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]