Company: MMI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001578732-25-000031
Chunk: 141

Company: Marcus & Millichap, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 141
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 amortization expense. Depreciation and amortization expense decreased to $2.8 million for the three months ended March 31, 2025 from $3.4 million compared to the same period in 2024, a decrease of $0.6 million, or 16.7%. 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 $4.0 million for the three months ended March 31, 2025 from $5.6 million for the same period in 2024. The decrease of $1.6 million was primarily driven by a decrease in interest income due to a decreased average yield on our investments and a decrease in the investment gains and loss related to the assets held in the rabbi trust during the period compared to the same period in prior year.

Interest Expense 

Interest expense decreased by an immaterial amount for the three months ended March 31, 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 $9.5 million for the three months ended March 31, 2025, compared to $4.7 million for the same period in 2024. The effective income tax rate for the three months ended March 31, 2025, was 68.2% compared to 32.2% for the same period in 2024. The net increase in the effective tax rate is primarily due to the relationship of permanent items, the change in the valuation allowance and the change in the state income tax benefit to pre-tax loss as presented in Note 10 – “Income Taxes” in the Notes to the Condensed Consolidated Financial Statements in Item 1, Part I of this Quarterly Report on Form 10-Q.

Non-GAAP Financial Measure 

In this Quarterly Report on Form 10-Q, we include a non-GAAP financial measure, Adjusted EBITDA. We define Adjusted EBITDA as net loss before (i) interest income and other, including net realized gains (losses) on marketable debt securities, available-for-sale and cash, cash equivalents, and restricted cash, (ii) interest expense, (iii) benefit for income taxes, (iv) depreciation and amortization, and (v) stock-based compensation. We use Adjusted