Newmark Group, Inc.

What they do

Newmark provides integrated commercial real estate services, including leasing, capital markets, management services, servicing fees, and asset management. The company serves large institutional investors, global corporations, and other owners and occupiers across the U.S. and international markets. It operates in one reportable segment, real estate services, with revenue from leasing and other commissions, capital markets, and management services, servicing fees, and other.

Revenue drivers

• Management Services, Servicing Fees and Other — Recurring revenue from property, project, and facilities management, loan servicing and asset management; grew 17.7% year-on-year in Q2 2026 and is a key focus for reaching over $2 billion in annual Management and Servicing revenues by 2029.
• Leasing and Other Commissions — Fees from leasing transactions; rose 17.2% year-on-year in Q2 2026 to an all-time best second quarter, driven by office activity in sectors including artificial intelligence, financial services, manufacturing, legal, and consumer goods.
• Capital Markets — Revenue from investment sales, debt and equity financing, and related advisory; increased 16.0% year-on-year in Q2 2026, with broad recovery across U.S. property types and international share gains; Newmark ranked #2 in overall U.S. investment sales for first half 2026 per MSCI.

Recent performance

For Q2 2026, total revenues were $888.4 million, up 17.0% from $759.1 million in Q2 2025. GAAP net income for fully diluted shares was $27.1 million, or $0.11 per diluted share, compared with $28.8 million and $0.11 a year earlier. Post-tax Adjusted Earnings rose 25.5% to $97.5 million, and Adjusted EPS increased 25.8% to $0.39. For the first half of 2026, total revenues were $1,734.9 million, up 21.8% year-on-year, and GAAP EPS was $0.18, up 200.0%.

Strategy

Newmark is investing in recurring revenue businesses, including the acquisitions of the Altus Appraisal platform, Catella, and RealFoundations between September 2025 and June 2026, and the organic launch of property and facilities management in India and a new fund administration service line. The company is expanding internationally, aiming to grow non-U.S. offices and revenue-generating headcount, and expects new hires to take 6 to 18 months to produce meaningful fees. Management targets over $2 billion in annual Management and Servicing revenues by 2029, supported by cross-selling and productivity gains.

Risks

• Headcount ramp-up costs — Newly hired professionals typically take 6 to 18 months to produce meaningful fees, while related expenses are recorded beginning in their first quarter.
• Commercial real estate cyclicality — Leasing and capital markets activity is influenced by economic and job growth, interest rates, and demand for commercial real estate as an investment.
• Reliance on U.S. revenue-generating headcount productivity — U.S. revenue-generating headcount was flat or up modestly year-on-year, so double-digit U.S. revenue growth in Q2 2026 depended primarily on productivity gains.
• Integration and performance of recent acquisitions — The company has recently acquired the Altus Appraisal platform, Catella, and RealFoundations, and their results may not meet expectations or may be difficult to integrate.

Outlook

Management continues to expect double-digit top- and bottom-line growth for the third consecutive year in 2026, citing strong year-to-date results and a healthy transaction pipeline. The company anticipates that investments in recurring revenue businesses, ongoing international expansion, improving industry fundamentals, and talented professionals will drive long-term growth and market share gains.