Company: MMI
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050707
Chunk: 106

Company: Marcus & Millichap, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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— $1,148 $4,731 $— $— $4,731 Deferred consideration$— $— $— $— $411 $— $411 $— Deferred compensation liability$9,586 $9,586 $— $— $8,304 $8,304 $— $— (1)Included in cash, cash equivalents, and restricted cash on the accompanying condensed consolidated balance sheets. There were no transfers in or out of Level 3 during the nine months ended September 30, 2025 and 2024.During the nine months ended September 30, 2025, the Company considered current and future interest rates and the probability of achieving EBITDA and other performance targets in its determination of fair value for the contingent consideration. The Company is uncertain as to the extent of the volatility in the unobservable inputs in the foreseeable future. Deferred consideration in connection with acquisitions is carried at fair value and calculated using a discounted cash flow estimate with the only remaining condition on such payments being the passage of time. 

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

As of September 30, 2025 and December 31, 2024, contingent and deferred consideration had a maximum undiscounted payment to be settled in cash or stock of $7 million and $12 million, respectively. Assuming the achievement of the applicable performance criteria and time requirements, the Company anticipates these payments will be made over the next two years. Changes in fair value are included in selling, general and administrative expense in the condensed consolidated statements of operations.A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands): Nine Months EndedSeptember 30,20252024Beginning balance$4,731 $5,482 Change in fair value of contingent consideration(1)847 (364)Payments of contingent consideration(4,430)— Ending balance$1,148 $5,118 (1)Includes immaterial impact of foreign currency translation.Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands): Fair Value atSeptember 30, 2025Valuation TechniqueUnobservable inputsRange