Marcus & Millichap(US:MMI)2025-11-07 02:26Revenue Performance - Total revenue for Q3 2025 was $193.9 million, a 15.1% increase from $168.5 million in Q3 2024[6] - The company reported a total revenue of $511.2 million for the nine months ended September 30, 2025, a 12.1% increase from $456.0 million in the same period of 2024[12] - Total revenue for the three months ended September 30, 2025, was $193.892 million, a 15% increase from $168.511 million in the same period of 2024[29] Brokerage Commissions - Brokerage commissions reached $162.2 million, up 14.2% from $142.0 million year-over-year[5] - Real estate brokerage commissions increased to $162.166 million for the three months ended September 30, 2025, compared to $141.970 million in 2024, reflecting a 14.2% growth[29] - Private Client Market brokerage revenue increased by 16.9% to $102.3 million, while Middle Market and Larger Transaction Market revenue rose by 6.5% to $52.5 million[5] Financing and Fees - Financing fees grew by 27.7% to $26.3 million, driven by a 34.4% increase in total financing volume[8] Net Income and Loss - Net income for Q3 2025 was $0.2 million, or $0.01 per diluted share, compared to a net loss of $5.4 million, or $0.14 per diluted share, in Q3 2024[11] - Net income for the three months ended September 30, 2025, was $240, compared to a net loss of $5.385 million in the same period of 2024[29] - The company reported a net loss of $15,217,000 for the nine months ended September 30, 2025, compared to a net loss of $20,910,000 for the same period in 2024[37] Operating Expenses - Total operating expenses for Q3 2025 were $196.3 million, an increase from $180.0 million in Q3 2024, with cost of services as a percentage of total revenue rising to 62.4%[9] - Total operating expenses for the three months ended September 30, 2025, were $196.266 million, up from $179.976 million in 2024, representing an increase of 9.0%[29] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $6.9 million, a significant improvement from approximately breakeven in the prior year[11] - Adjusted EBITDA for Q3 2025 was $6,889,000, compared to a loss of $21,000 in Q3 2024[37] - The company uses Adjusted EBITDA as a key performance metric, which excludes items related to capital structure, taxes, and non-cash items[36] - Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered an alternative to net income or operating income[36] - The company emphasizes that Adjusted EBITDA may not be comparable to similar measures used by other companies due to different calculation methods[36] Transaction Volume and Size - Total sales volume reached approximately $12.2 billion for the three months ended September 30, 2025, with 2,289 transactions, including $8.3 billion in real estate brokerage[31] - The average commission per transaction in real estate brokerage was $102,248 for the three months ended September 30, 2025, down from $106,664 in 2024[31] - The average transaction size in real estate brokerage was $5.270 million for the three months ended September 30, 2025, compared to $6.407 million in 2024[31] Assets and Share Repurchase - Total assets decreased to $812.494 million as of September 30, 2025, from $869.800 million at the end of 2024[34] - The company has approximately $59.0 million available for share repurchases under its program, with no established time limit for completion[15] Future Outlook - The company anticipates overcoming near-term challenges in the commercial real estate transaction market, positioning itself for long-term growth[16] Personnel - The company had 1,569 investment sales professionals and 100 financing professionals as of September 30, 2025[31] Interest Income and Expenses - Interest income and other for Q3 2025 was a loss of $3,487,000, compared to a loss of $4,498,000 in Q3 2024[37] - Interest expense for the nine months ended September 30, 2025, was $584,000, slightly down from $611,000 in 2024[37] Depreciation and Stock-Based Compensation - Depreciation and amortization expenses for Q3 2025 were $2,743,000, compared to $4,550,000 in Q3 2024[37] - Total adjustments to net income included $5,966,000 in stock-based compensation for Q3 2025, up from $6,071,000 in Q3 2024[37]