Newmark Group NASDAQ: NMRK reported a sharp increase in first-quarter 2026 results, driven by broad-based growth across its services lines and continued strength in transaction activity, according to executives on the company’s quarterly earnings call.
Chief Executive Officer Barry Gosin said the firm “continued its strong momentum” in the quarter, citing 27% growth in total revenues and a 57% increase in adjusted earnings per share. He added that it marked the company’s seventh consecutive quarter of double-digit top-line growth and the eighth consecutive quarter of double-digit earnings improvement.
Record first-quarter revenue across key service lines
Chief Financial Officer Mike Rispoli said total revenues rose 27.2% to a first-quarter record of $846.5 million, up from $665.5 million a year earlier.
- Management services, servicing and other revenue increased 21.2%, which Rispoli attributed to “double-digit organic growth as well as recent acquisitions.”
- Leasing revenue rose 20.2%, “led by significant office activity,” Rispoli said.
- Capital markets revenue increased 45.5%, reflecting “strong gains in senior housing” and higher activity in the company’s affordable housing business, along with improvement in lodging, industrial, and office transactions.
Rispoli said overall capital markets volumes grew 67.6%, led by a 112.3% increase in total debt. He described the quarter as the company’s “10th quarter in a row of double-digit revenue and volume growth” as Newmark continued expanding its market share.
Gosin highlighted record first-quarter revenues for management services and servicing, leasing, and capital markets. On leasing, he pointed to “a meaningful acceleration in U.S. office leasing volumes, particularly in San Francisco and New York City,” along with expansion of the company’s global footprint.
Profitability, expenses, and shareholder returns
Rispoli said total expenses increased 24.5%, reflecting commission and pass-through expense growth “generally in line with related revenue improvement,” with the remaining increase “largely attributed to our global growth initiatives.”
On earnings, Newmark reported adjusted EPS of $0.33, up 57.1% from $0.21. Adjusted EBITDA rose 35.8% to $121.2 million from $89.2 million, and adjusted EBITDA margin improved by 91 basis points, Rispoli said. The company’s adjusted earnings tax rate was 14.7%, compared with 14.3% a year earlier.
Newmark’s fully diluted weighted average share count increased 0.3% to 256 million. Through April 29, the company repurchased 10.4 million shares at an average price of $14.58 for a total of $151.1 million, Rispoli said.
Rispoli also said the company increased its dividend “for the first time since 2022” to $0.06 from $0.03, citing an expectation for sustained earnings growth.
Cash flow, balance sheet, and capital flexibility
Rispoli said Newmark ended the quarter with $212.1 million in cash and cash equivalents, $832 million of total corporate debt, and 1x net leverage. After quarter end, Newmark renewed its revolving credit facility and increased it 50% to $900 million.
On a trailing 12-month basis, adjusted free cash flow increased 111.7% to $361.5 million, representing 82.4% of adjusted earnings, which Rispoli said was at the high end of the company’s expected 65% to 85% range.
Asked by Piper Sandler’s Alexander Goldfarb whether cash flow growth would mirror higher earnings expectations, Rispoli said he expected cash flow to grow “in line with earnings,” adding that the company continues to generate substantial cash flow and therefore has “a significant amount of flexibility.”
Raised full-year 2026 outlook
Management raised full-year guidance following what Gosin called a strong start to the year and a “healthy transaction pipeline.”
Rispoli said Newmark now expects:
- Total revenue of $3.775 billion to $3.875 billion, representing growth of 15% to 18%.
- Adjusted EBITDA of $656 million to $694 million, up 17% to 23%.
- Adjusted EPS of $1.87 to $1.98, an increase of 15% to 22%.
- Adjusted earnings tax rate of 13% to 15%, versus 11.4% (as cited in guidance commentary).
Rispoli added that the company continues to expect capital markets to increase faster than the midpoint of the revenue growth range, management and servicing growth to be roughly in line with the midpoint, and leasing improvement to be below the midpoint.
In response to a question from Barclays’ Brendan Lynch about why leasing growth would trail the midpoint despite a strong first quarter, Rispoli pointed to “mostly comps,” noting that Newmark had “a very, very strong leasing business in the second half of last year,” which makes comparisons tougher as 2026 progresses.
Citizens’ Mitch Germain asked why the company raised its outlook early given a turbulent backdrop. Rispoli said pipelines remain strong and Newmark does not see transactions “falling out of the pipeline,” though some may take “a few more days to close because of the complexity of the market.” He also emphasized visibility in recurring businesses, saying they were up over 20% in the first quarter and that Newmark continues to grow its servicing book, which he said is now over $220 billion.
Strategic focus: data centers, advanced manufacturing, AI adoption, and cross-sell
Executives discussed several growth areas, including data centers and infrastructure-related services. Goldfarb asked about investor appetite and power constraints in the data center sector. Gosin said the shift from relying on the grid to “behind the meter” and distributed power requires more expertise in structuring transactions, which he described as beneficial for Newmark. He said the data center pipeline “looks really, really good” and confirmed the company is not seeing a slowdown in appetite.
On advanced manufacturing, Lynch asked what Newmark is seeing on the ground. Gosin said there is “enormous activity,” pointing to incentives that began with the CHIPS Act and continued with investment in infrastructure and power. Gosin also suggested a trend toward pairing hyperscalers with advanced manufacturing due to community pushback on data centers and constraints on power, though he emphasized it is “early” in that trend.
Germin asked about integration and cross-sell from acquisitions. Gosin said, “The cross-sell is incredible,” citing opportunities to provide institutional investors services such as fund administration, property accounting, staffing, portfolio analysis, cost monitoring, appraisal, and connections to the company’s property sales and financing businesses.
On international hiring, Gosin said garden leave “is burning off,” and cited France as an example where the company projected breaking even in year three but is “profitable in year two.” Rispoli added that hiring from 12 to 18 months ago is beginning to ramp, noting that revenue growth outside the U.S. has been faster than in the U.S. A company representative clarified that growth “outside the U.S. and U.K.” was 37.9%, while U.S. growth was 26.6%.
KBW’s Jade Rahmani asked about AI rollout, safeguards, and the biggest impact areas. Gosin said Newmark expects to benefit from AI in productivity and that the company is seeing “relatively broad and continuously accelerated adoption” across different platforms, with a focus on giving top talent technology to “do more with less” and spend more time in front of clients. Rahmani also asked about expanding management services into infrastructure management, and Gosin replied, “Of course,” adding that Newmark has hired energy and infrastructure bankers and is expanding into areas such as power contracting, managing more technical facilities, cost monitoring around infrastructure building, and construction and project management related to infrastructure.
Goldman Sachs’ Julien Blouin asked about affordable housing’s contribution. Gosin said Newmark hired “the number one team in the country” in affordable housing about a year and a half to two years ago and noted that affordable deals and HUD approvals can take about a year and a half to ramp. Gosin said investors are seeking alternative asset classes and described affordable housing—particularly Section 8 and LIHTC—as part of that trend. He also cited strength in senior housing, student housing, and medical office buildings as areas drawing investor interest.
On whether AI could disrupt parts of loan origination or servicing, Gosin said AI could enhance margins in servicing businesses but added, “I don’t see that changing much other than enhancing margin at this moment.”
Gosin closed the call by saying the company looks forward to providing an update next quarter.
About Newmark Group NASDAQ: NMRK
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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