Key Highlights

  • Third-quarter 2026 total Revenue increased 7.5% to $208.4 million, from $193.9 million a year earlier.
  • Net income was $1.0 million, or $0.03 per diluted share, against $0.2 million, or $0.01, in the third quarter of 2025.
  • Brokerage commissions increased 7.4% to $174.1 million, and financing fees increased 2.6% to $27.0 million.
  • Adjusted EBITDA was $8.2 million, against $6.9 million in the third quarter of 2025.
  • Nine-month total revenue increased 14.0% to $582.8 million.

Marcus & Millichap (NYSE:MMI), the Calabasas, California-based Commercial Real Estate services firm specializing in Investment sales, financing, research and advisory services, reported third-quarter 2026 results on Friday before the market opened. Total revenue was $208.4 million, compared with $193.9 million a year earlier. Market estimates had pointed to revenue of $205.05 million and Earnings of $0.07 per share.

Net income was $1.0 million, or $0.03 per diluted share, against $0.2 million, or $0.01. Pre-tax income was $2.6 million, against $1.5 million. Total operating expenses were $209.3 million, against $196.3 million, with cost of services as a percentage of revenue up 160 basis points to 64.0%.

Brokerage and Financing Revenue

Brokerage commissions were $174.1 million, against $162.2 million. The company attributed the increase primarily to a 12.6% rise in total brokerage sales volume, partly offset by a nine basis point decrease in the average commission rate. Private Client Market brokerage revenue rose 3.6% to $106.0 million, while Middle Market and Larger Transaction Market brokerage revenue rose 18.1% to $62.0 million.

Financing fees were $27.0 million, against $26.3 million, on a five basis point increase in the average fee rate and a 0.7% increase in financing volume.

Nine-Month Results and Management Commentary

For the nine months, total revenue was $582.8 million, against $511.2 million. Net Income was $1.8 million, or $0.05 per diluted share, against a net loss of $15.2 million, or $0.39 per share. Adjusted EBITDA was $23.3 million, against negative $0.4 million.

CEO Hessam 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. He said the near-term outlook is tempered by Interest Rate volatility, while a growing number of Assets need to trade as loans mature and postponed transactions run out of time going into 2027.