Newmark Group (NMRK) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 0.68%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.35
• Revenue Growth: 22.22%
• EPS Growth: 94.52%
• Country: US
• Employees: 8,100
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.68
• Shares Outstanding: 159,448,530
• 10 Day Avg. Volume: 1,492,708
• 30 Day Avg. Volume: 1,465,438
• PEG Ratio: 0.25
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 17.99
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $19.75
• Price Target Upside: 35.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.87
• Revenue Forecast (FY): $3.72B

• Rating: 56 Neutral
• Price Target: $15.00 ▲(2.88% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is anchored by mixed financial quality (improving balance sheet and revenue growth but weaker profitability and volatile cash flow) and weak technical momentum (below key moving averages with negative MACD). These are partially offset by a notably positive earnings-call setup, with confident 2026 double-digit guidance and increased buyback authorization; valuation is a mild headwind with a ~25 P/E and low yield.

Positive Factors

Resumed revenue growth and constructive 2026 guidance

Management's explicit guidance for ~14% top-line growth and double-digit EBITDA/EPS expansion signals durable demand and scalable fee generation across services. Clear multi-metric guidance supports capacity planning, investment pacing, and provides a multiyear baseline for revenue and margin improvements.

Market-share gains in capital markets and originations

Sustained, outsized growth in investment sales and originations indicates competitive strength, stronger client relationships, and deal execution capacity. Market-share gains in capital markets are durable drivers of fee revenue and tend to compound as larger mandates and referrals follow proven execution.

Improved leverage and stronger cash generation

Meaningful deleveraging and strong cash generation improve financial flexibility, enabling opportunistic buybacks, targeted M&A and investment in growth hires. A sub-1x net leverage ratio reduces refinance pressure and provides a buffer through CRE cycles, supporting durable capital allocation choices.

Negative Factors

Weakened profitability and margin pressure

Material decline in reported net income and only modest operating margins imply constrained returns on the balance-sheet build. If revenue growth slows, profitability weakness limits reinvestment and debt servicing capacity, making returns more sensitive to cyclical downturns in transaction volumes.

Inconsistent cash flow and large FCF swing

Volatile operating and free cash flow—driven by working-capital and transaction timing—reduces predictability of funding for buybacks, hires, and acquisitions. Persistent swings undermine confidence in cash conversion and can force defensive capital moves if market activity softens.

Exposure to large CRE refinancing risk

A heavy pipeline of maturing CRE debt is a structural market risk that can depress transaction volumes, increase distressed sales, and amplify volatility in origination and capital markets fees. Such macro refinancing pressure could materially affect revenue streams across cycles.

Newmark Group Business Overview & Revenue Model

Company Description

Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The company's investor/owner services and products include capital markets, such as investment, debt and structured finance, and loan sales; agency leasing, property management, and valuation and advisory; and commercial real estate due diligence consulting and advisory services, as well as government sponsored enterprise lending, loan servicing, mortgage broking, and equity-raising services. Its occupier services and products comprise tenant representation; real estate management technology systems; workplace and occupancy strategy; global corporate consulting; project management; account and transaction management; and lease administration and facilities management services. The company provides its services to commercial real estate tenants, investors, owners, occupiers, and developers, as well as lenders and multi-national corporations. As of December 31, 2021, it operated approximately 160 offices on four continents. The company was formerly known as Newmark Knight Frank and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York.

How the Company Makes Money

Newmark Group generates revenue primarily through its brokerage and advisory services, which include leasing and sales transactions in commercial real estate. The company earns commissions from successfully closed deals, which are based on a percentage of the transaction value. Additionally, Newmark provides property management and consulting services, contributing to its revenue through management fees and advisory charges. The firm also engages in capital markets activities, facilitating debt and equity placements, which generate income through origination fees and interest income. Key partnerships with financial institutions, real estate developers, and investment firms further enhance Newmark's ability to attract client transactions and expand its service offerings, ultimately driving its earnings.

Newmark Group Financial Statement Overview

Summary

Mixed fundamentals: revenue growth resumed in 2024–2025 and leverage improved in 2025 with lower debt and higher equity, but profitability weakened versus prior years and cash-flow reliability is a key concern given historical volatility and sharply negative free-cash-flow growth in 2025 versus 2024.

Income Statement

Revenue rebounded in 2024 (+10.9%) and continued to grow in 2025 (+4.2%), but profitability has weakened materially versus earlier years. Net income fell from $61.2M (2024) to $29.3M (2025), and margins are modest (2024 net margin ~2.2%, EBIT margin ~6.0%). The longer history shows volatility, with an unusually strong 2021 followed by meaningfully lower earnings power in 2022–2025.

Balance Sheet

Leverage has improved meaningfully in 2025, with total debt down to ~$672M while equity increased to ~$1.75B, supporting a stronger capital structure than 2024 (which showed high leverage with debt-to-equity ~1.68). Total assets also expanded to ~$5.02B in 2025. Key risk: profitability/returns have not kept pace with the balance-sheet build, and prior years show periods of higher leverage that can re-emerge if earnings or cash flow weaken.

Cash Flow

Cash generation has been inconsistent and volatile. Operating cash flow was negative in 2020, 2021, 2023, and slightly negative in 2024, then improved to +$172.0M in 2025, but free cash flow growth in 2025 was sharply negative (down ~398% vs 2024). The pattern suggests working-capital or transaction-driven swings, reducing confidence in the stability of cash conversion despite the most recent year’s rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.34B	2.74B	2.47B	2.71B	2.91B
Gross Profit	3.16B	2.74B	2.47B	2.71B	2.91B
EBITDA	415.31M	337.34M	291.56M	351.38M	1.38B
Net Income	126.19M	61.23M	42.58M	83.28M	750.73M
Balance Sheet
Total Assets	5.02B	4.71B	4.47B	3.94B	5.22B
Cash, Cash Equivalents and Short-Term Investments	349.29M	197.69M	164.99M	233.80M	715.90M
Total Debt	671.75M	2.02B	1.75B	1.41B	2.40B
Total Liabilities	3.27B	3.17B	2.88B	2.42B	3.55B
Stockholders Equity	1.75B	1.21B	1.25B	1.18B	1.28B
Cash Flow
Free Cash Flow	172.00M	-43.05M	-321.32M	1.13B	-68.43M
Operating Cash Flow	172.00M	-9.94M	-265.96M	1.20B	-48.71M
Investing Cash Flow	-198.11M	-33.43M	-49.74M	308.63M	453.09M
Financing Cash Flow	-44.85M	89.53M	261.46M	-1.46B	-396.28M

Newmark Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMRK, the sentiment is Negative. The current price of 14.58 is below the 20-day moving average (MA) of 15.48, below the 50-day MA of 16.65, and below the 200-day MA of 15.90, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMRK.

Newmark Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	70 Outperform	$14.69B	19.11	11.10%	―	12.51%	32.34%
CBRE	68 Neutral	$42.79B	37.64	13.38%	―	14.61%	30.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MMI	61 Neutral	$1.01B	-540.41	-1.09%	1.80%	20.74%	78.92%
CWK	60 Neutral	$3.14B	36.02	12.21%	―	6.77%	150.72%
NMRK	56 Neutral	$2.56B	21.35	8.49%	0.68%	22.22%	94.52%
EXPI	56 Neutral	$1.11B	-47.45	-10.15%	2.09%	5.08%	41.21%

Newmark Group Corporate Events

Newmark Group Stockholders Approve Directors, Auditor and Pay

At Newmark Group, Inc.’s 2025 annual meeting of stockholders held on December 30, 2025, investors voted on the election of directors, ratification of the company’s independent auditor and approval of executive pay. Stockholders re-elected five directors to serve until the next annual meeting, ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the company’s executive compensation on an advisory basis, with both Class A and Class B shareholders voting together as a single class under the firm’s dual-class share structure.

The most recent analyst rating on (NMRK) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Newmark Group stock, see the NMRK Stock Forecast page.