Newmark Group (NASDAQ:NMRK) Posts Quarterly Earnings Results, Meets Estimates

Key Points

• Newmark delivered strong second-quarter results: Revenue rose 17% year over year to a record $888.4 million, exceeding estimates, while adjusted EPS increased 25.8% to $0.39 and adjusted EBITDA grew 22.1% to $139.2 million.
• Growth was broad-based and cash generation improved: Management and servicing, leasing, and capital markets revenue all increased, while trailing-12-month adjusted free cash flow climbed 71.6% to $391.1 million and net leverage remained approximately 1.0 times.
• Full-year guidance was maintained: Newmark continues to project roughly 16% revenue growth, 19% adjusted EPS growth, and 20% adjusted EBITDA growth, while shifting capital-allocation priorities toward potential acquisitions and future share repurchases.

Newmark Group (NASDAQ:NMRK - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share for the quarter, meeting the consensus estimate of $0.39, FiscalAI reports. Newmark Group had a net margin of 4.30% and a return on equity of 26.23%. The firm had revenue of $888.42 million for the quarter, compared to analyst estimates of $865.24 million. During the same quarter in the prior year, the business earned $0.31 earnings per share. The business's quarterly revenue was up 17.0% compared to the same quarter last year. Newmark Group updated its FY 2026 guidance to 1.870-1.980 EPS.

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

• Strong second-quarter results: Revenue increased 17% to a record $888.4 million, while Adjusted EPS rose 25.8% to $0.39 and Adjusted EBITDA grew 22.1% to $139.2 million.
• Broad-based business growth continued: Management and servicing revenue increased 17.7%, leasing rose 17.2% on stronger office activity, and Capital Markets grew 16% as investment sales improved across multifamily, industrial, and office properties.
• Newmark raised its U.S. investment-sales ranking to number two for the first half of 2026, with executives citing strong pipelines, market-share gains, international expansion, and additional growth opportunities in data centers, digital infrastructure, affordable housing, and multifamily.
• Cash generation improved materially: Trailing-12-month Adjusted Free Cash Flow increased 71.6% to $391.1 million, while net leverage remained low at approximately 1.0 times.
• Full-year guidance was maintained rather than raised: Management continues to expect approximately 16% revenue growth, 19% Adjusted EPS growth, and 20% Adjusted EBITDA growth, citing tougher second-half comparisons and uncertainty around the timing of large transactions. Capital allocation is shifting toward potential M&A, with buybacks expected to resume if acquisitions do not close.

Newmark Group Stock Performance

Shares of NMRK stock traded down $0.81 on Wednesday, hitting $15.38. 1,159,045 shares of the stock were exchanged, compared to its average volume of 1,463,943. The firm's 50 day moving average is $15.04 and its two-hundred day moving average is $15.45. Newmark Group has a one year low of $13.36 and a one year high of $19.83. The firm has a market capitalization of $2.73 billion, a PE ratio of 19.03 and a beta of 1.68. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 0.50.

Newmark Group News Roundup

Here are the key news stories impacting Newmark Group this week:

• Positive Sentiment: Newmark reported second-quarter revenue of $888.4 million, up 17% year over year and above the $865.2 million consensus estimate. Earnings were $0.39 per share, compared with $0.31 a year earlier, while management declared its quarterly dividend. Newmark Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company maintained full-year 2026 revenue guidance of $3.8 billion to $3.9 billion, broadly consistent with analyst expectations, supporting the outlook for continued growth. Newmark Reports Second Quarter 2026 Financial Results

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on NMRK shares. Wall Street Zen raised shares of Newmark Group from a "buy" rating to a "strong-buy" rating in a research report on Tuesday. Keefe, Bruyette & Woods raised their price target on shares of Newmark Group from $18.00 to $18.50 and gave the company an "outperform" rating in a research report on Friday, May 1st. Weiss Ratings raised Newmark Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 11th. Zacks Research raised Newmark Group from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Finally, Citizens Jmp increased their price objective on Newmark Group from $21.00 to $22.00 and gave the stock a "market outperform" rating in a research note on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $19.62.

Institutional Investors Weigh In On Newmark Group

Several institutional investors have recently added to or reduced their stakes in the business. Advisory Services Network LLC purchased a new position in shares of Newmark Group in the third quarter worth about $29,000. Larson Financial Group LLC boosted its holdings in Newmark Group by 98.9% in the 3rd quarter. Larson Financial Group LLC now owns 1,840 shares of the company's stock worth $34,000 after buying an additional 915 shares during the period. Smartleaf Asset Management LLC boosted its holdings in Newmark Group by 4,587.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 4,687 shares of the company's stock worth $82,000 after buying an additional 4,587 shares during the period. CIBC Private Wealth Group LLC grew its stake in Newmark Group by 2,161.1% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 5,404 shares of the company's stock valued at $101,000 after buying an additional 5,165 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new position in Newmark Group in the 2nd quarter valued at approximately $138,000. 58.42% of the stock is owned by hedge funds and other institutional investors.

Newmark Group Company Profile

Newmark Group, Inc is a publicly traded commercial real estate advisory firm headquartered in New York City. The company provides a comprehensive suite of services to real estate investors, occupiers and developers, including leasing advisory, property management, capital markets placement, loan servicing, valuation and advisory services. Newmark's platform integrates local market expertise with national reach to support clients across diverse property types such as office, industrial, retail, multifamily and specialty assets.

Operating across two principal segments—global corporate services and capital markets & property-level services—Newmark delivers tailored solutions encompassing tenant representation, landlord leasing, investment sales, debt and equity financing, and appraisal services.

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