second quarter 2026
Filed Jul 29, 2026Newmark Reports Second Quarter 2026 Financial Results
Second-quarter total revenues reached a record and grew 17.0%, with double-digit growth in Management Services, Servicing Fees, and Other, Leasing and Other Commissions, and Capital Markets. Adjusted EPS increased 25.8% and Adjusted EBITDA increased 22.1%, although GAAP net income declined 5.7% and commercial mortgage origination fees declined 26.1%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenuesother | $888.4 million | – | 17.0% |
| Total Revenues, year to dateother | $1,734.9 million | – | 21.8% |
| GAAP net income (loss) for fully diluted sharesGAAP | 27.1 | – | (5.7)% |
| GAAP net income (loss) for fully diluted shares, year to dateGAAP | 46.7 | – | 190.3% |
| GAAP net income (loss) per fully diluted share (GAAP EPS)GAAP | 0.11 | – | NMF |
| GAAP net income (loss) per fully diluted share (GAAP EPS), year to dateGAAP | 0.18 | – | 200.0% |
| Post-tax Adjusted Earnings to fully diluted shareholdersnon-GAAP | 97.5 | – | 25.5% |
| Post-tax Adjusted Earnings to fully diluted shareholders, year to datenon-GAAP | 181.0 | – | 37.0% |
| Post-tax Adjusted Earnings per share (Adjusted EPS)non-GAAP | 0.39 | – | 25.8% |
| Post-tax Adjusted Earnings per share (Adjusted EPS), year to datenon-GAAP | 0.71 | – | 36.5% |
| Adjusted EBITDA (AEBITDA)non-GAAP | 139.2 | – | 22.1% |
| Adjusted EBITDA (AEBITDA), year to datenon-GAAP | 260.3 | – | 28.1% |
| Compensation and employee benefits under GAAPGAAP | $539.7 million | – | 18.6% |
| Compensation and employee benefits under GAAP, year to dateGAAP | $1,055.3 million | – | 23.5% |
| Equity-based compensation and allocations of net income to limited partnership units and FPUsother | 68.1 | – | 13.3% |
| Equity-based compensation and allocations of net income to limited partnership units and FPUs, year to dateother | 136.5 | – | 1.5% |
| Non-compensation expenses under GAAPGAAP | 240.2 | – | 19.3% |
| Non-compensation expenses under GAAP, year to dateGAAP | 476.4 | – | 15.8% |
| Total expenses under GAAPGAAP | 848.0 | – | 18.3% |
| Total expenses under GAAP, year to dateGAAP | 1,668.2 | – | 19.1% |
| Compensation and employee benefits for Adjusted Earningsnon-GAAP | 538.6 | – | 18.5% |
| Compensation and employee benefits for Adjusted Earnings, year to datenon-GAAP | 1,054.0 | – | 23.6% |
| Non-compensation expenses for Adjusted Earningsnon-GAAP | 202.1 | – | 11.6% |
| Non-compensation expenses for Adjusted Earnings, year to datenon-GAAP | 400.1 | – | 12.6% |
| Total expenses for Adjusted Earningsnon-GAAP | 740.7 | – | 16.6% |
| Total expenses for Adjusted Earnings, year to datenon-GAAP | 1,454.1 | – | 20.3% |
| GAAP provision (benefit) for income taxesGAAP | $9.6 million | – | 127.6% |
| GAAP provision (benefit) for income taxes, year to dateGAAP | $13.0 million | – | 322.7% |
| Provision for income taxes for Adjusted Earningsnon-GAAP | 16.7 | – | 33.6% |
| Provision for income taxes for Adjusted Earnings, year to datenon-GAAP | 31.0 | – | 43.5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fees from Management Services, Servicing, and OtherDouble digit percentage organic growth was led by Valuation & Advisory, the Servicing & Asset Management platform, and the expanding suite of outsourcing businesses; recent acquisitions also contributed. | $248.1 million | – | 15.7% |
| Pass Through RevenuesThe filing attributes growth in overall pass through items to double-digit growth in Occupier Solutions and Property Management businesses. | 103.1 | – | 22.8% |
| Management Services, Servicing Fees, and OtherThe filing reported its fourth consecutive record quarter for these resilient businesses. | 351.2 | – | 17.7% |
| Leasing and Other CommissionsGrowth was driven by significantly higher office volumes in New York City, the San Francisco Bay Area, and Los Angeles. | 278.0 | – | 17.2% |
| Investment SalesDramatically higher multifamily activity, particularly senior housing and affordable housing, plus robust industrial and office sales. | 164.6 | – | 54.4% |
| Fees from Commercial Mortgage Origination, netLower origination activity followed an approximately 135% improvement in Total Debt volumes in the second quarter of 2025. | 68.1 | – | (26.1)% |
| OMSR RevenuesNo separate driver was reported in the provided excerpt. | 26.6 | – | 7.3% |
| Capital MarketsLed by higher Investment Sales activity, a broad recovery across U.S. property types, and investments in talent supporting international share gains. | 259.2 | – | 16.0% |
2026 outlook
- NoteThe Company continues to expect double-digit top- and bottom-line growth for the third consecutive year in 2026.
- NoteThe Company anticipates that investments in recurring revenue businesses, ongoing international expansion, improving industry fundamentals, and talented professionals will drive long-term growth and market share gains.
- NoteThe Company is driving towards its goal of over $2 billion in annual Management and Servicing revenues by 2029.
Capital returns
- The Company declared its quarterly dividend; no dividend amount or payment date was provided in the excerpt.
What drove it
- Management Services, Servicing Fees, and Other posted its fourth consecutive record quarter.
- The total Servicing and Asset Management portfolio increased by 20.5% year-on-year as of quarter end.
- Property and Facilities Management square footage increased by 23.1% year-on-year as of quarter end.
- Leasing activity benefited from office demand from artificial intelligence and other technology sectors, financial services, manufacturing, legal services, consumer goods, aerospace, and defense.
- Year-to-date Total Debt and Investment Sales Volumes increased by 26.7% and 64.8%, respectively, versus a year earlier.
- The Company stated that Capital Markets growth reflected a broad recovery across property types in U.S. Investment Sales and international share gains.
Concerns
- GAAP net income (loss) for fully diluted shares declined by (5.7)% despite total revenue growth of 17.0%.
- Fees from Commercial Mortgage Origination, net declined by (26.1)% and Total Debt volumes were down by 19% in the second quarter of 2026.
- GAAP total expenses increased 18.3%, exceeding the 17.0% increase in total revenues.
- GAAP non-compensation expenses included a charge of $0.2 million related to lease terminations for liquidated entities, compared with a credit of $14.5 million for the same item in the year-earlier period.
What to watch
- Whether office leasing volumes in New York City, the San Francisco Bay Area, and Los Angeles remain elevated.
- Whether Investment Sales momentum in multifamily, senior housing, affordable housing, industrial, and office continues.
- The trajectory of commercial mortgage origination activity following the decline in Fees from Commercial Mortgage Origination, net.
- Execution on recurring revenue investments, international expansion, and the goal of over $2 billion in annual Management and Servicing revenues by 2029.
- The relationship between revenue growth and compensation, employee benefit, and non-compensation expense growth.
Balance sheet and cash flow
- For the twelve months ended June 30, 2026, GAAP Cash Flow from Operations was $846.0 million compared with $(241.8) million in the year-earlier period.
- On a trailing twelve month basis, Adjusted Free Cash Flow improved by 71.6%.
Analysis
Newmark reported record second-quarter revenues of $888.4 million, up 17.0% from $759.1 million. Year-to-date total revenues were $1,734.9 million, up 21.8%. Revenue growth was broad across the major reported businesses: Management Services, Servicing Fees, and Other increased 17.7%, Leasing and Other Commissions increased 17.2%, and Capital Markets increased 16.0%. Within Capital Markets, Investment Sales increased 54.4%, while Fees from Commercial Mortgage Origination, net declined (26.1)%.
The recurring-oriented Management Services, Servicing Fees, and Other business delivered its fourth consecutive record quarter. The filing cited double digit percentage organic growth in Valuation & Advisory, Servicing & Asset Management, and outsourcing businesses, as well as contributions from recent acquisitions. Leasing growth reflected higher office volumes in New York City, the San Francisco Bay Area, and Los Angeles. Capital Markets was supported by multifamily, industrial, and office investment sales, with particular activity in senior housing and affordable housing.
Profit performance was stronger on the adjusted measures than under GAAP. Post-tax Adjusted Earnings increased 25.5% to 97.5 and Adjusted EPS increased 25.8% to 0.39. Adjusted EBITDA rose 22.1% to 139.2. In contrast, GAAP net income for fully diluted shares declined (5.7)% to 27.1 and GAAP EPS was unchanged at 0.11. The filing identified a $0.2 million lease-termination charge in GAAP non-compensation expenses, compared with a $14.5 million credit for the same item in the year-earlier period; these amounts were excluded from non-GAAP earnings measures.
Costs rose with commission-based revenues, acquired-company costs, and global growth initiatives. GAAP total expenses increased 18.3%, while total expenses for Adjusted Earnings increased 16.6%. The Company also cited a 23.0% increase in overall pass through items associated with growth in Occupier Solutions and Property Management. On a trailing twelve month basis, GAAP Cash Flow from Operations was $846.0 million compared with $(241.8) million in the year-earlier period, while Adjusted Free Cash Flow improved by 71.6%.
For 2026, management continued to expect double-digit top- and bottom-line growth and pointed to a healthy transaction pipeline. The principal operating items to monitor are sustained office leasing demand, continued Investment Sales recovery, commercial mortgage origination activity, expense growth tied to expansion, and execution against the goal of over $2 billion in annual Management and Servicing revenues by 2029.
Management, verbatim
Newmark once again delivered strong financial results, including record second quarter revenues. We produced double digit gains in each of our major business lines, led by our recurring businesses, as we continue to drive towards our goal of over $2 billion in annual Management and Servicing revenues by 2029. Our year to date results demonstrate the Company's strong operating leverage, as we increased Total Revenues 22%, GAAP EPS 200%, and Adjusted EPS 37%, all compared with a year earlier.
Barry M. Gosin, Chief Executive Officer of Newmark
Given Newmark's strong results and healthy transaction pipeline, we continue to expect double-digit top- and bottom-line growth for the third consecutive year in 2026. We also anticipate that our investments in recurring revenue businesses, ongoing international expansion, improving industry fundamentals, and talented professionals will together drive Newmark's long-term growth and market share gains.
Barry M. Gosin, Chief Executive Officer of Newmark
Not in the filing
stated, not guessed- Gross profit and gross margin
- GAAP operating income or loss
- Non-GAAP operating income
- GAAP net income attributable to common stockholders
- Fully diluted share count
- Prior-quarter comparisons for reported metrics
- Quarterly and year-to-date GAAP cash flow from operations
- Quarterly and year-to-date free cash flow and Adjusted Free Cash Flow amounts
- Cash balance
- Debt balance and net leverage
- Dividend amount, record date, and payment date
- Share repurchase activity
- Quantitative 2026 revenue, margin, operating expense, or tax-rate guidance
- The remainder of the Taxes and Noncontrolling Interest table, which is truncated in the provided excerpt
- Separate revenue amounts for the Company’s stated major business lines beyond the revenue categories shown in the provided excerpt
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.