Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 105

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 approved by the stockholders of the Company at the 2024 Annual Meeting of Stockholders.The ESPP initially had 366,667 shares of common stock reserved, and 62,765 shares of common stock remain available for issuance under the Amended ESPP as of June 30, 2025. As of June 30, 2025, total unrecognized compensation cost related to the Amended ESPP was $103,000 and is expected to be recognized over a weighted average period of 0.37 years.Summary of Stock-Based Compensation Components of stock-based compensation are included in selling, general and administrative expense in the condensed consolidated statements of operations and consisted of the following (in thousands): Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024ESPP$74 $54 $132 $108 RSUs, PSUs and RSAs6,149 5,835 12,270 11,576 $6,223 $5,889 $12,402 $11,684 

10.    Income Taxes 

The Company has historically calculated the provision for U.S. income taxes during interim reporting periods by applying the annual effective tax rate (“AETR”) method generally required by ASC 740-270. For the second quarter of 2025, the Company determined that the continued application of the AETR method was not reliable because sensitivity from nominal changes to projected pre-tax earnings can result in significant variability in the AETR. Consequently, the Company calculated its income taxes based on the actual year-to-date loss and concluded that this method (the “discrete method”), as allowed by ASC 740-270-30-18, is more appropriate than the AETR method for the three and six months ended June 30, 2025. Under the discrete method, the Company calculated its U.S. income tax benefit as though the interim year-to-date period was an annual period.As a result of the change from the AETR method to the discrete method, the Company recognized a provision for income taxes of $7.3 million during the three months ended June 30, 2025, effectively reversing a significant portion of the income tax benefit of $9.5 million accrued during the three months ended March 31, 2025. The Company recognized a provision for income taxes of $2.1 million during the three months ended June 30, 2024. The effective income tax rate for the three