Financial Data and Key Metrics Changes - The company reported total revenues of $759.1 million, an increase of 19.9% compared to $633.4 million in the previous year [11] - Adjusted EPS increased by 41% to $0.31 from $0.22, demonstrating strong operating leverage [7][14] - Adjusted EBITDA was $114 million, up 32.1% from $86.3 million, with an adjusted EBITDA margin improvement of 139 basis points to 15% [14] Business Line Data and Key Metrics Changes - Management services, servicing, and other revenues increased by 13.6%, driven by approximately 30% growth in valuation and advisory business [11] - Leasing revenues rose by 13.8%, led by double-digit growth in retail volumes and improving office activity in key markets [11] - Capital markets revenues increased by 37.9%, reflecting a 135% improvement in total debt volumes [12] Market Data and Key Metrics Changes - Newmark was ranked as the number one office broker in the U.S. for investment sales in the first half of 2025 [9] - The company improved to number three among global sales brokers across all property types based on preliminary figures [10] - The company gained market share in capital markets, with significant growth in data centers and higher office and multifamily activity [12] Company Strategy and Development Direction - The company is focused on expanding its occupier solutions and leasing footprint globally, providing comprehensive real estate solutions in nearly 100 countries [8] - Newmark is building out its international platform, particularly in Europe and Asia, with a strong emphasis on organic growth [25][29] - The company plans to pivot towards M&A opportunities in the second half of the year, particularly in management services [27][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the capital markets activity, indicating a strong pipeline and potential for continued growth [25][56] - The company raised its full-year outlook, expecting total revenues between $3.05 billion and $3.25 billion, and adjusted EPS between $1.47 and $1.57 [17] - Management noted that New York City remains resilient despite potential political uncertainties, emphasizing the city's unique talent pool [58][59] Other Important Information - The company introduced a new reporting metric, adjusted free cash flow, which showed a significant year-over-year improvement of 121.4% to $228 million [16] - Total expenses for adjusted earnings increased by 18.4%, reflecting growth initiatives and higher pass-through costs [13] Q&A Session Summary Question: How has the opportunity in Germany been transpiring? - Management indicated that they launched operations in Germany about a year ago and signed 70 brokers, with a strong interest in their model [21][22] Question: Is capital markets activity sustainable? - Management believes there is a significant runway for growth in Europe and remains bullish on capital markets despite potential uncertainties [25] Question: What are the expectations for adjusted free cash flow in 2025? - Management indicated a conversion ratio of about 65% to 85% depending on investment levels, with a focus on hiring talent and potential M&A [62][63] Question: What are the growth rates expected in the second half? - Management expects management and leasing businesses to grow in the high single digits to low double digits, while capital markets may see mid to high teens growth [50] Question: Are there any impacts from the mayoral race in New York City? - Management stated it is too early to tell, but emphasized New York's resilience and strong talent pool [58][59]

Financial Data and Key Metrics Changes - Total revenues increased by 20% to $759.1 million compared to $633.4 million in the previous year [10] - Adjusted EPS rose by 41% to $0.31 from $0.22 [13] - Adjusted EBITDA was $114 million, up 32.1% from $86.3 million, with an adjusted EBITDA margin improvement of 139 basis points to 15% [13] - Adjusted free cash flow for the twelve months ended June 2025 was $228 million, a 121.4% improvement year over year [15] Business Line Data and Key Metrics Changes - Management services, servicing, and other revenues increased by 13.6%, driven by approximately 30% growth in valuation and advisory business [10] - Leasing revenues grew by 13.8%, led by double-digit growth in retail volumes and improving office activity in key markets [10] - Capital markets revenues surged by 37.9%, reflecting a 135% increase in total debt volumes [11] - Investment sales volumes increased by 26%, outperforming the industry average of approximately 11% [12] Market Data and Key Metrics Changes - Newmark was ranked as the number one office broker in the U.S. for the first half of 2025 [8] - The company improved to number three among global sales brokers across all property types based on preliminary figures [8] - The company gained market share in capital markets and expanded its international platform, particularly in Europe and Asia [9][23] Company Strategy and Development Direction - The company is focused on expanding its occupier solutions and leasing footprint globally, providing comprehensive real estate solutions in nearly 100 countries [6] - Newmark is pivoting towards growth capital and M&A opportunities in the second half of the year, particularly in management services [25][66] - The company emphasizes organic growth and is building a diversified integrated platform to serve corporate clients [27][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the capital markets activity, indicating a strong pipeline and potential for continued growth [21][54] - The company raised its full-year outlook for 2025, expecting total revenues between $3.05 billion and $3.25 billion, and adjusted EPS between $1.47 and $1.57 [16] - Management noted that New York City remains resilient despite potential political uncertainties, emphasizing the city's unique talent pool [58] Other Important Information - The company introduced a new reporting metric, adjusted free cash flow, to provide better insight into cash generation [14] - Total expenses for adjusted earnings increased by 18.4%, reflecting growth initiatives and higher pass-through costs [12] Q&A Session Summary Question: How has the opportunity in Germany been transpiring? - Management indicated that they launched operations in Germany about a year ago and signed 70 brokers, with a strong interest in their model [19][20] Question: Is capital markets activity sustainable? - Management believes they have a diversified mix of services and a significant runway for growth in Europe and Asia [21][23] Question: What are the expectations for adjusted free cash flow in 2025? - Management indicated a conversion ratio of about 65% to 85% depending on investments in the business [62] Question: What are the criteria for M&A? - The company focuses on bolt-on acquisitions that align with their platform and enhance recurring revenue opportunities [66]

Core Viewpoint - Newmark Group (NMRK) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.22 per share a year ago, indicating a positive earnings surprise of +19.23% [1] Financial Performance - The company achieved revenues of $759.11 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.68%, compared to $633.38 million in the same quarter last year [2] - Over the last four quarters, Newmark Group has consistently exceeded consensus EPS estimates and topped revenue estimates three times [2] Stock Performance - Newmark Group shares have increased approximately 12.7% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.38 for the coming quarter and $1.45 for the current fiscal year, with revenues expected to be $746.65 million and $3.05 billion respectively [7] - The Zacks Rank for Newmark Group is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Real Estate - Operations industry, to which Newmark Group belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Q2 2025 - Total revenues increased by 19.9% to $759.1 million compared to $633.4 million in Q2 2024[7] - GAAP net income for fully diluted shares increased by 39.8% to $28.8 million from $20.6 million in Q2 2024[7] - Adjusted Earnings per share (EPS) increased by 40.9% to $0.31 from $0.22 in Q2 2024[7] - Adjusted EBITDA increased by 32.1% to $114.0 million from $86.3 million in Q2 2024[7] Financial Performance - YTD 2025 - Total revenues increased by 20.7% to $1,424.6 million compared to $1,179.9 million YTD 2024[7] - GAAP net income for fully diluted shares increased by 916.1% to $16.1 million from $(2.0) million YTD 2024[7] - Adjusted Earnings per share (EPS) increased by 40.5% to $0.52 from $0.37 YTD 2024[7] - Adjusted EBITDA increased by 35.7% to $203.2 million from $149.8 million YTD 2024[7] Business Segments - Management Services, Servicing Fees & Other revenues increased by 13.6% to $298 million in Q2 2025 compared to $263 million in Q2 2024[16] - Leasing & Other Commissions revenues increased by 13.8% to $237 million in Q2 2025 compared to $209 million in Q2 2024[16] - Capital Markets revenues increased by 37.9% to $223 million in Q2 2025 compared to $162 million in Q2 2024[16] Balance Sheet & Cash Flow - Adjusted Free Cash Flow (AFCF) increased by 148% to $95.9 million in Q2 2025 compared to $38.7 million in Q2 2024[35] - Adjusted Free Cash Flow (AFCF) increased by 121% to $228.0 million TTM 2Q 2025 compared to $103.0 million TTM 2Q 2024[35] - Net leverage ratio as of June 30, 2025, was 1.4x, with TTM Adjusted EBITDA of $498.7 million[12, 28]

Financial Performance - Total Revenues for Q2 2025 reached $759.1 million, a 19.9% increase compared to $633.4 million in Q2 2024[3] - GAAP EPS increased by 38% to $0.11 from $0.08 year-over-year, while Adjusted EPS rose by 41% to $0.31 from $0.22[3] - Management Services, Servicing Fees, and Other revenues grew by 13.6%, marking the eighth consecutive quarter of year-on-year improvement[4] - Capital Markets revenues surged by 37.9%, with significant activity in data centers and Newmark being ranked as the 1 Office Investment Sales Broker in the U.S.[5] - The company expects Adjusted EPS for the full year 2025 to be between $1.47 and $1.57, representing a year-over-year increase of 20% to 28%[3] - Leasing fees increased by 13.8%, driven by heightened activity from retail and office clients in major U.S. cities[5] - Total revenues for Q2 2025 reached $759.1 million, a 19.8% increase from $633.4 million in Q2 2024[39] - Net income available to common stockholders for Q2 2025 was $20.8 million, compared to $14.3 million in Q2 2024, representing a 45.5% increase[39] - Basic earnings per share for Q2 2025 was $0.12, up from $0.08 in Q2 2024, reflecting a 50% increase[39] - Adjusted Earnings before noncontrolling interests and taxes for Q2 2025 was $89.9 million, up from $65.0 million in Q2 2024, representing a 38.2% increase[85] - Adjusted EBITDA for the three months ended June 30, 2025, was $114.0 million, up 32.2% from $86.3 million in the same period of 2024[95] Expenses and Liabilities - Total expenses under GAAP for Q2 2025 were $716.6 million, a 19.8% increase from $598.3 million in Q2 2024[8] - Compensation and employee benefits expenses rose to $455.0 million in Q2 2025, up 20.5% from $377.5 million in Q2 2024[39] - Total liabilities increased to $3.86 billion as of June 30, 2025, compared to $3.17 billion at the end of 2024, a rise of 21.7%[37] - The provision for income taxes for Adjusted Earnings was $12.5 million in Q2 2025, compared to $9.7 million in Q2 2024, reflecting a 29.0% increase[87] Cash Flow and Liquidity - Net cash provided by operating activities for Q2 2025 was $(379.7) million, compared to $(258.5) million in Q2 2024, indicating a decline in cash flow[41] - The company reported a net increase in cash and cash equivalents and restricted cash of $41.9 million for Q2 2025, compared to $39.5 million in Q2 2024[41] - Newmark's liquidity, defined as cash and cash equivalents plus marketable securities, is crucial for assessing available cash on short notice[80] - The company reported a Free Cash Flow of $(386.2) million for the three months ended June 30, 2025, compared to $(267.8) million in the same period of 2024[103] - Newmark's net cash used in operating activities was $(379.7) million for the three months ended June 30, 2025, compared to $(258.5) million in 2024[103] Shareholder Actions - Newmark repurchased approximately 10.8 million shares at $11.58 per share, with $246.4 million remaining in the share repurchase authorization as of June 30, 2025[11] - The company declared a quarterly dividend of $0.03 per share, payable on August 29, 2025[16] - Newmark continues to target an annual share count growth of 2% or less over time[17] - The number of common stock outstanding increased to 179.6 million as of June 30, 2025, from 173.5 million in 2024[101] Future Outlook - Newmark's FY 2025 total revenue outlook is projected to be between $3,050 million and $3,250 million, representing a year-over-year increase of 11% to 19%[17] - Adjusted Earnings Per Share for FY 2025 is expected to be between $1.47 and $1.57, reflecting a growth of 20% to 28% compared to FY 2024[17] - Adjusted EBITDA for FY 2025 is forecasted to be between $523 million and $573 million, indicating a year-over-year increase of 17% to 29%[17] - The company anticipates providing forward-looking guidance for GAAP revenues and certain non-GAAP measures, but not for other GAAP results due to forecasting challenges[82] Adjusted Earnings and Non-GAAP Measures - Newmark's Adjusted Earnings exclude various GAAP items that management believes do not reflect the Company's underlying performance, including compensation-related items from cost-saving initiatives[53] - The calculation of Adjusted Earnings excludes non-cash GAAP gains related to originated mortgage servicing rights (OMSRs), which represent the fair value of expected future cash flows from servicing[54] - Newmark's Adjusted EBITDA is defined as GAAP net income available to common stockholders, adjusted for items such as OMSR revenue and equity-based compensation[70] - Newmark's management believes that Adjusted Earnings and Adjusted EBITDA provide a clearer understanding of the Company's financial performance and underlying operating results[68] - Newmark's Adjusted EBITDA is not a recognized measurement under GAAP and should be used in conjunction with GAAP measures of net income when evaluating operating performance[73] Debt and Leverage - As of June 30, 2025, Newmark's cash and cash equivalents were $195.8 million, down from $197.7 million at the end of 2024, while total corporate debt increased to $871.2 million from $670.7 million[13] - The company reported a net leverage ratio of 1.4 times as of June 30, 2025[13] - Total corporate debt as of June 30, 2025, was $871.2 million, resulting in a net leverage ratio of 1.4 times based on trailing twelve-month Adjusted EBITDA of $498.7 million[102] - Newmark's net leverage is calculated as net debt divided by trailing twelve-month Adjusted EBITDA, providing insight into the company's financial leverage[81] Notable Transactions and Hires - Newmark facilitated significant transactions in 2025, including a $7.1 billion construction loan for an AI data center and a $675 million refinancing for Independence Plaza in Manhattan[30] - Recent notable hires include industry veterans to enhance Newmark's market-leading debt and structured finance offerings and expand its presence in key regions[29]

Core Insights - Newmark Group, Inc. reported its financial results for the three months ended June 30, 2025, and declared its quarterly dividend [1] - The company generated revenues of over $2.9 billion for the twelve months ended June 30, 2025 [4] - Newmark operates from 165 offices with over 8,400 professionals across four continents [4] Financial Results - The financial results conference call is scheduled for 10:00 a.m. ET today [1] - A complete financial results press release is available on Newmark's investor relations website [2] Company Overview - Newmark is a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers [1] - The company offers a comprehensive suite of services and products tailored to various clients, including owners, occupiers, investors, and startups [4]

Group 1 - Newmark Group, Inc. will release its second quarter 2025 financial results on July 30, 2025, at 8:00 a.m. ET, followed by a conference call at 10:00 a.m. ET [1][2] - The financial results press release will be accessible on Newmark's investor relations website, including a PDF version of the full press release and supplemental financial tables [1] - Newmark generated revenues of over $2.8 billion for the twelve months ended March 31, 2025, and operates from 165 offices with approximately 8,100 professionals globally [4]

Core Insights - Newmark Group, Inc. has been engaged by Jack in the Box Inc. to oversee the strategic disposition of 150 to 200 restaurant locations primarily in the western United States [1][2] - This initiative is part of Jack in the Box's broader strategy to streamline operations and enhance financial performance [2] Company Overview - Newmark Group, Inc. is a leading commercial real estate advisor and service provider, generating over $2.8 billion in revenues for the twelve months ended March 31, 2025 [4] - The company operates from 165 offices with approximately 8,100 professionals across four continents [4] Service Offerings - Excess Space Retail Services, a Newmark company, specializes in lease restructuring, terminations, subleasing, and property sales, having helped clients reduce real estate liabilities by more than $6 billion [3] - The team employs a combination of financial analysis, local brokerage coordination, and transaction management to support clients undergoing strategic changes [3]

Core Insights - Newmark Group, Inc. advised Crow Holdings on the recapitalization of a six-million-square-foot industrial portfolio, with Blackstone acquiring a 95% stake in the portfolio consisting of 25 Class A buildings located in Dallas, Houston, and Chicago [1][3]. Company Overview - Crow Holdings is a prominent real estate development and investment management firm, founded in 1948, with $33 billion in assets under management and a significant presence in multifamily and industrial development [3][4]. - Newmark Group, Inc. operates globally in commercial real estate, generating over $2.8 billion in revenues for the twelve months ended March 31, 2025, and has approximately 8,100 professionals across 165 offices worldwide [5]. Market Trends - The industrial sector continues to attract strong investor interest, particularly in high-growth U.S. markets, with demand for well-located, Class A logistics space remaining robust [3][4]. - The transaction highlights the ongoing confidence in industrial as a leading asset class, especially in high-performing markets like Dallas, Houston, and Chicago [4].

Core Insights - Newmark Group, Inc. has successfully represented the United Nations in a significant long-term office lease renewal and expansion at 2 United Nations Plaza, encompassing 425,190 square feet across 26 stories [1][3] - The lease renewal consolidates the UN's operations in New York City, creating a unified headquarters and includes a two-story retail component [1][3] - The transaction is part of a broader $500 million capital improvement program by the landlord, which includes infrastructure upgrades and enhanced security features [4] Company Overview - Newmark Group, Inc. is a leading commercial real estate advisor, providing services to institutional investors, global corporations, and other property owners [1][6] - For the twelve months ending March 31, 2025, Newmark generated revenues exceeding $2.8 billion and operates from 165 offices with approximately 8,100 professionals globally [6]