Operating cash flow swung from -$52.8M in Q1 2025 to $46.3M in Q4 2025, and Q2 2026 AFFO of $3.3M covered dividends 4.3 times, but negative AFFO in prior quarters suggests dividends were partly funded by cash reserves.
Marcus & Millichap, Inc. (MMI) cash flow statement — 15-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 98.48M | 66.66M | 21.71M | -72.43M | 13.63M | 255.9M | 38.09M | 25.29M | 117.31M | 66.54M | 74.49M | 72.12M | 71.44M | 96.94M | 35.35M | 17.82M |
| Operating CF Growth % | 303.49% | 206.98% | 129.98% | -631.44% | -94.67% | 571.87% | 50.62% | -78.44% | 76.31% | -10.67% | 3.28% | 0.96% | -26.31% | 174.21% | 98.44% | - |
| Operating CF / Revenue % | 12.12% | 8.83% | 3.12% | -11.21% | 1.05% | 19.74% | 5.31% | 3.14% | 14.4% | 9.25% | 10.38% | 10.47% | 12.48% | 22.24% | 9.17% | 6.49% |
| Net Income | 14.36M | 17.5M | -12.36M | -34.03M | 104.22M | 142.47M | 42.84M | 76.93M | 87.26M | 51.52M | 64.66M | 66.35M | 49.53M | 8.21M | 27.93M | 13.45M |
| Depreciation & Amortization | 10.84M | 12.1M | 16.59M | 13.63M | 13.41M | 11.72M | 10.9M | 8.02M | 6.3M | 5.36M | 4.39M | 3.31M | 3.21M | 3.04M | 2.98M | 2.97M |
| Stock-Based Compensation | 11.82M | 24.23M | 23.79M | 24.15M | 17.31M | 10.36M | 9.9M | 9.28M | 11.98M | 9.14M | 7.04M | 7.11M | 5.03M | 33.82M | 4.21M | 1.61M |
| Other Non-Cash Items | -21.46M | 4.12M | 24.09M | 26.03M | 22.54M | 28.14M | 23.42M | 21.06M | 87K | 325K | -2.1M | -9.82M | 401K | 90K | 19K | 35K |
| Working Capital Changes | 51.23M | 5.57M | -28.98M | -95.77M | -137.78M | 75.06M | -49.44M | -90.22M | 11.83M | -12.64M | -1.72M | -5.37M | 12.39M | 61.06M | 54K | -561K |
| Cash from Investing | 6.25M | -3.82M | -9.9M | 74.87M | -53.98M | -108.36M | -17.23M | -3.42M | -117.98M | -27.34M | 19.82M | -126.93M | -17.23M | -4.02M | -4.64M | -2.67M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | -12.5M | 229K | -16.3M | -6.08M | -14.93M | 10K | 40K | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -129.06M | -326.98M | -190.7M | -302.28M | -380.8M | -387.61M | -215.61M | -168.08M | -208.46M | -65.09M | -107.9M | -146.05M | -14.7M | 0 | 0 | 0 |
| Sale of Investments | 139.96M | 331.14M | 188.75M | 391.61M | 350.99M | 285.63M | 221.68M | 179.69M | 113.91M | 44.75M | 137.59M | 26.14M | 0 | 0 | 0 | 0 |
| Other Investing | -5K | -105K | -76K | -5.09M | -3K | 250K | -56K | -137K | -433K | -454K | -443K | -225K | 41K | 771K | -74K | 412K |
| Cash from Financing | -3.77M | -54.58M | -28.75M | -67.68M | -105.56M | -5.92M | -10.33M | -3.88M | -5.44M | -5.78M | -3.12M | 1.83M | -6M | 4.92M | -30.77M | -16.92M |
| Dividends Paid | -11.52M | -20.55M | -20.23M | -20.1M | -60.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -412K | -37.68M | -30.76M | -16.53M |
| Common Dividends | -11.52M | -20.55M | -20.23M | -20.1M | -60.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -412K | -37.68M | -30.76M | -16.53M |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -1000K | -1000K | -1000K | -986K | -938K | -894K | -867K | -58K | -98K | -318K |
| Share Repurchases | -17.97M | -25.37M | -785K | -39.44M | -29.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.98M | 0 | 0 | -131K |
| Other Financing | 25.34M | -9.48M | -7.74M | -8.13M | -16.14M | -6.57M | -3.77M | -2.79M | -5.02M | -5.45M | -2.85M | 1.75M | -5.14M | 158K | 86K | 56K |
| Net Change in Cash | 100.91M | 8.48M | -17.31M | -65.12M | -146.27M | 138.99M | 10.48M | 17.99M | -6.1M | 33.41M | 91.19M | -52.97M | 48.21M | 97.84M | -51K | -1.77M |
| Exchange Rate Effect | -45K | 219K | -365K | 122K | -366K | -2.64M | -48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 136.51M | 153.44M | 170.75M | 235.87M | 382.14M | 243.15M | 232.67M | 214.68M | 220.79M | 187.37M | 96.19M | 149.16M | 100.95M | 3.11M | 3.16M | 4.93M |
| Cash at End | 186.87M | 161.92M | 153.44M | 170.75M | 235.87M | 382.14M | 243.15M | 232.67M | 214.68M | 220.79M | 187.37M | 96.19M | 149.16M | 100.95M | 3.11M | 3.16M |
| Free Cash Flow | 93.83M | 58.78M | 13.84M | -81.8M | 1.96M | 249.05M | 31.14M | 16.48M | 109.24M | 59.98M | 65.01M | 65.32M | 68.87M | 92.15M | 30.79M | 14.73M |
| FCF Growth % | 182.09% | 324.72% | 116.92% | -4267.09% | -99.21% | 699.69% | 89.03% | -84.92% | 82.12% | -7.74% | -0.48% | -5.15% | -25.26% | 199.27% | 108.99% | - |
| FCF / Revenue % | 11.55% | 7.78% | 1.99% | -12.66% | 0.15% | 19.21% | 4.34% | 2.04% | 13.41% | 8.33% | 9.06% | 9.48% | 12.04% | 21.14% | 7.98% | 5.36% |
Quick answers to the most common questions about buying MMI stock.
Marcus & Millichap, Inc. (MMI) generated $66.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Marcus & Millichap, Inc. (MMI) generated $58.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Marcus & Millichap, Inc. (MMI) spent $7.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Marcus & Millichap, Inc. (MMI) returned $20.6M to shareholders via cash dividends and spent $25.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Sustained rate-driven transaction freeze
Metrics are mathematically derived from official filings.
AFFO Coverage Thin but Positive
In Q2 2026, AFFO of $3.3M covered dividends 4.3 times, but trailing quarters show negative AFFO, indicating fragile distributable cash flow, as per reported financials.
The dividend payout ratio based on AFFO was only 0.12 in Q2 2026, suggesting ample coverage in that quarter. However, AFFO was negative in four of the prior five quarters, indicating that the positive coverage is not yet a stable trend. Investors should monitor whether AFFO can sustain positive territory as transaction volumes recover.
FFO Conversion Volatile and Weak
FFO-to-net-income conversion swung from 7.05 in Q2 2026 to negative in prior quarters, reflecting high volatility and non-cash adjustments, based on quarterly data.
The FFO/NI ratio of 7.05 in Q2 2026 is distorted by a small net income base, while in quarters with net losses, FFO was less negative, indicating significant non-cash charges like depreciation. This suggests that FFO is a more stable earnings measure than GAAP net income, but its volatility underscores the cyclicality of the brokerage business.
Capex Minimal, Maintenance Light
Quarterly capex averaged $2.1M over the last year, representing less than 2% of revenue, indicating minimal capital intensity, as reported in cash flow statements.
The low capex relative to revenue is consistent with a brokerage model that does not require significant property investment. However, the gap between FFO and AFFO (e.g., $6.3M vs $3.3M in Q2 2026) suggests recurring non-cash or cash items like leasing commissions and tenant improvements are being deducted, which may be understated in the capex line. This warrants further investigation into the components of AFFO adjustments.
Working Capital Swings Reflect Deal Timing
Operating cash flow swung from -$52.8M in Q1 2025 to $46.3M in Q4 2025, driven by timing of commission collections and payables, per quarterly cash flow data.
The extreme quarterly swings in OCF are typical for a transaction-based business where closings cluster. The negative OCF in Q1 2025 and Q1 2026 likely reflect bonus payouts and seasonal slowdowns, while Q4 peaks show strong collections. This volatility complicates the use of OCF as a performance metric, reinforcing the need to focus on FFO/AFFO.
No External Funding Needed
With $161.9M cash and near-zero debt, MMI has not relied on external financing, as dividends are covered by cash reserves even in negative AFFO quarters, per balance sheet data.
The company's fortress balance sheet provides a buffer against cyclical downturns, allowing it to maintain dividends without external capital. However, the negative AFFO in several quarters suggests that dividends were partially funded by cash reserves, which is sustainable in the short term but warrants monitoring if the downturn persists.
Depreciation Distorts Earnings
GAAP net income was $3.9M in Q2 2026, but FFO of $6.3M and AFFO of $3.3M reveal significant non-cash depreciation, as per financial statements.
The gap between net income and FFO indicates substantial depreciation charges, which are non-cash and not indicative of economic performance. The negative net income in several quarters despite positive OCF highlights the distortion caused by depreciation. Investors should rely on FFO/AFFO for valuation, as GAAP earnings understate the company's cash-generating ability.
What Could Invalidate the Base Case
The positive Q2 2026 AFFO may be a one-off, as negative AFFO in prior quarters suggests dividends were partly funded by cash reserves, per reported figures.
The apparent dividend coverage in Q2 2026 could be misleading if AFFO reverts to negative, as seen in four of the prior five quarters. The company's high cash balance may mask underlying cash flow weakness, and the gap between FFO and AFFO indicates recurring deductions that could grow. Investors should scrutinize the sustainability of AFFO and the potential need to draw down cash reserves if transaction volumes remain suppressed.