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Marcus & Millichap
(NYSE:MMI)
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Rating:70Outperform
Price Target:
$35.00
▲(15.21% Upside)
Action:Upgraded
Date:08/07/26
MMI scores well on improving fundamentals and financial resilience: strong cash flow rebound, low leverage, and an earnings-call backdrop showing accelerating revenue/EBITDA and meaningful liquidity/capital return. Technicals also support the score with the stock trending above key moving averages and positive momentum. The main drag is valuation/earnings quality, as the negative P/E reflects still-fragile profitability and the recovery remains sensitive to interest-rate volatility and near-term expense headwinds.
Positive Factors
Conservative Balance Sheet
Low leverage and substantial equity position give the firm durable financial flexibility across commercial real estate cycles. This conservatism supports continued investment, opportunistic M&A or buybacks, and the ability to absorb weaker transaction volumes without forcing asset sales.
Negative Factors
Thin and Inconsistent Profitability
Margins and net income remain fragile after multi-year weakness, limiting sustainable returns on equity. Because earnings quality has been inconsistent, long-term reinvestment and payout policies depend on sustaining revenue gains and structural margin improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and substantial equity position give the firm durable financial flexibility across commercial real estate cycles. This conservatism supports continued investment, opportunistic M&A or buybacks, and the ability to absorb weaker transaction volumes without forcing asset sales.
Read all positive factors
Marcus & Millichap (MMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.20B
Dividend Yield1.58%
Average Volume (3M)123.62K
Price to Earnings (P/E)86.2
Beta (1Y)0.74
Revenue Growth11.89%
EPS GrowthN/A
CountryUS
Employees854
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.37
Shares Outstanding37,871,002
10 Day Avg. Volume119,304
30 Day Avg. Volume123,620
Financial Highlights & Ratios
PEG Ratio6.58
Price to Book (P/B)1.76
Price to Sales (P/S)1.41
P/FCF Ratio18.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.43
Revenue Forecast (FY)$838.30M
Marcus & Millichap Business Overview & Revenue Model
Company Description
Marcus & Millichap, Inc. (MMI) is a prominent investment brokerage firm specializing in commercial real estate. Operating across the United States and Canada, the company furnishes comprehensive investment brokerage and financing solutions for bot...
How the Company Makes Money
MMI primarily makes money by earning fees and commissions tied to completed commercial real estate transactions. Its key revenue streams include: (1) Investment sales brokerage commissions: The company earns transaction-based commissions when its ...
Marcus & Millichap Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based revenue and profitability improvements across brokerage and financing, with total revenue up 18% and notable recoveries in larger transactions and financing activity. Key operational highlights include improved adjusted EBITDA (from $1.5M to $12M), positive operating leverage (SG&A down as a percent of revenue), strengthened lender relationships, and a healthy balance sheet with ongoing capital return. Challenges remain: elevated operating expenses driven by investments in talent and infrastructure, rate volatility that prolongs deal timelines, modest headcount growth from strategic hiring changes, and profitability still well below prior peak levels. Management emphasized a multi-year view on returning to higher margin levels and outlined strategic expansion opportunities (leasing, appraisal tech, investment management, and organic financing scale) that should support future growth.Positive Updates
Total Revenue Growth
Total revenue for Q2 2026 was $203 million, an 18% year-over-year increase; first-half revenue was $374 million, also up 18% versus prior year. Management noted this is the company's best first half since 2022.
Negative Updates
Elevated Operating Expenses
Total operating expense rose to $201 million from $181 million a year ago. Cost of services was 62.4% of revenue (up 50 basis points YoY), reflecting higher commissions to senior professionals and continued investment in talent and infrastructure.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Growth
Total revenue for Q2 2026 was $203 million, an 18% year-over-year increase; first-half revenue was $374 million, also up 18% versus prior year. Management noted this is the company's best first half since 2022.
Read all positive updates
Company Guidance
Management guided that it entered Q3 with modest year‑over‑year pipeline growth amid interest‑rate volatility and expects cost of services as a percent of revenue to follow the usual seasonal pattern and be sequentially higher than Q2 (Q2 cost of services 62.4% on $203M revenue), while SG&A dollars should increase modestly from Q2’s $72M (35% of revenue). They forecast income tax expense of $1.5M–$2.0M for the quarter, highlighted a $345M cash balance, reported YTD buybacks of ~913,000 shares for $24M at an average $26.22 (4.0M shares / $120M repurchased since 2022) with ~$90M remaining authorization, and declared a $0.25 per‑share semiannual dividend payable Oct. 6 (record Sept. 15). Management also reiterated expectations for financing expansion — noting Q2 financing revenue of $30M (+15%), 480 loans/$4B volume, refinancings at 47% of financing revenue (vs. 39% a year ago) and relationships with 207 lenders in the quarter (304 YTD) — while cautioning that transactions may remain elongated as rates and treasury yields stay volatile.Marcus & Millichap Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
77
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 812.22M | 755.16M | 696.06M | 645.93M | 1.30B | 1.30B |
| Gross Profit | 289.43M | 260.47M | 264.59M | 239.28M | 450.82M | 456.23M |
| EBITDA | 36.30M | 15.89M | 4.37M | -25.89M | 156.14M | 205.60M |
| Net Income | 14.36M | -1.91M | -12.36M | -34.03M | 104.22M | 142.47M |
Balance Sheet | ||||||
| Total Assets | 765.79M | 827.18M | 869.80M | 878.41M | 1.00B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 216.54M | 252.49M | 349.46M | 349.13M | 489.31M | 565.99M |
| Total Debt | 74.15M | 78.25M | 84.22M | 87.74M | 82.09M | 77.31M |
| Total Liabilities | 186.88M | 224.08M | 238.98M | 233.14M | 290.20M | 348.89M |
| Stockholders Equity | 578.91M | 603.10M | 630.82M | 645.27M | 713.51M | 696.30M |
Cash Flow | ||||||
| Free Cash Flow | 93.83M | 58.78M | 13.84M | -81.80M | 1.96M | 249.05M |
| Operating Cash Flow | 98.48M | 66.66M | 21.71M | -72.43M | 13.63M | 255.90M |
| Investing Cash Flow | 6.25M | -3.82M | -9.90M | 74.87M | -53.98M | -108.36M |
| Financing Cash Flow | -3.77M | -54.58M | -28.75M | -67.68M | -105.56M | -5.92M |
Marcus & Millichap Technical Analysis
Positive
30.38
Price Trends
30.71
Positive
29.29
Positive
28.25
Positive
Market Momentum
0.23
Negative
55.73
Neutral
57.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMI, the sentiment is Positive. The current price of 30.38 is below the 20-day moving average (MA) of 31.02, below the 50-day MA of 30.71, and above the 200-day MA of 28.25, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 57.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMI.
Marcus & Millichap Risk Analysis
Marcus & Millichap disclosed 45 risk factors in its most recent earnings report. Marcus & Millichap reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marcus & Millichap Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $17.25B | 17.61 | 13.57% | ― | 11.17% | 79.36% | |
70 Outperform | $1.20B | 86.24 | 2.44% | 1.65% | 11.89% | ― | |
70 Outperform | $44.26B | 34.81 | 15.16% | ― | 14.53% | 22.31% | |
67 Neutral | $2.76B | 18.40 | 9.92% | 0.97% | 23.06% | 88.89% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $3.38B | 49.35 | 3.50% | ― | 11.04% | -66.92% |
* Real Estate Sector Average
MMI
Marcus & Millichap
31.58
1.48
4.91%
CBRE
CBRE Group
152.86
-4.98
-3.16%
JLL
Jones Lang Lasalle
375.00
82.08
28.02%
NMRK
Newmark Group
15.25
-1.79
-10.53%
CWK
Cushman & Wakefield
14.40
-0.45
-3.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.