Q3 FY2026
Filed Nov 6, 2026Q3 2026 revenue rose 7.5% to $208.4 million and net income was $1.0 million ($0.03 per diluted share), against $0.2 million a year earlier. Nine-month net income was $1.8 million versus a net loss of $15.2 million.
Revenue grew 7.5% in the quarter and 14.0% for nine months, and the company returned to positive net income for both periods. Middle Market and Larger Transaction Market brokerage revenue grew 18.1%, while Private Client Market revenue grew 3.6%. Cost of services rose to 64.0% of revenue, and quarterly net income remained small at $1.0 million. The filing gives no numeric outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $208.4M | – | 7.5% |
| Real estate brokerage commissions, Q3 2026GAAP | $174.1M | – | 7.4% |
| Financing fees, Q3 2026GAAP | $27M | – | 2.6% |
| Other revenue, Q3 2026GAAP | $7.28M | – | – |
| Total operating expenses, Q3 2026GAAP | $209.3M | – | – |
| Cost of services, Q3 2026GAAP | $133.5M | – | increase of $12.5 million |
| Cost of services as a percentage of total revenue, Q3 2026GAAP | 64.0% | – | increased by 160 basis points |
| Selling, general and administrative expenses, Q3 2026GAAP | $73.5M | – | net increase of $1.0 million |
| Depreciation and amortization, Q3 2026GAAP | $2.31M | – | – |
| Operating loss, Q3 2026GAAP | −$906K | – | – |
| Other income, net, Q3 2026GAAP | $3.66M | – | – |
| Interest expense, Q3 2026GAAP | −$155K | – | – |
| Income before provision for income taxes, Q3 2026GAAP | $2.60M | – | increased by $1.1 million |
| Provision for income taxes, Q3 2026GAAP | $1.59M | – | – |
| Net income, Q3 2026GAAP | $1.01M | – | – |
| Diluted earnings per share, Q3 2026GAAP | $0.03 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $8.2M | – | increased by $1.3 million |
| Total brokerage sales volume, Q3 2026other | $9.41B | – | 12.6% |
| Total brokerage transactions, Q3 2026other | 1,584 | – | (2) |
| Average commission rate, Q3 2026other | 1.85% | – | decrease of nine basis points |
| Average transaction size, Q3 2026other | $5.94M | – | 12.7% |
| Total financing sales volume, Q3 2026other | $2.89B | – | 0.7% |
| Total financing transactions, Q3 2026other | 423 | – | – |
| Average fee rate on financing, Q3 2026other | 0.76% | – | five basis point increase |
| Total sales volume, Q3 2026 (all businesses)other | $13.8B | – | – |
| Total transactions, Q3 2026 (all businesses)other | 2,316 | – | – |
| Total revenue, nine months 2026GAAP | $582.8M | – | 14.0% |
| Real estate brokerage commissions, nine months 2026GAAP | $479.2M | – | 12.2% |
| Financing fees, nine months 2026GAAP | $84.1M | – | 19.0% |
| Other revenue, nine months 2026GAAP | $19.44M | – | – |
| Total operating expenses, nine months 2026GAAP | $587.2M | – | 8.7% |
| Cost of services, nine months 2026GAAP | $363.8M | – | – |
| Cost of services as a percentage of total revenue, nine months 2026GAAP | 62.4% | – | increase of 60 basis points |
| Selling, general and administrative expenses, nine months 2026GAAP | $216.4M | – | – |
| Depreciation and amortization, nine months 2026GAAP | $7.04M | – | – |
| Operating loss, nine months 2026GAAP | −$4.47M | – | – |
| Other income, net, nine months 2026GAAP | $11.61M | – | – |
| Interest expense, nine months 2026GAAP | −$448K | – | – |
| Income (loss) before provision for income taxes, nine months 2026GAAP | $6.69M | – | increased by $22.9 million |
| Provision (benefit) for income taxes, nine months 2026GAAP | $4.88M | – | – |
| Net income (loss), nine months 2026GAAP | $1.82M | – | – |
| Diluted earnings (loss) per share, nine months 2026GAAP | $0.05 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $23.3M | – | increased by $23.7 million |
| Total brokerage sales volume, nine months 2026other | $26.79B | – | 16.3% |
| Total brokerage transactions, nine months 2026other | 4,462 | – | – |
| Average commission rate, nine months 2026other | 1.79% | – | – |
| Total financing sales volume, nine months 2026other | $9.55B | – | – |
| Average fee rate on financing, nine months 2026other | 0.74% | – | – |
| Total sales volume, nine months 2026 (all businesses)other | $40B | – | – |
| Total transactions, nine months 2026 (all businesses)other | 6,644 | – | – |
| Investment sales and financing professionals, September 30, 2026other | 1,670 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Private Client Market brokerage revenue, Q3 2026Company states that private client activity grew at a more moderate pace as bid-ask spreads widened following the 80 bps increase in the 10-year Treasury yield during the quarter. Prior-year figure printed as $102.3 million. | $106M | – | 3.6% |
| Middle Market and Larger Transaction Market brokerage revenue, Q3 2026Company states that increased penetration of the middle market and larger transactions continued to drive stronger revenue growth. Prior-year figure printed as $52.5 million. | $62M | – | 18.1% |
| Middle Market ($10 to <$20 million) brokerage revenue, Q3 2026Transaction table line. Prior-year revenue printed as $26,139 thousand on 106 transactions; 2026 shows 121 transactions and $1,671 million volume. | $30.50M | – | $4,362 thousand increase |
| Larger Transaction Market (≥$20 million) brokerage revenue, Q3 2026Transaction table line. Prior-year revenue printed as $26,348 thousand on 72 transactions; 2026 shows 80 transactions and $3,824 million volume. | $31.49M | – | $5,144 thousand increase |
| Under $1 million brokerage revenue, Q3 2026Transaction table line. Prior-year revenue printed as $7,356 thousand on 244 transactions; 2026 shows 222 transactions. | $6.12M | – | $(1,233) thousand decrease |
| Private Client Market brokerage revenue, nine months 2026Nine-month figure. Prior-year figure printed as $273.5 million. | $300.3M | – | 9.8% |
| Middle Market and Larger Transaction Market brokerage revenue, nine months 2026Nine-month figure. Prior-year figure printed as $135.6 million. | $161.3M | – | 18.9% |
| Financing fees, Q3 2026Company attributes the increase to a five basis point increase in the average fee rate and a 0.7% increase in total financing volume. | $27M | – | 2.6% |
| Real estate brokerage commissions, Q3 2026Company attributes the increase primarily to a 12.6% increase in total brokerage sales volume, partly offset by a nine basis point decrease in the average commission rate. | $174.1M | – | 7.4% |
Remainder of 2026 outlook
- NoteNo numeric guidance is given. The company believes the commercial real estate transaction market is poised to overcome the near-term challenges which are currently expected to extend through 2026.
- NoteThe company believes it remains well-positioned to return to long-term growth.
- NoteKey factors listed include volatile cost of debt capital, interest rate uncertainty, bid/ask spreads, recession risk, policy changes and operating cost increases.
Capital returns
- On July 31, 2026, the Board declared a semi-annual regular dividend of $0.25 per share, paid on October 6, 2026, to holders of record at the close of business on September 15, 2026.
- During the nine months ended September 30, 2026, the company repurchased 912,957 shares at an average price of $26.22 for a total purchase price of $23.9 million.
- Since August 2022, the company has repurchased and retired 3,987,494 shares at an average purchase price of $30.06 per share for a total price of $119.9 million.
- After repurchases through November 3, 2026, approximately $90.1 million remains available under the repurchase program. No time limit has been set.
What drove it
- Company attributes the Q3 commission increase primarily to a 12.6% increase in total brokerage sales volume, partly offset by a nine basis point decrease in the average commission rate.
- Company attributes the 160 basis point rise in cost of services as a percentage of revenue primarily to senior investment sales and financing professionals earning higher commissions in 2026.
- Company attributes the Q3 increase in SG&A primarily to higher IT costs, partly offset by lower litigation costs. The Q3 2025 figure included a $4.0 million legal accrual.
- Company attributes the Q3 increase in Adjusted EBITDA primarily to the decrease in operating losses.
- Company attributes the financing fee increase to a five basis point rise in the average fee rate and a 0.7% rise in total financing volume.
Concerns
- Cost of services rose to 64.0% of total revenue in Q3 2026, up 160 basis points, and to 62.4% for nine months, up 60 basis points.
- Private Client Market brokerage revenue grew 3.6% in Q3 2026. The company describes that activity as growing at a more moderate pace.
- Under $1 million brokerage revenue fell $(1,233) thousand in Q3 2026 on 22 fewer transactions.
- Average commission rate fell to 1.85% in Q3 2026 from 1.94%, and to 1.79% for nine months from 1.85%.
- Q3 operating loss was $(906) thousand and quarterly net income was $1,007 thousand. The Form 10-Q has not yet been filed, so all results are preliminary.
What to watch
- Whether the growth in total brokerage sales volume continues, since the company credits it for most of the Q3 commission growth.
- Whether cost of services as a percentage of revenue moves back toward its prior-year level as commission structures evolve.
- The timing of the Form 10-Q and any adjustments to these preliminary results.
- The pace of loan maturities and lender dispositions that management says will lead to more sales activity going into 2027.
- Use of the remaining repurchase authorization of approximately $90.1 million and any acquisitions the company says it may pursue in 2027 and beyond.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash were $189,223 thousand at September 30, 2026, compared with $161,921 thousand at December 31, 2025. Restricted cash was $2,029 thousand and $11,253 thousand at those dates respectively.
- Total assets were $785,225 thousand at September 30, 2026, compared with $827,180 thousand at December 31, 2025.
- Total stockholders' equity was $574,052 thousand at September 30, 2026, compared with $603,103 thousand at December 31, 2025.
- Total liabilities were $211,173 thousand at September 30, 2026, compared with $224,077 thousand at December 31, 2025.
- Marketable debt securities, available-for-sale, were $57,141 thousand (current) and $126,453 thousand (non-current) at September 30, 2026. Accumulated other comprehensive loss was $(3,020) thousand at September 30, 2026, compared with income of $401 thousand at December 31, 2025.
- No debt balance is printed in the balance sheet. Operating cash flow and free cash flow are not reported in the filing.
Analysis
Marcus & Millichap reported Q3 2026 total revenue of $208.4 million, up 7.5% from $193.9 million, and nine-month revenue of $582.8 million, up 14.0%. Brokerage commissions grew 7.4% in the quarter, which the company attributes mainly to a 12.6% increase in total brokerage sales volume. That growth was partly offset by a nine basis point decline in the average commission rate, which the transaction table prints at 1.85% against 1.94%. Growth was uneven across markets. Middle Market and Larger Transaction Market brokerage revenue rose 18.1% to $62.0 million, while Private Client Market revenue rose 3.6% to $106.0 million. The CEO states that private client activity grew more moderately as bid-ask spreads widened after a rise in the 10-year Treasury yield, and that the company's larger-deal penetration continued to drive revenue. The under $1 million band fell by $(1,233) thousand on 22 fewer transactions.
Profitability improved from a low base. Q3 operating loss narrowed to $(906) thousand from $(2,374) thousand, and pre-tax income rose to $2,595 thousand from $1,470 thousand. Net income was $1,007 thousand, or $0.03 per diluted share, against $240 thousand, or $0.01. Cost of services rose by $12.5 million and reached 64.0% of revenue, up 160 basis points, which the company explains by senior producers earning higher commissions. Total operating expenses were $209.3 million against $196.3 million. Adjusted EBITDA, a non-GAAP measure, was $8.2 million against $6.9 million. Nine-month results were materially better than the prior year: net income of $1,816 thousand compared with a loss of $(15,217) thousand, and Adjusted EBITDA of $23.3 million compared with $(0.4) million.
Financing fees rose 2.6% to $27.0 million in Q3 and 19.0% to $84.1 million for nine months. The company attributes the quarterly rise to a five basis point increase in the average fee rate and a 0.7% increase in financing volume. Financing sales volume was $2,889 million in Q3 against $2,868 million, and the average financing fee rate was 0.76% against 0.71%. Headcount was 1,670 investment sales and financing professionals, against 1,669 a year earlier.
Capital allocation remained active. The Board declared a $0.25 semi-annual dividend, paid October 6, 2026. The company repurchased 912,957 shares for $23.9 million in the nine months, and about $90.1 million remains under the program. Cash, cash equivalents, and restricted cash rose to $189,223 thousand from $161,921 thousand at December 31, 2025, while total assets fell to $785,225 thousand from $827,180 thousand and stockholders' equity fell to $574,052 thousand from $603,103 thousand. The filing gives no numeric guidance. Management says near-term challenges are expected to extend through 2026 and that a growing number of assets must trade as loans mature. The release also notes that results are preliminary until the Form 10-Q is filed.
Management, verbatim
Private client activity grew at a more moderate pace as bid-ask spreads widened following the 80 bps increase in the 10-year Treasury yield during the quarter. At the same time, our increased penetration of the middle market and larger transactions continued to drive stronger revenue growth.
Hessam Nadji, President and Chief Executive Officer
However, we are seeing a growing number of assets that need to trade as loans mature and previously postponed transactions run out of time going into 2027.
Hessam Nadji, President and Chief Executive Officer
Not in the filing
stated, not guessed- Numeric revenue, margin, expense or tax guidance for the remainder of 2026 is not provided.
- No prior-quarter (Q2 2026) figures are printed, so all prior_quarter and qoq_change fields are null.
- Prior-year percentage changes are not printed for total operating expenses in Q3, cost of services in Q3 (only the dollar increase), SG&A (only the dollar increase), D&A, operating loss, other income, interest expense, provision for income taxes and net income.
- Prior-year percentage change for Q3 cost of services as a percentage of revenue is not printed.
- Prior-year value for Q3 cost of services as a percentage of revenue (64.0% comparison) is not printed.
- Prior-year value for nine-month cost of services as a percentage of revenue is not printed.
- Nine-month percentage change for total brokerage transactions, average commission rate and financing volume is not printed in the table form requested.
- Operating cash flow and free cash flow are not reported.
- Total debt is not printed in the balance sheet.
- Consensus estimates and analyst expectations were not provided.
- Share price reaction is not in the documents.
- Previous outlook was not provided, so vs_prior_guidance is empty.
- Form 10-Q for the quarter ended September 30, 2026 has not been filed, so results are preliminary.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.