Abstract

Marcus & Millichap will report results on February 13, 2026 Pre-Market; this preview summarizes last quarter’s performance, consensus expectations for revenue and earnings, and the operating drivers and risks likely to shape this quarter’s outcome.

Market Forecast

Consensus points to an improvement this quarter, with revenue estimated at $249.05 million, up 24.65% year over year, EBIT estimated at $14.90 million, and EPS at $0.24; year-over-year growth for EPS is projected at 13.10%, while year-over-year growth for revenue is 24.65%. The company has not issued margin guidance for the quarter, and market forecasts for gross margin and net margin are not available. Marcus & Millichap’s core brokerage engine is expected to benefit from a gradual thaw in transaction markets, with pipeline conversion improving as buyers and sellers recalibrate to updated price discovery and debt costs. The brokerage commissions business remains the flagship contributor by revenue, while ancillary financing fees may track improving credit availability. The most promising area appears to be real estate brokerage commissions, which generated $162.17 million last quarter as activity stabilized and listings improved; financing fees at $26.29 million continue to complement transaction activity, though momentum will depend on closing velocity and credit spreads.

Last Quarter Review

In the most recent quarter, Marcus & Millichap reported revenue of $193.89 million, a gross profit margin of 37.60%, GAAP net profit attributable to the company of $0.24 million, a net profit margin of 0.12%, and adjusted EPS of $0.01, with total revenue up 15.06% year over year. A key financial takeaway was a return to profitability on a GAAP basis amid sequentially improving operating leverage as volumes and deal closings improved. The main business segments delivered revenue of $162.17 million from real estate brokerage commissions and $26.29 million from financing fees, supplemented by $5.43 million in other revenue, in line with a gradual recovery in commercial real estate transaction activity.

Current Quarter Outlook (with major analytical insights)

Brokerage Commissions as the Core Revenue Driver

Marcus & Millichap’s brokerage commissions remain the company’s core revenue engine and the principal swing factor for quarterly performance. The previous quarter showed $162.17 million in brokerage revenues within a $193.89 million total, indicating that the commission-based engine continues to account for the majority of revenue. The current quarter’s revenue estimate of $249.05 million implies a meaningful acceleration in deal execution and closings, consistent with a market environment in which bid-ask spreads narrow as buyers and sellers recalibrate their return thresholds and use updated financing assumptions. As commercial property markets digest updated cap rates, operating expense levels, and refinancing realities, the company’s platform breadth should help capture resurgent demand across private and institutional capital segments. Given that gross margin registered at 37.60% last quarter during a recovery phase, incremental improvement in throughput could translate into better operating leverage, though this will ultimately depend on the mix between higher-fee seller listings and competitively bid buyer mandates. With EPS estimated at $0.24 this quarter and EBIT estimated at $14.90 million, the model points to a more balanced revenue-to-cost profile relative to the recent quarter, provided that the closing calendar remains intact and attrition in transaction pipelines stays limited.

Financing Fees as a Tactical Offset and Volume Amplifier

Financing fees of $26.29 million last quarter served as a practical counterpart to brokerage commissions by facilitating closings and aligning capital stacks to new pricing. In the current quarter, the financing line should reflect improved credit availability from lenders selectively re-entering parts of the commercial mortgage space where collateral performance data is transparent and debt service coverage can be underwritten with conservative assumptions. The outlook for financing fees will be shaped by credit spreads and loan-to-value thresholds; tighter spreads and stable loan proceeds can catalyze transaction velocity and thus amplify brokerage throughput. If lenders remain cautious in segments facing valuation uncertainty or weaker cash flows, financing volumes could lag the brokerage rebound, but a modest thaw in underwriting standards combined with increased refinance activity could support fee stability. The interplay between financing availability and deal flow will be a defining variable for translating the revenue estimate of $249.05 million into durable bottom-line progress, particularly for margin dynamics, since incremental financing revenue tends to carry differing contribution margins relative to brokerage commissions.

Key Stock Price Sensitivities: Volume Conversion, Margin Trajectory, and Operating Discipline

Short-term price action is likely to be influenced by how the company’s revenue mix and expense cadence translate into net income, given that net profit last quarter was $0.24 million on a $193.89 million revenue base and a 37.60% gross margin. The market’s EPS estimate of $0.24 and EBIT estimate of $14.90 million embed an assumption of healthier conversion in the current quarter; whether that materializes will hinge on the closing calendar holding up across geographies and asset classes. Margin trajectory will be monitored closely: the prior quarter’s 0.12% net margin leaves room for improvement if fixed and semi-fixed costs scale more efficiently with higher revenues and if variable compensation aligns to realized pricing. Expense discipline around marketing, travel, and support functions is another swing factor for EBIT realization, as a portion of the cost base scales with producer activity. Any guidance or commentary regarding pipeline visibility into the following quarter, especially the distribution of large versus mid-market transactions, will shape how investors map current-quarter performance to near-term run rates for revenue and earnings.

Analyst Opinions

Across recent commentary, explicit previews and consolidated rating changes specific to Marcus & Millichap in the last six months are limited, and views that do exist do not coalesce into a clear bullish or bearish majority. The absence of a dominant directional stance reflects uncertainty around the pace of recovery in commercial real estate transactions and the degree to which financing markets can support a sustained pickup in deal flow. In this context, the market’s baseline expectation—revenue of $249.05 million, EBIT of $14.90 million, and EPS of $0.24—functions as a practical reference point rather than a strongly directional call. The central questions raised by institutional commentators focus on the stability of the closing calendar, the elasticity of buyer demand to changes in financing costs, and the sensitivity of net margins to variable compensation and support costs at higher revenue levels. Without a clear majority in either bullish or bearish camps, the tenor of the discussion remains balanced and contingent on evidence that the forecasted revenue and earnings inflection can be achieved and translated into better bottom-line performance.