Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 125

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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, partially offset by a reduction in other revenue, as described below. See “Factors Affecting Our Business” for additional market information.

Real estate brokerage commissions. Revenue from real estate brokerage commissions increased to $141.4 million for the three months ended June 30, 2025 from $135.4 million for the same period in 2024, an increase of $6.0 million, or 4.4%. The increase was the result of total sales volume increasing by 11.8%, partially offset by a reduction of 13 basis points in the average commission rate earned during the three months ended June 30, 2025 compared to the same period in 2024. The reduction in the average 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 10.3%, while the combined Middle Market and Larger Transaction Market revenue decreased by 6.6%. The overall average transaction size increased by 3.4%.

Financing fees. Revenue from financing fees increased to $26.3 million for the three months ended June 30, 2025 from $18.3 million for the same period in 2024, an increase of $8.0 million, or 43.5%, resulting primarily from a 86.0% increase in total financing volume, partially offset by 12 basis point decrease in the average fee rate during the three 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.

Other revenue. Other revenue of $4.6 million for the three months ended June 30, 2025 was comparable to the $4.7 million for the same period in 2024.

37

Total Operating Expenses

Total operating expenses were $181.3 million for the three months ended June 30, 2025 compared to $166.4 million for the same period in 2024, an increase of $14.9 million, or 9.0%. The change was primarily due to an increase of $8.5 million in cost of services and an increase of $6.5 million in selling, general and administrative expense 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