On this page of StockholderLetter.com we present the latest annual shareholder letter from Marcus & Millichap, Inc. — ticker symbol MMI. Reading current and past MMI letters to shareholders can bring important insights into the investment thesis.
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Mission Statement At Marcus & Millichap, our commitment is to help our clients create and preserve wealth by providing them with the best real estate investment sales, nancing, research, and advisory services. Founded on Specialization A Culture of Client Results Powered by Research and Technology Q Q Dedicated to real estate investment brokerage since 1971 The industry leader in real estate investment transactions Q Q 1,808 investment sales and nancing professionals Serving investors with 80+ o ces throughout the U.S. and Canada Integrated marketing system matching buyers and sellers Specialized coverage by property type A leading source of real estate nancing and capital markets expertise A trusted provider of market research and advisory services
TO OUR SHAREHOLDERS Marcus & Millichap ( MMI ) achieved critical strategic and financial progress in 2025, posting the second year of recovery from the market disruption of 2023. Our management s priority for the year was to return the Company to profitability and growth in our sales force, overcoming elevated uncertainty and interest rate volatility. We are pleased to share that both goals were met, with our team overcoming a still-challenging market to grow revenue by 8.5% and expanding the sales force by nearly 100 sales and financing professionals. Thanks to ongoing efforts to contain costs, the Company s Adjusted EBITDA 1 improved from $9 million in 2024 to $25 million in 2025, with a modestly positive pre-tax income of $3 million. While these numbers are far from our potential and aspirations, 2025 serves as a critical turning point in resuming a renewed path of growth and excellence for MMI. Throughout 2025, we continued to hold the industry-leading position in Commercial Real Estate brokerage transactions, completing 9,000 transactions totaling approximately $50 billion in volume. Our Private Client business, the cornerstone of our franchise, delivered 11% revenue growth, benefiting from improved lending conditions and our ability to work with clients to narrow the bid-ask spread. Our financing business continued its strong trajectory, with revenue growing by 24% for the year following 26% growth in 2024, reflecting both our expanded bench of experienced financing professionals and our team's ability to navigate a complex lending landscape. We closed financing transactions with over 420 separate lenders during the year, demonstrating our unique market access and ability to provide a wide range of solutions for our clients. During the year, we further strengthened our competitive position through strategic investments and operational improvements, positioning us for long-term growth. Our investments in AI-powered technology are still in an early stage but already show encouraging potential, while enhanced brokerage support drove measurable productivity improvements. The Company s leading research content, media coverage, and major presence at key industry events remained strong, keeping our team close to clients, solving problems, and presenting them with opportunities. Our balance sheet is a core advantage, ending 2025 with nearly $400 million in cash, cash equivalents, restricted cash, and marketable debt securities, available-for-sale, and no debt, providing exceptional strategic flexibility as we pursue growth initiatives. Our strong capital position enables us to make investments in talent and platform enhancements while continuing to deliver shareholder returns. Throughout 2025, we maintained a disciplined approach to capital allocation, distributing $47 million to shareholders through our dividend and share repurchase programs. MMI has returned $217 million to shareholders since 2022, despite navigating one of the most challenging market disruptions in commercial real estate history. Market Environment The commercial real estate market in 2025 reflected ongoing higher for longer interest rates, despite expectations for more constructive U.S. Federal Reserve action. Although inflation pressures and geopolitical risks limited the Federal Reserve s ability to significantly lower rates, we observed meaningful improvements in market liquidity and transaction velocity throughout the year. The credit environment also showed notable improvement, with lender spreads compressing and loan-to-value ratios expanding as competition among lenders returned. Many banks and credit unions re-entered the market with renewed lending capacity, which is critical to our private client business segment. This improvement in liquidity helped narrow the bid-ask spread that had constrained transaction flow in the last two years. The passage of time has brought more realistic expectations to valuations, while more stable interest rates, although at higher levels than expected, are helping values reset. The dramatic slowdown in job growth and the increase in job cuts across many sectors are concerning. However, most economists still expect growth ahead with modest but positive employment gains. This is a critical foundation for commercial real estate demand, which registered a strong year in 2025. 1 Adjusted EBITDA is a Non GAAP financial measure. A reconciliation of EBITDA to its closest GAAP financial measure is disclosed beginning on page 36 of the Company s 2025 Annual Report on Form 10-K, which was filed with the SEC on February 26, 2026.
Looking Forward In 2026, MMI will mark 55 years since its founding in 1971. Our vision of creating client value by connecting each property with the largest pool of qualified investors continues to drive and differentiate the firm. Countless advances in technology, along with our market research, training, and development, have fueled our market leadership and provided the foundation for our strategic plan to take MMI to the next level. The investments we have made in talent acquisition and retention, technology, infrastructure, and platform enhancements during challenging times have strengthened our competitive position and prepared us to capitalize on the market recovery that is now gaining momentum. Building on this foundation, management will continue to work to generate additional momentum in revenue growth, sales force expansion, and the productivity of our sales force. This includes further expanding our client outreach and exclusive inventory while improving our conversion rate to drive revenue growth. As importantly, initiatives to diversify revenue sources include scaling our auction services, growing our loan sales volume, and further expanding our financing division, particularly the agency lending capacity for multifamily. We believe the expansion of our leasing presence in retail and industrial will also bring synergistic revenue growth in the years ahead. We continue to pursue strategic acquisitions in our core business and adjacent services that can further increase client touchpoints and revenue diversification. Through these initiatives, we strive to position Marcus & Millichap as a more resilient, technology-enabled platform focused on creating long-term shareholder value. Our success is made possible by the dedication of our team members, the guidance of our Board, and the trust of our shareholders. We recognize that returning to historical profitability levels requires continued innovation and market share expansion, and we are confident that the foundation we have built positions Marcus & Millichap for sustainable growth and industry leadership in the years ahead. Sincerely, Hessam Nadji President, Chief Executive Officer George M. Marcus Chairman of the Board of Directors
 • shareholder letter icon 3/18/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/17/2023 MMI Stockholder Letter
 • stockholder letter icon 3/22/2024 MMI Stockholder Letter
 • stockholder letter icon 3/19/2025 MMI Stockholder Letter
 • stockholder letter icon More "Real Estate" Category Stockholder Letters
 • Benford's Law Stocks icon MMI Benford's Law Stock Score = 96


MMI Shareholder/Stockholder Letter Transcript:


       t  
L          
1EVGYW
1MPPMGLET  -RG 
6)%0 )78%8) -2:)781)28 7%0)7 ` *-2%2'-2+
6)7)%6', ` %(:-736= 7)6:-')7

Mission Statement
At Marcus & Millichap, our commitment is to help our
clients create and preserve wealth by providing them with
the best real estate investment sales,    nancing, research,
and advisory services.
Founded on Specialization     A Culture of Client
Results Powered by Research and Technology
Q
Q
Dedicated to real estate investment brokerage since 1971
The industry leader in real estate investment transactions


Q
Q
1,808 investment sales and    nancing professionals
Serving investors with 80+ o   ces throughout the U.S. and Canada
Integrated marketing system matching buyers and sellers
Specialized coverage by property type
A leading source of real estate    nancing and capital markets expertise
A trusted provider of market research and advisory services

TO OUR SHAREHOLDERS
Marcus & Millichap (   MMI   ) achieved critical strategic and financial progress in 2025, posting the second year of
recovery from the market disruption of 2023. Our management   s priority for the year was to return the Company to
profitability and growth in our sales force, overcoming elevated uncertainty and interest rate volatility. We are
pleased to share that both goals were met, with our team overcoming a still-challenging market to grow revenue by
8.5% and expanding the sales force by nearly 100 sales and financing professionals. Thanks to ongoing efforts to
contain costs, the Company   s Adjusted EBITDA 1 improved from $9 million in 2024 to $25 million in 2025, with a
modestly positive pre-tax income of $3 million. While these numbers are far from our potential and aspirations,
2025 serves as a critical turning point in resuming a renewed path of growth and excellence for MMI.
Throughout 2025, we continued to hold the industry-leading position in Commercial Real Estate brokerage
transactions, completing 9,000 transactions totaling approximately $50 billion in volume. Our Private Client
business, the cornerstone of our franchise, delivered 11% revenue growth, benefiting from improved lending
conditions and our ability to work with clients to narrow the bid-ask spread.
Our financing business continued its strong trajectory, with revenue growing by 24% for the year following 26%
growth in 2024, reflecting both our expanded bench of experienced financing professionals and our team's ability to
navigate a complex lending landscape. We closed financing transactions with over 420 separate lenders during the
year, demonstrating our unique market access and ability to provide a wide range of solutions for our clients.
During the year, we further strengthened our competitive position through strategic investments and operational
improvements, positioning us for long-term growth. Our investments in AI-powered technology are still in an
early stage but already show encouraging potential, while enhanced brokerage support drove measurable
productivity improvements. The Company   s leading research content, media coverage, and major presence at key
industry events remained strong, keeping our team close to clients, solving problems, and presenting them with
opportunities.
Our balance sheet is a core advantage, ending 2025 with nearly $400 million in cash, cash equivalents, restricted
cash, and marketable debt securities, available-for-sale, and no debt, providing exceptional strategic flexibility as
we pursue growth initiatives. Our strong capital position enables us to make investments in talent and platform
enhancements while continuing to deliver shareholder returns. Throughout 2025, we maintained a disciplined
approach to capital allocation, distributing $47 million to shareholders through our dividend and share repurchase
programs. MMI has returned $217 million to shareholders since 2022, despite navigating one of the most
challenging market disruptions in commercial real estate history.
Market Environment
The commercial real estate market in 2025 reflected ongoing    higher for longer    interest rates, despite
expectations for more constructive U.S. Federal Reserve action. Although inflation pressures and geopolitical
risks limited the Federal Reserve   s ability to significantly lower rates, we observed meaningful improvements in
market liquidity and transaction velocity throughout the year.
The credit environment also showed notable improvement, with lender spreads compressing and loan-to-value
ratios expanding as competition among lenders returned. Many banks and credit unions re-entered the market
with renewed lending capacity, which is critical to our private client business segment. This improvement in
liquidity helped narrow the bid-ask spread that had constrained transaction flow in the last two years.
The passage of time has brought more realistic expectations to valuations, while more stable interest rates,
although at higher levels than expected, are helping values reset. The dramatic slowdown in job growth and the
increase in job cuts across many sectors are concerning. However, most economists still expect growth ahead with
modest but positive employment gains. This is a critical foundation for commercial real estate demand, which
registered a strong year in 2025.
1 Adjusted EBITDA is a    Non GAAP    financial measure. A reconciliation of EBITDA to its closest GAAP financial measure is disclosed beginning
on page 36 of the Company   s 2025 Annual Report on Form 10-K, which was filed with the SEC on February 26, 2026.

Looking Forward
In 2026, MMI will mark 55 years since its founding in 1971. Our vision of creating client value by connecting
each property with the largest pool of qualified investors continues to drive and differentiate the firm. Countless
advances in technology, along with our market research, training, and development, have fueled our market
leadership and provided the foundation for our strategic plan to take MMI to the next level. The investments
we have made in talent acquisition and retention, technology, infrastructure, and platform enhancements during
challenging times have strengthened our competitive position and prepared us to capitalize on the market
recovery that is now gaining momentum.
Building on this foundation, management will continue to work to generate additional momentum in revenue
growth, sales force expansion, and the productivity of our sales force. This includes further expanding our client
outreach and exclusive inventory while improving our conversion rate to drive revenue growth. As importantly,
initiatives to diversify revenue sources include scaling our auction services, growing our loan sales volume, and
further expanding our financing division, particularly the agency lending capacity for multifamily. We believe the
expansion of our leasing presence in retail and industrial will also bring synergistic revenue growth in the years
ahead. We continue to pursue strategic acquisitions in our core business and adjacent services that can further
increase client touchpoints and revenue diversification. Through these initiatives, we strive to position Marcus &
Millichap as a more resilient, technology-enabled platform focused on creating long-term shareholder value.
Our success is made possible by the dedication of our team members, the guidance of our Board, and the trust of
our shareholders. We recognize that returning to historical profitability levels requires continued innovation and
market share expansion, and we are confident that the foundation we have built positions Marcus & Millichap for
sustainable growth and industry leadership in the years ahead.
Sincerely,
Hessam Nadji
President, Chief Executive Officer
George M. Marcus
Chairman of the Board of Directors


shareholder letter icon 3/18/2026 Letter Continued (Full PDF)
 

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