Newmark Group Q2 Earnings Call Highlights

Key Points

• Strong Q2 performance: Newmark’s revenue rose 17% to a record $888.4 million, while adjusted EPS increased 26% to $0.39 and adjusted EBITDA grew 22.1% to $139.2 million. Its management and servicing, leasing, and capital markets segments all posted double-digit growth.
• Healthy pipeline and strategic growth: First-half investment sales and debt volumes increased 64.8% and 26.7%, respectively, with additional opportunities in data centers, digital infrastructure, multifamily, and large office transactions. The company continues to pursue acquisitions and international expansion.
• 2026 outlook unchanged: Newmark maintained guidance for approximately 16% revenue growth, 19% adjusted EPS growth, and 20% adjusted EBITDA growth at the midpoint, citing tougher comparisons, transaction timing uncertainty, and broader macroeconomic risks.

Newmark Group NASDAQ: NMRK reported second-quarter results marked by double-digit growth in revenue, earnings and its major operating segments, while maintaining its full-year outlook amid what executives described as a healthy transaction pipeline and continued investment in expansion.

Chief Executive Officer Barry Gosin said the company increased total revenue 17% and adjusted earnings per share 26% during the quarter. He said Newmark has now recorded double-digit year-over-year growth for 11 consecutive quarters in capital markets, eight consecutive quarters in management and servicing, and seven consecutive quarters in leasing.

Total revenue rose to $888.4 million, an all-time second-quarter high, from $759.1 million a year earlier. Adjusted EPS increased to $0.39 from $0.31, while adjusted EBITDA rose 22.1% to $139.2 million. The company’s adjusted EBITDA margin on total revenue improved 65 basis points year over year.

Segment Growth Led by Management and Servicing

Management, servicing and other revenue increased 17.7%, driven by double-digit organic growth in recurring-revenue businesses as well as recent acquisitions, Chief Financial Officer Michael Rispoli said. Gosin said the segment delivered its fourth consecutive record quarter and remains on track to produce more than $2 billion of annual revenue by 2029, implying mid-teens growth over that period.

Leasing revenue climbed 17.2%, led by increased office activity across several industry categories. Gosin cited stronger office volumes in New York City, the San Francisco Bay Area and Los Angeles, along with the company’s expanding global footprint. Executives said the office leasing market remains concentrated in higher-quality properties, though owners of lower-quality buildings are investing in amenities and repositioning efforts to compete.

“B assets are being looked at and amenitized in order to compete with the A assets,” Chief Operating Officer Lou Alvarado said. He added that there remains demand for B- and C-quality properties among tenants unable to pay top-tier rents.

Capital Markets revenue increased 16%, reflecting higher multifamily sales volumes, particularly in senior housing and affordable housing, along with stronger industrial and office sales. The gains were partly offset by lower loan-origination activity compared with the prior-year quarter, which included a significant transaction that boosted debt volumes.

Newmark said total debt volumes and investment sales volumes for the first half increased 26.7% and 64.8%, respectively, from the year-earlier period. According to Gosin, the company moved up one position to rank second in overall U.S. investment sales for the first half of 2026, citing MSCI data.

Pipeline, Data Centers and Multifamily

Rispoli said the debt pipeline remains strong through the second half of the year, although the company faces a more challenging comparison against the second half of 2025. He noted that the prior-year second quarter included a single $7 billion transaction, affecting the year-over-year comparison for originations.

Gosin said Newmark has a number of large deals in its pipeline, including transactions involving data centers, digital infrastructure and large office properties. He described demand for capital as supported by data-center development, computing capacity needs and infrastructure requirements related to artificial intelligence.

Alvarado said Newmark believes it has further room to gain market share in U.S. investment sales and internationally. The company’s international operations are primarily in Europe, he said, while its presence in Asia remains small.

On multifamily, Gosin highlighted Newmark’s affordable housing platform, including activity in Section 8 and low-income housing tax credit properties. Rispoli added that the company’s government-sponsored enterprise pipeline entering the second half of the year is “pretty robust.” Gosin said interest rates have had the greatest impact on multifamily, while market conditions also vary by location and can be affected by overbuilding.

Expenses, Cash Flow and Capital Allocation

Total expenses rose 16.6%, primarily reflecting commission and pass-through costs that increased in line with related revenue, as well as spending on global growth initiatives. Excluding pass-through items and global growth investments, expenses would have risen 9.6%, according to the company.

Newmark ended the quarter with $259.7 million of cash and cash equivalents, $867.3 million of total corporate debt and net leverage of one times. Trailing 12-month adjusted free cash flow increased 71.6% to $391.1 million, representing 85.3% of adjusted earnings.

Rispoli said Newmark repurchased a substantial amount of stock primarily in the first quarter, with some additional repurchases in the second quarter. He said the company expects to prioritize potential acquisitions, but could return to share buybacks later in the year if anticipated transactions do not close.

Executives pointed to RealFoundations as a recent acquisition that has supported cross-selling and integration with Newmark’s consulting and managed-services operations. Alvarado said the company continues to evaluate acquisition opportunities, primarily in managed services, as it works toward its 2029 revenue target for that business.

Outlook Remains Unchanged

Newmark maintained its 2026 guidance. At the midpoint, the company expects total revenue growth of approximately 16%, adjusted EPS growth of about 19% and adjusted EBITDA growth of roughly 20%.

Rispoli said the company increased guidance in the previous quarter but elected not to raise it again because of tougher second-half comparisons, uncertainty around the timing of sizable transactions and the broader macroeconomic environment. He said management expects continued margin expansion in the second half and into 2027, even as Newmark continues to invest in growth initiatives and international expansion.

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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