that point[36](index=36&type=chunk)[37](index=37&type=chunk) - The company has a strategic alliance with MTRCC, where it may indemnify a portion of MTRCC's guarantee obligations on loans. As of March 31, 2024, the maximum aggregate guarantee obligation was **$186.8 million**[129](index=129&type=chunk) - On February 8, 2024, the Board declared a semi-annual dividend of **$0.25 per share**, totaling **$10.1 million**, paid on April 5, 2024[102](index=102&type=chunk) - The company repurchased **16,900 shares** for **$0.6 million** in Q1 2024. As of March 31, 2024, **$71.0 million** remained authorized for future repurchases[106](index=106&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, attributing the **16.6%** revenue decline to challenging market conditions and analyzing liquidity and capital resources [Overview and Key Metrics](index=29&type=section&id=Overview%20and%20Key%20Metrics) The company, with **1,722 professionals**, closed **1,564 transactions** totaling **$9.7 billion** in Q1 2024, with brokerage commissions forming **85%** of revenue Q1 2024 Real Estate Brokerage Transactions by Market Segment | Market Segment | Number of Transactions | Sales Volume (in millions) | Revenue (in thousands) | | :--- | :--- | :--- | :--- | | <$1 million | 186 | $103 | $4,764 | | Private Client ($1 – <$10M) | 808 | $2,590 | $73,163 | | Middle Market ($10 – <$20M) | 59 | $802 | $15,093 | | Larger Transaction (≥$20M) | 49 | $2,166 | $16,455 | | **Total** | **1,102** | **$5,661** | **$109,475** | Key Real Estate Brokerage Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Average Number of Investment Sales Professionals | 1,638 | 1,782 | | Total Number of Transactions | 1,102 | 1,279 | | Total Sales Volume (in millions) | $5,661 | $7,132 | [Factors Affecting Our Business](index=29&type=section&id=Factors%20Affecting%20Our%20Business) Business is influenced by economic outlook, mixed commercial real estate supply/demand, constrained capital markets, and cautious investor sentiment - Economic Outlook: A "soft landing" is still expected, but persistent inflation has led to a "higher for longer" interest rate stance from the Federal Reserve, contrary to investor hopes[144](index=144&type=chunk)[145](index=145&type=chunk) - Capital Markets: The transaction slowdown is primarily due to sustained higher interest rates, tighter lending, and reduced debt availability, which has widened the buyer/seller expectation gap[150](index=150&type=chunk) - Investor Sentiment: The market has seen five consecutive quarters of below-average sales activity. A significant volume of capital remains undeployed as investors await clarity on economic, geopolitical, and real estate pricing factors[154](index=154&type=chunk) [Results of Operations Comparison (Q1 2024 vs Q1 2023)](index=33&type=section&id=Results%20of%20Operations%20Comparison) Total revenue decreased **16.6%** to **$129.1 million**, driven by lower brokerage commissions and financing fees, widening the operating loss to **$20.1 million** Revenue and Expense Comparison (in thousands) | Line Item | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$129,104** | **$154,792** | **-16.6%** | | Real estate brokerage commissions | $109,475 | $135,046 | -18.9% | | Financing fees | $14,427 | $15,868 | -9.1% | | **Total Operating Expenses** | **$149,206** | **$170,853** | **-12.7%** | | Cost of services | $76,868 | $95,427 | -19.4% | | Selling, general and administrative | $68,916 | $72,219 | -4.6% | | **Operating Loss** | **$(20,102)** | **$(16,061)** | **+25.2%** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash and marketable securities, totaling **$346.3 million**, with cash decreasing by **$80.2 million** during the quarter - Total liquidity, including cash, cash equivalents, restricted cash, and marketable securities, was **$346.3 million** as of March 31, 2024[194](index=194&type=chunk) - Cash used in operating activities decreased to **$51.0 million** in Q1 2024 from **$101.2 million** in Q1 2023, primarily due to lower bonus and commission payments[190](index=190&type=chunk) - The company has an off-balance sheet arrangement with MTRCC, with a maximum aggregate loan guarantee obligation of **$186.8 million** as of March 31, 2024[196](index=196&type=chunk) [Non-GAAP Financial Measure](index=36&type=section&id=Non-GAAP%20Financial%20Measure) Adjusted EBITDA, a non-GAAP measure, was a loss of **$10.1 million** for Q1 2024, compared to a loss of **$7.4 million** in Q1 2023 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(9,987) | $(5,833) | | Interest income | $(4,765) | $(4,390) | | Interest expense | $199 | $215 | | Benefit for income taxes | $(4,746) | $(5,633) | | Depreciation and amortization | $3,422 | $3,207 | | Stock-based compensation | $5,795 | $5,011 | | **Adjusted EBITDA** | **$(10,082)** | **$(7,423)** | [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from its **$255.7 million** investment portfolio; a **1%** rate increase would decrease fair value by **$2.4 million** - The company's investment portfolio in marketable debt securities was valued at **$255.7 million** as of March 31, 2024, with a weighted average credit rating of **AA-**[201](index=201&type=chunk) Interest Rate Sensitivity Analysis (in thousands) | Change in Interest Rates | Approximate Change in Fair Value of Investments | | :--- | :--- | | 2% Decrease | $4,834 | | 1% Decrease | $2,417 | | 1% Increase | $(2,416) | | 2% Increase | $(4,832) | [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2024, the company's disclosure controls and procedures are effective at a reasonable assurance level[206](index=206&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2024[207](index=207&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal actions, not expecting a material adverse effect on its financial position or results - The company is involved in ordinary course legal actions, most of which are covered by insurance, and does not expect a material adverse effect from their outcome[210](index=210&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K for December 31, 2023 - No material changes to risk factors were reported since the last Annual Report on Form 10-K[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **16,900 shares** at **$32.77 per share** in Q1 2024, with **$71.0 million** remaining for future repurchases Share Repurchase Activity for Q1 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Jan 2024 | 0 | N/A | $71,505,492 | | Feb 2024 | 0 | N/A | $71,505,492 | | Mar 2024 | 16,900 | $32.77 | $70,951,742 | | **Total** | **16,900** | **$32.77** | **$70,951,742** | [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) President and CEO Hessam Nadji adopted a Rule 10b5-1 trading plan to sell up to **30,000 shares** - President and CEO Hessam Nadji adopted a Rule 10b5-1 trading plan on March 14, 2024, to sell up to **30,000 shares** of common stock[215](index=215&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) This section provides an overview of Marcus & Millichap's Q1 2024 performance, including financial highlights, CEO commentary on market strategy, and a brief company description [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Marcus & Millichap reported a **decrease in total revenue** and an **increased net loss** for **Q1 2024** compared to **Q1 2023**, primarily due to an industry-wide reduction in transactions amidst a challenging market environment. Despite this, the company emphasizes its strategic positioning and long-term investments Q1 2024 Financial Highlights | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (%) | | :----------------------------------- | :------------------ | :------------------ | :--------- | | Total Revenue | **$129.1** | **$154.8** | **-16.6%** | | Brokerage Commissions | **$109.5** | **$135.0** | **-18.9%** | | Private Client Market Brokerage Revenue | **$73.2** | **$90.5** | **-19.2%** | | Middle Market & Larger Transaction Market Brokerage Revenue | **$31.5** | **$39.5** | **-20.1%** | | Financing Fees | **$14.4** | **$15.9** | **-9.1%** | | Net Loss | **$(10.0)** | **$(5.8)** | **+72.4%** | | Diluted EPS | **$(0.26)** | **$(0.15)** | **+73.3%** | | Adjusted EBITDA | **$(10.1)** | **$(7.4)** | **+36.5%** | - Earnings were primarily impacted by a **lower number of transactions** against a challenging market environment resulting in **lower revenue**[9](index=9&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Hessam Nadji highlighted the company's strategic positioning to navigate the complex real estate market, emphasizing long-term investments in talent and business development, and expressed optimism for a market rebound once inflation and interest rate clarity emerge, supported by record capital on the sidelines and the company's strong market position - Strategically positioned to navigate the current climate as real estate markets gradually recover, reflecting ongoing industry-wide reduction in transactions and deliberate long-term investments in talent retention, acquisition, and business development[4](index=4&type=chunk) - Real estate transactions are poised to rebound with **record capital** on the sidelines, once clarity and stability on inflation and interest rates emerge, despite a delayed timeline[5](index=5&type=chunk) - Encouraged by appropriately priced assets generating multiple offers despite 'higher-for-longer' interest rates[5](index=5&type=chunk) - **Healthy balance sheet** enables strategic investments and consistent capital return to shareholders, leveraging market dislocation to enhance **market position** and create **long-term value**[5](index=5&type=chunk) [About Marcus & Millichap, Inc.](index=3&type=section&id=About%20Marcus%20%26%20Millichap%2C%20Inc.) Marcus & Millichap is a **Leading national real estate services firm** specializing in commercial real estate investment sales, financing, research, and advisory services, with **1,722 professionals** and **1,564 transactions** totaling **$9.7 billion** in **sales volume** during **Q1 2024** - **Leading national real estate services firm** specializing in commercial real estate investment sales, financing services, research, and advisory services[19](index=19&type=chunk) - As of March 31, 2024, the Company had **1,722 investment sales and financing professionals** in more than **80 offices**[19](index=19&type=chunk) - Closed **1,564 transactions** during the three months ended March 31, 2024, with a **sales volume** of **$9.7 billion**[19](index=19&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) This section details Marcus & Millichap's Q1 2024 financial results, covering total revenue, operating expenses, segment performance, net loss, and Adjusted EBITDA [Total Revenue and Operating Expenses](index=1&type=section&id=Total%20Revenue%20and%20Operating%20Expenses) **Total revenue** for **Q1 2024** **decreased by 16.6%** year-over-year to **$129.1 million**, while **total operating expenses** also **decreased by 12.7%** to **$149.2 million**, driven by reductions in **cost of services** and **selling, general and administrative expenses** Revenue and Operating Expenses Summary | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Total Revenue | **$129.1** | **$154.8** | **-16.6%** | | Total Operating Expenses | **$149.2** | **$170.9** | **-12.7%** | | Cost of Services | **$76.9** | **$95.4** | **-19.4%** | | Selling, General and Administrative | **$68.9** | **$72.2** | **-4.6%** | - **Cost of services as a percentage of total revenue** **decreased by 210 basis points** to **59.5%** compared to the same period during the prior year[9](index=9&type=chunk) - **Reduction in selling, general and administrative expenses** was primarily due to a reduction in marketing support and events attributable to the **lower revenue** level[10](index=10&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Both **real estate brokerage** and financing segments experienced **revenue declines** in **Q1 2024**, primarily driven by a **decrease in the number of transactions** due to market disruption and constrained lending [Real Estate Brokerage](index=1&type=section&id=Real%20Estate%20Brokerage) This segment's **Q1 2024 revenue** **declined** due to fewer transactions and a **decrease in average transaction size**, reflecting ongoing market disruption Real Estate Brokerage Performance Data | Metric | Q1 2024 | Q1 2023 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Revenue (Millions) | **$109.5** | **$135.0** | **-18.9%** | | Number of Transactions | **1,102** | **1,279** | **-13.8%** | | Average Transaction Size (Millions) | **$5.137** | **$5.576** | **-7.9%** | | Average Commission per Transaction | **$99,343** | **$105,587** | **-5.9%** | - The **decline in real estate brokerage revenue** is primarily attributed to a **13.8% decrease in the number of transactions**, reflecting ongoing market disruption driven by rapid interest rate rises and constrained lending[7](index=7&type=chunk) [Financing Fees](index=1&type=section&id=Financing%20Fees) This segment experienced a **revenue decline** in **Q1 2024**, primarily due to a **decrease in the number of transactions**, despite an **increase in average fee per transaction** Financing Segment Performance Data | Metric | Q1 2024 | Q1 2023 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Revenue (Millions) | **$14.4** | **$15.9** | **-9.1%** | | Number of Transactions | **234** | **279** | **-16.1%** | | Average Fee per Transaction | **$47,178** | **$46,548** | **+1.4%** | | Average Transaction Size (Millions) | **$7.094** | **$6.189** | **+14.6%** | - The **decline in financing fees** was partially offset by increases in **average fee per transaction** and **average transaction size**[8](index=8&type=chunk) [Net Loss and Adjusted EBITDA](index=1&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) Marcus & Millichap reported an **increased net loss** of **$10.0 million** and an **Adjusted EBITDA loss** of **$10.1 million** for **Q1 2024**, primarily due to **lower operating income** resulting from reduced transaction volumes Net Loss and Adjusted EBITDA Summary | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (%) | | :---------------- | :------------------ | :------------------ | :--------- | | Net Loss | **$(10.0)** | **$(5.8)** | **+72.4%** | | Diluted EPS | **$(0.26)** | **$(0.15)** | **+73.3%** | | Adjusted EBITDA | **$(10.1)** | **$(7.4)** | **+36.5%** | - The **increase in net loss and Adjusted EBITDA loss** was primarily a result of the **decrease in operating income**, driven by a **lower number of transactions** against a challenging market environment[9](index=9&type=chunk)[11](index=11&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) This section outlines Marcus & Millichap's capital allocation strategies, including dividend declarations and share repurchase activities during Q1 2024 [Dividends and Share Repurchases](index=2&type=section&id=Dividends%20and%20Share%20Repurchases) The Board of Directors declared a **semi-annual regular dividend** of **$0.25 per share**, and the company also repurchased **16,900 shares** of common stock for **$0.6 million** during **Q1 2024**, with approximately **$71.0 million** remaining under its repurchase program - On February 8, 2024, the Board of Directors declared a **semi-annual regular dividend** of **$0.25 per share**, totaling **$10.1 million**, paid on April 5, 2024[12](index=12&type=chunk) Share Repurchase Activity | Metric | Q1 2024 | | :-------------------------------- | :------ | | Shares Repurchased | **16,900** | | Average Price Per Share | **$32.77** | | Total Repurchase Price (Millions) | **$0.6** | - Approximately **$71.0 million** remains available to **repurchase shares** under its program, with no time limit established[13](index=13&type=chunk) [Business Outlook & Market Factors](index=2&type=section&id=Business%20Outlook%20%26%20Market%20Factors) This section discusses Marcus & Millichap's perspective on current market conditions, long-term growth opportunities, and key factors expected to influence business performance in 2024 [Market Conditions and Long-Term Growth](index=2&type=section&id=Market%20Conditions%20and%20Long-Term%20Growth) The company anticipates persistent **market challenges** through much of **2024** due to **delayed interest rate reductions**, but expects **long-term real estate demand** to drive **sales and financing volumes** higher, believing it is **well-positioned for growth**, particularly in the fragmented **Private Client Market** - **Market conditions**, including ongoing price discovery, wider bid/ask spreads, and **prolonged downturn in transaction volume**, are likely to persist through much of **2024** due to **delayed interest rate reductions**[14](index=14&type=chunk) - **Price adjustments, distressed situations, and maturing loans** could drive **additional transactions** in the quarters ahead[14](index=14&type=chunk) - **Long-term real estate demand** is expected to return **sales and financing volumes** to higher than current levels, given **record capital on the sideline** and key advantages of real estate investments[14](index=14&type=chunk) - The company remains **well-positioned for long-term growth**, benefiting from its experienced management, infrastructure investments, market research, and proprietary technology[14](index=14&type=chunk)[15](index=15&type=chunk) - The **Private Client Market**, accounting for over **80% of U.S. commercial property transactions** and over **60% of the commission pool**, offers **long-term growth opportunities through consolidation**[15](index=15&type=chunk) [Key Factors Influencing 2024 Business](index=2&type=section&id=Key%20Factors%20Influencing%202024%20Business) Several factors are identified as potential influences on the company's business in **2024**, including **market volatility** driven by economic conditions, **interest rate uncertainty**, and geopolitical events, as well as **operational costs** and potential **acquisition activities** - **Volatility in transactional activity and investor sentiment** driven by: **elevated cost of debt capital**, **interest rate uncertainty**, heightened bid-ask spread, **risks of a potential recession**, and possible impact of the presidential election and policy changes[16](index=16&type=chunk) - **Increase in operating expenses** driven by **labor costs, insurance, taxes, and cost of materials**[16](index=16&type=chunk) - **Global geopolitical uncertainty**, which may cause investors to refrain from transacting[16](index=16&type=chunk) - The **potential for acquisition activity and subsequent integration**[16](index=16&type=chunk) [Detailed Operating Metrics](index=6&type=section&id=Detailed%20Operating%20Metrics) This section presents a comprehensive breakdown of Marcus & Millichap's **Q1 2024** operational performance, including **transaction volumes**, **professional counts**, and average values across different market segments [Key Operating Metrics Summary](index=6&type=section&id=Key%20Operating%20Metrics%20Summary) The company's **total sales volume** for **Q1 2024** was approximately **$9.7 billion** across **1,564 transactions**, with this section providing detailed operating metrics for **real estate brokerage** and financing activities, highlighting changes in **professional count**, **transaction efficiency**, and average values - **Total sales volume** was approximately **$9.7 billion** for the three months ended March 31, 2024, encompassing **1,564 transactions**[29](index=29&type=chunk) - **Sales volume** consisted of **$5.7 billion** for **real estate brokerage** (**1,102 transactions**), **$1.6 billion** for **financing** (**234 transactions**), and **$2.4 billion** in **other transactions** (**228 transactions**)[29](index=29&type=chunk) - As of March 31, 2024, the Company had **1,624 investment sales professionals** and **98 financing professionals**[29](index=29&type=chunk) [Real Estate Brokerage Metrics](index=6&type=section&id=Real%20Estate%20Brokerage%20Metrics) This section provides detailed operational metrics for the **real estate brokerage** segment, including **professional count**, **transaction efficiency**, and **average commission rates** Real Estate Brokerage Operating Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :----------------------------------- | :------ | :------ | :------- | | Average Number of Investment Sales Professionals | **1,638** | **1,782** | **-144** | | Average Number of Transactions per Investment Sales Professional | **0.67** | **0.72** | **-0.05** | | Average Commission per Transaction | **$99,343** | **$105,587** | **-$6,244** | | Average Commission Rate | **1.93%** | **1.89%** | **+0.04%** | | Average Transaction Size (in thousands) | **$5,137** | **$5,576** | **-$439** | | Total Number of Transactions | **1,102** | **1,279** | **-177** | | Total Sales Volume (in millions) | **$5,661** | **$7,132** | **-$1,471** | [Financing Metrics](index=6&type=section&id=Financing%20Metrics) This section presents detailed operational metrics for the financing segment, covering **professional count**, **transaction volume**, and **average fee rates** Financing Operating Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :----------------------------------- | :------ | :------ | :------- | | Average Number of Financing Professionals | **99** | **92** | **+7** | | Average Number of Transactions per Financing Professional | **2.36** | **3.03** | **-0.67** | | Average Fee per Transaction | **$47,178** | **$46,548** | **+$630** | | Average Fee Rate | **0.67%** | **0.75%** | **-0.08%** | | Average Transaction Size (in thousands) | **$7,094** | **$6,189** | **+$905** | | Total Number of Transactions | **234** | **279** | **-45** | | Total Financing Volume (in millions) | **$1,660** | **$1,727** | **-$67** | [Real Estate Brokerage by Market Segment](index=6&type=section&id=Real%20Estate%20Brokerage%20by%20Market%20Segment) This section breaks down **real estate brokerage** performance by transaction value, showing revenue, volume, and transaction count changes across different market segments Real Estate Brokerage Performance by Market Segment | Market Segment | Q1 2024 Number | Q1 2024 Volume (millions) | Q1 2024 Revenue (thousands) | Q1 2023 Number | Q1 2023 Volume (millions) | Q1 2023 Revenue (thousands) | Change Number | Change Volume (millions) | Change Revenue (thousands) | | :--------------- | :------------- | :------------------------ | :-------------------------- | :------------- | :------------------------ | :-------------------------- | :------------ | :----------------------- | :------------------------- | | <**$1 million** | **186** | **$103** | **$4,764** | **183** | **$116** | **$5,038** | **3** | **$(13)** | **$(274)** | | **Private Client Market** (**$1** – <**$10 million**) | **808** | **$2,590** | **$73,163** | **970** | **$3,254** | **$90,503** | **(162)** | **$(664)** | **$(17,340)** | | **Middle Market** (**$10** – <**$20 million**) | **59** | **$802** | **$15,093** | **66** | **$900** | **$17,368** | **(7)** | **$(98)** | **$(2,275)** | | **Larger Transaction Market** (≥**$20 million**) | **49** | **$2,166** | **$16,455** | **60** | **$2,862** | **$22,137** | **(11)** | **$(696)** | **$(5,682)** | | **Total** | **1,102** | **$5,661** | **$109,475** | **1,279** | **$7,132** | **$135,046** | **(177)** | **$(1,471)** | **$(25,571)** | [Certain Adjusted Metrics](index=9&type=section&id=Certain%20Adjusted%20Metrics) This section presents **adjusted financial metrics** for **Q1 2024**, excluding large **real estate brokerage** transactions over **$300 million**, to provide a clearer view of core performance Adjusted Performance Metrics | Metric | Q1 2024 (actual) | Q1 2024 (as adjusted) | | :-------------------------- | :--------------- | :-------------------- | | Total Sales Volume Decrease | **(20.6%)** | **(20.6%)** | | Average Commission Rate Increase | **2.1%** | **2.1%** | | Average Transaction Size Decrease | **(7.9%)** | **(7.9%)** | - **Adjusted metrics exclude any large transactions** in **real estate brokerage** business in excess of **$300 million**, showing **no change in these specific metrics** for **Q1 2024**[37](index=37&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides Marcus & Millichap's unaudited condensed consolidated statements of operations and balance sheets for **Q1 2024**, detailing financial position and performance [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations show a **net loss** of **$10.0 million** for **Q1 2024**, compared to a **net loss** of **$5.8 million** in **Q1 2023**, on **total revenue** of **$129.1 million** Consolidated Statements of Operations | | Three Months Ended March 31, | | :----------------------------------- | :------------------ | :------------------ | | | **2024** | **2023** | | **Revenue:** | | | | Real estate brokerage commissions | **$109,475** | **$135,046** | | Financing fees | **$14,427** | **$15,868** | | Other revenue | **$5,202** | **$3,878** | | **Total revenue** | **$129,104** | **$154,792** | | **Operating expenses:** | | | | Cost of services | **$76,868** | **$95,427** | | Selling, general and administrative | **$68,916** | **$72,219** | | Depreciation and amortization | **$3,422** | **$3,207** | | **Total operating expenses** | **$149,206** | **$170,853** | | Operating loss | **$(20,102)** | **$(16,061)** | | Other income, net | **$5,568** | **$4,810** | | Interest expense | **$(199)** | **$(215)** | | Loss before benefit for income taxes | **$(14,733)** | **$(11,466)** | | Benefit for income taxes | **$(4,746)** | **$(5,633)** | | **Net loss** | **$(9,987)** | **$(5,833)** | | **Net loss per share:** | | | | Basic | **$(0.26)** | **$(0.15)** | | Diluted | **$(0.26)** | **$(0.15)** | | **Weighted average common shares outstanding:** | | | | Basic | **38,447** | **39,200** | | Diluted | **38,447** | **39,200** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets show **total assets** of **$826.7 million** as of March 31, 2024, a **decrease** from **$878.4 million** at December 31, 2023, with **total liabilities** also **decreasing** to **$201.1 million** from **$233.1 million** over the same period Consolidated Balance Sheets | | March 31, 2024 (unaudited) | December 31, 2023 | | :----------------------------------- | :-------------------------- | :------------------ | | **Assets** | | | | Cash, cash equivalents, and restricted cash | **$90,556** | **$170,753** | | Total current assets | **$343,537** | **$393,694** | | Property and equipment, net | **$27,832** | **$27,450** | | Operating lease right-of-use assets, net | **$92,929** | **$90,058** | | Marketable debt securities, available-for-sale | **$198,314** (current) / **$57,400** (non-current) | **$168,881** (current) / **$67,459** (non-current) | | Goodwill and other intangible assets, net | **$50,041** | **$51,183** | | **Total assets** | **$826,651** | **$878,411** | | **Liabilities and stockholders' equity** | | | | Total current liabilities | **$92,592** | **$105,269** | | Deferred compensation and commissions (non-current) | **$27,304** | **$47,771** | | Operating lease liabilities (non-current) | **$73,935** | **$69,407** | | **Total liabilities** | **$201,096** | **$233,137** | | **Stockholders' equity:** | | | | Common stock | **$4** | **$4** | | Additional paid-in capital | **$155,157** | **$153,740** | | Retained earnings | **$471,670** | **$492,298** | | Accumulated other comprehensive loss | **$(1,276)** | **$(768)** | | **Total stockholders' equity** | **$625,555** | **$645,274** | | **Total liabilities and stockholders' equity** | **$826,651** | **$878,411** | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section offers additional financial disclosures, including a reconciliation of **Adjusted EBITDA**, a glossary of terms, and important disclaimers regarding **forward-looking statements** and webcast information [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section defines **Adjusted EBITDA** as a non-GAAP measure used by the company to evaluate business performance, providing a reconciliation from **net loss** by excluding **interest income/expense**, **income taxes**, **depreciation/amortization**, and **stock-based compensation** - **Adjusted EBITDA is defined as net (loss) income** before **interest income**, **interest expense**, (benefit) provision for **income taxes**, **depreciation and amortization**, and **stock-based compensation**[33](index=33&type=chunk) - The company uses **Adjusted EBITDA** to **evaluate business performance, develop budgets, and measure performance** against those budgets, believing analysts and investors also use it as a supplemental measure[33](index=33&type=chunk) Adjusted EBITDA Reconciliation | | Three Months Ended March 31, | | :-------------------------- | :------------------ | :------------------ | | | **2024** | **2023** | | Net loss | **$(9,987)** | **$(5,833)** | | **Adjustments:** | | | | Interest income | **$(4,765)** | **$(4,390)** | | Interest expense | **$199** | **$215** | | Benefit for income taxes | **$(4,746)** | **$(5,633)** | | Depreciation and amortization | **$3,422** | **$3,207** | | Stock-based compensation | **$5,795** | **$5,011** | | **Adjusted EBITDA** | **$(10,082)** | **$(7,423)** | [Glossary of Terms](index=8&type=section&id=Glossary%20of%20Terms) This section provides definitions for key market segments and terms used within the report, including **Private Client Market**, **Middle Market**, **Larger Transaction Market**, and **Acquisitions** - **Private Client Market: transactions with values from $1 million to up to but less than $10 million**[36](index=36&type=chunk) - **Middle Market: transactions with values from $10 million to up to but less than $20 million**[36](index=36&type=chunk) - **Larger Transaction Market: transactions with values of $20 million and above**[36](index=36&type=chunk) - **Acquisitions: acquisition of businesses accounted for as a business combination** in accordance with generally accepted accounting standards[36](index=36&type=chunk) [Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section serves as a disclaimer, highlighting that the release contains **forward-looking statements** based on current expectations and projections, which are subject to risks and uncertainties that could cause **actual results** to differ materially - **Forward-looking statements are based on current expectations and projections** about future events and financial trends, not guarantees of future performance or results[22](index=22&type=chunk) - **Important factors that could cause actual performance or results to differ materially** include general uncertainty in capital markets, worsening **economic conditions**, **market trends** in commercial real estate, ability to **attract and retain talent**, **increased competition**, **technology changes**, **business interruptions**, changes in **government regulation**, and ability to **integrate acquisitions**[22](index=22&type=chunk)[24](index=24&type=chunk) - The company assumes no obligation to update **forward-looking statements** to reflect **actual results** or changes in assumptions, except as required by applicable laws[24](index=24&type=chunk) [Webcast and Call Information](index=3&type=section&id=Webcast%20and%20Call%20Information) Details for accessing the **live webcast** and telephonic replay of Marcus & Millichap's **Q1 2024 financial results** discussion are provided, encouraging webcast use due to potential dial-in wait times - A **live webcast to discuss financial results** was hosted on May 8, 2024, at **7:30 a.m. Pacific Time/10:30 a.m. Eastern Time**, accessible via the **Investor Relations section of Marcus & Millichap's website**[16](index=16&type=chunk)[17](index=17&type=chunk) - A **telephonic replay of the call** was available from May 8, 2024, through May 22, 2024, using specified dial-in numbers and a passcode[18](index=18&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________ FORM 10-K __________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________to___________ Commission File Number 001-36155 __________________________ MARCUS ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 __________________________ FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________to___________ Commission File Number: 001-36155 __________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents Delaware 35-2478370 (State or Other Jurisdiction of Incorporation or Organization) Washington, DC 20549 __________________________ FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______ ...

• Transaction counts in 1H 2023 estimated to have dipped 49% year-over-year; dollar volume dropped by 58% year-over-year. • Interest rate shock, tightened lender underwriting and lower loan-to-value percentages causing pricing recalibration in most property segments and markets; buyers are well-capitalized, but buyer/seller expectation gap remains wide. • Limited debt capital availability for office and other challenged properties will make price discovery more difficult. • Financing generally available for ...

Marcus & Millichap, Inc. (NYSE:MMI) Q1 2023 Earnings Conference Call May 5, 2023 10:30 AM ET Company Participants Jacques Cornet - Investor Relations Hessam Nadji - President and Chief Executive Officer Steve DeGennaro - Chief Financial Officer Conference Call Participants Blaine Heck - Wells Fargo Operator Greetings and welcome to the Marcus & Millichap???s First Quarter 2023 Earnings Conference Call. As a reminder, this call is being recorded. And it is now my pleasure to turn the conference over to your ...

FORWARD-LOOKING STATEMENTS Important factors that could cause such differences include, but are not limited to: (1) general uncertainty in the capital markets, a worsening of economic conditions, and the rate and pace of economic recovery following an economic downturn; (2) changes in our business operations; (3) market trends in the commercial real estate market or the general economy, including the impact of rising inflation and higher interest rates; (4) our ability to attract and retain qualified senior ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number: 001-36155 __________________________ MARCUS & MILLICHAP, INC. Washington, DC 20549 __________________________ FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-K ________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-36155 MARCUS & MILLICHAP, INC. (Exact name of registrant as spe ...