\nMarcus & Millichap, Inc. (the \u201cCompany\u201d, \u201cMarcus & Millichap\u201d, \u201cMMI\u201d) (NYSE: MMI), a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services, today reported its first quarter results.<\/p>\n
First<\/i> Quarter 2023 Highlights Compared to First Quarter 2022<\/i><\/b><\/p>\n \n\u201cAmid a challenging market environment, exacerbated in the first quarter by banking concerns, we are operating from a position of strength with an unwavering focus on our long-term strategy,\u201d stated Hessam Nadji, Marcus & Millichap\u2019s president and chief executive officer. \u201cValuations are resetting as a result of the interest rate shock, a widened bid\/ask spread and tightened underwriting by lenders. Our financial results were particularly impacted by a significant slowdown in larger transactions, which had seen exceptional growth in the past few years. Expensing of capital invested in various growth initiatives, including talent acquisition and business development, were also key factors. We executed a major reduction of workforce in December and continue to reduce costs while making investments that keep MMI on offense.\u201d<\/p>\n \nMr. Nadji continued, \u201cEasing inflation, the Fed nearing the end of tightening and clarity on a labor market soft landing should lead to recovery in real estate transactions. Although the timing is difficult to predict, we see record capital on the sidelines and a return of multiple offers for appropriately priced assets. We are confident that our expanded talent pool, technology and strong brand will help set new milestones as the market recovers. Our healthy balance sheet enables us to further invest in the platform, pursue talent and add accretive acquisitions. At the same time, we are consistently returning capital to shareholders in the form of dividends and share repurchases. We believe this balanced approach will allow us to leverage the market dislocation to further enhance our market position and create long-term value for our shareholders.\u201d<\/p>\n First<\/i> Quarter 2023 Results Compared to First Quarter 2022<\/i><\/b><\/p>\n \nTotal revenue for the first quarter 2023 was $154.8 million, a decrease of 51.5% compared to $319.5 million for the first quarter 2022, which was up 73.6% compared to the first quarter 2021. The record revenue of first quarter 2022 provides for a difficult comparison with the first quarter 2023.<\/p>\n \nIn real estate brokerage, the average transaction size and the average commission per transaction decreased by 30.7% and 21.4%, respectively, compared to the first quarter 2022. The number of transactions decreased by 40.1%, reducing real estate brokerage commissions to $135.0 million, a 52.9% reduction from the same period in the prior year, which increased 76.2% over the first quarter 2021. Compared to the first quarter 2022, the combined Middle Market and Larger Transaction Market revenue decreased by 67.1%, and the Private Client Market decreased by 43.8%, while the first quarter 2022 increased by 52.7% and 134.4%, respectively, compared to the first quarter 2021.<\/p>\n \nFinancing activity experienced an increase in the average transaction size and the average fee per transaction of 21.0% and 7.9%, respectively, while the number of transactions decreased by 46.3%, resulting in a decrease in financing fees to $15.9 million, a 40.0% reduction from the same period in the prior year, which increased 48.3% compared to the same period in 2021.<\/p>\n \nTotal operating expenses for the first quarter 2023 were $170.9 million, compared to $275.2 million for the same period in the prior year. The change was primarily due to reductions of 51.5% in cost of services and 3.1% in selling, general and administrative expense. Cost of services as a percentage of total revenue remained constant at 61.6% during both periods.<\/p>\n \nSelling, general and administrative expenses for the first quarter 2023 were $72.2 million, compared to $74.5 million, in the same period in 2022. The change was primarily due to a reduction in compensation related costs, specifically performance-based bonuses for the first quarter 2023, partially offset by an increased investment in business development, marketing and other support related to the long-term talent acquisition and retention of sales and financing professionals.<\/p>\n \nNet loss for the first quarter 2023 was $5.8 million, or $0.15 per common share, diluted, compared to net income of $32.8 million, or $0.81 per common share, diluted, for the same period in 2022. In the first quarter 2022, net income was up 118.4% from the first quarter 2021. Adjusted EBITDA for the first quarter 2023 was $(7.4) million, compared to $51.9 million for the same period in the prior year, primarily as a result of the decrease in operating income.<\/p>\n Capital Allocation<\/i><\/b><\/p>\n \nOn February 9, 2023, the Board of Directors declared a semi-annual regular dividend of $0.25 per share, or $10.3 million, with a payment date of April 6, 2023, to stockholders of record at the close of business on March 14, 2023.<\/p>\n \nDuring the three months ended March 31, 2023, the Company repurchased 559,923 shares of common stock at an average price of $31.73 per share for a total price of $17.8 million.<\/p>\n \nOn May 2, 2023, the Board of Directors approved an additional $70 million to repurchase common stock under its stock repurchase program. After accounting for shares repurchased through April 28, 2023, and the increased authorization, Marcus & Millichap has approximately $80 million available to repurchase shares under its program. No time limit has been established for the completion of the program, and the repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.<\/p>\n Business Outlook<\/i><\/b><\/p>\n \nThe economy and commercial real estate transaction market are expected to remain choppy through the first half of 2023 as interest rate fluctuations and lender caution lengthen the price discovery process and the buyer\/seller expectation gap remains wide. However, the Company believes it remains well positioned to achieve long-term growth.<\/p>\n \nThe Company benefits from its experienced management team, infrastructure investments, industry-leading market research and proprietary technology. The size and fragmentation of the Private Client Market segment continues to offer long-term growth opportunities through consolidation. This highly fragmented market segment consistently accounts for over 80% of all commercial property sales transactions and over 60% of the commission pool. The top 10 brokerage firms led by MMI have an estimated 21% share of this segment by transaction count.<\/p>\n \nKey factors that may influence the Company\u2019s business during 2023 include:<\/p>\n Webcast and Call Information<\/i><\/b><\/p>\n \nMarcus & Millichap will host a live webcast today to discuss the financial results at 7:30 a.m. Pacific Time\/10:30 a.m. Eastern Time. The webcast will be accessible through the Investor Relations section of Marcus & Millichap’s website at ir.marcusmillichap.com and will be archived upon completion of the call. The Company encourages the use of the webcast due to potential extended wait times to access the conference call via dial-in.<\/p>\n \nFor those unable to access the webcast, callers from the United States and Canada should dial 1-877-407-9208 ten minutes prior to the scheduled call time. International callers should dial 1-201-493-6784.<\/p>\n Replay<\/i><\/b>Information<\/i><\/b><\/p>\n \nFor those unable to participate during the live broadcast, a telephonic replay of the call will also be available from 1:30 p.m. Eastern Time on Friday, May 5, 2023 through 11:59 p.m. Eastern Time on Friday, May 19, 2023 by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally and entering passcode 13737358<\/p>\n About Marcus & Millichap, Inc.<\/i><\/b><\/p>\n \nMarcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of March 31, 2023, the Company had 1,864 investment sales and financing professionals in 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 1,807 transactions during the three months ended March 31, 2023, with a sales volume of $10.4 billion. For additional information, please visit www.MarcusMillichap.com<\/a><\/span>.<\/p>\n SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS<\/i><\/b><\/p>\n \nThis release includes forward-looking statements, including the Company\u2019s business outlook for 2023, the anticipation of further interest rate increases and inflation, the execution of our capital return program, and expectations for market share growth. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and\/or management\u2019s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:<\/p>\n \nIn addition, in this release, the words \u201cbelieve,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cestimate,\u201d \u201ccontinue,\u201d \u201canticipate,\u201d \u201cintend,\u201d “goal,” \u201cexpect,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201cshould\u201d and similar expressions, as they relate to our Company, our business and our management, are intended to identify forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.<\/p>\n \nForward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. We have not filed our Form 10-Q for the quarter ended March 31, 2023. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 10-Q.<\/p>\n MARCUS & MILLICHAP, INC.<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n (in thousands, except per share amounts)<\/b><\/p>\n<\/td>\n<\/tr>\n (Unaudited)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended \n\u00a0<\/p>\n<\/td>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n<\/tr>\n Revenue:<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nReal estate brokerage commissions<\/p>\n<\/td>\n \n$ 135,046<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 286,909<\/p>\n<\/td>\n<\/tr>\n \nFinancing fees<\/p>\n<\/td>\n \n15,868<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26,453<\/p>\n<\/td>\n<\/tr>\n \nOther revenue<\/p>\n<\/td>\n \n3,878<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,102<\/p>\n<\/td>\n<\/tr>\n \nTotal revenue<\/p>\n<\/td>\n \n154,792<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n319,464<\/p>\n<\/td>\n<\/tr>\n Operating expenses:<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCost of services<\/p>\n<\/td>\n \n95,427<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n196,768<\/p>\n<\/td>\n<\/tr>\n \nSelling, general and administrative<\/p>\n<\/td>\n \n72,219<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n74,535<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization<\/p>\n<\/td>\n \n3,207<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,911<\/p>\n<\/td>\n<\/tr>\n \nTotal operating expenses<\/p>\n<\/td>\n \n170,853<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n275,214<\/p>\n<\/td>\n<\/tr>\n \nOperating (loss) income<\/p>\n<\/td>\n \n(16,061)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n44,250<\/p>\n<\/td>\n<\/tr>\n \nOther income, net<\/p>\n<\/td>\n \n4,810<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n450<\/p>\n<\/td>\n<\/tr>\n \nInterest expense<\/p>\n<\/td>\n \n(215)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(160)<\/p>\n<\/td>\n<\/tr>\n \n(Loss) income before (benefit) provision for income taxes<\/p>\n<\/td>\n \n(11,466)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n44,540<\/p>\n<\/td>\n<\/tr>\n \n(Benefit) provision for income taxes<\/p>\n<\/td>\n \n(5,633)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,757<\/p>\n<\/td>\n<\/tr>\n \nNet (loss) income<\/p>\n<\/td>\n \n$ (5,833)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 32,783<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (Loss) earnings per share:<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBasic<\/p>\n<\/td>\n \n$ (0.15)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 0.82<\/p>\n<\/td>\n<\/tr>\n \nDiluted<\/p>\n<\/td>\n \n$ (0.15)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 0.81<\/p>\n<\/td>\n<\/tr>\n \nWeighted average common shares outstanding:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBasic<\/p>\n<\/td>\n \n39,200<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n39,989<\/p>\n<\/td>\n<\/tr>\n \nDiluted<\/p>\n<\/td>\n \n39,200<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n40,474<\/p>\n<\/td>\n<\/tr>\n<\/table>\n MARCUS & MILLICHAP, INC.<\/i><\/b><\/p>\n KEY OPERATING METRICS SUMMARY<\/i><\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n \nTotal sales volume was approximately $10.4 billion for the three months ended March 31, 2023, encompassing 1,807 transactions consisting of $7.1 billion for real estate brokerage (1,279 transactions), $1.7 billion for financing (279 transactions) and $1.6 billion in other transactions, including consulting and advisory services (249 transactions). As of March 31, 2023, the Company had 1,772 investment sales professionals and 92 financing professionals. Key metrics for real estate brokerage and financing activities (excluding other transactions) are as follows:<\/p>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended Real Estate Brokerage<\/i><\/p>\n<\/td>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n<\/tr>\n \nAverage Number of Investment Sales Professionals<\/p>\n<\/td>\n \n1,782<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,856<\/p>\n<\/td>\n<\/tr>\n \nAverage Number of Transactions per Investment Sales Professional<\/p>\n<\/td>\n \n0.72<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.15<\/p>\n<\/td>\n<\/tr>\n \nAverage Commission per Transaction<\/p>\n<\/td>\n \n$ 105,587<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 134,258<\/p>\n<\/td>\n<\/tr>\n \nAverage Commission Rate<\/p>\n<\/td>\n \n1.89 %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1.67 %<\/p>\n<\/td>\n<\/tr>\n \nAverage Transaction Size (in thousands)<\/p>\n<\/td>\n \n$ 5,576<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 8,051<\/p>\n<\/td>\n<\/tr>\n \nTotal Number of Transactions<\/p>\n<\/td>\n \n1,279<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,137<\/p>\n<\/td>\n<\/tr>\n \nTotal Sales Volume (in millions)<\/p>\n<\/td>\n \n$ 7,132<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 17,205<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended Financing (1)<\/sup><\/i><\/p>\n<\/td>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n<\/tr>\n \nAverage Number of Financing Professionals<\/p>\n<\/td>\n \n92<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n84<\/p>\n<\/td>\n<\/tr>\n \nAverage Number of Transactions per Financing Professional<\/p>\n<\/td>\n \n3.03<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.19<\/p>\n<\/td>\n<\/tr>\n \nAverage Fee per Transaction<\/p>\n<\/td>\n \n$ 46,548<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 43,144<\/p>\n<\/td>\n<\/tr>\n \nAverage Fee Rate<\/p>\n<\/td>\n \n0.75 %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.84 %<\/p>\n<\/td>\n<\/tr>\n \nAverage Transaction Size (in thousands)<\/p>\n<\/td>\n \n$ 6,189<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 5,115<\/p>\n<\/td>\n<\/tr>\n \nTotal Number of Transactions<\/p>\n<\/td>\n \n279<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n520<\/p>\n<\/td>\n<\/tr>\n \nTotal Financing Volume (in millions)<\/p>\n<\/td>\n \n$ 1,727<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$ 2,660<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOperating metrics exclude certain financing fees not directly associated to transactions.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe following table sets forth the number of transactions, sales volume and revenue by commercial real estate market segment for real estate brokerage:<\/p>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nChange<\/p>\n<\/td>\n<\/tr>\n Real Estate Brokerage<\/i><\/p>\n<\/td>\n \nNumber<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nVolume<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nRevenue<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nNumber<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nVolume<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nRevenue<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nNumber<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nVolume<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nRevenue<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in millions)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in thousands)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in millions)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in thousands)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in millions)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(in thousands)<\/p>\n<\/td>\n<\/tr>\n \n<$1 million<\/p>\n<\/td>\n \n183<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n116<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n5,038<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n206<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n128<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n5,787<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(23<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(12<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(749<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nPrivate Client Market \n970<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,254<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n90,503<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,606<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,696<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n161,031<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(636<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2,442<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(70,528<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nMiddle Market \n66<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n900<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,368<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n184<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,503<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n46,760<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(118<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,603<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(29,392<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nLarger Transaction \n60<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,862<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22,137<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n141<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,878<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n73,331<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(81<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(6,016<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(51,194<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n1,279<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n7,132<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n135,046<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,137<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n17,205<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n286,909<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(858<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(10,073<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(151,863<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n MARCUS & MILLICHAP, INC. \n\u00a0<\/p>\n<\/td>\n \nMarch 31, 2023 \n\u00a0<\/p>\n<\/td>\n \nDecember 31, \nAssets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCurrent assets:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash, cash equivalents, and restricted cash<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n228,026<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n235,873<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCommissions receivable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,782<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,453<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPrepaid expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,740<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,411<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome tax receivable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18,053<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,682<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nMarketable debt securities, available-for-sale (includes amortized cost of $133,178 and \n\u00a0<\/p>\n<\/td>\n \n132,520<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n253,434<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdvances and loans, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,045<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4,005<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther assets, current<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,052<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,282<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal current assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n405,218<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n527,140<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nProperty and equipment, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n28,223<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27,644<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOperating lease right-of-use assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n107,891<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n87,945<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nMarketable debt securities, available-for-sale (includes amortized cost of $73,822 and \n\u00a0<\/p>\n<\/td>\n \n70,493<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n68,595<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAssets held in rabbi trust<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,953<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,553<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDeferred tax assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37,427<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n41,321<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGoodwill and other intangible assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n54,551<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n55,696<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdvances and loans, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n179,443<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n169,955<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther assets, non-current<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,293<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15,859<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal assets<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n910,492<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,003,708<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLiabilities and stockholders\u2019 equity<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCurrent liabilities:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccounts payable and accrued expenses<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n12,392<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n11,450<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDeferred compensation and commissions<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n46,253<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n75,321<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOperating lease liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16,911<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16,984<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccrued bonuses and other employee related expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,578<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38,327<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther liabilities, current<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20,781<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,933<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal current liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n102,915<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n152,015<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDeferred compensation and commissions<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34,422<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64,461<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOperating lease liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n82,768<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n65,109<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther liabilities, non-current<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,229<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,614<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n228,334<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n290,199<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCommitments and contingencies<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nStockholders\u2019 equity:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPreferred stock, $0.0001 par value:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAuthorized shares \u2013 25,000,000; issued and outstanding shares \u2013 none at March 31, 2023 \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCommon stock, $0.0001 par value:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAuthorized shares \u2013 150,000,000; issued and outstanding shares \u2013 38,876,354 and \n\u00a0<\/p>\n<\/td>\n \n4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdditional paid-in capital<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n132,905<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n131,541<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRetained earnings<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n551,696<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n585,581<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccumulated other comprehensive loss<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2,447<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(3,617<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nTotal stockholders\u2019 equity<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n682,158<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n713,509<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities and stockholders\u2019 equity<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n910,492<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,003,708<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n MARCUS & MILLICHAP, INC.<\/i><\/b><\/p>\n OTHER INFORMATION<\/i><\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n Adjusted EBITDA Reconciliation<\/i><\/b><\/p>\n \nAdjusted EBITDA, which the Company defines as net income (loss) before (i) interest income and other, including net realized gains (losses) on marketable debt securities, available-for-sale and cash and cash equivalents, (ii) interest expense, (iii) provision for income taxes, (iv) depreciation and amortization, (v) stock-based compensation, and (vi) non-cash mortgage servicing rights (\u201cMSRs\u201d) activity. The Company uses Adjusted EBITDA in its business operations to evaluate the performance of its business, develop budgets and measure its performance against those budgets, among other things. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate its overall operating performance. However, Adjusted EBITDA has material limitations as a supplemental metric and should not be considered in isolation or as a substitute for analysis of the Company\u2019s results as reported under U.S. generally accepted accounting principles (\u201cU.S. GAAP\u201d). The Company finds Adjusted EBITDA to be a useful management metric to assist in evaluating performance, because Adjusted EBITDA eliminates items related to capital structure, taxes and non-cash items. Considering the foregoing limitations, the Company does not rely solely on Adjusted EBITDA as a performance measure and also considers its U.S. GAAP results. Adjusted EBITDA is not a measurement of the Company\u2019s financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income or any other measures calculated in accordance with U.S. GAAP. Because Adjusted EBITDA is not calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.<\/p>\n \nA reconciliation of the most directly comparable U.S. GAAP financial measure, net income, to Adjusted EBITDA is as follows (in thousands):<\/p>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended \n\u00a0<\/p>\n<\/td>\n \n2023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2022<\/p>\n<\/td>\n<\/tr>\n \nNet (loss) income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(5,833<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n32,783<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjustments:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nInterest income and other (1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4,390<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(615<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nInterest expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n215<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n160<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n(Benefit) provision for income taxes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5,633<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,757<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,207<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,911<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,011<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,856<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(7,423<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n51,852<\/p>\n<\/td>\n (1)\u00a0<\/sup><\/p>\n<\/td>\n \nOther includes net realized gains (losses) on marketable debt securities available-for-sale.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Glossary of Terms<\/i><\/b><\/p>\n Certain Adjusted Metrics<\/i><\/b><\/p>\n Real Estate Brokerage<\/i><\/p>\n \nDuring the three months ended March 31, 2023, we closed a portfolio of large transactions in our real estate brokerage business in excess of $300 million. Following are actual and as adjusted metrics excluding those transactions:<\/p>\n \n\u00a0<\/p>\n<\/td>\n \nThree Months Ended \n(actual)<\/p>\n<\/td>\n \n(as adjusted)<\/p>\n<\/td>\n<\/tr>\n \nTotal Sales Volume Decrease<\/p>\n<\/td>\n \n(58.5<\/p>\n<\/td>\n \n) %<\/p>\n<\/td>\n \n(54.4<\/p>\n<\/td>\n \n) %<\/p>\n<\/td>\n<\/tr>\n \nAverage Commission Rate Increase<\/p>\n<\/td>\n \n13.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n7.4<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAverage Transaction Size Decrease<\/p>\n<\/td>\n \n(30.7<\/p>\n<\/td>\n \n) %<\/p>\n<\/td>\n \n(23.9<\/p>\n<\/td>\n \n) %<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230505005098\/en\/<\/a><\/span><\/p>\n\n
\n
\n
\n
\n
\n
\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n
\n
March 31,<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n
\n
March 31,<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n
\n
March 31,<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n (1)<\/td>\n \n \n
\n \n \n
\n
March 31,<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
($1 \u2013 <$10 million)<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
($10 \u2013 <$20 million)<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
\u00a0\u00a0\u00a0Market (\u2265$20 million)<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n
\n
<\/i><\/b>CONDENSED CONSOLIDATED BALANCE SHEETS
\n
<\/i><\/b>(in thousands, except for shares and par value)<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n
\n
(unaudited)<\/p>\n<\/td>\n\n \n
\n
2022<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
\u00a0\u00a0\u00a0$254,682 at March 31, 2023 and December 31, 2022, respectively, and $0 allowance
\n
\u00a0\u00a0\u00a0for credit losses)<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
\u00a0\u00a0\u00a0$72,819 at March 31, 2023 and December 31, 2022, respectively, and $0 allowance for
\n
\u00a0\u00a0\u00a0credit losses)<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
and December 31, 2022, respectively<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
39,255,838 at March 31, 2023 and December 31, 2022, respectively<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n
\n
March 31,<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n<\/table>\n \n
\n \n \n \n
\n
\n \n \n
\n
March 31, 2023<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/p>\n