Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 66

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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2024 as a result of increased revenue. Cost of services as a percentage of total revenue increased by 50 basis points to 61.4% compared to the same period in 2024 primarily due to our senior investment sales and financing professionals earning a higher amount of additional commissions.

Selling, general, and administrative expense. Selling, general and administrative expense for the six months ended June 30, 2025 increased to $143.1 million, from $133.9 million for the same period in 2024, an increase of $9.2 million or 6.9%. The increase was primarily due to (i) an increase in compensation related costs and (ii) increased investment in business development, marketing and other support related to the long-term talent acquisition and retention of our investment sales and financing professionals.

Depreciation and amortization expense. Depreciation and amortization expense decreased to $6.0 million for the six months ended June 30, 2025 from $6.8 million compared to the same period in 2024, a decrease of $0.7 million, or 11.1%. The decrease primarily relates to accelerated amortization and impairment of certain intangible assets recorded in the second half of 2024 resulting from changes in estimates.

Other Income, Net 

Other income, net decreased to $9.5 million for the six months ended June 30, 2025 from $10.4 million for the same period in 2024. The decrease of $0.9 million was primarily driven by a decrease in interest income due to a decreased average yield on the Company's investments during the period compared to the same period in prior year.

Interest Expense 

Interest expense decreased by an immaterial amount for the six months ended June 30, 2025 compared to the same period in 2024, and primarily relates to interest expense on the Company’s SARs liability. 

Benefit for Income Taxes 

The benefit for income taxes was $2.2 million for the six months ended June 30, 2025, compared to $2.6 million for the same period in 2024. The effective income tax rate for the six months ended June 30, 2025, was 12.5% compared to 14.6% for the same period in 2024. The determination of the applicable tax rate was based on the discrete method for the six months ended June 30, 2025, compared to the annual effective tax rate