Company: MMI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001578732-25-000031
Chunk: 32

Company: Marcus & Millichap, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 notes(2)6,401 6,347 — — Other(3)3,467 5,858 210 209 $13,563 $15,543 $23,870 $23,626 (1)In connection with the Strategic Alliance with MTRCC, the Company held a $9.5 million Mandatorily Redeemable Fixed-Rate Cumulative Preferred Stock investment in MTRCC classified as held-to-maturity, which was scheduled to be redeemed on September 1, 2024. In anticipation of the redemptions, the Company purchased, and net settled, $9.5 million of Mandatorily Redeemable Fixed-Rate Cumulative Preferred Stock of MTRCC on August 26, 2024. The 

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

new securities are classified as held-to-maturity, are expected to mature on August 26, 2027 and accrue interest based on the one-year treasury rate. (2)The Company purchased convertible notes with principal balances aggregating $5.0 million during the fourth quarter 2023 in connection with strategic alliances with companies in the real estate sector. The convertible notes accrue interest at rates between 6% and 10%, are convertible into equity for premiums and mature in a weighted average of    0.49 years subject to extension at the option of the holders. The Company has elected to account for its investments in convertible notes under the fair value option; see Note 7 – "Fair Value Measurements" for additional information.(3)Other primarily includes customer trust accounts and prepaid lease costs.Deferred Compensation and Commissions Deferred compensation and commissions consisted of the following (in thousands): CurrentNon-CurrentMarch 31,2025December 31,2024March 31,2025December 31,2024Stock appreciation rights (“SARs”) liability (1)$2,774 $2,603 $6,900 $9,518 Commissions payable to investment sales and financing professionals26,090 63,952 11,016 15,608 Deferred compensation liability (1)106 173 8,244 8,131 Other553 469 — — $29,523 $67,197 $26,160 $33,257