Second Quarter 2026
Filed Aug 6, 2026Revenue Grew 17.8% Compared to Second Quarter 2025; Net Income of $0.10 Per Diluted Share for Second Quarter 2026
Second-quarter revenue, brokerage commissions, financing fees and adjusted EBITDA increased from the prior year, while the company returned to GAAP net income. Cost of services increased as a percentage of revenue, and management cited ongoing price discovery, wider bid/ask spreads, interest-rate uncertainty and geopolitical risks.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $202.9 million | – | 17.8% |
| Brokerage commissionsGAAP | $167.0 million | – | 18.1% |
| Financing feesGAAP | $30.3 million | – | 15.3% |
| Total operating expensesGAAP | $200.7 million | – | – |
| Cost of services as a percentage of total revenueGAAP | 62.4% | – | increased by 50 basis points |
| Selling, general and administrative expensesGAAP | $71.7 million | – | – |
| Pre-tax incomeGAAP | $6.3 million | – | increased by $10.0 million |
| Net incomeGAAP | $3.9 million | – | – |
| Net income per common share, dilutedGAAP | $0.10 per common share, diluted | – | – |
| Adjusted EBITDAnon-GAAP | $12.1 million | – | increased by $10.6 million |
| Total revenue, six months ended June 30, 2026GAAP | $374.4 million | – | 18.0% |
| Brokerage commissions, six months ended June 30, 2026GAAP | $305.1 million | – | 15.1% |
| Financing fees, six months ended June 30, 2026GAAP | $57.1 million | – | 28.7% |
| Total operating expenses, six months ended June 30, 2026GAAP | $377.9 million | – | 9.8% |
| Cost of services as a percentage of total revenue, six months ended June 30, 2026GAAP | 61.5% | – | an increase of 10 basis points |
| Pre-tax income, six months ended June 30, 2026GAAP | $4.1 million | – | increased by $21.8 million |
| Net income, six months ended June 30, 2026GAAP | $0.8 million | – | – |
| Net income per common share, diluted, six months ended June 30, 2026GAAP | $0.02 per common share, diluted | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $15.1 million | – | increased by $22.4 million |
| Investment sales and financing professionalsother | 1,677 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Private Client Market brokerage revenueManagement said the private client recovery gained momentum as banks and credit unions have become more active. | $106.2 million | – | 13.6% |
| Middle Market and Larger Transaction Market brokerage revenueThe release stated that Larger Transaction Market revenue increased by 43.2% in the second-quarter results discussion. | $54.7 million | – | 29.4% |
| Financing feesThe increase was primarily attributed to a 5.4% increase in total financing volume and a 10 basis point increase in the average fee rate earned. | $30.3 million | – | 15.3% |
| Private Client Market brokerage revenue, six months ended June 30, 2026No additional six-month segment driver was provided. | $194.4 million | – | 13.5% |
| Middle Market and Larger Transaction Market brokerage revenue, six months ended June 30, 2026No additional six-month segment driver was provided. | $99.3 million | – | 19.5% |
remainder of 2026 outlook
- NoteThe 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.
Capital returns
- On July 31, 2026, the Board of Directors declared a semi-annual regular dividend of $0.25 per share, payable on October 6, 2026, to stockholders of record at the close of business on September 15, 2026.
- During the six months ended June 30, 2026, the Company repurchased 912,957 shares of common stock at an average price of $26.22 for a total purchase price of $23.9 million.
- Since August 2022, the Company repurchased and retired 3,987,494 shares of common stock at an average price of $30.06 per share for a total price of $119.9 million.
- On April 30, 2026, the Board of Directors approved an additional $70 million to repurchase common stock under its stock repurchase program.
- After accounting for shares repurchased through August 3, 2026, the Company has approximately $90.1 million available to repurchase shares under its program.
What drove it
- Total sales volume increased by 18.4% compared to the second quarter 2025.
- The increase in financing fees was primarily attributed to a 5.4% increase in total financing volume and a 10 basis point increase in the average fee rate earned.
- The Company cited numerous internal initiatives to expand client outreach and more favorable catalysts for commercial real estate sales and financing.
- Management said banks and credit unions have become more active, supporting the private client recovery.
- Management cited the passage of time since the market bottom and repricing of commercial real estate assets in response to higher interest rates as drivers of increased transaction activity.
- Selling, general and administrative expenses remained relatively consistent at $71.7 million compared to $71.6 million.
Concerns
- Ongoing price discovery and wider than normal bid/ask spreads are expected to present near-term challenges through 2026.
- The recent resurgence of the Middle East conflict and inflation pressures continue to challenge bid/ask spreads tied to the rise in rates over the last few months.
- Cost of services as a percentage of total revenue increased by 50 basis points to 62.4%, primarily due to senior investment sales and financing professionals earning higher commissions in 2026.
- Potentially volatile cost of debt capital, interest rate uncertainty, potential rising inflation and risks of a potential recession may affect transaction activity.
- Potential U.S. administration tariff, immigration, geopolitics and other policy changes may influence transaction velocity, interest rates, sales and financing activity.
- The Company identified possible increases in operating expenses from labor costs, insurance, taxes, construction materials, in-person events, client meetings and conferences.
- Global geopolitical uncertainty may cause investors to refrain from transacting.
What to watch
- Whether commercial real estate transaction activity overcomes the near-term challenges management expects to extend through 2026.
- Private Client Market recovery and the activity of banks and credit unions.
- Larger and institutional sales and financing volumes.
- Cost of services as a percentage of total revenue and commissions earned by senior investment sales and financing professionals.
- The deployment of the approximately $90.1 million remaining under the share repurchase program.
- Potential acquisition activity and subsequent integration.
Analysis
Marcus & Millichap reported a stronger second quarter, with total revenue increasing 17.8% to $202.9 million. Brokerage commissions increased 18.1% to $167.0 million, supported by an 18.4% increase in total sales volume, while financing fees increased 15.3% to $30.3 million. The company returned to GAAP net income of $3.9 million, or $0.10 per common share, diluted, from a net loss of $11.0 million, or $0.28 per common share, diluted.
The revenue mix showed growth across the principal reported brokerage markets. Private Client Market brokerage revenue increased 13.6% to $106.2 million, and Middle Market and Larger Transaction Market brokerage revenue increased 29.4% to $54.7 million. Management attributed the financing-fee increase to a 5.4% increase in total financing volume and a 10 basis point increase in the average fee rate earned. It also cited increasing activity by banks and credit unions and progress in larger, institutional sales and financing volumes.
Profitability improved, but compensation-related costs remain important. Total operating expenses were $200.7 million compared with $181.3 million, primarily reflecting a $20.0 million increase in cost of services. Cost of services as a percentage of total revenue increased by 50 basis points to 62.4%, primarily because senior investment sales and financing professionals earned higher commissions. Selling, general and administrative expenses were relatively consistent at $71.7 million compared with $71.6 million. Adjusted EBITDA increased to $12.1 million from $1.5 million.
For the six months ended June 30, 2026, revenue increased 18.0% to $374.4 million and adjusted EBITDA increased to $15.1 million from $(7.3) million, while GAAP net income was $0.8 million. The company repurchased 912,957 shares for $23.9 million during the six months, declared a $0.25 per share semi-annual dividend, and had approximately $90.1 million available under its repurchase program after shares repurchased through August 3, 2026.
The outlook is qualitative rather than numeric. Management believes near-term commercial real estate transaction-market challenges are currently expected to extend through 2026, although it expects the market to overcome them and believes the company remains positioned for long-term growth. Investors should focus on bid/ask spreads, debt-capital costs, interest-rate and inflation conditions, geopolitical uncertainty, transaction velocity, and whether cost-of-services growth remains aligned with revenue growth.
Management, verbatim
Our strong second quarter is the culmination of numerous internal initiatives to expand our client outreach and more favorable catalysts for CRE sales and financing.
Hessam Nadji, President and Chief Executive Officer
Our private client recovery gained momentum as banks and credit unions have become more active, while our larger, institutional sales and financing volumes also showed significant progress.
Hessam Nadji, President and Chief Executive Officer
Our fortress balance sheet is enabling us to continue investing in our platform and talent while returning capital to shareholders as part of our ongoing efforts to create long-term value.
Hessam Nadji, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quarterly gross margin was not reported.
- Quarterly GAAP operating income was not reported.
- Quarterly GAAP tax rate was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Cash, cash equivalents, investments and debt balances as of June 30, 2026 were not reported in the provided filing text.
- No quantitative revenue, gross-margin, operating-expense or tax-rate guidance was provided.
- No previous outlook section was provided, so comparison with prior guidance is unavailable.
- Prior-quarter values and sequential changes were not reported for the listed second-quarter metrics.
- The dollar amount of cost of services was not reported on its own line in the provided filing text.
- A complete financial-statement presentation and the adjusted EBITDA reconciliation were not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.