Newmark Posts Record Revenue as Investment Sales Accelerate
Second-quarter revenue rose 17.0% to $888.4 million, extending the company’s growth through the first half.
Newmark Group (NMRK), the commercial real-estate services company, posted record second-quarter revenue as investment-sales volume roughly doubled from a year earlier.
The quarter extended Newmark’s growth while underscoring a shift within capital markets. Investment sales accelerated across a broader geographic mix, while mortgage-origination fees declined against a prior-year period that included several large debt transactions.
Revenue reached $888.4 million, up 17.0%, and first-half revenue increased 21.8% to $1.735 billion. Adjusted earnings rose 25.5% to $97.5 million, while adjusted earnings per share increased 25.8% to $0.39. GAAP net income fell 5.7% to $27.1 million, and GAAP earnings held at $0.11 a share.
Adjusted EBITDA increased 22.1% to $139.2 million, outpacing revenue growth and lifting the implied margin to about 15.7% from 15.0%. Expenses used to calculate adjusted earnings rose 16.6%, slightly slower than revenue, while GAAP expenses increased 18.3%.
Management-services, servicing-fee and other revenue grew 17.7% to $351.2 million, its fourth consecutive quarterly record. Newmark’s servicing and asset-management portfolio expanded 20.5%, while managed property and facilities square footage increased 23.1%.
Leasing and other commissions rose 17.2% to $278.0 million, an all-time second-quarter high, as office leasing strengthened in New York City, the San Francisco Bay Area and Los Angeles. Capital-markets revenue increased 16.0% to $259.2 million, with investment-sales revenue climbing 54.4% as commercial mortgage-origination fees fell 26.1%.
Newmark reaffirmed its 2026 outlook, which calls for revenue of $3.775 billion to $3.875 billion, adjusted earnings of $1.87 to $1.98 a share and adjusted EBITDA of $656 million to $694 million.
The company repurchased 10.4 million shares for $151.1 million during the first half, leaving $248.9 million under its authorization. Corporate debt rose about 29% to $867.3 million after Newmark expanded its unsecured credit facility to $900 million, while quarter-end net leverage stood at 1.0 times.