Real estate brokerage and services firm Marcus & Millichap (NYSE: MMI) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 17.8% year on year to $202.9 million. Its non-GAAP profit of $0.10 per share was significantly above analysts’ consensus estimates.

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StockStory’s Take

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.”

Looking forward, Marcus & Millichap’s outlook is shaped by a combination of cautious optimism and ongoing market volatility. Management sees opportunity for further growth as interest rate fluctuations narrow bid-ask spreads and motivate sellers, but also notes that uncertainty around future rate movements and geopolitical tensions could impact transaction timelines. Nadji stated, “We continue to see a balancing act between lingering uncertainty and higher interest rates on one hand and more motivation among sellers to move forward with transactions on the other.” The company is focused on leveraging its expanded talent pool, enhancing technology-driven efficiencies, and exploring adjacent business lines such as leasing, appraisal, and investment management to diversify revenue and support long-term profitability.

Key Insights from Management’s Remarks

Management credited the quarter’s improvement to strong execution in core brokerage and financing, as well as successful talent strategies and expanded service offerings.

• Private client and large deals: Strong growth in private client multifamily and single-tenant retail segments, with 19% and 16% revenue increases respectively, as price adjustments and improved market liquidity drove transaction volumes. Large transactions rebounded, up 43%, benefiting from institutional investors returning for high-quality assets.

• Financing expansion: The financing business saw meaningful growth, driven by new loan originations and increased collaboration with agency partners like Freddie Mac and Fannie Mae through M&T Bank. Refinancings accounted for a higher proportion of activity, reflecting improved lending conditions and more owners able to secure new loans.

• Talent and recruiting strategy: Management continued to invest in talent acquisition, focusing on a mix of experienced hires, expanded internship and fellowship programs, and enhanced training. This approach, while slower for nominal headcount growth, is showing higher productivity and retention among new professionals.

• Cost control and operating leverage: SG&A expenses remained virtually flat as a percentage of revenue, reflecting ongoing discipline and positive operating leverage from higher transaction volumes. Management emphasized reallocating costs toward client-facing roles and technology to support revenue growth without runaway expenses.

• Service line diversification: The company outlined plans to expand into adjacent business lines, including leasing, appraisal, and investment management, aiming to both diversify revenue and create synergies with its core brokerage and financing operations. Strategic acquisitions are being evaluated to accelerate this expansion.

Drivers of Future Performance

Management’s forward-looking guidance is shaped by continued investment in talent, technology, and service diversification amid persistent market volatility.

• Interest rate environment: The company views interest rate fluctuations as a key factor for upcoming quarters. Volatility continues to affect deal underwriting and transaction timing, but narrowing bid-ask spreads and improved lender participation are expected to support gradual market normalization and increased deal flow.

• Expansion of service offerings: Ongoing investments in leasing, appraisal, and investment management are expected to diversify the company’s revenue mix and enhance stability during periods of transaction market volatility. Management believes these initiatives will contribute meaningfully to growth over the next five to seven years.

• Productivity and efficiency gains: Enhanced technology and workflow improvements, combined with a focus on revenue per agent and cost discipline, are expected to drive margin improvement and operational leverage as the market recovers. Management is redeploying resources toward client-facing and revenue-generating functions to maximize return on investment.

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 $32.49, up from $31.24 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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