Company: MMI
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050707
Chunk: 41

Company: Marcus & Millichap, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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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 (Weighted Average)(1)Contingent consideration$1,148 Discounted cash flowExpected life of cash flows0-2.1 (0.8 years)Discount rate4.0%-5.4%(4.8%)Probability of achievement0.0%-100.0%(99.9%)Fair Value atDecember 31, 2024Valuation TechniqueUnobservable inputsRange (Weighted Average)(1)Contingent consideration$4,731 Discounted cash flowExpected life of cash flows0.3-2.8 years (0.4 years)Discount rate4.8%-6.1%(5.9%)Probability of achievement0.0%-100.0%(98.2%)(1)Unobservable inputs were weighted by the relative fair value of the instruments.The fair value of the convertible notes considered (i) accrued interest rates between 6% and 10%, (ii) a net weighted average maturity of 0.59 years which may be extended at the option of the holders, (iii) the expected likelihood of occurrence of various scenarios including financing, equity financing, change in control, or liquidation, (iv) a net weighted average settlement of 103% considering premiums from potential conversion into equity and losses from potential liquidation, and (v) discounted cash flow at a weighted average discount rate of 14.0%. During the nine months ended September 30, 2025, the fair value of the convertible notes decreased by approximately $403,000, primarily due to a change in likelihood of occurrence of the various scenarios and a decrease in the net weighted average settlement rate. The estimated time to settlement changed from a weighted average of 0.77 years as of December 31, 2024 to 0.43 years as of September 30, 2025.Nonrecurring Fair Value Measurements In accordance with U.S. GAAP, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. The Company reviews the carrying value