Marcus & Millichap’s second quarter showcased a broad-based improvement in both brokerage and financing, as the company’s revenue and non-GAAP profitability exceeded Wall Street expectations. CEO Hessam Nadji highlighted that all business segments registered growth, with private client and larger transactions experiencing notable momentum as market values adjusted and more lenders re-engaged. Management attributed the quarter’s performance to persistent client outreach, improved trading volumes in core multifamily and retail segments, and progress in the financing business, which benefited from expanded agency relationships and technology investments. Nadji emphasized, “This is driven by our team’s persistent client outreach finally resulting in more transactions as values adjust and healthier lender balance sheets foster more financing options.”
Is now the time to buy MMI? Find out in our full research report (it’s free for active Edge members).
Marcus & Millichap (MMI) Q2 CY2026 Highlights:
- Revenue: $202.9 million vs analyst estimates of $194.3 million (17.8% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.03 (significant beat)
- Adjusted EBITDA: $12.12 million vs analyst estimates of $3.5 million (6% margin, significant beat)
- Operating Margin: 1.1%, up from -5.3% in the same quarter last year
- Market Capitalization: $1.18 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marcus & Millichap’s Q2 Earnings Call
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Mitch Germain (Citizens Bank) asked about competitive pressures in private client brokerage. CEO Hessam Nadji replied that competition remains typical, but Marcus & Millichap’s training and support systems are attracting more semi-experienced brokers from smaller firms.
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Mitch Germain (Citizens Bank) inquired about the composition of new hires. Nadji explained that about 25% are experienced professionals, with the rest coming through enhanced internship and fellowship programs, leading to higher productivity and retention.
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Blaine Heck (Wells Fargo) questioned the company’s appetite for expanding into leasing, property management, and other business lines. Nadji said diversification is a priority, especially in leasing and appraisal, and the company is actively evaluating acquisition opportunities.
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Blaine Heck (Wells Fargo) asked about expected margin improvement and cost control. CFO Steve DeGennaro emphasized that revenue growth and technology-driven efficiencies are key to margin expansion, while cost discipline is maintained through ongoing review and reallocation of resources.
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Blaine Heck (Wells Fargo) sought clarity on whether previous peak profitability levels are achievable. Nadji stated confidence in returning to higher margins as the market recovers, emphasizing the importance of ROI per expense category and service diversification.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) trends in transaction volumes and lender activity as interest rate volatility persists, (2) the pace and impact of expansion into new service lines such as leasing and appraisal, and (3) continued progress in talent productivity and retention through enhanced training and recruitment strategies. Execution in these areas will shape Marcus & Millichap’s ability to sustain margin recovery and capitalize on market opportunities.
Marcus & Millichap currently trades at $31.14, in line with $31.24 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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