Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 126

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 services increased to $106.6 million for the three months ended June 30, 2025 from $98.1 million for the same period in 2024 as a result of increased revenue. Cost of services as a percentage of total revenue was 61.9% for the second quarters of both 2025 and 2024.

Selling, general, and administrative expense. Selling, general and administrative expense for the three months ended June 30, 2025 increased to $71.6 million, from $65.0 million for the same period in 2024, an increase of $6.6 million or 10.1%. The increase was primarily due to (i) an increase in compensation related costs, (ii) increased investment in business development, marketing and other support related to the long-term talent acquisition and retention of our investment sales and financing professionals and (iii) the change in valuation of deferred contingent consideration.

Depreciation and amortization expense. Depreciation and amortization expense decreased to $3.1 million for the three months ended June 30, 2025 from $3.3 million compared to the same period in 2024, a decrease of $0.2 million, or 5.3%. The decrease primarily relates to accelerated amortization and impairment of certain intangible assets recorded in the second half of 2024 resulting from changes in estimates.

Other Income, Net 

Other income, net increased to $5.5 million for the three months ended June 30, 2025 from $4.8 million for the same period in 2024. The increase of $0.7 million was primarily driven by an increase investment gain related to the assets held in the rabbi trust, partially offset by decreased interest income due to a decreased average yield on the Company's investments during the period compared to the same period in prior year.

Interest Expense 

Interest expense decreased by an immaterial amount for the three months ended June 30, 2025 compared to the same period in 2024, and primarily relates to interest expense on the Company’s SARs liability. 

Provision for Income Taxes 

The provision for income taxes was $7.3 million for the three months ended June 30, 2025, compared to $2.1 million for the same period in 2024. The effective income tax rate for the three months ended June 30, 2025, was (194.5)% compared to (61.1)% for