Company expects near-term market challenges to extend through 2026
Company cites interest rate uncertainty, inflation, and geopolitical risks as factors impacting 2026 outlook
Marcus & Millichap says it remains well-positioned for long-term growth despite current market volatility
Result drivers
Higher transaction volume - Brokerage commission revenue growth was primarily due to an 18.4% increase in total sales volume
Middle and larger market gains - Revenue in middle market and larger transaction segments rose sharply, with middle market up 29.4% and larger transactions up 43.2%
Higher financing fees - Financing fee revenue grew due to a 5.4% increase in financing volume and a 10 basis point rise in average fee rate
Quarterly results
U.S. commercial real estate services firm's preliminary Q2 revenue grew 17.8% yr/yr
Adjusted EBITDA for preliminary Q2 rose sharply, reflecting improved operating income
Company repurchased shares and declared a semi-annual dividend for shareholders
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the real estate services peer group is "buy"
Wall Street's median 12-month price target for Marcus & Millichap Inc is $28.00, about 10.4% below its August 5 closing price of $31.24
MMI•
