Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 62

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 transaction size as larger transactions generally have smaller commission rates.

Other revenue. Other revenue of $4.6 million for the three months ended June 30, 2025 was comparable to the $4.7 million for the same period in 2024.

37

Total Operating Expenses

Total operating expenses were $181.3 million for the three months ended June 30, 2025 compared to $166.4 million for the same period in 2024, an increase of $14.9 million, or 9.0%. The change was primarily due to an increase of $8.5 million in cost of services and an increase of $6.5 million in selling, general and administrative expense as described below. 

Cost of services. Cost of services are variable commissions paid to our investment sales professionals and compensation-related costs in connection with our financing activities. Cost of services increased to $106.6 million for the three months ended June 30, 2025 from $98.1 million for the same period in 2024 as a result of increased revenue. Cost of services as a percentage of total revenue was 61.9% for the second quarters of both 2025 and 2024.

Selling, general, and administrative expense. Selling, general and administrative expense for the three months ended June 30, 2025 increased to $71.6 million, from $65.0 million for the same period in 2024, an increase of $6.6 million or 10.1%. The increase was primarily due to (i) an increase in compensation related costs, (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 and (iii) the change in valuation of deferred contingent consideration.

Depreciation and amortization expense. Depreciation and amortization expense decreased to $3.1 million for the three months ended June 30, 2025 from $3.3 million compared to the same period in 2024, a decrease of $0.2 million, or 5.3%. 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 increased to $5.5 million for the three months ended June 30, 2025 from $4.8 million for the same period in 2024. The increase of $