Company: MMI
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050707
Chunk: 46

Company: Marcus & Millichap, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 recognized over a weighted average period of 0.12 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 EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024ESPP$69 $68 $201 $176 RSUs, PSUs and RSAs5,897 6,003 18,167 17,579 $5,966 $6,071 $18,368 $17,755 

10.    Income Taxes 

The Company 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 period 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. For the third quarter of 2025, the Company determined that the discrete method remained more appropriate for the same reasons.The Company recognized a provision for income taxes of $1.2 million during the three months ended September 30, 2025 based on the discrete method, compared to a benefit for income tax of $1.0 million for the same period in 2024 under the AETR method. The effective income tax rate for the three months ended September 30, 2025 was 83.7% under the discrete method, compared with 15.2% for the same period in 2024 under the AETR method. The benefit for income taxes was $1.0 million for the nine months ended September 30, 2025 under the discrete method, compared to $3.6 million for the same period in 2024 under the AETR method. The effective income tax rate for the nine months ended September 30, 2025 was 6.0