Marcus & Millichap, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
MMI$27.75-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054439
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001628280-26-071782
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 147 previous paragraphs and 146 current paragraphs.
91 unchanged; 45 reworded; 10 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Despite numerous economic headwinds, the U.S. economy is proving to be durable and resilient. Job creation remains positive, with the addition of 612,000 new positions through September 30, 2026. Although the pace of job creation has decreased from the 2010-2019 annual average of more than 2,000,000 positions per year, the unemployment rate remains in the low four percent range. In addition, retail sales have remained robust, achieving 6.3% growth on a year-over-year basis as of September 30, and on an inflation adjusted basis, retail sales growth remains positive at 3.1%. Other positive economic indicators, including both the ISM manufacturing and non-manufacturing indexes, delivered readings of 55 for September 2026, reiterating a positive growth outlook. These trends support the consensus Blue Chip GDP growth forecast of 2.3% for the year.
Current report
The positive economic growth outlook remains challenged by elevated inflation and a rising interest rate climate. Brent Crude oil prices pushed well above $100 per barrel in October 2026, reinforcing upward pressure on gasoline and diesel prices. As of October 20, 2026, the national average price of gasoline was 44% higher than its pre-Middle East conflict level on February 27, 2026, while diesel was 68% higher. As a result, energy prices were 20.4% higher in September than a year prior and transportation prices were up by 7.8%. These inflationary drivers pushed the Producer Price Index to a 6.3% year-over-year gain and the Consumer Price Index to 3.7% annual growth, levels substantively above the Federal Reserve target of 2.0% inflation. In September, the Federal Reserve raised the overnight rate by 25 basis points to a lower bound of 3.75%, and the consensus outlook portends additional rate increases that could restrain economic growth in 2027. Despite rising interest rates, investor motivation to transact remains positive. Many investors have commercial real estate targeted capital for acquisitions, and some owners face impending debt maturities that will require refinancing or asset sales. In many cases, owners will be unable to refinance their properties due to the higher interest rates, forcing them to sell properties. Investors may lose their initial investment if they are unable to refinance their properties and, in some cases, lenders are agreeing to short sales. This is creating acquisition opportunities for investors with ready capital who can buy the property at a lower basis. While higher interest rates have expanded the buyer/seller expectation gap, the prospect of further interest rate increases may cause both buyers and sellers to meet the market more quickly than in past cycles.
Current report
While the Middle East conflict, tariffs and other policies have sustained elevated uncertainty, and the prospect of rising inflation and higher interest rates could force another commercial real estate repricing cycle, long-term drivers support the commercial real estate investment thesis. Positive demographics, limited and falling construction levels across all property types together with the hard asset benefits offered by commercial real estate in an elevated inflation cycle bolster the long-term commercial real estate investment outlook.
Current report
The retail and industrial sectors remain encumbered by tariffs, economic uncertainty and elevated shipping and transportation costs, but space demand for both property types remained positive in the third quarter of 2026. Through the end of the third quarter, industrial space completions have declined by 14.7% from the same period last year, while space demand has increased. Third quarter industrial space absorption outpaced new completions for the first time since the second quarter of 2022 helping to reduce the national average industrial vacancy rate to 7.6%, a 10 basis points reduction compared to the second quarter. The momentum shift also resulted in 1.1% annual rent growth, marking the strongest national rent gain since mid-year 2024. With new industrial construction expected to slow further, the sector appears to be reaching a positive turning point.
Current report
Like industrial, retail space demand strengthened in the third quarter to outpace completions, with the national average vacancy rate down to 4.8%, a 10 basis point reduction compared to the second quarter of 2026. The positive momentum supported a modest improvement in rent growth. Although inflation, weak hiring and the erosion of wage-growth support pose a headwind for the retail sector, inflation adjusted core retail sales continue to gain ground, rising by 2.2% on a year-over-year basis as of September. If the sector sustains momentum, retail property performance should continue to make headway, especially as new space additions remain very limited.
Current report
The sustained upward pressure on interest rates in the third quarter, with elevated prospects of future rate increases by the Federal Reserve, have begun to spur investors to adapt their strategies. While many investors had hoped for rates to fall, the evolving outlook suggests that is unlikely. As a result, both buyers and sellers are increasingly motivated to take action before interest rates rise further. For investors facing impending mortgage maturities, many must decide whether to sell assets or refinance them at significantly higher interest rates. While some lenders may offer investors in good standing extensions of existing terms, fewer lenders are doing so than in past years. As a result, investors with loans that were originated five years ago at mortgage rates in the mid-3% range now face a refinance rate in the mid-6% to mid-7% range depending on the asset and borrower. The refinance terms also frequently require a significant additional cash infusion. As a result, investors may need to sell their properties at a loss, in some cases partnering with their lender to short sell the property for less than the current loan amount. By the same token, many buyers are expediting the purchase process as they attempt to lock-in their financing ahead of additional rate increases. Lending liquidity remains healthy, but prevailing interest rates now stand 30-50 basis points higher than they were 90 days ago.
Current report
Selling, general and administrative expense. Selling, general and administrative expense increased to $73.5 million for the three months ended September 30, 2026 compared to $72.5 million for the same period in 2025, an increase of 1.4%. The net increase of $1.0 million is primarily due to an increase in IT related costs partially offset by a decrease in litigation costs. In the third quarter of 2025, a $4.0 million legal accrual was recorded related to an ongoing litigation matter.
Current report
Comparison of Nine Months Ended September 30, 2026 and 2025
Current report
(2)Percentage not meaningful.
Current report
Selling, general and administrative expense. Selling, general and administrative expense increased to $216.4 million for the nine months ended September 30, 2026 compared to $215.6 million for the same period in 2025, an increase of 0.4%. The net increase of $0.8 million is primarily due to an increase in IT related costs partially offset by a decrease in litigation costs. In the third quarter of 2025, a $4.0 million legal accrual was recorded related to an ongoing litigation matter.
Removed paragraphs (11)
Previous report
Despite numerous economic headwinds, the U.S. economy is proving to be durable and resilient. Following the implementation of tariffs in May 2025, job creation stalled, resulting in a net loss of 62,000 positions in the nine months ending in February 2026. However, the employment market has since positively shifted, creating 548,000 new jobs from March through June. This shift in momentum aligned with an increase of the Institute for Supply Management (ISM) manufacturing and services indexes and strengthening retail sales activity. The improved economic momentum of the second quarter translated into positive space demand across all major commercial property types.
Previous report
Although underlying economic momentum improved during the second quarter, several developments emerging after quarter-end have introduced new risks that could temper growth in the second half of the year. The brief respite offered by the temporary ceasefire in the Middle East conflict that allowed oil shipments to resume through the Strait of Hormuz helped alleviate energy-driven headline CPI inflation which peaked in May at 4.2%. Nonetheless, after inflation fell to 3.5% in June, the hostilities reignited and the Strait of Hormuz has since reclosed. As a result, crude oil and gasoline prices have begun to rise. Should inflation remain elevated, the Federal Reserve could face continued pressure to keep interest rates higher for longer. Interest rate futures indicate that market participants broadly expect the Federal Reserve to raise the federal funds target rate by at least 25 basis points by year-end. Prior to the conflict in the Middle East, it was widely believed the Federal Reserve would cut rates in 2026, and this inversion of expectations has pushed the 10-year Treasury yield approximately 70 basis points higher, into the mid-4% range. As the interest rate climb flowed through to commercial real estate borrowing costs, it widened the buyer/seller expectation gap and impacted investor sentiment. Despite rising interest rates, investor motivation to transact remains strong, with many property owners facing impending debt maturities choosing to sell rather than wait for rates to fall.
Previous report
Tariffs could also impact inflation and interest rates this year. Following the U.S. Supreme Court’s invalidation of the tariffs applied using the International Emergency Economic Powers Act, President Trump relied on Section 122 of the Trade Act of 1974, to apply 10% universal tariffs. These tariffs expired on July 24, 2026, and on July 23, 2026 the Administration announced new tariffs under Section 301 of the Trade Act of 1974. Under this authority, an additional duty of 10% or 12.5% applies to goods from specific countries. In addition, the U.S. declined to commit to extending the USMCA trade agreement beyond its scheduled review period with America’s two largest trade partners, Mexico and
Previous report
Canada. Under the agreement, any party may withdraw with six months written notice. The USMCA generally eliminates tariffs on many goods traded among the three countries and an exit from the agreement could lead to increased tariffs on imports from the two countries that collectively account for about 28% of U.S. imports. If additional tariffs are imposed on Canada and Mexico, and if tariffs on other countries are increased under the Section 301 rule, it could potentially place additional upward pressure on inflation, pushing the Federal Reserve to keep interest rates elevated.
Previous report
While the Middle East conflict, tariffs and other policies have increased uncertainty and could potentially drive inflation higher, the U.S. economy remains fundamentally resilient. U.S. GDP grew by 2.1% in the first quarter of 2026 and economists forecast second quarter growth ranging from 1.5% to 2.1%. Consumer sentiment remains low, but headline retail sales were up by 6.7% on a year-over-year basis as of June 2026. In conjunction with the recent pace of positive job creation, the broader U.S. economy appears to remain healthy. While new headwinds could emerge, economic momentum entered the second half of the year on a positive trajectory.
Previous report
The retail and industrial sectors remain encumbered by tariffs, economic uncertainty and elevated shipping and transportation costs, but space demand remained positive in the second quarter of 2026. Space absorption balanced with new supply in the second quarter to keep the vacancy rates of both retail and industrial stable. Record low retail space completions for the year should help restrain vacancy rates and sustain a competitive leasing climate. Likewise, industrial space additions for the year are forecast to be their lowest since 2014. While the conflict in the Middle East may sustain elevated inflation including higher shipping and trucking costs, retail sales in the second quarter remained strong. On a year-over-year basis, retail sales were up by 6.7% in June, and on an inflation adjusted basis they were 3.1% ahead of last year, indicating that consumption remains healthy. Barring a sizable negative economic shock or a significant rise in the cost of debt capital, investment activity in both property types remains positioned to sustain momentum through the second half of the year.
Previous report
After a surge in March 2026 following the onset of the conflict in the Middle East, interest rates appear to have stabilized, with the 10-year treasury rate holding relatively steady in the mid-4% range. Given the inflation risks spurred by the conflict, the Federal Reserve is currently expected to raise rates later this year. However, this outlook is somewhat tempered by the ascension of Kevin Warsh to the Chairmanship of the Federal Reserve. While Warsh has reiterated the Federal Reserve’s commitment to stabilizing inflation, he has launched five task forces to reevaluate Federal Reserve practices. The task forces will review communications policies, assess how the Federal Reserve measures and manages inflation, including which data sources they rely on. They will also consider U.S. worker productivity and jobs as well as the strategy for managing the Federal Reserve’s balance sheet. While the Federal Reserve’s objectives remain the same, changes in the data they use and how they make decisions could influence rate policy in the latter part of the year or in 2027.
Previous report
Commercial real estate lender spreads widened following the start of the Middle East conflict, but they have since tightened modestly then stabilized. Interest rates for multifamily properties remain markedly higher than before the start of the conflict, but interest rates on commercial properties have tapered back into alignment with pre-conflict levels. However, the rate outlook remains fluid with geopolitical forces and a new Federal Reserve Chair being key variables. Debt capital liquidity remains healthy with all lenders actively engaging the market.
Previous report
Selling, general, and administrative expense. Selling, general and administrative expense remained relatively consistent at $71.7 million for the three months ended June 30, 2026 compared to $71.6 million for the same period in 2025.
Previous report
Comparison of Six Months Ended June 30, 2026 and 2025
Previous report
Selling, general, and administrative expense. Selling, general and administrative expense remained relatively consistent at $142.9 million for the six months ended June 30, 2026 compared to $143.1 million for the same period in 2025.
Reworded paragraphs (45)
Previous wording
This Quarterly Report on Form 10-Q includes forward-looking statements, including our expectations regarding the long-term outlook of the commercial real estate transaction market, and our positioning within it, our belief relating to the Company’s long-term growth, our assessment of the key factors influencing the Company’s business outlook, including the expectation for future interest rate cuts or rising inflation and likely impact of such cuts or inflation on commercial real estate demand, and the execution of our capital return program, including a semi-annual dividend and stock repurchase program. 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’s 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:
Current wording
This Quarterly Report on Form 10-Q includes forward-looking statements, including our expectations regarding the long-term outlook of the commercial real estate transaction market, and our positioning within it, our belief relating to the Company’s long-term growth, our assessment of the key factors influencing the Company’s business outlook, including the expectation for future changes in interest rates or inflation and their impact on commercial real estate demand, and the execution of our capital return program, including a semi-annual dividend and stock repurchase program. 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’s 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:
Previous wording
In addition, in this release, words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “goal,” “expect,” “predict,” “potential,” “should,” 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 Quarterly Report on Form 10-Q may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
Current wording
In addition, in this Quarterly Report on Form 10-Q, words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “goal,” “expect,” “predict,” “potential,” “should,” 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 Quarterly Report on Form 10-Q may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
Previous wording
The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, including the “Risk Factors” section and the consolidated financial statements and notes included therein.
Current wording
The results of operations for the nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, including the “Risk Factors” section and the consolidated financial statements and notes included therein.
Previous wording
We are a leading national real estate services firm specializing in commercial real estate investment sales, financing services, research, and advisory services. We have been the top commercial real estate investment broker in the United States based on the number of investment transactions for more than 15 years. As of June 30, 2026, we had 1,677 investment sales and financing professionals that are primarily exclusive independent contractors operating in more than 80 offices, who provide real estate brokerage and financing services to sellers and buyers of commercial real estate assets. During the three and six months ended June 30, 2026, we closed 2,306 and 4,328 investment sales, financing and other transactions with total sales volume of approximately $14.1 billion and $26.2 billion, respectively. During the year ended December 31, 2025, we closed 8,818 investment sales, financing and other transactions with total sales volume of approximately $50.8 billion.
Current wording
We are a leading national real estate services firm specializing in commercial real estate investment sales, financing services, research, and advisory services. We have been the top commercial real estate investment broker in the United States based on the number of investment transactions for more than 15 years. As of September 30, 2026, we had 1,670 investment sales and financing professionals that are primarily exclusive independent contractors operating in 80 offices, who provide real estate brokerage and financing services to sellers and buyers of commercial real estate assets. During the three and nine months ended September 30, 2026, we closed 2,316 and 6,644 investment sales, financing and other transactions with total sales volume of approximately $13.8 billion and $40.0 billion, respectively. During the year ended December 31, 2025, we closed 8,818 investment sales, financing and other transactions with total sales volume of approximately $50.8 billion.
Previous wording
We generate revenue by collecting real estate brokerage commissions upon the sale, and financing fees upon the financing of commercial properties, by providing equity advisory services and loan sales, loan guarantees and providing consulting and advisory services. Real estate brokerage commissions are typically based upon the value of the property and financing fees are typically based upon the size of the loan. During the three months ended June 30, 2026, approximately 82% of our revenue was generated from real estate brokerage commissions, 15% from financing fees and 3% from other revenue, including consulting and advisory services.
Current wording
We generate revenue by collecting real estate brokerage commissions upon the sale, and financing fees upon the financing of commercial properties, by providing equity advisory services and loan sales, loan guarantees and providing consulting and advisory services. Real estate brokerage commissions are typically based upon the value of the property and financing fees are typically based upon the size of the loan. During the three months ended September 30, 2026, approximately 84% of our revenue was generated from real estate brokerage commissions, 13% from financing fees and 3% from other revenue, including consulting and advisory services.
Previous wording
We are the industry leader in serving private clients in the $1 million - $10 million private client market, which contributed approximately 64% and 66% of our real estate brokerage commissions during the three months ended June 30, 2026 and 2025, respectively, and approximately 64% and 65% for the six months ended June 30, 2026 and 2025, respectively. The following table sets forth the number of transactions, sales volume and revenue by each commercial real estate market for real estate brokerage:
Current wording
We are the industry leader in serving private clients in the $1 million - $10 million private client market, which contributed approximately 61% and 63% of our real estate brokerage commissions during the three months ended September 30, 2026 and 2025, respectively, and approximately 63% and 64% for the nine months ended September 30, 2026 and 2025, respectively. The following table sets forth the number of transactions, sales volume and revenue by each commercial real estate market for real estate brokerage:
Previous wording
Multifamily housing demand strengthened in the second quarter of 2026, building on the gains of the first quarter. Improved job creation helped fuel household formation following the lackluster hiring in the second half of 2025. The slowing pace of new multifamily completions, which were nearly 30% lower in the first half of 2026 compared to the same period last year, helped fuel a substantive reduction in vacancy from 5.2% at year-end 2025 to 4.5% in the second quarter. While rent growth varies dramatically by region, with Sun Belt metros still facing a meaningful supply overhang and negative rent growth in several metros, the broader trend remains positive. With multifamily completions expected to decline further in the second half of the year and into 2027, the prospect of strengthening property performance offers investors an improving outlook. Although demand could be restrained if the economy, job creation or household formation weakens, the current outlook remains cautiously optimistic.
Current wording
Multifamily housing demand has rebounded in 2026 after a slow second half of 2025. However, demand tapered in the third quarter of 2026, falling short of new completions to raise the national average vacancy rate by 10 basis points over the second quarter to 4.6%. Slowing job creation and household formation impacted the pace of new leases, but that trend was partially offset by increased tenant retention. Rising mortgage rates have restrained home sales as monthly payments have pressed higher, expanding the affordability gap between renting and owning a home. This is helping multifamily operators retain rental households for longer. The multifamily market is also benefiting from the slowing pace of new apartment completions, which were nearly 27% lower in the first three quarters of 2026 compared to the same period last year. That trend helped sustain vacancy levels below 5% on a national basis. While rent growth varies substantively by region, with Sun Belt metros still facing a meaningful supply overhang and modestly negative rent growth in several metros, the broader trend is positive. With multifamily completions expected to decline further through 2027, the prospect of strengthening property performance offers investors an improving outlook. Although rental housing demand could be restrained if the economy, job creation or household formation continues to weaken, the current outlook remains cautiously optimistic.
Previous wording
Demand for office space remains positive as companies increasingly bring more of their workforce into the office. Office space absorption has been positive for nine consecutive quarters, with annual gains on par with the 10-year average prior to the pandemic. While space demand has been concentrated in Class A properties and suburban areas of primary markets, the gains have been sufficient to reduce the vacancy rate by 140 basis points from its peak of 17.3% in the first quarter of 2024. Opportunistic investors who have acquired office assets at a significant discount and who anticipate an extended office property recovery cycle have boosted office property transaction activity.
Current wording
Demand for office space continues to grow as companies increasingly bring more of their workforce into the office. Office space absorption has been positive for ten consecutive quarters, with annual gains on par with the 10-year average prior to the pandemic. While space demand has been concentrated in Class A properties and suburban areas of primary markets, the gains have been sufficient to reduce the vacancy rate by 150 basis points from its peak of 17.3% in the first quarter of 2024. Opportunistic investors who have acquired office assets at a significant discount and who anticipate an extended office property recovery cycle have boosted office property transaction activity.
Previous wording
The commercial real estate space demand outlook remains difficult to discern amid the dramatic policy shifts enacted by the U.S. presidential administration. Increased uncertainty, weakened sentiment and higher inflation could slow decision making, causing commercial real estate space demand to falter. If policy clarity emerges, commercial real estate space demand could be reinvigorated. Nonetheless, all commercial real estate property types aside from office properties entered the new cycle on sound footing, suggesting a durable performance outlook.
Current wording
The commercial real estate space demand outlook is difficult to discern amid the dramatic policy shifts enacted by the U.S. presidential administration. Increased uncertainty, weakened sentiment and higher inflation could slow decision making, causing commercial real estate space demand to falter. If policy clarity emerges, commercial real estate space demand could be reinvigorated. Nonetheless, all commercial real estate property types aside from office properties entered the new cycle on sound footing, suggesting a durable performance outlook.
Previous wording
Although economic uncertainty combined with financial market and interest rate volatility normally tends to increase investor caution, capital flows into commercial real estate could potentially be bolstered. As a “hard asset” with some level of resistance to inflation, recessions and financial market volatility, investment into commercial real estate could benefit from the current economic climate. The repricing of commercial real estate assets over the last three years has enhanced their yield profile, supporting positive or neutral leverage in many markets and property types. In addition, the passage of the “One Big Beautiful Bill Act” in July 2025 provides some tax benefits and additional clarity to the commercial real estate market. Bonus depreciation rules, increased state and local tax (“SALT”) allowances, and increased deductibility of interest paid on commercial real estate could bolster investment activity. Furthermore, by making many of the new tax rules permanent, investors can rely on greater tax policy certainty, allowing them to deploy longer-term investment strategies. Whether capital migrates to commercial properties will likely depend on the risk perception of the broader financial market.
Current wording
Although economic uncertainty combined with financial market and interest rate volatility normally tends to increase investor caution, capital flows into commercial real estate could potentially be bolstered. As a “hard asset” with some level of resistance to inflation, recessions and financial market volatility, investment into commercial real estate could benefit from the current economic climate. The repricing of commercial real estate assets over the last three years has enhanced their yield profile, supporting positive or neutral leverage in many markets and property types. Whether capital migrates to commercial properties will likely depend on the risk perception of the broader financial market.
Previous wording
Commercial real estate transaction activity increased by 3% in the second quarter of 2026 compared to the same period in 2025, led by gains in institutional grade industrial, retail and hotel property sales. In the second quarter, industrial transactions priced $20 million and higher surged to 753 transactions while retail and hotel transactions above $20 million increased by 42% and 23% respectively. Second quarter transaction velocity of property types priced between $2.5 million and $10 million edged down by 4% compared to the same quarter last year while the $10 million to $20 million segment gained 11%. The Middle East conflict remains a wildcard in the commercial real estate investment outlook. If the conflict is resolved before major inflationary and economic disruptions occur, transaction velocity could gain momentum. However, if the conflict carries into the fourth quarter, it could potentially elevate inflation and recession risks, possibly eroding investor confidence. If economic and financial market stability is disrupted by the conflict and inflation accelerates, then commercial real estate could emerge as a favored investment option due to its more durable cash flows and inflation resistance.
Current wording
Commercial real estate transaction activity increased by 6% in the third quarter of 2026 compared to the same period in 2025, led by gains in institutional grade industrial, office and single tenant retail property sales. In the third quarter, industrial transactions priced $20 million and higher surged to 1,133 transactions while office and single tenant retail transactions above $20 million increased by 89% and 278% respectively. Third quarter transaction velocity of property types priced between $2.5 million and $10 million edged down by 8% compared to the same quarter last year while the $10 million to $20 million segment was flat. The commercial real estate investment climate remains challenged by rising interest rates, slowed job creation and slowing household formation. However, if the conflict in the Middle East reaches a resolution, inflation could abate, alleviating some of the interest rate pressure. Nonetheless, commercial real estate has historically offered some inflation resistance and has delivered durable returns when financial market turbulence rises, so commercial real estate could emerge as a favored alternative investment option.
Previous wording
Several metrics traditionally associated with rising transaction activity, including increased exclusive inventory being brought to market and rising requests for Broker Opinions of Value, suggest that transactional momentum could be sustained in the coming quarters. Nonetheless, the variety of potential headwinds facing the sector, including the economy, interest rates, financial market trends, geopolitical and commercial real estate pricing clarity, could suppress activity. In the current uncertain climate, defensive assets such as single-tenant net lease properties backed by high-credit tenants and medical office assets continue to receive buyer interest. Apartment properties, supported by positive long-term drivers, including robust demographics of the renter-aged population and the high cost of homeownership, is also a favored property segment. Another important factor influencing the investor outlook is the renewal of many of the 2017 Tax Cuts and Jobs Act provisions. Accelerated depreciation, pass-through entity deductions, increases in Low Income Housing Tax Credit (LIHTC) allocations, increased SALT deductions and the renewal of Opportunity Zones could benefit commercial real estate investment. Ultimately, market velocity will be dictated by a combination of the economic outlook, financial market trends, geopolitical forces, Federal Reserve action, interest rates and the buyer/seller expectation gap. If trade and foreign policy stabilize, uncertainty abates and investor sentiment rises, we believe commercial real estate investment activity could gain additional momentum.
Current wording
Several metrics traditionally associated with rising transaction activity, including increased exclusive inventory being brought to market and rising requests for Broker Opinions of Value, suggest that transactional momentum could be sustained in the coming quarters. Nonetheless, the variety of potential headwinds facing the sector, including the economy, rising inflation, rising interest rates, financial market trends, geopolitical and commercial real estate pricing clarity, could suppress activity. In the current uncertain climate, defensive assets such as single-tenant net lease properties backed by high-credit tenants and medical office assets continue to receive buyer interest. Apartment properties, supported by positive long-term drivers, including robust demographics of the renter-aged population and the high cost of homeownership, is also a favored property segment. Ultimately, market velocity will be dictated by a combination of the economic outlook, financial market trends, geopolitical forces, Federal Reserve action, interest rates and the buyer/seller expectation gap. If trade and foreign policy stabilize, uncertainty abates and investor sentiment rises, we believe commercial real estate investment activity could gain additional momentum.
Previous wording
Our revenue is primarily generated from our real estate investment sales business. In addition to real estate brokerage commissions, we generate revenue from financing fees and from other revenue, which are primarily comprised of consulting and advisory fees.
Current wording
Our revenue is primarily generated from our real estate investment sales business. In addition to real estate brokerage commissions, we generate revenue from financing fees and from other revenue, which are primarily comprised of leasing, consulting and advisory fees.
Previous wording
The following is a discussion of our results of operations for the three and six months ended June 30, 2026 and 2025. The tables included in the period comparisons below provide summaries of our results of operations. The period-to-period comparisons of financial results are not necessarily indicative of future results.
Current wording
The following is a discussion of our results of operations for the three and nine months ended September 30, 2026 and 2025. The tables included in the period comparisons below provide summaries of our results of operations. The period-to-period comparisons of financial results are not necessarily indicative of future results.
Previous wording
We regularly review a number of key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. We also believe these metrics are relevant to investors’ and others’ assessment of our financial condition and results of operations. During the three months ended June 30, 2026 and 2025, we closed 2,306 and 2,070 investment sales, financing and other transactions, respectively, with total sales volume of approximately $14.1 billion and $12.3 billion, respectively. During the six months ended June 30, 2026 and 2025, we closed 4,328 and 3,776 investment sales, financing and other transactions, respectively, with total sales volume of approximately $26.2 billion and $21.7 billion, respectively. Such key metrics for real estate brokerage and financing activities (excluding other transactions) are as follows:
Current wording
We regularly review a number of key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. We also believe these metrics are relevant to investors’ and others’ assessment of our financial condition and results of operations. During the three months ended September 30, 2026 and 2025, we closed 2,316 and 2,289 investment sales, financing and other transactions, respectively, with total sales volume of approximately $13.8 billion and $12.2 billion, respectively. During the nine months ended September 30, 2026 and 2025, we closed 6,644 and 6,065 investment sales, financing and other transactions, respectively, with total sales volume of approximately $40.0 billion and $33.9 billion, respectively. Such key metrics for real estate brokerage and financing activities (excluding other transactions) are as follows:
Previous wording
Our total revenue was $202.9 million for the three months ended June 30, 2026 compared to $172.3 million for the same period in 2025, an increase of $30.6 million, or 17.8%. Total revenue primarily increased as a result of increases in real estate brokerage commissions and financing fees, as described below. See the “Factors Affecting Our Business” section for additional market information.
Current wording
Our total revenue was $208.4 million for the three months ended September 30, 2026 compared to $193.9 million for the same period in 2025, an increase of $14.5 million, or 7.5%. Total revenue primarily increased as a result of increases in real estate brokerage commissions and financing fees, as described below. See the “Factors Affecting Our Business” section for additional market information.
Previous wording
Real estate brokerage commissions. Revenue from real estate brokerage commissions increased to $167.0 million for the three months ended June 30, 2026 from $141.4 million for the same period in 2025, an increase of $25.6 million, or 18.1%. The increase was primarily attributed to an 18.4% increase in total sales volume as the average commission rate was constant. The Larger Transaction Market revenue increased by 43.2%, and the Private Client Market revenue increased by 13.6%.
Current wording
Real estate brokerage commissions. Revenue from real estate brokerage commissions increased to $174.1 million for the three months ended September 30, 2026 from $162.2 million for the same period in 2025, an increase of $11.9 million, or 7.4%. The increase was primarily attributed to a 12.6% increase in total sales volume, partially offset by a nine basis point decrease in the average commission rate earned. The Middle Market and Larger Transaction Market revenue increased by 18.1% and the Private Client Market revenue increased by 3.6%.
Previous wording
Financing fees. Revenue from financing fees increased to $30.3 million for the three months ended June 30, 2026 from $26.3 million for the same period in 2025, an increase of $4.0 million, or 15.3%. The increase was primarily attributed to a 5.4% increase in the total financing volume and a 10 basis point increase in the average fee rate earned compared to the same period in 2025.
Current wording
Financing fees. Revenue from financing fees increased to $27.0 million for the three months ended September 30, 2026 from $26.3 million for the same period in 2025, an increase of $0.7 million, or 2.6%. The increase was primarily attributed to a 0.7% increase in the total financing volume and a five basis point increase in the average fee rate earned compared to the same period in 2025.
Previous wording
Other revenue. Other revenue increased to $5.6 million for the three months ended June 30, 2026 from $4.6 million for the same period in 2025, an increase of $1.0 million, or 22.8%. The increase was primarily driven by increases in leasing fees and consulting fees during the three months ended June 30, 2026 compared to the same period in 2025.
Current wording
Other revenue. Other revenue increased to $7.3 million for the three months ended September 30, 2026 from $5.4 million for the same period in 2025, an increase of $1.8 million, or 34.0%. The increase was primarily driven by increases in leasing fees and consulting fees during the three months ended September 30, 2026 compared to the same period in 2025.
Previous wording
Our total operating expenses were $200.7 million for the three months ended June 30, 2026 compared to $181.3 million for the same period in 2025, an increase of $19.4 million, or 10.7%. Cost of services increased by $20.0 million, partially offset by a decrease of $0.8 million in depreciation and amortization expense as described below.
Current wording
Our total operating expenses were $209.3 million for the three months ended September 30, 2026 compared to $196.3 million for the same period in 2025, an increase of $13.0 million, or 6.6%. Cost of services increased by $12.5 million, partially offset by a decrease of $0.4 million in depreciation and amortization expense as described below.
Previous wording
Cost of services. Cost of services are variable commissions paid to our investment sales professionals and compensation-related costs in connection with our financing activities. Cost of services increased to $126.7 million for the three months ended June 30, 2026 from $106.6 million for the same period in 2025, an increase of $20.0 million, or 18.8%. The increase was primarily due to increased commission expenses driven by the related increased revenue discussed above. Cost of services as a percentage of total revenue increased by 50 basis points to 62.4% compared to the same period in 2025 primarily due to our senior investment sales and financing professionals earning higher commissions in 2026.
Current wording
Cost of services. Cost of services are variable commissions paid to our investment sales professionals and compensation-related costs in connection with our financing activities. Cost of services increased to $133.5 million for the three months ended September 30, 2026 from $121.0 million for the same period in 2025, an increase of $12.5 million, or 10.3%. The increase was primarily due to increased commission expenses driven by the related increased revenue discussed above. Cost of services as a percentage of total revenue increased by 160 basis points to 64.0% compared to the same period in 2025 primarily due to our senior investment sales and financing professionals earning higher commissions in 2026.
Previous wording
Depreciation and amortization expense. Depreciation and amortization expense decreased to $2.3 million for the three months ended June 30, 2026 from $3.1 million for the same period in 2025, a decrease of $0.8 million, or 25.5%. The decrease primarily relates to assets that were fully depreciated in 2025 and impairment of certain assets recorded in 2025.
Current wording
Depreciation and amortization expense. Depreciation and amortization expense decreased to $2.3 million for the three months ended September 30, 2026 from $2.7 million for the same period in 2025, a decrease of $0.4 million, or 16.0%. The decrease primarily relates to assets that were fully depreciated.
Previous wording
Other income, net decreased to $4.2 million for the three months ended June 30, 2026 from $5.5 million for the same period in 2025. The $1.3 million decrease is primarily due to a lower average yield on the Company's investments and a change in unrealized foreign currency gains and losses during the period compared to the same period in prior year.
Current wording
Other income, net decreased to $3.7 million for the three months ended September 30, 2026 from $4.0 million for the same period in 2025. The $0.3 million decrease is primarily due to a lower average yield on the Company's investments and to a reduction of the invested assets during the period compared to the same period in prior year.
Previous wording
The provision for income taxes was $2.4 million for the three months ended June 30, 2026, compared to a provision for income taxes of $7.3 million for the same period in 2025. The effective income tax rate for the three months ended June 30, 2026 was 37.6%, compared to (194.5)% for the same period in 2025. The effective tax rate for the three months ended June 30, 2026 was determined using the estimated AETR method, whereas the effective tax rate for the same period in 2025 was determined using the discrete method. The change in method during the period ended June 30, 2025 resulted in effectively reversing a significant portion of the income tax benefit recorded during the three months ended March 31, 2025, thereby distorting the effective tax rate for the three months ended June 30, 2025. In addition to the different methodologies applied, the effective tax rate for the three months ended June 30, 2026 was also impacted by non-deductible items, state income taxes, and shortfall tax expenses, net, related to stock-based compensation. Refer to Note 10 – “Income Taxes” of our accompanying Notes to Condensed Consolidated Financial Statements for additional information.
Current wording
The provision for income taxes was $1.6 million for the three months ended September 30, 2026, compared to $1.2 million for the same period in 2025. The effective income tax rate for the three months ended September 30, 2026 was 61.2%, compared to 83.7% for the same period in 2025. The effective tax rate for the three months ended September 30, 2026 was determined using the estimated annual effective tax rate method, whereas the effective tax rate for the same period in 2025 was determined using the discrete method. The lower effective tax rate for the three months ended September 30, 2026 compared to the same period in 2025 was primarily due to non-deductible items, state income taxes, and shortfall tax expenses, net, related to stock-based compensation, as well as higher pre-tax income in the current period, which reduced the relative impact of these items. Refer to Note 10 – “Income Taxes” of our accompanying Notes to Condensed Consolidated Financial Statements for additional information.
Previous wording
Below are key operating results for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 (dollars in thousands):
Current wording
Below are key operating results for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 (dollars in thousands):
Previous wording
Our total revenue was $374.4 million for the six months ended June 30, 2026 compared to $317.3 million for the same period in 2025, an increase of $57.1 million, or 18.0%. Total revenue primarily increased as a result of increases in real estate brokerage commissions and financing fees, as described below. See the “Factors Affecting Our Business” section for additional market information.
Current wording
Our total revenue was $582.8 million for the nine months ended September 30, 2026 compared to $511.2 million for the same period in 2025, an increase of $71.5 million, or 14.0%. Total revenue primarily increased as a result of increases in real estate brokerage commissions and financing fees, as described below. See the “Factors Affecting Our Business” section for additional market information.
Previous wording
Real estate brokerage commissions. Revenue from real estate brokerage commissions increased to $305.1 million for the six months ended June 30, 2026 from $265.0 million for the same period in 2025, an increase of $40.1 million, or 15.1%. The increase was primarily attributed to an 18.5% increase in total sales volume, partially offset by a five basis point decrease in the average commission rate earned compared to the same period in 2025. The decrease in the average commission rate was primarily driven by a shift in revenue from the Private Client Market to the Larger Transaction Market, which generally earns lower commission rates. For the six months ended June 30, 2026, the Larger Transaction Market included certain transactions with sales volume exceeding $300 million individually, which more significantly reduced the average commission rate earned. The Larger Transaction Market revenue increased by 34.7%, while the Private Client Market revenue increased by 13.5%.
Current wording
Real estate brokerage commissions. Revenue from real estate brokerage commissions increased to $479.2 million for the nine months ended September 30, 2026 from $427.2 million for the same period in 2025, an increase of $52.0 million, or 12.2%. The increase was primarily attributed to a 16.3% increase in total sales volume, partially offset by a six basis point decrease in the average commission rate earned compared to the same period in 2025. The decrease in the average commission rate was primarily driven by a shift in revenue from the Private Client Market to the Larger Transaction Market, which generally earns lower commission rates. For the nine months ended September 30, 2026, the Larger Transaction Market included certain transactions with sales volume exceeding $300 million individually, which more significantly reduced the average commission rate earned. The Middle Market and Larger Transaction Market revenue increased by 18.9%, while the Private Client Market revenue increased by 9.8%.
Previous wording
Financing fees. Revenue from financing fees increased to $57.1 million for the six months ended June 30, 2026 from $44.4 million for the same period in 2025, an increase of $12.7 million, or 28.7%. The increase was primarily attributed to a 25.2% increase in the total financing volume and a five basis point increase in the average fee rate earned compared to the same period in 2025.
Current wording
Financing fees. Revenue from financing fees increased to $84.1 million for the nine months ended September 30, 2026 from $70.7 million for the same period in 2025, an increase of $13.4 million, or 19.0%. The increase was primarily attributed to a 16.6% increase in the total financing volume and a five basis point increase in the average fee rate earned compared to the same period in 2025.
Previous wording
Other revenue. Other revenue increased to $12.2 million for the six months ended June 30, 2026 from $7.9 million for the same period in 2025, an increase of $4.3 million, or 54.1%. The increase was primarily driven by increases in leasing fees and consulting fees during the six months ended June 30, 2026 compared to the same period in 2025.
Current wording
Other revenue. Other revenue increased to $19.4 million for the nine months ended September 30, 2026 from $13.3 million for the same period in 2025, an increase of $6.1 million, or 45.9%. The increase was primarily driven by increases in leasing fees and consulting fees during the nine months ended September 30, 2026 compared to the same period in 2025.
Previous wording
Our total operating expenses were $377.9 million for the six months ended June 30, 2026 compared to $344.1 million for the same period in 2025, an increase of $33.9 million, or 9.8%. Cost of services increased by $35.3 million, partially offset by a decrease of $1.3 million in depreciation and amortization expense as described below.
Current wording
Our total operating expenses were $587.2 million for the nine months ended September 30, 2026 compared to $540.3 million for the same period in 2025, an increase of $46.9 million, or 8.7%. Cost of services increased by $47.8 million, partially offset by a decrease of $1.7 million in depreciation and amortization expense as described below.
Previous wording
Cost of services. Cost of services are variable commissions paid to our investment sales professionals and compensation-related costs in connection with our financing activities. Cost of services increased to $230.3 million for the six months ended June 30, 2026 from $195.0 million for the same period in 2025, an increase of $35.3 million, or 18.1%. The increase was primarily due to increased commission expenses driven by the related increased revenue discussed above. Cost of services as a percentage of total revenue increased by 10 basis points to 61.5% compared to the same period in 2025 primarily due to our senior investment sales and financing professionals earning higher commissions in 2026.
Current wording
Cost of services. Cost of services are variable commissions paid to our investment sales professionals and compensation-related costs in connection with our financing activities. Cost of services increased to $363.8 million for the nine months ended September 30, 2026 from $316.0 million for the same period in 2025, an increase of $47.8 million, or 15.1%. The increase was primarily due to increased commission expenses driven by the related increased revenue discussed above. Cost of services as a percentage of total revenue increased by 60 basis points to 62.4% compared to the same period in 2025 primarily due to our senior investment sales and financing professionals earning higher commissions in 2026.
Previous wording
Depreciation and amortization expense. Depreciation and amortization expense decreased to $4.7 million for the six months ended June 30, 2026 from $6.0 million for the same period in 2025, a decrease of $1.3 million, or 21.0%. The decrease primarily relates to assets that were fully depreciated in 2025 and impairment of certain assets recorded in 2025.
Current wording
Depreciation and amortization expense. Depreciation and amortization expense decreased to $7.0 million for the nine months ended September 30, 2026 from $8.7 million for the same period in 2025, a decrease of $1.7 million, or 19.5%. The decrease primarily relates to assets that were fully depreciated.
Previous wording
Other income, net decreased to $8.0 million for the six months ended June 30, 2026 from $9.5 million for the same period in 2025. The $1.5 million decrease primarily relates to a lower average yield on the Company's investments and a change in unrealized foreign currency gains and losses during the period compared to the same period in prior year.
Current wording
Other income, net decreased to $11.6 million for the nine months ended September 30, 2026 from $13.5 million for the same period in 2025. The $1.9 million decrease primarily relates to a lower average yield on the Company's investments and to a reduction of the invested assets during the period compared to the same period in the prior year.
Previous wording
Interest expense decreased by an immaterial amount for the six months ended June 30, 2026 compared to the same period in 2025, and primarily relates to interest expense on our SARs liability.
Current wording
Interest expense decreased by an immaterial amount for the nine months ended September 30, 2026 compared to the same period in 2025, and primarily relates to interest expense on our SARs liability.
Previous wording
The provision for income taxes was $3.3 million for the six months ended June 30, 2026, compared to a benefit for income taxes of $2.2 million for the same period in 2025. The effective income tax rate for the six months ended June 30, 2026 was 80.3% compared to 12.5% for the same period in 2025. The increase in the effective tax rate for the six months ended June 30, 2026, compared to the same period in 2025, primarily reflects the use of the estimated AETR methodology in 2026, compared to the discrete method in 2025. In addition, the effective tax rate for the six months ended June 30, 2026 was impacted by non-deductible items, state income taxes, and shortfall tax expenses, net, related to stock-based compensation. Refer to Note 10 – “Income Taxes” of our accompanying Notes to Condensed Consolidated Financial Statements for additional information.
Current wording
The provision for income taxes was $4.9 million for the nine months ended September 30, 2026, compared to a benefit for income taxes of $1.0 million for the same period in 2025. The effective income tax rate for the nine months ended September 30, 2026 was 72.9% compared to 6.0% for the same period in 2025. The increase in the effective tax rate for the nine months ended September 30, 2026, compared to the same period in 2025, primarily reflects the use of the estimated AETR methodology in 2026, compared to the discrete method in 2025. In addition, the effective tax rate for the nine months ended September 30, 2026 was impacted by the change from a pre-tax loss in the prior-year period compared to pre-tax income in the current-year period, as well as the relative impact of non-deductible items, state income taxes, and shortfall tax expenses, net, related to stock-based compensation. Refer to Note 10 – “Income Taxes” of our accompanying Notes to Condensed Consolidated Financial Statements for additional information.
Previous wording
In this Quarterly Report on Form 10-Q, we include a non-GAAP financial measure, Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) before (i) interest income and other, including interest on marketable debt securities, available-for-sale and cash, cash equivalents, and restricted cash, and net realized gains (losses) on marketable debt securities, available-for-sale, (ii) interest expense, (iii) provision (benefit) for income taxes, (iv) depreciation and amortization, and (v) stock-based compensation. We use Adjusted EBITDA in our business operations to evaluate the performance of our business, develop budgets and measure our performance against those budgets, among other things. We also believe that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate our 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 our results as reported under U.S. GAAP. We find 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. In light of the foregoing limitations, we do not rely solely on Adjusted EBITDA as a performance measure and also consider our U.S. GAAP results. Adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income (loss), operating income (loss) 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. A reconciliation of the most directly comparable U.S. GAAP financial measure, net income (loss), to Adjusted EBITDA is as follows (in thousands):
Current wording
In this Quarterly Report on Form 10-Q, we include a non-GAAP financial measure, Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) before (i) interest income and other, including interest on marketable debt securities, available-for-sale and cash, cash equivalents, and restricted cash, and net realized gains (losses) on marketable debt securities, available-for-sale, (ii) interest expense, (iii) provision (benefit) for income taxes, (iv) depreciation and amortization, and (v) stock-based compensation. We use Adjusted EBITDA in our business operations to evaluate the performance of our business, develop budgets and measure our performance against those budgets, among other things. We also believe that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate our 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 our results as reported under U.S. GAAP. We find 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. In light of the foregoing limitations, we do not rely solely on Adjusted EBITDA as a performance measure and also consider our U.S. GAAP results. Adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income (loss), operating loss 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. A reconciliation of the most directly comparable U.S. GAAP financial measure, net income (loss), to Adjusted EBITDA is as follows (in thousands):
Previous wording
Our total cash, cash equivalents, and restricted cash balance decreased by $8.4 million to $153.5 million at June 30, 2026, compared to $161.9 million at December 31, 2025. The following table sets forth our summary cash flows for the six months ended June 30, 2026 and 2025 (in thousands):
Current wording
Our total cash, cash equivalents, and restricted cash balance increased by $27.3 million to $189.2 million at September 30, 2026, compared to $161.9 million at December 31, 2025. The following table sets forth our summary cash flows for the nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
Cash flows used in operating activities were $5.4 million for the six months ended June 30, 2026 compared to $31.8 million for the same period in 2025. The $26.4 million decrease in cash flows used in operating activities for the six months ended June 30, 2026 compared to the same period in 2025 was primarily due to a reduction in net losses of $16.3 million, as discussed above and a $15.3 million decrease in change in deferred compensation and commissions in the six months ended June 30, 2026 compared to the same period in 2025. The cash flows used in operating activities were also affected by the timing of certain cash receipts and payments.
Current wording
Cash flows provided by operating activities were $27.9 million for the nine months ended September 30, 2026 compared to $20.4 million for the same period in 2025. The $7.5 million increase in cash flows provided by operating activities for the nine months ended September 30, 2026 compared to the same period in 2025 was primarily due to a $17.0 million decrease in net losses, as discussed above, and a $19.0 million decrease in the change in deferred compensation and commissions, partially offset by a $23.6 million decrease in advances and loans and an $8.0 million increase in prepaid expenses in the nine months ended September 30, 2026 compared to the same period in 2025. The cash flows provided by operating activities were also affected by the timing of certain cash receipts and payments.
Previous wording
Cash flows provided by investing activities were $38.5 million for the six months ended June 30, 2026 compared to cash flows used in investing activities of $10.1 million for the same period in 2025. The $48.6 million increase in cash provided by investing activities for the six months ended June 30, 2026 compared to the same period in 2025 was primarily due to an increase in net proceeds of $49.2 million from sales, purchases, and maturities of securities.
Current wording
Cash flows provided by investing activities were $42.1 million for the nine months ended September 30, 2026 compared to cash flows used in investing activities of $29.2 million for the same period in 2025. The $71.3 million increase in cash provided by investing activities for the nine months ended September 30, 2026 compared to the same period in 2025 was primarily due to an increase in net proceeds of $71.6 million from sales, purchases, and maturities of securities.
Previous wording
Cash flows used in financing activities were $41.3 million for the six months ended June 30, 2026 compared to $25.9 million for the same period in 2025. The $15.4 million increase in cash flows used in financing activities is primarily due to the $18.1 million increase in cash paid for stock repurchases in the 2026 period compared to the same period in 2025.
Current wording
Cash flows used in financing activities were $42.4 million for the nine months ended September 30, 2026 compared to $27.4 million for the same period in 2025. The $15.0 million increase in cash flows used in financing activities is primarily due to the $17.5 million increase in cash paid for stock repurchases in the 2026 period compared to the same period in 2025.
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