Real estate brokerage and services firm Marcus & Millichap (NYSE: MMI) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 1.6% year on year to $244 million. Its GAAP profit of $0.34 per share was 58.1% above analysts’ consensus estimates.

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Company Overview

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Marcus & Millichap grew its sales at a weak 1% compounded annual growth rate. This was below our standards and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Marcus & Millichap’s annualized revenue growth of 8.1% over the last two years is above its five-year trend, which is encouraging.

We can dig further into the company’s revenue dynamics by analyzing its most important segments, Brokerage and Financing, which are 84.2% and 13.6% of revenue. Over the last two years, Marcus & Millichap’s Brokerage revenue (commission fees) averaged 8.2% year-on-year growth while its Financing revenue (financing fees) averaged 25.9% growth.

This quarter, Marcus & Millichap reported modest year-on-year revenue growth of 1.6% but beat Wall Street’s estimates by 6.3%.

Looking ahead, sell-side analysts expect revenue to grow 12.6% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and suggests its newer products and services will catalyze better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Marcus & Millichap’s operating margin has risen over the last 12 months, but it still averaged negative 3.2% over the last two years. This is due to its large expense base and inefficient cost structure.

In Q4, Marcus & Millichap generated an operating margin profit margin of 6.3%, up 3.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Marcus & Millichap, its EPS declined by 15.3% annually over the last five years while its revenue grew by 1%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

In Q4, Marcus & Millichap reported EPS of $0.34, up from $0.22 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Marcus & Millichap’s full-year EPS of negative $0.04 will flip to positive $0.57.

Key Takeaways from Marcus & Millichap’s Q4 Results

It was good to see Marcus & Millichap beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $25.01 immediately after reporting.

So should you invest in Marcus & Millichap right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).