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Selected Balance Sheet Data | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Selected Balance Sheet Data | Selected Balance Sheet Data Allowances on Advances and Loans Allowance for credit losses for advances and loans as of September 30, 2025 and December 31, 2024 was $1.0 million and $1.2 million, respectively. Other Assets Other assets consisted of the following (in thousands):
| Current |  | Non-Current
| September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Security deposits | $ | — |  |  | $ | — |  |  | $ | 1,258 |  |  | $ | 1,300 |
Employee notes receivable | 144 |  |  | 28 |  |  | 14 |  |  | 88 |
Securities, held-to-maturity(1) | — |  |  | — |  |  | 9,500 |  |  | 9,500 |
Loan performance fee receivable | 4,300 |  |  | 3,310 |  |  | 14,169 |  |  | 12,529 |
Investments in convertible notes(2) | 5,944 |  |  | 6,347 |  |  | — |  |  | — |
Other(3) | 7,061 |  |  | 5,858 |  |  | 217 |  |  | 209 |
| $ | 17,449 |  |  | $ | 15,543 |  |  | $ | 25,158 |  |  | $ | 23,626 |
(1)In connection with the Strategic Alliance with MTRCC, the Company holds a $9.5 million Mandatorily Redeemable Fixed-Rate Cumulative Preferred Stock investment in MTRCC, classified as held-to-maturity, which is expected to mature on August 26, 2027 and accrues interest based on the one-year treasury rate. (2)The Company purchased convertible notes with principal balances aggregating $5.0 million during the fourth quarter 2023 in connection with strategic alliances with companies in the real estate sector. The Company has elected to account for its investment in convertible notes under the fair value option. See Note 7 – “Fair Value Measurements” for additional information. (3)Other primarily includes customer trust accounts and prepaid lease costs. Deferred Compensation and Commissions Deferred compensation and commissions consisted of the following (in thousands):
| Current |  | Non-Current
| September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Stock appreciation rights (“SARs”) liability (1) | $ | 2,800 |  |  | $ | 2,603 |  |  | $ | 7,187 |  |  | $ | 9,518 |
Commissions payable to investment sales and financing professionals | 37,863 |  |  | 63,952 |  |  | 14,214 |  |  | 15,608 |
Deferred compensation liability (1) | 1,194 |  |  | 173 |  |  | 8,392 |  |  | 8,131 |
Other | 335 |  |  | 469 |  |  | — |  |  | — |
| $ | 42,192 |  |  | $ | 67,197 |  |  | $ | 29,793 |  |  | $ | 33,257 |
(1)The SARs and deferred compensation liabilities become subject to payout at the time the participant is no longer considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to participants within the next twelve months have been classified as current. SARs Liability Prior to the IPO, certain employees of the Company were granted SARs under a stock-based compensation program assumed by MMC. In connection with the IPO, the SARs agreements were revised, the MMC liability of $20 million for the SARs was frozen as of March 31, 2013 and was transferred to MMI through a capital distribution. The SARs liability will be settled with each participant in ten annual installments in January of each year upon retirement or termination from service, or in full upon consummation of a change in control of the Company. Under the revised agreements, MMI is required to accrue interest on the outstanding balance beginning on January 1, 2014, at a rate based on the 10-year treasury note, plus 2%. The rate resets annually. The rates at January 1, 2025 and 2024 were 6.57% and 5.95%, respectively. MMI recorded interest expense related to this liability of $156,000 and $170,000 for the three months ended September 30, 2025 and 2024, respectively, and $469,000 and $510,000 for the nine months ended September 30, 2025 and 2024, respectively. Estimated payouts within the next twelve months for participants that have separated from service have been classified as current. During the nine months ended September 30, 2025 and 2024, the Company made total payments of $2.6 million and $2.5 million, respectively, consisting of principal and accumulated interest. Commissions Payable Certain investment sales and financing professionals can earn additional commissions after meeting certain annual revenue thresholds. These commissions are recognized as cost of services in the period in which they are earned as they relate to specific transactions closed. The Company may defer payment of certain commissions, at its election, for up to three years. Commissions that are not expected to be paid within 12 months are classified as long-term. Deferred Compensation Liability A select group of management is eligible to participate in the Marcus & Millichap Deferred Compensation Plan (the “Deferred Compensation Plan”). The Deferred Compensation Plan is a non-qualified deferred compensation plan that is intended to comply with Section 409A of the Internal Revenue Code and permits participants to defer compensation up to the limits set forth in the Deferred Compensation Plan. Amounts are paid out generally when the participant is no longer a service provider; however, an in-service payout election is available to participants. Participants may elect to receive payouts as a lump sum or quarterly over a two to 15-year period. The Company elected to fund the Deferred Compensation Plan through Company-owned variable life insurance policies. The Deferred Compensation Plan is managed by a third-party institutional fund manager, and the deferred compensation and investment earnings are held as a Company asset in a rabbi trust, which is recorded in assets held in rabbi trust in the accompanying condensed consolidated balance sheets. The assets in the trust are restricted unless the Company becomes insolvent, in which case the trust assets are subject to the claims of the Company’s creditors. The Company may also, in its sole and absolute discretion, elect to withdraw at any time a portion of the trust assets by an amount by which the fair market value of the trust assets exceeds 110% of the aggregate deferred compensation liability represented by the participants’ accounts. Estimated payouts within the next twelve months for participants that have separated from service or elected an in-service payout have been classified as current. During the nine months ended September 30, 2025 and 2024, the Company made total payments to participants of $260,000 and $172,000 respectively. The assets held in the rabbi trust are carried at the cash surrender value of the variable life insurance policies, which represents its fair value. The net change in the carrying value of the assets held in the rabbi trust and the net change in the carrying value of the deferred compensation liability, each exclusive of additional contributions, distributions and trust expenses, consisted of the following (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Increase in the carrying value of the assets held in the rabbi trust (1) | $ | 542 |  |  | $ | 549 |  |  | $ | 1,173 |  |  | $ | 1,518 |
Increase in the net carrying value of the deferred compensation obligation (2) | $ | (524) |  |  | $ | (649) |  |  | $ | (1,069) |  |  | $ | (1,385) |
(1)Recorded in other income, net in the condensed consolidated statements of operations. (2)Recorded in selling, general and administrative expense in the condensed consolidated statements of operations. Other Liabilities Other liabilities consisted of the following (in thousands):
| Current |  | Non-Current
| September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Deferred consideration | $ | — |  |  | $ | 411 |  |  | $ | — |  |  | $ | — |
Contingent consideration | 595 |  |  | 4,614 |  |  | 553 |  |  | 117 |
Dividends payable | 10,803 |  |  | 942 |  |  | 1,321 |  |  | 1,559 |
Stock repurchase payable | 49 |  |  | — |  |  | — |  |  | — |
Loan guarantee obligation | 1,851 |  |  | 1,426 |  |  | 5,933 |  |  | 5,238 |
Other (1) | 4,945 |  |  | 683 |  |  | 190 |  |  | 93 |
| $ | 18,243 |  |  | $ | 8,076 |  |  | $ | 7,997 |  |  | $ | 7,007 |
(1)As of September 30, 2025, other, current primarily includes a legal accrual related to an ongoing litigation matter. See Note 13 – “Commitments and Contingencies” for additional information.

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