NMRK

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - real estate services industry, including Newmark (NASDAQ:NMRK) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models. The 14 consumer discretionary - real estate services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 10.2% while next quarter’s revenue guidance was 4.4% below. Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results. Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting. Newmark reported revenues of $888.4 million, up 17% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 7% since reporting and currently trades at $15.06. Is now the time to buy Newmark? Access our full analysis of the earnings results here, it’s free. Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States. Howard Hughes Holdings reported revenues of $1.12 billion, up 330% year on year, outperforming analysts’ expectations by 139%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Howard Hughes Holdings scored the biggest analyst estimate beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.60. Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $77.65 million, down 51.6% year on year, falling short of analysts’ expectations by 8.9%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates. Offerpad delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth of the whole group. Interestingly, the stock is up 12.9% since the results and currently trades at $4.12. Read our full analysis of Offerpad’s results here. Founded in 2009, AGNT (NASDAQ:AGNT) is a real estate company known for its virtual, cloud-based approach to real estate brokerage. AGNT reported revenues of $1.45 billion, up 10.7% year on year. This result surpassed analysts’ expectations by 3.3%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations significantly. AGNT scored the highest full-year guidance raise in the group. The stock is up 4.9% since reporting and currently trades at $4.30. Read our full, actionable report on AGNT here, it’s free. Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. Opendoor reported revenues of $883 million, down 43.7% year on year. This print came in 1.9% below analysts’ expectations. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates. The stock is down 18.8% since reporting and currently trades at $3.35. Read our full, actionable report on Opendoor here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wed, Jul. 29, 2026 at 10 a.m. ET Head of Investor Relations - Jason McGruder Chief Executive Officer - Barry Gosin Chief Financial Officer - Michael Rispoli Chief Operating Officer - Lou Alvarado Operator: Good day, and welcome to the Newmark's Q2 2026 Public Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jason McGruder, Head of Investor Relations. Please go ahead, sir. Jason McGruder: Thank you, operator, and good morning. Newmark issued its second quarter 2026 financial results press release earlier today. Unless otherwise stated, these results compare only the 3 months ending June 30, 2026, with the year earlier period. Except as otherwise stated, we will be referring to results only on a non-GAAP basis, including the terms adjusted earnings, adjusted EBITDA and adjusted free cash flow. Unless otherwise stated, any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities, excluding the impact of GSE FHA loan origination and sales. We may also use the term cash generated by the business, which is the same operating cash flow measure before the impact of cash used for employee loans. Please refer to today's press release, the supplemental tables and the quarterly results presentation on our website for a complete and updated set of definitions for any non-GAAP items, terms, reconciliations of these items to the corresponding GAAP results and how, when and why management uses them. For additional information on our cash flow measures as well as relevant industry or economic statistics, the outlook discussed today excludes the potential impact of any future acquisitions and assumes no meaningful changes in Newmark's stock price compared with yesterday's close. Our expectations are subject to change based on various macroeconomic, social, political and other factors. None of our targets or goals beyond 2026 should be considered formal guidance. Also, we remind you that information on this call contains forward-looking statements, including, without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and uncertainties, which could cause our actual results to differ from expectations. Except as required by law, we undertake no obligation to update any forward-looking statements. For a complete discussion of the risks and other factors that may impact these forward-looking statements, see our SEC filings, including, but not limited to, the risk factors and disclosures regarding forward-looking information in our most recent SEC filings, which are incorporated by reference. I'm now happy to turn the call over to our host and Chief Executive Officer, Barry Gosin. Barry Gosin: Good morning, and thank you for joining us. With me today are Newmark's Chief Financial Officer, Mike Rispoli; along with our Chief Operating Officer, Lou Alvarado. Newmark once again delivered strong financial results. We have now produced double-digit year-on-year revenue growth for 11 quarters in a row in Capital Markets. 8 consecutive quarters in management and servicing and 7 straight quarters in leasing. Our quarterly results also demonstrate the company's strong operating leverage as we increased total revenue 17% and adjusted EPS 26%. Our growth was led by management and servicing, which increased 18%, leading the company's fourth consecutive record quarter for these businesses. We remain confident in the producing more than $2 billion in annual revenue by 2029, which implies a mid-teen growth over that period. With respect to leasing, we increased fees by 17% to an all-time best second quarter. This was driven by significantly higher office volumes in key markets, including New York City, San Francisco Bay Area and Los Angeles as well as the ongoing expansion of our global footprint. We increased capital markets revenues by 16%. This reflected a broad recovery across property types and U.S. investment sales as well as our investments in talent driving international growth. We are also gaining domestic market share as Newmark moved up one spot to #2 in overall U.S. investment sales for the first half of 2026 according to MSCI. Given Newmark's strong first half results and healthy transaction pipeline, we continue to expect double-digit top and bottom line growth for the third consecutive year in 2026. With respect to artificial intelligence, we view the advent of AI not only as a defining economic force of our era, but as the accelerant that will better enable our talented professionals across the company to efficiently bring new and innovative solutions to their clients and enhance productivity over time. We believe our investment in recurring revenue businesses, ongoing international expansion, improving industry fundamentals and our talented professionals will together drive Newmark's long-term growth and Newmark market share gains. With that, I'm happy to turn the call over to Mike. Michael Rispoli: Thank you, Barry, and good morning. Total revenues were up 17% to an all-time second quarter best of $888.4 million compared with $759.1 million. We increased management services, servicing and other by 17.7%. This was due to double-digit organic growth across our recurring revenue businesses as well as recent acquisitions. Leasing was up 17.2%. This was led by significant office activity for clients across several major industry categories. Capital Markets grew by 16%, reflecting meaningfully higher multifamily sales volumes, particularly in senior housing and affordable housing. We also produced strong improvement in industrial and office sales. This was partially offset by lower origination activity, mainly due to several significant transactions in the prior year quarter. These helped drive Newmark's 134.8% year-on-year increase in total debt volumes in the second quarter of 2025. In the first half of 2026, we improved our total debt and investment sales volumes by 26.7% and 64.8%, respectively, compared with a year earlier, and we continue to have a strong pipeline. Moving on to expenses. Total expenses were up 16.6%. This reflected commission and pass-through expense growth generally in line with related revenue improvement, with the remaining increase largely attributed to our global growth initiatives. Excluding both pass-through items and the impact of our global growth initiatives, total expenses would have increased by 9.6%. Regarding taxes, the company's tax rate for adjusted earnings was 14.7% compared with 14% last year. Turning to earnings. We increased adjusted EPS by 25.8% to $0.39 compared with $0.31. Adjusted EBITDA was $139.2 million, up 22.1% versus $114 million. Our adjusted EBITDA margin on total revenues improved by 65 basis points, slightly ahead of the midpoint of our full year guidance range. Excluding the impact of pass-through items as well as recent M&A and international growth investments, our margin expansion would have been approximately 100 basis points higher. With respect to share count, our fully diluted weighted average share count was 251.9 million, roughly flat versus a year ago. Turning to the balance sheet. We ended the quarter with $259.7 million of cash and cash equivalents, $867.3 million of total corporate debt and 1x net leverage. On a trailing 12-month basis, the company increased adjusted free cash flow by 71.6% to $391.1 million. This represented 85.3% of adjusted earnings, which is at the high end of our target range of 65% to 85%. In terms of outlook, our guidance remains unchanged. At the midpoint for each metric, we expect total revenues to improve by approximately 16%, adjusted EPS to be up by approximately 19% and for adjusted EBITDA to grow by approximately 20%. With that, I would now like to open the call for any questions. Operator: And our first question comes from Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: Mike, first question is just going to the debt. I understand that a year ago had some outsized transactions. But as we think about sort of the peak back in '21, '22 when rates are really low and originations really high, how are you guys thinking about your business this year, next year, et cetera, as those maturities mature? Just trying to understand what we should expect as far as quarterly cadence? Michael Rispoli: Sure. I would say our debt pipeline remains really strong through the back half of the year. Hard to say what it will be next year, but the market certainly has a significant amount of maturities over the next 3 years. So we would expect that to continue. In the quarter, as you know, last year, we had a one $7 billion transaction in the second quarter of last year. So that affected the year-over-year comp in the second quarter of this year. But outside of that, the pipeline remains really healthy. Barry Gosin: And then we have a lot of large transactions in the pipeline with data centers, digital infrastructure and large deals and large office coming back, there is a need for capital, and there is an enormous amount of liquidity. Alexander Goldfarb: Okay. And then, Barry, as we think about the business overall, I mean, it seems like you guys are firing on all cylinders, double digit seems to be the permanently affixed in your press releases. So a little surprised that guidance wasn't increased, especially given the lack of supply and the acceleration that we're seeing from the REITs. Is there anything in the business that was holding you back? Because otherwise, as I say, from what the REITs are saying, the real estate markets only seem to be getting better, and therefore, I was a little surprised that the guidance wasn't bumped even just a small part? Lou Alvarado: Yes, I'll take that one, Alex. So if you remember, we did increase guidance last quarter. We continue to see really strong pipeline of activity. We continue to win management business. So everything looks pretty good. But we're up against a little bit of a tougher comp in the second half of the year. We were up 20% in the second half last year. And as Barry said, we have some pretty sizable transactions in the pipeline. It's a little bit difficult to determine the timing of that. And given the current macro environment, we just thought we wanted to see a little bit more data, and we'll update you on that next quarter. Operator: And we'll go to our next question from Julien Blouin with Goldman Sachs. Julien Blouin: Just in investment sales, another really strong quarter. You significantly outperformed the industry in the U.S. and obviously, internationally, given the push there on hiring. But I guess how much more ramp in productivity do you expect from U.S. producers? I wouldn't have guessed that you would still be sort of outperforming the industry by this much at this point? Lou Alvarado: Julian, this is Lou. I think we still have a lot of running room in that sector as well as in the international sector. As you know, right now, we're primarily Europe, but we're still looking to expand into Asia as well, which is very small for us right now. In the U.S., we still have some white space that we can continue to grow in. And so we don't see any real reason for a slowdown for us. And look, I think the things that we're doing, we will continue to pick up market share as you've seen us grow from where we were to where we are today. And so we're very happy with where we are, and we're very excited about where I think it's going to go. Julien Blouin: Okay. Great. And then on the data center financing piece, I know some of these are sort of larger financings that can be a little chunky and difficult to time. But overall, just at a sort of high level, how are you thinking about the opportunity set? It does feel like this year, we've had a little less of these sort of large chunkier data center financing deals so far? Michael Rispoli: Well, we are involved in many of the large visible, high-profile opportunities, as you guys know that. And we see a very robust pipeline. I mean the need for compute is still enormous. There is not a sufficient amount of power for all of the compute requirements if AI proliferates the way everybody anticipates it to. So you're going to need -- so there's going to be not only hyperscaler deals, there will be infrastructure transactions and all of these need capital. And we're in the middle of a lot of it. And so that's still going to continue even in spite of some of the new leasing that's occurring around the country. There are still plenty of states that will allow data centers that are looking for more chip manufacturing and advanced manufacturing and data centers. Also in the neocloud and smaller data centers will be a place that people are going to invest. Distributed power is something that's going to be needed more closer to where the demand is. So the -- every time we seem to see some moment where maybe there's a slowdown, there's just another -- there's more capacity required, another avenue that everybody is going to move to. And -- but that's -- this is still just at the beginning. Operator: And we'll move to our next question from Mitch Germain with Citizens Bank. Mitch Germain: I'm just curious if you could provide some perspective on performance of the recent M&A, the firms you acquired and maybe some ideas or some thoughts around the cross-sell opportunity that you've been able to realize to date? Barry Gosin: Yes. I mean, look, the most recent one was RealFoundations, right, that we acquired. And we've been able to do a significant amount of cross-selling with them as well as growing them. That was an area where as we continue to grow our managed services, they provide services that kind of augment that. and we've integrated them into our consulting practices. And it's been a very successful so far transition and integration for us. And we continue to look at other opportunities, primarily focused in that managed service sector. And we believe that, that is going to be one of the driving forces. As you know, we're looking to grow our managed service area to about $2 billion. And I think those M&As will help us get to that point over the period of time through 2029. Mitch Germain: That's helpful. And just one last question for me with regards to capital allocation. think the majority of your buyback activity occurred in the first quarter. And there really wasn't much done in the back part of the quarter. I think you did 1 million shares, which were announced when you announced your first quarter earnings already. Just maybe just some thoughts about buybacks or kind of your allocation of capital on a go-forward basis? Michael Rispoli: Sure. As you can see, Mitch, we continue to generate a lot of free cash flow. We're up 71%, almost 72% on a trailing 12-month basis. We did buy back a lot of stock mostly in the first quarter, but a little bit in the second quarter. And I think what we said at that time is we were going to transition capital allocation to M&A -- so we have a nice pipeline of M&A transactions. If they close, that's where the capital will go. If they don't, then we'll pivot back to buying back more stock towards the latter part of the year. Barry Gosin: I think what's important for you to recognize is that everything we acquire has to have a frame of reference and a connection to the rest of the business. And so we're not going to -- we're not -- we're generally not focused on acquiring things that are outliers -- so we're putting together this puzzle. And the point of how are we creating synergies, literally, that is part of our goal. Everything that we buy, buying RealFoundations, they do implementation and integration of MRI and Yardi. Every -- all of the real estate funds and managers use either Yardi or MRI. So we -- everything we can do to get us in front of the clients become a holistic solution in every part of the capital stack, every part of their business, partner with them to help leverage our resources to do a better job for their funds and their investors, investments we're doing. So we think there are a lot of things that we can do over the next year that will fill in the gaps, create more recurring revenue. We hope to get multiple expansion as a result of those efforts. We are very focused on it. We had a commitment to be in the top 3 in capital markets. We were 2 this year in the U.S. We're going to do the same thing around the country. That's our goal. As we build the gratitude machine of selling product to clients, we become an elevated brand, more important to our clients, and we're building around that and using the leverage of that to come up with acquisitions that fit like a glove into the whole puzzle. Operator: And we'll go next to Jade Rahmani with KBW. Jade Rahmani: I was wondering what you're seeing on the multifamily side. CBRE called out some weakness in volumes on the GSE business. Newmark seemed to buck that trend and the press release noted strength in seniors and affordable housing. So any color on that? Barry Gosin: Well, so we're building an incredible affordable housing platform. I mean we're the #1 investment sales platform in affordable. A good chunk of that is Section 8 and a part of that is LIHTC. The good news is that the country is very focused on affordability. It seems to be a popular word these days. And there is no disagreement between the Democrats and the Republicans with respect to the importance of building affordable housing. So we've managed to pick that just as we got into data centers 2 years, 3 years ago ahead of the curve, which has given us some momentum. In terms of multifamily, we're hiring great people. We're filling out the white space. We've managed to acquire the -- we have the deepest, widest bench of talented multifamily investment salespeople, coupled with Freddie and Fannie HUD GSE business, along with affordable, which is part of a mission-critical on the GSE business. So all of those pieces are giving us a lot of wind in the sales. Michael Rispoli: And Jade, I'll add to that, that our GSE pipeline heading into the back half of the year is pretty robust, very strong, and we just see the business as being very good in the back half of the year. Jade Rahmani: And the follow-up is, how do you think rates are impacting that business? Because multifamily in general, is a lower cap rate asset class, and so buyers are quite sensitive to where rates are. So are you seeing any pullback in volume as a result? Or are you seeing a pickup in refi but a slowdown in acquisitions? Any commentary there? Barry Gosin: Well, it depends on the market. I mean some markets have been overbuilt, and that's an impact -- has had an impact on a variety of markets in terms of investment sales. Interest rates were the biggest impact -- had the biggest impact on multi. But when you have certainty in interest rates and the spreads are pretty secure, which they have been, that is a good market to transact in. And we think that even though there was a slowdown in a variety of markets, I think we think that will pick up. Operator: And we'll go next to Brendan Lynch with Barclays. Brendan Lynch: On the U.S. office leasing, can you talk a little bit about your runway for continued new leasing growth as the A quality assets get leased up? Do you anticipate greater absorption in B quality assets going forward? And how are you positioned to capture that demand? Lou Alvarado: Yes, Brendan, this is Lou. Look, I think what you're seeing across the market is people improving their assets to be competitive in order to lease, right? So B assets are being looked at and amenitized in order to compete with the A assets. Yes, the A assets is where the bulk of the activity is. So everybody is preparing to that. And that's what we're spending a lot of time, whether it's on our property management side or on our brokerage side or on our project management side is working with clients to reposition their assets in order to attract these folks. There still is some demand for B and C from those that can't afford to pay the A rates, right? So those buildings will still do some volume. But obviously, the bulk of the activity has been focused on the -- as and the bulk of the focus by the clients has been to how do we reposition ourselves or how do I purchase a building at a basis low enough so I can reposition it in order to compete with the As. And I think you're going to continue to see that, and we're pretty well positioned to continue to work with clients related to addressing those needs. Brendan Lynch: Great. That all makes sense. Maybe one question for Mike on the adjusted EBITDA margin in the second quarter is kind of tracking ahead of what is implied for the full year, but I recognize the first quarter was a little lower. Can you just walk us through some of the seasonal components and any other considerations for the back half of the year? Michael Rispoli: Sure. Generally, our adjusted EBITDA margins grow in the back half of the year, particularly in the fourth quarter. That's pretty normal, and we saw that last year as well. So we expect continued margin expansion through the back half of the year, somewhere in the neighborhood of what we expect for the full year. But we're also investing while we're growing the business and expanding our EBITDA margin. So I think I noted that were we not investing to the level we were, our 65 basis point margin improvement in the quarter would have been about 100 basis points better. So we continue to see margin expansion through the balance of the year. We think we'll see margin expansion next year as well. Operator: We'll go next to Patrick O'Shaughnessy with Raymond James. Patrick O'Shaughnessy: Curious if you're seeing any evidence of commission compression in sales or leasing or if things remain pretty stable on that front? Lou Alvarado: Yes. Patrick, this is Lou. I would say things remain pretty stable on that front. Obviously, when assets are trading 25% to 35% lower than they traded the last time, the fees are lower because of that, not because there's fee compression, but because just the asset value has gone down. I think what has demonstrated to us and to you guys is that even in spite of that market, because of our continued pickup in market share, we continue to grow, right? And that is the proof of the strength of our capital markets teams. Michael Rispoli: And you already had years of fee compression. that ship has sailed. There's been a lot of fee compression over years, but that's years ago. Patrick O'Shaughnessy: Got it. Appreciate that. And then just curious about an update on the office to multifamily conversion pipeline. What does that look like at the moment? And how actively are you guys participating in that? Michael Rispoli: Well, the most robust market for conversions is really New York because the rental market is high enough to justify the conversions. It's a very costly process to take an office building and convert. I mean the recent New York buckling of 2 steel girders was not helpful. They have shut down 2 jobs in New York. There's about 11 million square feet under construction of conversions. There's $19 million in the pipeline. It is enormously beneficial for office because it takes inventory and by reverse in reverse, it creates demand for the existing inventory. So it's one way to retrofit our obsolete office, and that should be done in the rest of the market. The government and most of these cities, especially in the Midwest, should figure out how to create some tax incentives, better tax incentives to convert these office buildings. In New York, certainly before the President administration, they had something called the 467-m, which is a great program for converting office building. And at the same time, it provides 25% affordable, of which 90% of the 25%, half of it is 90% AMI, the other half is 40% AMI. It's an incredibly productive way to convert office buildings to add to the affordable housing mix. and improve neighborhoods. So there are lots of cities around the country that should take note from what's going on in New York, and these should be done around the country. It's a great way to eliminate inventory and create more housing. Operator: It appears there are no further questions at this time. I'll turn the conference back over to Barry Gosin for closing remarks. Barry Gosin: Thank you again for joining us. I look forward to speaking to you next quarter. Operator: This concludes today's call. Thank you for your participation. You may now disconnect. Before you buy stock in Newmark Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newmark Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Newmark Group (NMRK) has drawn fresh attention after its second quarter 2026 earnings release and a new long term property management contract signaled ongoing business activity across several core lines. See our latest analysis for Newmark Group. Despite the new contract win and confirmed 2026 guidance, Newmark Group’s share price has eased recently, with the 1 day share price return down 8.06% and the year to date share price return down 12.26%. However, the 3 year total shareholder return of 102.31% points to much stronger longer term momentum. If this kind of earnings and contract news has you thinking about what else is moving, it could be a good time to scan for opportunities using our screener of 18 top founder-led companies So is Newmark Group’s pullback a sign that the latest contract wins and guidance are not cutting through, or has sentiment simply swung faster than the business has changed, setting up a valuation gap to test next? With Newmark Group last closing at $14.89 against a narrative fair value of about $19.58, the current pullback sits within a framework that leans toward upside, built on specific revenue, margin and valuation assumptions. Read the complete narrative. Want to see what underpins that view on Newmark Group? The narrative leans on faster earnings growth, firmer margins and a future earnings multiple that still sits below many peers. Result: Fair Value of $19.58 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Newmark Group narrative still faces real tests if expansion in Europe and Asia proves costly or if data center demand cools faster than expected. Find out about the key risks to this Newmark Group narrative. If this mix of contract momentum and valuation questions around Newmark Group leaves you unsure, take a moment to weigh both sides. Then move quickly to test your own view with the full breakdown of 5 key rewards and 2 important warning signs If you are rethinking your view on Newmark Group today, do not stop there. Use this moment to widen your watchlist and pressure test your convictions. Spot potential mispricings early by scanning our list of 48 high quality undervalued stocks, so you are not the last to notice when sentiment shifts. Strengthen your focus on resilience with the 85 resilient stocks with low risk scores, and keep your attention on companies that may better match your appetite for steadier profiles. Hunt for underfollowed opportunities using the screener containing 21 high quality undiscovered gems, so promising ideas do not slip past while you are focused on the headlines. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NMRK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved double-digit year-on-year revenue growth for 11 consecutive quarters in Capital Markets, reflecting a broad recovery across property types and successful talent investments. Management and servicing businesses reached their fourth consecutive record quarter, driven by 18% growth and double-digit organic expansion across recurring revenue streams. Leasing fees reached an all-time second-quarter high, propelled by significantly higher office volumes in key markets like New York City, San Francisco, and Los Angeles. Secured the #2 spot in overall U.S. investment sales for the first half of 2026, demonstrating significant domestic market share gains according to MSCI data. Operating leverage improved as total revenue increased 17% while adjusted EPS grew 26%, despite ongoing investments in global growth initiatives. Management views AI as a productivity accelerant that will enable professionals to deliver innovative client solutions and enhance long-term operational efficiency. Reiterated full-year 2026 guidance, expecting approximately 16% revenue growth and 20% adjusted EBITDA growth for the third consecutive year of double-digit expansion. Targeting more than $2 billion in annual revenue from management and servicing by 2029, implying mid-teen growth over the period. Anticipates continued margin expansion through the back half of 2026, typically peaking in the fourth quarter due to seasonal business dynamics. Strategic focus remains on filling 'white space' in the U.S. and expanding the international footprint, particularly in Asia, to sustain market share momentum. Capital allocation strategy is pivoting toward a robust M&A pipeline, with share buybacks serving as a secondary option if acquisitions do not close. Total expenses rose 16.6%, largely driven by commission growth and global expansion; Excluding both pass-through items and the impact of global growth initiatives, total expenses would have increased by 9.6%. Adjusted EBITDA margin expansion of 65 basis points was tempered by roughly 100 basis points due to the impact of pass-through items, recent M&A, and international growth investments. Maintained a strong balance sheet with 1x net leverage and adjusted free cash flow representing 85.3% of adjusted earnings, at the high end of the target range. Identified the 'flight to quality' in office leasing as a key trend, with B-quality assets requiring significant amenitization to compete with A-quality inventory. Management noted that a single $7 billion transaction in Q2 2025 created a difficult year-over-year comparison for debt volumes this quarter. The forward pipeline remains strong due to a significant volume of maturities expected over the next three years and high liquidity in the market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management opted for caution due to tougher comparisons in the second half of the year, having grown 20% in the prior year period. While the pipeline includes large, high-profile transactions, the timing of these deals remains difficult to predict in the current macro environment. Newmark is involved in high-profile data center opportunities, citing an enormous need for compute power that exceeds current infrastructure capacity. The opportunity set is expanding beyond hyperscalers to include infrastructure transactions, neocloud providers, and distributed power solutions. The acquisition of RealFoundations has enabled significant cross-selling by providing implementation services for software used by major real estate funds. Future M&A will focus on 'puzzle pieces' that create recurring revenue and holistic solutions across the capital stack rather than outlier businesses. Newmark has established the #1 investment sales platform in affordable housing, benefiting from bipartisan political support for the sector. While interest rates impacted multifamily volumes, management sees a robust GSE pipeline for the second half of the year as rate certainty improves.

Interested in Newmark Group, Inc.? Here are five stocks we like better. Strong Q2 performance: Newmark’s revenue rose 17% to a record $888.4 million, while adjusted EPS increased 26% to $0.39 and adjusted EBITDA grew 22.1% to $139.2 million. Its management and servicing, leasing, and capital markets segments all posted double-digit growth. Healthy pipeline and strategic growth: First-half investment sales and debt volumes increased 64.8% and 26.7%, respectively, with additional opportunities in data centers, digital infrastructure, multifamily, and large office transactions. The company continues to pursue acquisitions and international expansion. 2026 outlook unchanged: Newmark maintained guidance for approximately 16% revenue growth, 19% adjusted EPS growth, and 20% adjusted EBITDA growth at the midpoint, citing tougher comparisons, transaction timing uncertainty, and broader macroeconomic risks. Newmark Group (NASDAQ:NMRK) reported second-quarter results marked by double-digit growth in revenue, earnings and its major operating segments, while maintaining its full-year outlook amid what executives described as a healthy transaction pipeline and continued investment in expansion. Chief Executive Officer Barry Gosin said the company increased total revenue 17% and adjusted earnings per share 26% during the quarter. He said Newmark has now recorded double-digit year-over-year growth for 11 consecutive quarters in capital markets, eight consecutive quarters in management and servicing, and seven consecutive quarters in leasing. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Total revenue rose to $888.4 million, an all-time second-quarter high, from $759.1 million a year earlier. Adjusted EPS increased to $0.39 from $0.31, while adjusted EBITDA rose 22.1% to $139.2 million. The company’s adjusted EBITDA margin on total revenue improved 65 basis points year over year. Management, servicing and other revenue increased 17.7%, driven by double-digit organic growth in recurring-revenue businesses as well as recent acquisitions, Chief Financial Officer Michael Rispoli said. Gosin said the segment delivered its fourth consecutive record quarter and remains on track to produce more than $2 billion of annual revenue by 2029, implying mid-teens growth over that period. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Leasing revenue climbed 17.2%, led by increased office activity across several industry categories. Gosin cited stronger office volumes in New York City, the San Francisco Bay Area and Los Angeles, along with the company’s expanding global footprint. Executives said the office leasing market remains concentrated in higher-quality properties, though owners of lower-quality buildings are investing in amenities and repositioning efforts to compete. “B assets are being looked at and amenitized in order to compete with the A assets,” Chief Operating Officer Lou Alvarado said. He added that there remains demand for B- and C-quality properties among tenants unable to pay top-tier rents. → Innovative ETF Strategies That Are Paying Off This Summer Capital Markets revenue increased 16%, reflecting higher multifamily sales volumes, particularly in senior housing and affordable housing, along with stronger industrial and office sales. The gains were partly offset by lower loan-origination activity compared with the prior-year quarter, which included a significant transaction that boosted debt volumes. Newmark said total debt volumes and investment sales volumes for the first half increased 26.7% and 64.8%, respectively, from the year-earlier period. According to Gosin, the company moved up one position to rank second in overall U.S. investment sales for the first half of 2026, citing MSCI data. Rispoli said the debt pipeline remains strong through the second half of the year, although the company faces a more challenging comparison against the second half of 2025. He noted that the prior-year second quarter included a single $7 billion transaction, affecting the year-over-year comparison for originations. Gosin said Newmark has a number of large deals in its pipeline, including transactions involving data centers, digital infrastructure and large office properties. He described demand for capital as supported by data-center development, computing capacity needs and infrastructure requirements related to artificial intelligence. Alvarado said Newmark believes it has further room to gain market share in U.S. investment sales and internationally. The company’s international operations are primarily in Europe, he said, while its presence in Asia remains small. On multifamily, Gosin highlighted Newmark’s affordable housing platform, including activity in Section 8 and low-income housing tax credit properties. Rispoli added that the company’s government-sponsored enterprise pipeline entering the second half of the year is “pretty robust.” Gosin said interest rates have had the greatest impact on multifamily, while market conditions also vary by location and can be affected by overbuilding. Total expenses rose 16.6%, primarily reflecting commission and pass-through costs that increased in line with related revenue, as well as spending on global growth initiatives. Excluding pass-through items and global growth investments, expenses would have risen 9.6%, according to the company. Newmark ended the quarter with $259.7 million of cash and cash equivalents, $867.3 million of total corporate debt and net leverage of one times. Trailing 12-month adjusted free cash flow increased 71.6% to $391.1 million, representing 85.3% of adjusted earnings. Rispoli said Newmark repurchased a substantial amount of stock primarily in the first quarter, with some additional repurchases in the second quarter. He said the company expects to prioritize potential acquisitions, but could return to share buybacks later in the year if anticipated transactions do not close. Executives pointed to RealFoundations as a recent acquisition that has supported cross-selling and integration with Newmark’s consulting and managed-services operations. Alvarado said the company continues to evaluate acquisition opportunities, primarily in managed services, as it works toward its 2029 revenue target for that business. Newmark maintained its 2026 guidance. At the midpoint, the company expects total revenue growth of approximately 16%, adjusted EPS growth of about 19% and adjusted EBITDA growth of roughly 20%. Rispoli said the company increased guidance in the previous quarter but elected not to raise it again because of tougher second-half comparisons, uncertainty around the timing of sizable transactions and the broader macroeconomic environment. He said management expects continued margin expansion in the second half and into 2027, even as Newmark continues to invest in growth initiatives and international expansion. Newmark Group, Inc is a publicly traded commercial real estate advisory firm headquartered in New York City. The company provides a comprehensive suite of services to real estate investors, occupiers and developers, including leasing advisory, property management, capital markets placement, loan servicing, valuation and advisory services. Newmark's platform integrates local market expertise with national reach to support clients across diverse property types such as office, industrial, retail, multifamily and specialty assets. Operating across two principal segments—global corporate services and capital markets & property-level services—Newmark delivers tailored solutions encompassing tenant representation, landlord leasing, investment sales, debt and equity financing, and appraisal services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Newmark Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Newmark Group Inc (NASDAQ:NMRK) reported double-digit year-on-year revenue growth for 11 consecutive quarters in capital markets. The company achieved a 17% increase in total revenue and a 26% rise in adjusted EPS. Management and servicing revenues increased by 18%, marking the fourth consecutive record quarter for these businesses. Leasing fees rose by 17% to an all-time best second quarter, driven by higher office volumes in key markets. Capital markets revenues grew by 16%, reflecting a broad recovery across property types and international growth. Total expenses increased by 16.6%, driven by commission and pass-through expense growth and global growth initiatives. The company's tax rate for adjusted earnings increased to 14.7% from 14% last year. There was lower origination activity due to significant transactions in the prior year quarter. Despite strong performance, the company did not increase its guidance, citing tougher comparisons in the second half of the year. The office-to-multifamily conversion market faces challenges, with high costs and recent construction issues in New York impacting progress. Warning! GuruFocus has detected 5 Warning Sign with NMRK. Is NMRK fairly valued? Test your thesis with our free DCF calculator. Q: How is Newmark Group's debt pipeline looking for the rest of the year, and what are the expectations for the future given the current market conditions? A: Mike Rispoli, CFO, stated that the debt pipeline remains strong for the back half of the year. Although it's hard to predict next year, there are significant maturities expected over the next three years. Despite a large transaction last year affecting year-over-year comparisons, the pipeline remains healthy with large transactions in the pipeline, including data center and digital infrastructure deals. Q: Why wasn't there an increase in guidance despite strong performance and market conditions? A: Barry Gosin, CEO, explained that although the company sees a strong pipeline and continues to win management business, they are facing tougher comparisons in the second half of the year. They were up 20% in the second half of last year, and the timing of sizable transactions is uncertain. Given the current macro environment, they prefer to wait for more data before updating guidance. Q: What is the outlook for investment sales, particularly in the U.S. and internationally? A: Lou Alvarado, COO, mentioned that there is still significant growth potential in both the U.S. and international markets. The company is expanding into Asia and sees no reason for a slowdown. They expect to continue gaining market share and are excited about future prospects. Q: How is Newmark Group approaching M&A and capital allocation? A: The company is focusing on M&A in the managed services sector to drive growth. Recent acquisitions, like Real Foundations, have been integrated successfully, and they continue to look for opportunities that align with their business strategy. If M&A transactions do not close, they may pivot back to stock buybacks later in the year. Q: What are the trends in the multi-family sector, and how are interest rates impacting this business? A: Barry Gosin, CEO, noted that Newmark is building a strong affordable housing platform and sees robust demand in this area. The GSE pipeline is strong for the second half of the year. While high interest rates have impacted multi-family investment sales, certainty in interest rates and secure spreads make it a good market for transactions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Conference Call to Discuss Results Scheduled for 10:00 a.m. ET Today NEW YORK, July 29, 2026 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, today, reported its financial results for the three and six months ended June 30, 2026, and declared its quarterly dividend. A complete and full-text financial results press release, including information about today's financial results conference call and Newmark's dividend declaration, is accessible at either of the following web pages: https://ir.nmrk.com/ (PDF version of the full press release, PDF of a quarterly results investor presentation, and supplemental Excel financial tables) https://nmrk.com/media (PDF version of the full release only) Note: If clicking on the above links does not open a new web page, you may need to cut and paste the above URLs into your browser's address bar. Today's conference call is expected to contain forward-looking statements with respect to the Company's financial outlook and targets. ABOUT NEWMARKNewmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion. As of June 30, 2026, Newmark and its business partners together operated from approximately 200 offices with more than 10,000 professionals across four continents. To learn more, visit nmrk.com or follow @newmark. DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT NEWMARKStatements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q, or Form 8-K. View original content to download multimedia:https://www.prnewswire.com/news-releases/newmark-reports-second-quarter-2026-financial-results-302837741.html

Newmark Group (NMRK) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.50%. A quarter ago, it was expected that this provider of commercial real estate services would post earnings of $0.27 per share when it actually produced earnings of $0.33, delivering a surprise of +22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Newmark Group, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $888.42 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $759.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Newmark Group shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Newmark Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Newmark Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $985.5 million in revenues for the coming quarter and $1.99 on $3.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Colliers International (CIGI), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This commercial real estate services provider is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of +4.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Colliers International's revenues are expected to be $1.53 billion, up 13.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmark Group, Inc. (NMRK) : Free Stock Analysis Report Colliers International Group Inc. (CIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Real estate services firm Newmark (NASDAQ:NMRK) will be announcing earnings results this Wednesday before market hours. Here’s what you need to know. Newmark beat analysts’ revenue expectations last quarter, reporting revenues of $846.5 million, up 27.2% year on year. It was an exceptional quarter for the company, with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Is Newmark a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Newmark’s revenue to grow 14.5% year on year, slowing from the 19.9% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Newmark has a history of exceeding Wall Street’s expectations. Looking at Newmark’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Forestar Group delivered year-on-year revenue growth of 4.2%, missing analysts’ expectations by 7.7%, and AMC Entertainment reported revenues up 14.2%, topping estimates by 8.7%. Forestar Group traded down 2.8% following the results while AMC Entertainment was up 13.4%. Read our full analysis of Forestar Group’s results here and AMC Entertainment’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Newmark is up 4.1% during the same time and is heading into earnings with an average analyst price target of $19.42 (compared to the current share price of $15.89). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.