Marcus & Millichap, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total revenue for the third quarter increased to $168.5 million, up 4.0% from $162.0 million in the same period of 2023. This growth was driven by a rise in financing fees, which reached $20.6 million, a 19.3% increase from $17.3 million in the prior year. Real estate brokerage commissions also saw a slight increase to $142.0 million, compared to $139.8 million in 2023.

For the nine-month period, total revenue decreased to $456.0 million, down 4.9% from $479.7 million in 2023. The decline was primarily attributed to a 6.8% drop in real estate brokerage commissions, which fell to $386.9 million, reflecting a decrease in total sales volume and average commission rates. However, financing fees increased by 4.5% to $53.3 million, supported by a 6.5% rise in total financing volume.

The company reported an operating loss of $11.5 million for the third quarter, an improvement from a loss of $15.4 million in the same period last year. The net loss for the quarter was $5.4 million, significantly reduced from $9.2 million in 2023. For the nine months, the net loss was $20.9 million, down from $23.8 million in the previous year, indicating a 12.2% improvement.

Total operating expenses for the third quarter increased slightly to $180.0 million, while for the nine months, they decreased by 5.0% to $495.6 million. The cost of services as a percentage of total revenue improved, reflecting a decrease in variable commissions and employee-related compensation.

As of September 30, 2024, total assets were $833.7 million, down from $878.4 million at the end of 2023. Total liabilities also decreased to $216.0 million, contributing to a decline in total stockholders' equity to $617.7 million from $645.3 million. The company maintained a cash balance of $172.7 million, a slight increase from $170.8 million at the end of 2023.

Strategically, Marcus & Millichap continues to focus on its core business of commercial real estate investment sales and financing services, with over 80 offices across the U.S. and Canada. The company remains committed to managing its expenses and improving profitability amid challenging market conditions, including elevated interest rates and fluctuating investor sentiment.