Marcus & Millichap Inc (NYSE:MMI) Posts Mixed Q2 2025 Results with Revenue Growth but Widening Net Loss

Marcus & Millichap Inc (NYSE:MMI) Reports Q2 2025 Results: Mixed Performance Amid Market Volatility

Marcus & Millichap Inc released its second-quarter 2025 financial results, revealing a net loss of $11.0 million, or $0.28 per diluted share, compared to a net loss of $5.5 million, or $0.14 per share, in the prior-year quarter. The results fell short of analyst expectations, which had projected a smaller loss of $0.0985 per share. Revenue, however, showed resilience, climbing 8.8% year-over-year to $172.3 million, slightly above the consensus estimate of $172.2 million.

Key Financial Highlights

• Revenue Growth: Total revenue increased to $172.3 million, driven by an 11.8% rise in brokerage sales volume and a 43.5% surge in financing fees.
• Segment Performance:
  • Private Client Market brokerage revenue rose 10.3% to $93.5 million.
  • Middle Market and Larger Transaction Market revenue declined 6.6% to $42.3 million, following strong growth in prior quarters.
• Net Loss Widens: The $11.0 million net loss included a $7.3 million tax provision due to a change in tax methodology. Adjusted EBITDA remained stable at $1.5 million.

Market Reaction

The stock has shown modest movement post-earnings, with a slight uptick of 1.74% over the past month, suggesting a muted response to the mixed results. Investors may be weighing the revenue beat against the deeper-than-expected loss, alongside broader market uncertainty in commercial real estate.

Outlook and Analyst Expectations

Management highlighted gradual improvements in capital availability and narrowing bid-ask spreads but cautioned that near-term challenges in the commercial real estate market could persist through 2025. The company remains optimistic about long-term growth opportunities, particularly in the fragmented Private Client Market, which accounts for over 80% of U.S. commercial property transactions.

Analysts project full-year 2025 revenue at $781.1 million, with an estimated EPS loss of $0.0606. For Q3, expectations stand at $193.8 million in revenue and a $0.0207 loss per share.

Capital Allocation

Marcus & Millichap continues to return capital to shareholders, declaring a semi-annual dividend of $0.25 per share and repurchasing 242,821 shares at an average price of $30.47 during the quarter. Approximately $63.6 million remains available under its share buyback program.

Conclusion

While Marcus & Millichap’s revenue growth demonstrates resilience in its core brokerage and financing segments, the widening net loss and cautious outlook reflect ongoing sector headwinds. Investors will monitor whether the company’s strategic investments in talent and technology can drive profitability in a still-volatile market.

For more detailed earnings estimates and historical performance, visit Marcus & Millichap’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.