• Marcus & Millichap reported second quarter 2025 results showing revenue increased to US$172.28 million from US$158.37 million a year earlier, while net loss also widened to US$11.04 million from US$5.54 million the previous year.
• Despite sustained revenue growth, the company's leadership highlighted ongoing efforts to pursue acquisitions aimed at scaling their core business and expanding into complementary segments.
• We’ll review how the combination of increased revenue with a wider net loss may influence Marcus & Millichap’s long-term investment case.

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Marcus & Millichap Investment Narrative Recap

To be a shareholder in Marcus & Millichap, you have to believe in a rebound in commercial real estate transactions and the company's potential to expand via acquisitions, offsetting near-term earnings declines. The recent Q2 results, showing higher revenue but a wider net loss, highlight that while top-line growth continues, profitability is still challenged. This news has not materially changed the biggest catalyst, which remains a recovery in transaction volume, or the risk posed by transaction-dependent earnings.

Among recent announcements, the affirmation of a semi-annual dividend of US$0.25 per share stands out. Even with persistent net losses, the continued dividend may interest investors seeking income, though it highlights the tension between rewarding shareholders now and funding expenses as revenues recover.

On the other hand, investors should be aware that volatility in transaction activity continues to expose Marcus & Millichap to ...

Read the full narrative on Marcus & Millichap (it's free!)

Marcus & Millichap's outlook forecasts $1.1 billion in revenue and $64.4 million in earnings by 2028. This assumes annual revenue growth of 15.9% and a $71.2 million increase in earnings from the current -$6.8 million.

Uncover how Marcus & Millichap's forecasts yield a $30.00 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community see Marcus & Millichap’s fair value between US$54.66 and US$68.76, based on two distinct estimates. Despite this, transaction-dependent earnings volatility remains a focal point for your ongoing research.

Explore 2 other fair value estimates on Marcus & Millichap - why the stock might be worth just $54.66!

Build Your Own Marcus & Millichap Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Marcus & Millichap research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Marcus & Millichap research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Marcus & Millichap's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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