Marcus & Millichap Inc

Marcus & Millichap reported second-quarter revenues of $202.9 million, up 17.8% year on year and exceeding analysts' expectations by 4.4%, in what was a stunning quarter for the commercial real estate investment sales and advisory firm. The company also beat analysts' EPS and EBITDA estimates, though its stock is down 8.9% since reporting and currently trades at $28.45. The results came as the 13 consumer discretionary real estate services stocks tracked reported a mixed quarter, with revenues as a group beating consensus estimates by 11.5% while next quarter's revenue guidance came in 4.4% below. Among peers, Howard Hughes Holdings posted the group's biggest analyst estimate beat and fastest revenue growth, with revenues of $1.12 billion, up 330% year on year, while Offerpad delivered the weakest performance, with revenues of $77.65 million, down 51.6% year on year. Cushman & Wakefield reported revenues of $2.76 billion, up 11.2% year on year, and Newmark reported revenues of $888.4 million, up 17% year on year.

Institutional Property Advisors, a division of Marcus & Millichap, announced the sale of Ascend at Black Canyon, a 260-unit multifamily property in Phoenix, Arizona, for $58.7 million, or $225,769 per unit. IPA executive managing directors Steve Gebing and Cliff David represented the seller, D.R. Horton, and procured the buyer, Millburn & Company. Gebing said North Phoenix is positioned to generate tens of thousands of high-earning jobs supporting advanced nanometer chip production for companies such as Apple, Sony, Tesla, and Qualcomm, and noted that within a one-mile radius of the property average and median annual household incomes are $163,500 and $138,000. The property sits in Phoenix's Deer Valley urban village near Interstate 17/Black Canyon Freeway, the Sonoran Preserve and the Happy Valley Town Center, close to employers including HonorHealth Sonoran Crossing Medical Center, PetSmart's corporate headquarters, Honeywell Aerospace, Cox Communications and American Express. Completed in 2024 on over 10 acres, Ascend at Black Canyon offers one-, two- and three-bedroom apartments with a resort-style pool, a 24-hour fitness center, two dog parks and a pet washing station.

Marcus & Millichap Inc. reported second-quarter results on August 6 that swung the brokerage back to profit, with revenue climbing 17.8% year over year to $202.9 million and net income of $3.9 million, or $0.10 per diluted share, reversing a year-ago net loss. Brokerage commissions rose 18.1% to $167 million on an 18.4% increase in total sales volume, while revenue from Middle Market and Larger Transactions jumped 29.4% to $54.7 million and Private Client Market brokerage revenue rose 13.6% to $106.2 million. Financing fees added 15.3% to reach $30.3 million, pretax income hit $6.3 million for a $10 million turnaround, and Adjusted EBITDA nearly tripled to $12.1 million from $1.5 million. For the first half, revenue rose 18% to $374.4 million and pretax results flipped from a $17.7 million loss to $4.1 million in income, though six-month net income was just $0.8 million, or $0.02 per diluted share. The board declared a semi-annual dividend of $0.25 per share payable October 6 to shareholders of record on September 15, and the company repurchased 912,957 shares for $23.9 million in the six months ended June 30, with another $70 million in buyback capacity approved on April 30 on top of $119.9 million already spent since August 2022. Management said bid-ask spreads remain wider than normal and price discovery challenges are expected to extend through the rest of 2026, citing the Middle East conflict, inflation, interest rate uncertainty, recession risk, and tariff and immigration policy shifts.

Marcus & Millichap reported second-quarter 2026 total revenue of $203 million, an 18% increase from $172 million a year earlier, with all business segments growing for the first time since the market disruption began. Brokerage revenue rose 18% to $167 million on 1,530 transactions and $10 billion in sales volume, while financing revenue climbed 15% to $30 million. Net income was $4 million, or $0.10 per share, compared with a net loss of $11 million in the prior-year quarter, and adjusted EBITDA improved to $12 million from $1.5 million. The company ended the quarter with $345 million in cash and marketable securities, repurchased 913,000 shares for $24 million year to date, and declared a semiannual dividend of $0.25 per share payable on October 6, 2026.

US apartment completions are projected to fall nearly 34% year-over-year in 2026, reaching levels not seen since 2014, according to Marcus & Millichap. The firm’s 2026 outlook forecasts a national vacancy rate near 5.3%, below the historical average, with effective rents rising about 1.8% year over year. Early 2026 absorption ran 50% above long-term averages, supported by strong employment and steady renter demand. Large Sun Belt markets still face record supply from recent construction waves, while regions with less development report tighter vacancies and firmer rents. The supply reset is expected to stabilize fundamentals and improve landlord confidence, though benefits will vary by market.

Brown & Brown has appointed Neil Krauter Sr. as executive managing director for growth and specialization in its Retail segment, while also announcing new partnerships with WireX Systems and Marcus & Millichap to expand its cyber risk and real estate insurance capabilities. These moves aim to deepen the broker's focus on private equity, cybersecurity, and commercial real estate, broadening its reach across complex risk markets. The initiatives are expected to reinforce existing growth catalysts around cross-selling and fee expansion, though any financial impact is likely to build gradually. The company's investment narrative remains centered on a resilient insurance brokerage model and disciplined capital returns, but heavier reliance on debt-funded expansion and slower expected profit growth keep balance sheet flexibility and execution risk in focus.

Howard Hughes Holdings reported first-quarter revenues of $235.9 million, up 18.4% year on year and exceeding analysts' expectations by 20.4%, making it the top performer among 14 tracked consumer discretionary real estate services stocks. The group as a whole beat revenue consensus estimates by 3.8% but issued next-quarter revenue guidance 6.7% below expectations, and their shares have fallen an average of 8.2% since reporting. Howard Hughes also beat EPS estimates, and its stock rose 6.3% to $67.50. Other notable results included Marcus & Millichap with revenues of $171.5 million, up 18.2% and beating by 5.7%, while RE/MAX posted the weakest quarter with revenues of $70.23 million, down 5.7% and missing estimates by 2.7%. JLL reported revenues of $6.39 billion, up 11.1% and beating by 6.6%, and Forestar Group met expectations with revenues of $374.3 million, up 6.6%.

Marcus & Millichap has named Brown & Brown as a preferred partner for insurance and risk management, adding the insurance brokerage to its recently launched Preferred Partner Program. The partnership gives Marcus & Millichap clients access to data-driven insurance indications, portfolio analysis, and risk management resources to better evaluate acquisition opportunities and operating risks. Brown & Brown's National Real Estate Practice also provides access to major insurance carriers and specialty markets serving commercial real estate investors. Richard Matricaria, chief growth officer of Marcus & Millichap, said insurance has become a critical component of investment analysis and transaction execution, and the partnership helps clients evaluate opportunities with greater confidence. Dan Cioci, executive vice president and director of Brown & Brown's National Real Estate Practice, noted that as insurance costs play a larger role in valuation and execution, investors are seeking greater clarity early in the transaction process.