Company: MMI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001578732-25-000031
Chunk: 62

Company: Marcus & Millichap, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 62
---
 a reduction of seven basis points in the average commission rate earned during the three months ended March 31, 2025 compared to the same period in 2024, caused by the shift in the proportion of transactions to the Middle Market and Larger Transaction Market from the Private Client Market, as Middle Market and Larger Transaction Markets typically earn lower commission rates. Private Client Market revenue increased by 6.2%, and the combined Middle Market and Larger Transaction Market revenue increased by 29.6%.

Financing fees. Revenue from financing fees increased to $18.1 million for the three months ended March 31, 2025 from $14.4 million for the same period in 2024, an increase of $3.7 million, or 25.7%, resulting primarily from a 16.1% increase in total financing volume and an eight basis point increase in the average fee rate during the three months ended March 31, 2025 compared to the same period in 2024.

35

Other revenue. Other revenue decreased to $3.3 million for the three months ended March 31, 2025 from $5.2 million for the same period in 2024, a decrease of $1.9 million, or 36.8%, resulting primarily from a decrease in leasing fees.

Total Operating Expenses 

Total operating expenses were $162.7 million for the three months ended March 31, 2025 compared to $149.2 million for the same period in 2024, an increase of $13.5 million, or 9.1%. The change was primarily due to an increase of $11.5 million in cost of services 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 $88.3 million for the three months ended March 31, 2025 from $76.9 million for the same period in 2024. Cost of services as a percentage of total revenue increased by 140 basis points to 60.9% 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 three months ended March 31, 2025 increased to $71.6 million, from $68.9 million for the same period in 2024, an increase of $