Newmark Earnings Call Highlights Record Growth And Outlook

Newmark ((NMRK)) has held its Q4 earnings call. Read on for the main highlights of the call.

Newmark’s latest earnings call struck an upbeat tone as management highlighted record results across revenue, earnings, and cash generation. Executives acknowledged near-term pressure from growth investments, a higher expected tax rate, and pockets of market risk, but emphasized that expanding margins, market-share gains, and a robust balance sheet leave the firm well positioned heading into 2026.

Record Revenue and Top-Line Growth

Newmark delivered record revenue, with total sales rising 15.3% year over year to just over $1.0 billion versus $872.7 million. Management framed the double-digit top-line advance as evidence that the firm is growing faster than many parts of the commercial real estate market despite a still-choppy macro backdrop.

Adjusted EPS and EBITDA Expansion

Profitability moved higher alongside revenue as adjusted EPS climbed 23.6% to $0.68 from $0.55. Adjusted EBITDA rose 17% to $214.0 million, and margins expanded by 32 basis points in the quarter and 81 basis points for the full year, underscoring better operating leverage even as the company spends aggressively on growth.

Leasing Strength and Milestone Performance

Leasing was a standout, growing 13.6% in the quarter and 17% for 2025 to deliver a record period and Newmark’s first billion-dollar-plus year for this service line. Management pointed to healthy tenant demand across key markets as evidence that the leasing franchise is gaining scale and share despite uncertainty around long-term office usage.

Management and Servicing Scale-Up

The firm’s management and servicing engine also set records, with full-year revenues up 12% to more than $1.24 billion. Newmark’s servicing and asset management portfolio surpassed $200 billion, ending the year at $211.2 billion, while related fees grew roughly 10.9% after stripping out escrow interest noise.

Capital Markets Market-Share Gains

In capital markets, Newmark outpaced the broader industry by a wide margin as investment sales volumes jumped 50% in the quarter against 21% growth in the U.S. and 15% in Europe. For the full year, investment sales rose 56% and originations climbed 67%, handily beating U.S. industry origination growth of 43% and signaling clear market-share gains.

Strong Cash Generation and Balance Sheet

Cash generation was another bright spot, with record cash from the business of $518.4 million and adjusted free cash flow up 38.4% to $268.9 million. Newmark ended 2025 with $229.1 million in cash and equivalents, corporate debt of $671.7 million, and net leverage improved to just 0.8 times, giving it ample financial flexibility.

Capital Allocation and Shareholder Returns

Reflecting confidence in its financial position, the board lifted the share repurchase authorization to $400 million. The company bought back $127.1 million of stock during the year, signaling a willingness to return capital to shareholders while still funding organic growth and selective acquisitions.

International Expansion and Rapid Market Ramp

Newmark’s international push is gaining traction, with roughly 1,200 employees now on the ground in Europe and activity across Germany, the U.K., France, Spain, Italy, the Middle East, and Singapore. France reached breakeven in just over a year, faster than expected, which management cited as proof that its market-entry and ramp strategy is working.

AI as a Structural Tailwind

Management cast artificial intelligence as a structural tailwind that could both lift productivity and create new client demand. They see AI driving activity in office leasing in hubs like New York and San Francisco, as well as in data centers, capital markets, and valuation services, where Newmark aims to leverage its proprietary data and analytics.

Expense Growth from Strategic Investments

Total expenses climbed 15.7%, slightly ahead of revenue growth, as commissions, pass-through costs, and global expansion spending all moved higher. Executives stressed that excluding these growth investments, expenses rose about 6%, suggesting underlying cost discipline even as the firm builds out its platform.

Quarterly Debt Origination Lag

One soft spot was quarterly debt origination, which increased 12% versus a 36% rise in overall U.S. originations, implying some lost ground in that period. Management framed this as a timing issue, noting that full-year origination volumes were strong and significantly outpaced industry growth.

Higher Expected Tax Rate

Investors will need to factor in a higher tax drag, as Newmark expects its adjusted earnings tax rate to rise to 13%–15% in 2026 from 11.4% in 2025. The company acknowledged that this will temper the after-tax earnings benefit from operating growth, even as pretax profits expand.

Leasing Growth Moderation in 2026

Looking ahead, management forecast that leasing growth in 2026 will land below the midpoint of overall revenue guidance. That stance suggests some moderation in leasing momentum after this year’s surge, though Newmark still expects the segment to contribute to broader double-digit companywide growth.

Hiring Ramp and Cash Deployment

New hires abroad will take time to reach full productivity, with Germany not expected to be fully ramped until 2027 and Italy requiring about one to one and a half years. Newmark also used $220.2 million of cash to bring on revenue-generating professionals and $53.4 million for net acquisition payments, which weighed on free cash but is intended to drive future revenue.

Market Refinancing Risk and AI Uncertainty

Management flagged roughly $2.0 trillion of commercial real estate debt coming due over the next three years, a source of both refinancing risk and deal opportunity. They also noted that AI’s long-term impact on office demand remains unclear even though current client conversations show no meaningful reduction in space needs so far.

Slight Share Count Increase

The fully diluted weighted average share count ticked up 0.5% to 254.3 million, creating a modest headwind for per-share metrics. This small dilution comes despite repurchases and reflects ongoing equity-based compensation and capital deployment to support growth.

Guidance and Forward-Looking Outlook

For full-year 2026, Newmark guided to total revenue of $3.7–$3.8 billion, implying about 13.8% growth at the midpoint versus 2025. The company projected adjusted EBITDA of $635–$675 million and adjusted EPS of $1.82–$1.92, both pointing to double-digit increases, with capital markets expected to grow fastest, management and servicing roughly in line with the midpoint, and leasing slightly below it.

Newmark’s call painted the picture of a company gaining share, scaling globally, and leaning into technology while managing through industry and macro uncertainties. Despite higher expenses from growth initiatives and a rising tax rate, management’s confident outlook for record 2026 results and ongoing cash generation is likely to keep investor attention focused on the upside potential.