Newmark(US:NMRK)2025-10-30 12:46Financial Performance - Newmark reported total revenues of $863.5 million for Q3 2025, a 25.9% increase compared to $685.9 million in Q3 2024[4] - GAAP net income for fully diluted shares was $64.0 million in Q3 2025, reflecting a 144.7% increase from $26.2 million in Q3 2024, resulting in a GAAP EPS of $0.25, up 150.0%[4] - Adjusted EBITDA for Q3 2025 was $145.2 million, a 28.9% increase from $112.6 million in Q3 2024[4] - Capital Markets revenues grew by 59.7% to $301.3 million in Q3 2025, driven by significant client activity across various sectors[6] - Leasing fees increased by 13.7% to $244.0 million in Q3 2025, marking a record quarter for this service line[6] - Management Services, Servicing Fees, and Other revenues rose by 12.6% to $318.1 million in Q3 2025, supported by growth in Valuation & Advisory services[7] - Total revenues for Q3 2025 reached $863,460,000, a 26% increase from $685,912,000 in Q3 2024[38] - Net income available to common stockholders for Q3 2025 was $46,154,000, compared to $17,794,000 in Q3 2024, representing a 159% increase[38] - Basic earnings per share for Q3 2025 was $0.26, up from $0.10 in Q3 2024, reflecting a 160% increase[38] - Adjusted Earnings before noncontrolling interests and taxes for Q3 2025 was $120.028 million, up from $95.509 million in Q3 2024, reflecting a 25.7% growth[83] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $348.4 million, a 33% increase from $262.4 million in the same period of 2024[93] Expenses and Liabilities - Total expenses under GAAP for Q3 2025 were $820.3 million, a 27.1% increase from $645.2 million in Q3 2024[9] - Total liabilities rose to $3,829,055,000 in Q3 2025, compared to $3,172,051,000 in Q4 2024, marking a 21% increase[36] - Total corporate debt rose to $746.5 million as of September 30, 2025, up from $670.7 million at the end of 2024[13] - The provision for income taxes for Adjusted Earnings in Q3 2025 was $14.4 million, compared to $12.7 million in Q3 2024, indicating a 13.4% increase[85] Cash Flow and Equity - Net cash provided by operating activities for Q3 2025 was $114,079,000, a significant recovery from a cash outflow of $85,245,000 in Q3 2024[40] - The company reported a net cash increase of $227,044,000 at the end of Q3 2025, down from $284,338,000 at the end of Q3 2024[40] - Total current assets increased to $2,442,649,000 in Q3 2025 from $1,772,673,000 in Q4 2024, a growth of 38%[36] - Total equity increased to $1,631,427,000 in Q3 2025 from $1,538,069,000 in Q4 2024, reflecting a growth of 6%[36] - Newmark's cash and cash equivalents increased to $224.1 million from $197.7 million at the end of 2024[13] Shareholder Returns and Dividends - A quarterly dividend of $0.03 per share was declared, payable on December 2, 2025[15] - The company declared dividends of $0.03 per share for both Q3 2025 and Q3 2024, maintaining consistent shareholder returns[38] - Newmark's share repurchase authorization had $246.4 million remaining as of September 30, 2025, following the repurchase of approximately 10.8 million shares for $125.5 million[12][16] Guidance and Projections - Newmark's total revenues for FY 2025 are projected to be between $3,175 million and $3,325 million, representing a year-over-year increase of 16% to 21%[18] - Adjusted earnings per share for FY 2025 are expected to be between $1.53 and $1.63, reflecting a growth of 24% to 33% compared to FY 2024[18] - The updated guidance for Adjusted EBITDA in FY 2025 is projected to be between $543 million and $579 million, indicating a year-over-year increase of 22% to 30%[18] - The company is raising its full-year outlook, targeting an expansion of Adjusted EBITDA margin by approximately 100 basis points in both 2025 and 2026[4] Acquisitions and Strategic Initiatives - Newmark's acquisition of RealFoundations on October 3, 2025, aims to enhance its consulting and managed services offerings for institutional real estate clients[6] Tax and Compensation - Newmark's effective tax rate for Adjusted Earnings was 12.1% for Q3 2025, compared to 13.4% in the same quarter last year[11] - Newmark's tax provision for post-tax Adjusted Earnings is calculated using an annual estimate, applying the statutory tax rates to pre-tax Adjusted Earnings[58][60] - The effective tax rate on pre-tax Adjusted Earnings is influenced significantly by equity-based compensation charges, which are deductible under tax laws[61] - Total equity-based compensation for Q3 2025 was $68.8 million, up 58% from $43.5 million in Q3 2024[86] Risks and Forward-Looking Statements - Newmark's forward-looking statements involve risks and uncertainties that could materially affect actual results[104] - The company does not undertake any obligation to update forward-looking statements except as required by law[104] - Investors are encouraged to review Newmark's SEC filings for additional risks and uncertainties[104]