Financial Performance - Total revenue for Q3 2024 was $168.5 million, a 4.0% increase from $162.0 million in Q3 2023[2] - Net loss for Q3 2024 was $5.4 million, or $0.14 per share, an improvement from a net loss of $9.2 million, or $0.24 per share, in Q3 2023[11] - Adjusted EBITDA for Q3 2024 improved by $6.6 million to approximately breakeven[11] - Total revenue for the nine months ended September 30, 2024, was $456.0 million, a decrease of 4.9% from $479.7 million in the same period last year[12] - The company reported a net loss of $5.4 million for the three months ended September 30, 2024, an improvement from a net loss of $9.2 million in the same period of 2023[28] - The company reported a net loss of $(5,385,000) for the three months ended September 30, 2024, compared to a net loss of $(9,240,000) for the same period in 2023[39] Revenue Breakdown - Brokerage commissions reached $142.0 million, up 1.5% from $139.8 million in the same period last year[7] - Real estate brokerage commissions amounted to $142.0 million for the three months ended September 30, 2024, compared to $139.8 million in the prior year, reflecting a 1.5% increase[28] - Total sales volume reached approximately $12.0 billion for the three months ended September 30, 2024, with 1,987 transactions, including $8.5 billion in real estate brokerage[30] - Total financing volume for the three months ended September 30, 2024, was $2.1 billion, a 12.0% increase from $1.9 billion in the same period of 2023[32] - Total sales volume in real estate brokerage increased by 14.7% for the three months ended September 30, 2024[41] Transaction and Commission Details - The average commission per transaction in real estate brokerage increased to $106,664 for the three months ended September 30, 2024, up from $102,731 in the same period of 2023[31] - The average fee per financing transaction was $50,351 for the three months ended September 30, 2024, compared to $50,062 in the prior year[32] - The average transaction size in real estate brokerage increased to $6.4 million for the three months ended September 30, 2024, from $5.5 million in the same period of 2023[31] - Average commission rate decreased by 11.7% for the three months ended September 30, 2024[41] - Average transaction size increased by 17.3% for the three months ended September 30, 2024[41] Operational Metrics - The Company closed 5,351 transactions during the nine months ended September 30, 2024, with a sales volume of $31.2 billion[23] - The company had 1,574 investment sales professionals and 104 financing professionals as of September 30, 2024[30] - The Company had 1,678 investment sales and financing professionals as of September 30, 2024, down from 1,820 a year earlier[12] Shareholder Returns and Equity - The Board declared a semi-annual dividend of $0.25 per share, paid on October 4, 2024[13] - Approximately $71.0 million remains available for share repurchases under the Company's program[15] - Stockholders' equity decreased from $645,274,000 on December 31, 2023, to $617,728,000 on September 30, 2024, a decline of approximately 4.3%[37] Asset and Liability Changes - Total current assets decreased from $393,694,000 on December 31, 2023, to $356,545,000 on September 30, 2024, a decline of approximately 9.4%[37] - Total assets decreased from $878,411,000 on December 31, 2023, to $833,714,000 on September 30, 2024, a decline of approximately 5.1%[37] - Total current liabilities increased from $105,269,000 on December 31, 2023, to $113,223,000 on September 30, 2024, an increase of approximately 7.4%[37] Operating Expenses - Operating expenses totaled $180.0 million for the three months ended September 30, 2024, compared to $177.5 million in the same period of 2023[28] - Adjusted EBITDA for the three months ended September 30, 2024, was $(21,000), compared to $(6,647,000) for the same period in 2023[39]

Financial Performance - Total revenue for Q2 2024 was $158.4 million, a decrease of $4.5 million or 2.8% compared to Q2 2023 revenue of $162.9 million[160]. - Revenue from real estate brokerage commissions decreased to $135.4 million, down $4.9 million or 3.5% from $140.3 million in Q2 2023, attributed to a 4.9% decrease in total sales volume[161]. - For the six months ended June 30, 2024, total revenue was $287.5 million, a decrease of $30.2 million or 9.5% compared to $317.7 million for the same period in 2023[170]. - Revenue from real estate brokerage commissions for the six months ended June 30, 2024 decreased to $244.9 million, down $30.5 million or 11.1% from $275.4 million in the same period in 2023[171]. - Net loss for Q2 2024 was $5.5 million, an improvement of $3.2 million or 36.6% compared to a net loss of $8.7 million in Q2 2023[160]. - Adjusted EBITDA for Q2 2024 was $1.4 million, a significant increase of $2.5 million compared to an adjusted EBITDA loss of $1.1 million in Q2 2023, reflecting a 236.5% improvement[160]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(8,641) thousand, compared to $(8,479) thousand for the same period in 2023[180]. Transaction Activity - As of June 30, 2024, the company closed 1,800 investment sales and financing transactions with a total sales volume of approximately $9.5 billion for the quarter[118]. - The company closed 3,364 transactions with a total sales volume of approximately $19.2 billion for the six months ended June 30, 2024[118]. - In Q2 2024, the company closed over 1,800 transactions with a total sales volume of approximately $9.5 billion, compared to 1,900 transactions and $9.7 billion in Q2 2023, indicating a decline in transaction activity[155]. - The average transaction size for real estate brokerage increased to $5.636 million in Q2 2024 from $5.303 million in Q2 2023, showing a growth of 6.3%[156]. Revenue Sources - Approximately 86% of the company's revenue for the three months ended June 30, 2024, was generated from real estate brokerage commissions, totaling $135.4 million[119]. - The private client market (properties priced from $1 million to less than $10 million) contributed approximately 63% of real estate brokerage commissions for Q2 2024[120]. - The company is the industry leader in serving private clients in the $1-$10 million market, which contributed approximately 65% of real estate brokerage commissions during the first half of 2024[120]. - Financing fees increased to $18.3 million, up $0.4 million or 2.2% from $17.9 million in Q2 2023, driven by an 11.0% increase in total financing volume[161]. Operating Expenses - Total operating expenses for Q2 2024 were $166.4 million, a decrease of $7.1 million or 4.1% from $173.5 million in Q2 2023[163]. - Cost of services decreased to $98.1 million, down $3.1 million or 3.0% from $101.2 million in Q2 2023, primarily due to lower commission expenses[164]. - Selling, general, and administrative expenses decreased to $65.0 million, down $3.9 million or 5.7% from $68.9 million in Q2 2023, due to reduced marketing support[165]. Market Conditions - The commercial real estate market is experiencing a slowdown due to sustained higher interest rates and tighter lender underwriting, leading to a reduced volume of available debt capital[133]. - The expectation gap between buyers and sellers remains challenging, with lending and investor activity below pre-pandemic historical norms[131]. - The industrial vacancy rate increased in Q2 2024 due to elevated construction exceeding space demand, while retail vacancy rates remained near record lows[130]. - The company is facing challenges in the office property segment, with increased uncertainty and potential for additional foreclosures[138]. Cash Flow and Financial Position - Total cash, cash equivalents, and restricted cash decreased by $8.8 million to $162.0 million at June 30, 2024, compared to $170.8 million at December 31, 2023[182]. - Cash flows used in operating activities were $50.2 million for the six months ended June 30, 2024, compared to $94.8 million for the same period in 2023, a decrease of $44.6 million[183]. - Cash flows provided by investing activities were $58.8 million for the six months ended June 30, 2024, compared to $82.4 million for the same period in 2023, a decrease of $23.6 million[185]. - Cash flows used in financing activities were $17.2 million for the six months ended June 30, 2024, compared to $52.4 million for the same period in 2023, a decrease of $35.1 million[186]. Interest Rate and Investment Risks - The company does not face material interest rate risk with respect to other assets and liabilities[195]. - The functional currency of the Canadian operations is the Canadian dollar, exposing the company to foreign currency exchange rate risk[195]. - Historically, foreign exchange rate risk has not been material for the company[195]. - A 2% decrease in interest rates would result in an approximate increase in the fair value of investments by $3.84 million[197]. - A 1% decrease in interest rates would result in an approximate increase in the fair value of investments by $1.92 million[197]. - A 1% increase in interest rates would result in a decrease in the fair value of investments by $1.919 million[197]. - A 2% increase in interest rates would result in a decrease in the fair value of investments by $3.837 million[197]. Construction and Development - The completion of approximately 480,000 new multifamily units is anticipated in 2024, setting a new construction high[129].

Searchlight Resources Inc. (TSXV: SCLT) (OTCQB: SCLTF) is a Canadian mineral exploration and development company focused on Saskatchewan, Canada, which has been ranked as the top location for mining investment in Canada by the Fraser Institute. The Company's exploration model of Project Generation coupled with Targeted Exploration, focuses on uranium, rare earths, copper, nickel and gold throughout the province. On behalf of the Board of Directors, "Stephen Wallace" Stephen Wallace, President, CEO and Direc ...

Source: ImagineStock / Shutterstock.com Net loss was $2.3 million, a 106.8% decrease from 2022's $33.8 million profit. The report also showed a $15 million loss from Kronos Worldwide, potentially signifying unsustainable demand fluctuations. As a result, Barclays (NYSE:BCS) recommends selling NL stock. Read between the lines: Glickman's statement says 2024 will not be Zim Integrated's turnaround year. No wonder analysts rate ZIM stock as a hold, though some sources rate it as a sell. Rick Orford is a Wall S ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|---------------|-------|-------|-------|-------|--------|--------|-------| | | | | | | | | | | | | | | | | | | | | | | | 1,800 | 1,782 | (8.1) % 1,638 | | | | $150 | | (5.9)% | | | 1,500 | | | | | | | $105.6 | | $99.3 | | 1,200 | | | | | | $100 | | | | | 900 | | | | | | | | | | | 600 | | | | | | $50 | | | | | 300 | | | | | | | | | | | 0 | Q1'23 | Q1'24 | | | | $0 | Q1'23 | | Q1'24 | Earnings Conference Call May 8, 2024 FORWARD-LO ...

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_______ ...