Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 29

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 expected to mature on August 26, 2027 and accrues 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    0.44 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-CurrentJune 30,2025December 31,2024June 30,2025December 31,2024Stock appreciation rights (“SARs”) liability (1)$2,774 $2,603 $7,056 $9,518 Commissions payable to investment sales and financing professionals33,206 63,952 11,419 15,608 Deferred compensation liability (1)1,224 173 7,843 8,131 Other224 469 — — $37,428 $67,197 $26,318 $33,257 (1)The SARs and deferred compensation liabilities become subject to payout at the time the participant is no longer considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to participants within the next twelve months have been classified as current. SARs Liability Prior to the IPO, certain employees of the Company were granted SARs under a stock-based compensation program assumed by MMC. In connection with the IPO, the SARs agreements were revised, the MMC liability of $20 million for the SARs was frozen as of March 31, 2013 and was transferred to MMI through a capital distribution. The SARs liability will be settled with each participant in ten annual installments in January of each year upon retirement or termination from service, or in full upon consummation of a change in control of the Company. Under the revised agreements, MMI is required to accrue interest on the outstanding balance beginning on January 1, 2014, at a rate based on the 10-year treasury note, plus