Marcus & Millichap(US:MMI)2026-02-13 02:16Financial Performance - Fourth Quarter 2025 earnings per share were $0.34, a 57.0% increase compared to $0.22 in Fourth Quarter 2024[1][11] - Total revenue for Fourth Quarter 2025 was $244.0 million, up 1.6% from $240.1 million in Fourth Quarter 2024[1][6] - Full Year 2025 total revenue reached $755.2 million, an increase of 8.5% compared to $696.1 million in 2024[1][12] - The Company reported a net loss of $1.9 million for Full Year 2025, an improvement from a net loss of $12.4 million in 2024[1][12] - The net income for the three months ended December 31, 2025, was $13.31 million, compared to $8.55 million in the same period of 2024, while the net loss for the year ended December 31, 2025, was $1.91 million, an improvement from a loss of $12.36 million in 2024[30] Revenue Breakdown - Private Client Market brokerage revenue for Fourth Quarter 2025 was $132.8 million, a 10.3% increase from $120.4 million in the same quarter last year[1][5] - Financing fees for Fourth Quarter 2025 were $33.2 million, reflecting a 6.5% increase compared to $31.2 million in Fourth Quarter 2024[1][8] - Total revenue for the three months ended December 31, 2025, was $243.95 million, a slight increase from $240.08 million in the same period of 2024[30] - The total sales volume for the three months ended December 31, 2025, was approximately $16.9 billion, consisting of $11.8 billion in real estate brokerage, $3.7 billion in financing, and $1.4 billion in other transactions[33] Adjusted EBITDA - Adjusted EBITDA for Fourth Quarter 2025 was $25.0 million, a 38.7% increase from $18.0 million in Fourth Quarter 2024[1][11] - Adjusted EBITDA for Q4 2025 was $25,008,000, compared to $18,034,000 in Q4 2024, reflecting a significant increase of 38.8%[40] - For the year ended December 31, 2025, Adjusted EBITDA was $24,611,000, compared to $9,372,000 for the year ended December 31, 2024, representing a substantial increase of 162.5%[40] Market Activity - The Company closed 8,818 transactions in 2025, with a total sales volume of $50.8 billion[1][21] - The Private Client Market accounted for over 80% of all U.S. commercial property transactions, with the top 10 brokerage firms, including Marcus & Millichap, holding an estimated 18% market share by transaction count in 2025[1][17] - The total number of real estate brokerage transactions for the three months ended December 31, 2025, was 1,902, compared to 1,742 in the same period of 2024[34] Operating Expenses - Total operating expenses for the three months ended December 31, 2025, were $228.53 million, a decrease from $233.37 million in the same period of 2024[30] - Stock-based compensation for the year ended December 31, 2025, was $24,226,000, slightly higher than $23,792,000 for the year ended December 31, 2024[40] Transaction Metrics - The average commission per real estate brokerage transaction was $107,945 for the three months ended December 31, 2025, down from $116,433 in the same period of 2024[33] - The average fee per financing transaction was $49,574 for the three months ended December 31, 2025, compared to $59,219 in the same period of 2024[33] - The average number of transactions per investment sales professional increased to 1.16 for the three months ended December 31, 2025, from 1.09 in the same period of 2024[33] - The company reported a decrease in average transaction size of 6.6% for the year ended December 31, 2025[43] - The average transaction size in the real estate brokerage business decreased by 12.0% in Q4 2025[43] Assets and Liabilities - The total assets as of December 31, 2025, were $827.18 million, a decrease from $869.80 million as of December 31, 2024[36] Tax and Interest - The provision for income taxes in Q4 2025 was $5,908,000, compared to $2,947,000 in Q4 2024, showing an increase of 100.5%[40] - Interest income and other for Q4 2025 was $(3,608,000), a decrease from $(4,987,000) in Q4 2024[40] Company Guidance - The company emphasizes that Adjusted EBITDA should not be considered in isolation from U.S. GAAP results, highlighting its limitations as a performance measure[39]