Newmark Group NASDAQ: NMRK reported record third-quarter revenue and higher adjusted earnings, driven by growth in its management and servicing businesses and leasing operations, while executives lowered their 2026 outlook to reflect macroeconomic volatility and uncertainty around transaction closings.
Total revenue rose 12.7% year over year to $973.2 million, which Chief Financial Officer Mike Rispoli described as an all-time third-quarter high. Adjusted EBITDA increased 14.6% to $166.4 million, while adjusted earnings per share rose 14.3% to $0.48.
Chief Executive Officer Barry Gosin said the company continued to see “strong top and bottom-line improvement,” with management and servicing revenue increasing 18% and producing Newmark’s fifth consecutive record quarter in those businesses. Leasing revenue rose 26%, marking its strongest third quarter, according to Gosin.
Management, Leasing Lead Growth
Rispoli said Management Services, Servicing Fees and Other revenue increased 18.3%, supported by organic growth in outsourcing businesses, same-store gains in Valuation & Advisory, and six acquisitions completed since the third quarter of 2025.
Leasing revenue increased 26.5%, reflecting higher industrial and office fees in several West Coast markets and Texas. Gosin said leasing demand was supported by artificial intelligence, data centers and other technology sectors, as well as manufacturing, legal services, aerospace, defense and healthcare.
Capital Markets revenue declined 4.4%. Newmark’s investment-sales volumes rose 33.4%, led by senior housing, affordable housing, industrial and retail activity, but that increase was offset by lower loan-origination activity. Rispoli said the origination business faced a difficult comparison with the prior-year quarter, when total debt volumes rose 129.1%.
Industry activity involving government-sponsored enterprises declined about 30% during the quarter, according to Rispoli. However, he said Newmark gained more than 70 basis points of combined Fannie Mae and Freddie Mac market share over the trailing 12 months.
Newmark said recurring businesses represented about 40% of year-to-date revenue, up from 24% in 2017. Gosin said the company expects management and servicing operations to generate more than $2 billion in annual revenue in 2029, implying double-digit growth.
Outlook Reduced Amid Capital Markets Uncertainty
The company revised its full-year 2026 outlook, citing the anticipated effect of macroeconomic conditions on transaction volumes. Newmark now expects:
- Total revenue of $3.7 billion to $3.8 billion, representing growth of 12% to 15%.
- Adjusted EBITDA of $629 million to $667 million, up 12% to 19%.
- An adjusted earnings tax rate of 13% to 15%, compared with 11.4% a year earlier.
- Adjusted EPS of $1.80 to $1.90, an increase of 11% to 17%.
Rispoli said the projected results would still represent Newmark’s best annual performance for revenue, adjusted EBITDA and adjusted EPS.
For 2027, management did not provide formal guidance but said it currently expects earnings, excluding acquisitions, could range from down 10% to up 10% compared with projected record 2026 results. Rispoli said recurring businesses are expected to maintain double-digit growth and leasing is expected to grow at a single-digit pace, but Capital Markets volume could remain under pressure through at least the first half of 2027.
He said a downside case would involve sustained interest-rate volatility and continued increases in the 10-year Treasury yield, which could cause Capital Markets revenue to decline by 20% to 30%. The company’s base case is for conditions to improve and for Newmark to have “a pretty good year” in 2027, he said.
Chief Operating Officer Lou Alvarado said deals have been taking longer to close following a 50-basis-point move higher in rates and an increase in the 10-year Treasury yield. Higher rates have also pressured capitalization rates and asset values, he said.
“Nobody’s walked from the table. They’ve just moved the table,” Gosin said of the company’s deal pipeline.
Cash Flow, Buybacks and Investment Priorities
Total expenses rose 13.5%, or 10.8% excluding pass-through items, with most of the increase tied to commission-based revenue growth and global expansion initiatives, Rispoli said.
Newmark ended the quarter with $240 million in cash and cash equivalents, $877.5 million in total corporate debt and net leverage of 1x. Trailing 12-month adjusted free cash flow increased 16% to $336.8 million.
The company repurchased 3.9 million shares for $59.4 million near the end of the quarter. On Oct. 28, the board reauthorized a $400 million share-repurchase program, and Rispoli said management anticipates additional repurchases given the company’s financial position and recent share price.
Newmark has shifted more of its capital allocation toward acquisitions in recurring-revenue businesses after building out its U.S. platform and filling gaps in major Capital Markets asset classes, Rispoli said. The company has completed six acquisitions during the past year, all in Management Services, Servicing Fees and Other, according to management.
Leadership Transition and International Expansion
Gosin reiterated that he will step down as CEO at the end of 2026 after 47 years with the company. He said Newmark is evaluating both internal and external candidates and expects to identify a successor by year-end. Gosin said he will remain involved to assist with the transition.
The company also plans to expand internationally over the next 18 to 24 months across nearly all service lines. About 13% of Newmark’s revenue currently comes from outside the United States, Gosin said, compared with more than double or triple that share for large full-service peers.
Management said international growth is intended to strengthen Newmark’s ability to compete for outsourcing assignments from global occupiers and broaden collaboration across its service lines.
About Newmark Group (NASDAQ:NMRK)
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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