Newmark Group (NASDAQ:NMRK) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Newmark beat quarterly expectations: EPS was $0.48 versus the $0.47 consensus, while revenue rose 12.7% year over year to $973.2 million. Adjusted EBITDA increased 14.6% and adjusted EPS grew 14.3%.
• Growth remained strong in recurring and leasing businesses: Management and servicing revenue climbed 18.3%, and leasing revenue rose 26.5%, supported by demand from data centers, technology, manufacturing and other sectors.
• Risks include a weaker outlook and leadership transition: Newmark lowered its 2026 outlook amid macroeconomic uncertainty affecting transaction closings, while CEO Barry Gosin plans to step down at year-end. The board nevertheless authorized an additional $400 million share-repurchase program.

Newmark Group (NASDAQ:NMRK - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.01, Briefing.com reports. Newmark Group had a return on equity of 27.07% and a net margin of 4.11%. The firm had revenue of $973.20 million for the quarter, compared to the consensus estimate of $952.70 million. During the same period last year, the business posted $0.42 EPS. The company's revenue for the quarter was up 12.7% on a year-over-year basis.

Here are the key takeaways from Newmark Group's conference call:

• Record third-quarter performance: Revenue rose 12.7% to $973.2 million, while Adjusted EBITDA increased 14.6% and Adjusted EPS rose 14.3% to $0.48.
• Management and servicing revenue grew 18.3%, supported by organic outsourcing growth, Valuation & Advisory gains, and six acquisitions. Management said recurring businesses now represent roughly 40% of revenue and are expected to exceed $2 billion annually by 2029.
• Leasing revenue increased 26.5%, driven by demand from artificial intelligence, data centers, technology, manufacturing, legal, aerospace and defense, and healthcare sectors; the company described its transaction pipeline as robust.
• Newmark lowered its 2026 outlook because macroeconomic volatility is delaying and reducing the certainty of transaction closings. Capital Markets revenue fell 4.4% in the quarter, and management expects industry Capital Markets volumes to remain down through at least the first half of 2027.
• The board reauthorized a $400 million share-repurchase program, and management expects further buybacks given the company’s financial position and recent share price. However, CEO Barry Gosin is stepping down at year-end, creating a leadership-transition uncertainty while the board evaluates internal and external candidates.

Newmark Group Price Performance

Shares of NASDAQ:NMRK traded down $0.50 on Thursday, reaching $11.56. The company's stock had a trading volume of 1,379,250 shares, compared to its average volume of 1,567,387. The company has a 50-day simple moving average of $13.49 and a 200 day simple moving average of $14.92. Newmark Group has a 52-week low of $11.13 and a 52-week high of $18.81. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.55 and a current ratio of 0.55. The company has a market cap of $2.10 billion, a P/E ratio of 14.27 and a beta of 1.76.

Analysts Set New Price Targets

Several research firms have weighed in on NMRK. Barclays increased their price target on shares of Newmark Group from $19.00 to $20.00 and gave the stock an "overweight" rating in a research report on Monday, August 17th. Keefe, Bruyette & Woods decreased their target price on Newmark Group from $17.50 to $16.00 and set an "outperform" rating on the stock in a report on Friday, October 9th. Weiss Ratings raised Newmark Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, October 13th. Piper Sandler reaffirmed a "neutral" rating and issued a $13.00 price objective (down from $14.00) on shares of Newmark Group in a research note on Monday, October 19th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Newmark Group in a research report on Thursday, October 22nd. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $17.60.

About Newmark Group

Newmark Group, Inc is a global commercial real estate services company that provides advisory, transaction, and management services to occupiers, owners, investors, and developers. Its services cover office, industrial, retail, multifamily, hospitality, and other commercial property sectors.

The company assists clients with leasing, investment sales, acquisition and disposition advisory, debt and structured finance, valuation, consulting, and property and facilities management. Newmark also provides corporate real estate services, workplace strategy, capital markets advice, and technology-enabled data and research solutions.

Newmark serves clients through operations in major real estate markets across North America, Europe, Asia-Pacific, and other international regions.

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