Earnings

Marcus & Millichap Revenue Growth Cools After Two Faster Quarters

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue rose 7.5% to $208.4 million as Private Client brokerage growth slowed after an 80 bps rise in the 10-year Treasury yield.

Marcus & Millichap, Inc. (MMI), a national commercial real estate investment sales and financing firm, reported third-quarter revenue of $208.4 million, up 7.5% from $193.9 million a year earlier. That pace marked a clear deceleration from 17.8% year-over-year growth in the second quarter and 18.2% in the first.

Net income was $1.0 million, or $0.03 a share, compared with $0.2 million, or $0.01 a share, in the year-earlier third quarter. Adjusted EBITDA was $8.2 million. President and Chief Executive Officer Hessam Nadji said the company continued to deliver revenue growth and improved financial results despite another rise in interest rates and continued pressure on real estate valuations.

Brokerage commissions, the bulk of the top line, rose 7.4% to $174.1 million. The company said the increase was primarily attributed to a 12.6% rise in total brokerage sales volume, partially offset by a nine-basis-point decrease in the average commission rate earned. Average commission rate fell to 1.85% from 1.94% a year earlier. Brokerage sales volume was $9.41 billion across 1,584 transactions.

The mix inside brokerage told the quarter’s story. Private Client Market brokerage revenue rose 3.6% to $106.0 million. Nadji said private client activity grew at a more moderate pace as bid-ask spreads widened following an 80 basis point increase in the 10-year Treasury yield during the quarter. Middle Market and Larger Transaction Market brokerage revenue increased 18.1% to $62.0 million. Nadji said increased penetration of the middle market and larger transactions continued to drive stronger revenue growth.

Financing fees rose 2.6% to $27.0 million. The company attributed the increase primarily to a five-basis-point rise in the average fee rate earned and a 0.7% increase in total financing volume. Average fee rate was 0.76%. Financing volume was $2.89 billion on 423 transactions.

Cost of services rose $12.5 million and accounted for 64.0% of total revenue, up 160 basis points from the year-earlier third quarter. The company said the increase was primarily due to senior investment sales and financing professionals earning higher commissions in 2026. Selling, general and administrative expenses were $73.5 million. The company said the $1.0 million net increase was primarily due to higher IT-related costs, partially offset by a decrease in litigation costs after a $4.0 million legal accrual recorded in the third quarter of 2025 related to an ongoing matter.

As of September 30, 2026, the company had 1,670 investment sales and financing professionals. Cash, cash equivalents and restricted cash were $189.2 million.

Nadji said the near-term outlook remains somewhat tempered by interest-rate volatility of the past several months. He said the company is seeing a growing number of assets that need to trade as loans mature and previously postponed transactions run out of time going into 2027, and that price adjustments of the past three years, together with lenders’ increased ability to dispose of underperforming assets, are expected to result in increased sales activity. The company said it remains focused on platform improvements, talent acquisition and supporting its sales force, and on using its balance sheet to pursue strategic acquisitions in 2027 and beyond.

On July 31, 2026, the board declared a semi-annual regular dividend of $0.25 a share, paid October 6, 2026. After accounting for shares repurchased through November 3, 2026, the company had about $90.1 million available under its repurchase program.

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