$NMRK earnings report

Newmark delivered record third-quarter revenue of $973.2 million, up 12.7%, while GAAP EPS increased 8.0% to $0.27 and Adjusted EPS increased 14.3% to $0.48. Adjusted EBITDA rose 14.6% to $166.4 million. For the first nine months, total revenue grew 18.4% to $2,708.1 million, Adjusted EPS increased 27.7% to $1.20, and Adjusted EBITDA increased 22.5% to $426.7 million.

The growth mix favored Leasing and recurring businesses. Management Services, Servicing Fees, and Other increased 18.3% to $376.3 million, marking the fifth consecutive record quarter for those businesses. The company cited outsourcing growth, Valuation & Advisory improvement and six acquisitions. Leasing and Other Commissions increased 26.5% to $308.6 million, supported by industrial and office client activity in key West Coast markets and Texas, alongside demand across technology-related, manufacturing, legal, aerospace and defense, and health care sectors.

Capital Markets remained the principal offset. Revenue declined 4.4% to $288.2 million as a 7.5% increase in Investment Sales revenue did not offset a 21.1% decline in Fees from Commercial Mortgage Origination, net. Newmark reported approximately 33% growth in Investment Sales volumes globally, but cited a difficult prior-year Total Debt comparison and lower industry multifamily GSE activity. OMSR Revenues also declined 9.4% to $36.7 million.

Expense growth trailed revenue growth on a GAAP basis, with total expenses up 8.4% to $889.2 million. Compensation and employee benefits increased 12.9%, reflecting higher commission-based revenue, acquired-company costs and growth investments. Non-compensation expenses increased 10.4%, including higher pass-through costs associated with Occupier Solutions and Property Management. The company reported that excluding pass-through items, total GAAP expenses would have increased by 5.5%.

Capital allocation included $59.4 million of quarterly share repurchases, a $0.06 per-share quarterly dividend, and reauthorization of a $400 million buy-back program. Cash and cash equivalents were $240.0 million and total corporate debt was $877.5 million at quarter-end, while net leverage was 1.0 times. Reported quarterly operating cash flow was negative because of loan-originations and sales activity, but Adjusted Free Cash Flow was $108.7 million.

Newmark reduced its FY 2026 outlook to revenue of $3,700 - $3,800 million, Adjusted EPS of $1.80 - $1.90, and Adjusted EBITDA of $629 - $667 million. The company attributed the revision to macroeconomic volatility that creates uncertainty around transaction-closing timing, while maintaining expectations for double-digit growth in revenue, Adjusted EBITDA and Adjusted EPS.

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.