Company: MMI
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050707
Chunk: 33

Company: Marcus & Millichap, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 12,529 Investments in convertible notes(2)5,944 6,347 — — Other(3)7,061 5,858 217 209 $17,449 $15,543 $25,158 $23,626 (1)In connection with the Strategic Alliance with MTRCC, the Company holds a $9.5 million Mandatorily Redeemable Fixed-Rate Cumulative Preferred Stock investment in MTRCC, classified as held-to-maturity, which is expected to mature on August 26, 2027 and accrues interest based on the one-year treasury rate. (2)The Company purchased convertible notes with principal balances aggregating $5.0 million during the fourth quarter 2023 in connection with strategic alliances with companies in the real estate sector. The Company has elected to account for its investment in convertible notes under the fair value option. See Note 7 – “Fair Value Measurements” for additional information.(3)Other primarily includes customer trust accounts and prepaid lease costs.Deferred Compensation and CommissionsDeferred compensation and commissions consisted of the following (in thousands): CurrentNon-CurrentSeptember 30,2025December 31,2024September 30,2025December 31,2024Stock appreciation rights (“SARs”) liability (1)$2,800 $2,603 $7,187 $9,518 Commissions payable to investment sales and financing professionals37,863 63,952 14,214 15,608 Deferred compensation liability (1)1,194 173 8,392 8,131 Other335 469 — — $42,192 $67,197 $29,793 $33,257 (1)The SARs and deferred compensation liabilities become subject to payout at the time the participant is no longer considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to participants within the next twelve months have been classified as current. SARs Liability Prior to the IPO, certain employees of the Company were granted SARs under a stock-based compensation program assumed by MMC. In connection with the IPO, the SARs agreements were revised, the MMC liability of $20 million for the SARs was frozen as of March 31, 2013 and was transferred to MMI through a capital distribution. The SARs liability will be settled with each participant in ten annual installments