Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 159

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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 commission rate is primarily the result of the increase in the average transaction size as larger transactions generally have smaller commission rates. Private Client Market revenue increased by 8.4%, and the combined Middle Market and Larger Transaction Market revenue increased by 8.3%. The overall average transaction size increased by 6.5%.

Financing fees. Revenue from financing fees increased to $44.4 million for the six months ended June 30, 2025 from $32.7 million for the same period in 2024, an increase of $11.7 million, or 35.7%, resulting primarily from a 52.7% increase in total financing volume, partially offset by a four basis point decrease in the average fee rate during the six months ended June 30, 2025 compared to the same period in 2024. The reduction in the average fee rate is primarily the result of the increase in the average transaction size as larger transactions generally have smaller commission rates.

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Other revenue. Other revenue decreased to $7.9 million for the six months ended June 30, 2025 from $9.9 million for the same period in 2024, a decrease of $2.0 million, or 20.0%, resulting primarily from a decrease in leasing fees.

Total Operating Expenses 

Total operating expenses were $344.1 million for the six months ended June 30, 2025 compared to $315.6 million for the same period in 2024, an increase of $28.5 million, or 9.0%. The change was primarily due to an increase of $20.0 million in cost of services and an increase of $9.2 million in selling, general and administrative expenses 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 $195.0 million for the six months ended June 30, 2025 from $174.9 million for the same period in 2024 as a result of increased revenue. Cost of services as a percentage of total revenue increased by 50 basis points to 61.4% 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 six months ended June 30, 2025 increased to $143.1 million, from