MMI · Marcus & Millichap, Inc.

Marcus & Millichap’s preliminary Q1 2026 results reflect a clear inflection in operating performance, with revenue growth accelerating to 18.2% year-over-year and Adjusted EBITDA turning positive at $2.9 million versus a $8.7 million loss in Q1 2025. The improvement was broad-based: brokerage commissions rose 11.7%, supported by an 18.5% increase in total sales volume — though the average commission rate declined 11 basis points due to a strategic shift toward Larger Transaction Market business, which grew 24.9% and carries lower rates. Financing fees delivered exceptional growth of 48.1%, driven by a 60.1% jump in financing volume and only a modest 4 bps fee rate compression — underscoring the firm’s ability to capitalize on improving capital markets and its proprietary lender network. Operating expenses increased modestly to $177.2 million, with cost of services rising $15.3 million but declining as a percentage of revenue (60.5%, down 40 bps), reflecting higher productivity among senior professionals. Management attributed the turnaround to investments in talent and platform expansion, narrowing bid/ask spreads, and a more liquid credit environment — while candidly acknowledging persistent near-term headwinds including geopolitical uncertainty, energy price volatility, and interest rate ambiguity. Capital return activity was robust: the Company executed $23.5 million in share repurchases during the quarter and secured an additional $70 million authorization, bringing total remaining capacity to ~$90 million. Though forward guidance remains qualitative — citing continued price discovery and expected near-term challenges through 2026 — management expressed confidence in long-term growth, anchored by the highly fragmented Private Client Market (80%+ of U.S. commercial transactions) and MMI’s #1 market position within it. All results are labeled preliminary pending Form 10-Q filing.