Real estate firm Marcus & Millichap beats Q3 revenue estimates on expanded client outreach

Marcus and Millichap

07/11/2025 13:07

Overview

Marcus & Millichap Q3 revenue grows 15.1% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 beats consensus, reflecting improved operating income

Earnings per share includes $0.08 loss per share for litigation accrual

Outlook

Company expects commercial real estate market to overcome near-term challenges through 2025

Marcus & Millichap focuses on long-term growth via technology and acquisitions

Volatility in debt capital costs and interest rates may impact investor sentiment

Result Drivers

CLIENT OUTREACH - Expanded client outreach and improved bid/ask spreads contributed to revenue growth, per CEO Hessam Nadji

PRIVATE CLIENT STRENGTH - Private Client Market showed strength in sales and financing, contributing to higher average commission rates

FINANCING VOLUME - Financing fees increased due to a 34.4% rise in financing volume, despite a decrease in average fee rate

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$193.89 mln
$187.50 mln (2 Analysts)
Q3 Net Income
$240,000
Q3 Adjusted EBITDA
Beat
$6.90 mln
$200,000 (2 Analysts)
Q3 EBIT
-$2.37 mln
Q3 Operating Expenses
$196.27 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the real estate services peer group is "buy."

Wall Street's median 12-month price target for Marcus & Millichap Inc is $29.00, about 1.7% below its November 6 closing price of $29.48

The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 105 three months ago

Press Release: ID:nBw2tKtrBa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)