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Newmark Group
(NASDAQ:NMRK)
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Rating:67Neutral
Price Target:
$17.50
▲(13.71% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improving fundamentals and strong cash flow rebound, reinforced by a positive earnings call with reaffirmed double-digit growth guidance and strong recent execution. Offsetting factors include elevated leverage and historical volatility, only moderately supportive technicals, and a valuation that does not look clearly cheap with a modest dividend yield.
Positive Factors
Free Cash Flow Generation
A material rebound in TTM operating cash flow (~$846M) and free cash flow (~$818M) enhances durable self-funding. Strong FCF conversion (~0.79x of net income) increases flexibility for M&A, recurring-revenue investment and debt servicing, supporting long-term strategy execution.
Negative Factors
Elevated Leverage
Debt levels remain meaningful for a services firm: ~$867M of corporate debt versus equity near $1.75B and historical D/E around 1.2–1.9x. Elevated leverage reduces financial flexibility, raises refinancing and interest-rate sensitivity, and heightens risk if transaction volumes or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
A material rebound in TTM operating cash flow (~$846M) and free cash flow (~$818M) enhances durable self-funding. Strong FCF conversion (~0.79x of net income) increases flexibility for M&A, recurring-revenue investment and debt servicing, supporting long-term strategy execution.
Read all positive factors
Newmark Group (NMRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend Yield1.18%
Average Volume (3M)1.27M
Price to Earnings (P/E)18.4
Beta (1Y)1.18
Revenue Growth23.06%
EPS Growth88.89%
CountryUS
Employees10,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.83
Shares Outstanding159,943,100
10 Day Avg. Volume1,155,788
30 Day Avg. Volume1,270,955
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.12
Price to Sales (P/S)0.93
P/FCF Ratio21.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.38Price Target Upside25.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.95
Revenue Forecast (FY)$3.84B
Newmark Group Business Overview & Revenue Model
Company Description
Newmark Group, Inc., a venerable New York City-based enterprise established in 1929, offers a full spectrum of commercial property services both domestically within the United States and across international markets. The company’s diverse service ...
How the Company Makes Money
Newmark primarily earns revenue by charging fees and commissions for commercial real estate transactions and recurring fees for ongoing advisory and management services. A major portion of its revenue is transaction-driven: (1) Leasing services ge...
Newmark Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit revenue growth, meaningful EPS and EBITDA expansion, large free cash flow improvement, market share gains and successful M&A integration. Management tempered enthusiasm with caution around timing of large transactions, near-term expense and margin impacts from growth initiatives and unchanged guidance due to tougher H2 comps and macro uncertainty. Overall, positives (robust growth, cash generation and market share) materially outweigh the headwinds (timing uncertainty, investment-driven expense pressure and sector-specific frictions).Positive Updates
Strong Revenue Growth
Total revenues increased 17.0% year-over-year to $888.4 million (Q2 2026 vs $759.1 million), an all-time second-quarter record.
Negative Updates
Expense Growth Driven by Investments
Total expenses rose 16.6%; while commission and pass-through costs rose in line with revenue, incremental expense increase was largely attributed to global growth initiatives and recent M&A. Excluding pass-through and growth investments, expenses would have increased 9.6%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenues increased 17.0% year-over-year to $888.4 million (Q2 2026 vs $759.1 million), an all-time second-quarter record.
Read all positive updates
Company Guidance
Guidance was reaffirmed: at the midpoint management expects total revenues to rise ~16%, adjusted EBITDA to grow ~20% and adjusted EPS to increase ~19% for 2026. The company pointed to its Q2 strength—total revenue $888.4M (+17%), adjusted EBITDA $139.2M (+22.1%) with margin expansion of 65 bps, adjusted EPS $0.39 (+25.8%)—and trailing‑12‑month adjusted free cash flow of $391.1M (+71.6%), which equals 85.3% of adjusted earnings (target range 65–85%). Balance sheet metrics include $259.7M cash, $867.3M corporate debt (1x net leverage), a fully diluted share count of 251.9M, and an adjusted earnings tax rate of 14.7%; management also reiterated a longer‑term goal of producing >$2.0B of annual revenue by 2029 (implying mid‑teen growth).Newmark Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.61B | 3.34B | 2.74B | 2.47B | 2.71B | 2.91B |
| Gross Profit | 3.47B | 3.16B | 2.74B | 2.47B | 2.71B | 2.91B |
| EBITDA | 497.81M | 415.31M | 337.34M | 291.44M | 351.38M | 1.38B |
| Net Income | 148.25M | 126.19M | 61.23M | 42.58M | 83.28M | 750.73M |
Balance Sheet | ||||||
| Total Assets | 5.19B | 5.02B | 4.71B | 4.47B | 3.94B | 5.22B |
| Cash, Cash Equivalents and Short-Term Investments | 259.70M | 349.29M | 197.69M | 164.89M | 233.80M | 715.90M |
| Total Debt | 2.17B | 2.00B | 2.02B | 1.75B | 1.41B | 2.40B |
| Total Liabilities | 3.44B | 3.27B | 3.17B | 2.89B | 2.42B | 3.55B |
| Stockholders Equity | 1.45B | 1.46B | 1.21B | 1.25B | 1.18B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 797.58M | 142.63M | -43.05M | -321.32M | 1.13B | -68.43M |
| Operating Cash Flow | 846.02M | 172.00M | -9.94M | -265.96M | 1.20B | -48.71M |
| Investing Cash Flow | -297.99M | -198.11M | -33.43M | -49.74M | 308.63M | 453.09M |
| Financing Cash Flow | -594.00M | -44.85M | 89.53M | 261.46M | -1.46B | -396.28M |
Newmark Group Technical Analysis
Positive
15.39
Price Trends
15.13
Positive
15.17
Positive
15.75
Negative
Market Momentum
-0.08
Positive
51.48
Neutral
54.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMRK, the sentiment is Positive. The current price of 15.39 is above the 20-day moving average (MA) of 15.19, above the 50-day MA of 15.13, and below the 200-day MA of 15.75, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 54.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMRK.
Newmark Group Risk Analysis
Newmark Group disclosed 55 risk factors in its most recent earnings report. Newmark Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Newmark Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $17.25B | 17.61 | 13.57% | ― | 11.17% | 79.36% | |
70 Outperform | $44.26B | 34.81 | 15.16% | ― | 14.53% | 22.31% | |
70 Outperform | $1.20B | 86.24 | 2.44% | 1.65% | 11.89% | ― | |
67 Neutral | $2.76B | 18.40 | 9.92% | 0.97% | 23.06% | 88.89% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $3.38B | 49.35 | 3.50% | ― | 11.04% | -66.92% |
* Real Estate Sector Average
NMRK
Newmark Group
15.25
-1.79
-10.53%
CBRE
CBRE Group
147.96
-9.88
-6.26%
JLL
Jones Lang Lasalle
370.31
77.39
26.42%
MMI
Marcus & Millichap
31.03
0.93
3.08%
CWK
Cushman & Wakefield
14.40
-0.45
-3.03%
Newmark Group Corporate Events
Business Operations and StrategyExecutive/Board Changes
Newmark Group Names First Chief Strategy Officer
Positive
May 22, 2026
On May 19, 2026, Newmark Group, Inc. appointed director Kyle S. Lutnick as its first Chief Strategy Officer, an executive officer role that will report to Chief Operating Officer Luis Alvarado. The move reinforces Newmark’s emphasis on data,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.