Marcus & Millichap stock barely flinched after the Q2 print, slipping about 1% to around US$31.50, even though the quarter marked a clean break from last year’s losses. The company turned a profit again with roughly US$203m in revenue and US$0.10 in earnings per share, and management is calling this the best first half since 2022.

For anyone thinking beyond today’s modest price dip, the bigger story is the earnings recovery and what that means for a stock trading on a rich P/E multiple, yet still well below one widely cited discounted cash flow estimate. The rest of this report unpacks that tension.

Impressed that Marcus & Millichap is back in the black but uneasy about paying up for a rich P/E on a business still finding its footing? Check out our list of stocks that pair resilient earnings with stronger balance sheets in the list of solid balance sheet and fundamentals stocks (49 results)

Q2 2026 Earnings Summary

• Total Revenue, Q2 2026 vs. Q2 2025: US$202.9m vs. US$172.3m (up about 18%)
• Net Income, Q2 2026 vs. Q2 2025: Profit of US$3.9m vs. loss of US$11.0m (returned to profit)
• Basic EPS, Q2 2026 vs. Q2 2025: US$0.10 per share vs. loss of US$0.28 per share (earnings improved)
• Adjusted EBITDA, Q2 2026 vs. Q2 2025: US$12m vs. US$1.5m (operating profitability increased)

Prefer clean charts instead of scrolling through long earnings tables and margin figures for Marcus & Millichap? Get a full visual view of the stock’s valuation in the company report for Marcus & Millichap.

Marcus & Millichap bull case gets partial validation

Bulls argue Marcus & Millichap has been upgrading its platform so that when deal activity returns, revenue and margins recover together. Q2 gives that view some real support. Brokerage revenue and transactions both rose double digits, and larger deals above US$20m climbed 43%, which directly backs the idea of deeper institutional engagement. Financing revenue also increased with more loans and higher refinancing mix, consistent with the capital markets buildout and the Burlingame and Beverly Hills mandates seen earlier in the year. On the efficiency side, SG&A stayed flat in dollars and dropped meaningfully as a share of revenue, while adjusted EBITDA swung to a profit and H1 turned positive. That is tangible operating leverage. The mix shift toward senior producers and higher cost of services shows productivity is coming from top performers, which supports the thesis of a higher quality, institutionally relevant brokerage platform.

Cyclical and structural bear worries not fully cleared

The bear argument focuses on cyclicality, pressured free cash flow and the risk that extra investment in agents and technology does not translate into durable profitability. Q2 only partly answers that. Marcus & Millichap returned to profit, but operating expenses rose to US$201m from US$181m, and cost of services ticked up as a share of revenue because more economics went to senior producers. That helps retention but can cap margin expansion if commission competition intensifies. Management also flagged interest rate volatility, geopolitical risk and lender caution that still stretch deal timelines, which speaks directly to the cyclicality concern. Talent churn remains a live issue given tightened performance standards and a heavier reliance on internships and fellowships. The earlier third party critique about weak free cash flow and returns on capital is not directly contradicted yet, even with better EBITDA and resumed buybacks.

Compare Marcus & Millichap’s internal turnaround story with the street’s expectations and see whether the latest profitability swing lines up with where analysts think the stock should trade using the consensus price target analysis for Marcus & Millichap.

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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.