Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 100

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 100
---
 acquisitions is carried at fair value and calculated using a discounted cash flow estimate with the only remaining condition on such payments being the passage of time. 

21

Table of ContentsMARCUS & MILLICHAP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 

As of June 30, 2025 and December 31, 2024, contingent and deferred consideration had a maximum undiscounted payment to be settled in cash or stock of $7 million and $12 million, respectively. Assuming the achievement of the applicable performance criteria and time requirements, the Company anticipates these payments will be made over the next two years. Changes in fair value are included in selling, general and administrative expense in the condensed consolidated statements of operations.A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands): Six Months EndedJune 30,20252024Beginning balance$4,731 $5,482 Change in fair value of contingent consideration(1)519 31 Payments of contingent consideration(4,430)— Ending balance$820 $5,513 (1)Includes immaterial impact of foreign currency translation.Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands): Fair Value atJune 30, 2025Valuation TechniqueUnobservable inputsRange (Weighted Average)(1)Contingent consideration$820 Discounted cash flowExpected life of cash flows0.3-2.3 years (0.9 years)Discount rate3.8%-5.6%(4.7%)Probability of achievement0.1%-100.0%(99.9%)Fair Value atDecember 31, 2024Valuation TechniqueUnobservable inputsRange (Weighted Average)(1)Contingent consideration$4,731 Discounted cash flowExpected life of cash flows0.3-2.8 years (0.4 years)Discount rate4.8%-6.1%(5.9%)Probability of achievement0.0%-100.0%(98.2%)(1)Unobservable inputs were weighted by the relative fair value of the instruments.The fair value of the convertible notes considered (i) the contractual maturity which may be extended at the option of the holders, (ii) a weighted average premium at settlement of 118