Newmark Group (NASDAQ:NMRK) executives highlighted record fourth-quarter and full-year 2025 results on the company’s earnings call, pointing to broad-based revenue gains across its major service lines, continued investment in talent and international expansion, and what management described as an emerging tailwind from artificial intelligence-driven demand.
Record quarter and year, with growth across major lines
Chief Executive Officer Barry Gosin said Newmark’s “strong momentum continued” in the fourth quarter, with total revenues and adjusted EPS rising 15% and 24%, respectively. He attributed the performance to investments in talent and the firm’s platform, which he said produced double-digit top-line improvement “across every major business line,” resulting in record total revenues for both the quarter and the year.
In recurring revenues, Gosin said management and servicing revenues rose 12% for the full year to “over $1.24 billion,” and that the company remains on pace toward its goal of exceeding $2 billion in management and servicing revenues by 2029.
Fourth-quarter financial details: revenue, margins, and cash generation
President Michael Rispoli reported that Newmark delivered double-digit revenue and earnings growth for the sixth consecutive quarter. Fourth-quarter total revenues increased 15.3% to “just over $1 billion,” compared with $872.7 million in the year-ago period. Adjusted EPS rose 23.6% to $0.68 from $0.55, while adjusted EBITDA increased 17% to $214 million from $182.9 million.
Rispoli said management services, servicing, and other revenue grew 13%, producing a record quarter for those recurring businesses, driven by organic growth in valuation and advisory and property management, as well as contributions from two recent acquisitions. He also noted that the company’s “high-margin servicing and asset management portfolio” surpassed $200 billion for the first time, ending the year at $211.2 billion. Related fees grew 10.9% excluding the impact of lower interest rates on escrow earnings.
By business line in the quarter, management cited:
- Leasing: up 13.6%, led by activity in New York and Texas and across retail, office, and industrial.
- Capital markets: up 19.2%, reflecting activity across office and retail, as well as multifamily led by gains in senior housing.
- Management services/servicing/other: up 13%, with strength in valuation and advisory and property management.
Expenses increased 15.7%, which Rispoli said reflected commission and pass-through expense growth generally in line with revenue, with most of the remaining increase tied to global growth initiatives and investments in future revenue and earnings. Excluding 2025 investments in growth, he said expenses rose about 6%.
Rispoli said the adjusted earnings tax rate was 8.8% in the quarter and 11.4% for the full year. He attributed the lower rate to the company’s corporate structure and higher tax deductions linked to an increase in the average closing stock price in 2025 and deductions related to unit conversions into common shares. He said these factors also reduced cash taxes paid in 2025 and supported operating cash flow.
On profitability, adjusted EBITDA margin expanded 32 basis points in the quarter and 81 basis points for the full year. Excluding the impact of 2025 growth investments, Rispoli said full-year margins would have expanded by about 130 basis points.
Balance sheet, capital allocation, and repurchases
Newmark ended 2025 with $229.1 million in cash and cash equivalents and $671.7 million of total corporate debt, “essentially unchanged” from a year earlier, and improved net leverage to 0.8x, according to Rispoli.
He said record “cash generated by the business” totaled $518.4 million in 2025. That was offset by $220.2 million of cash used mainly to hire revenue-generating professionals, $127.1 million of share repurchases, $53.4 million of net cash payments for acquisitions, and working-capital movements. Adjusted free cash flow increased 38.4% for the year to $268.9 million.
On capital returns, Rispoli noted that on Feb. 18, 2026, the board increased share repurchase authorization to $400 million. In response to an analyst question, Gosin said the company would be “more aggressive” buying back shares given where the stock trades and the outlook for earnings next year, while also emphasizing low balance-sheet leverage and continued capacity to invest for growth.
Market share, international growth, and AI themes from Q&A
Management emphasized market share gains in capital markets. Gosin said Newmark’s investment sales volumes rose 50% in the quarter versus 21% industry growth in the U.S. and 15% in Europe, and were up 56% for the full year versus 20% in the U.S. and 12% in Europe. He added that while quarterly debt volumes rose 12% versus 36% for overall U.S. originations, Newmark gained share for the full year, with 2025 origination volumes up 67% compared to 43% for the U.S. industry.
Internationally, executives described ongoing expansion in Europe and other regions. Gosin said Europe launched 36 months ago and now has 1,200 people, with growth in markets including Spain, Italy, Germany, the UK, and France, as well as expansion efforts in the Middle East and Singapore. On producer ramp-up, Rispoli said timing is market-dependent and that after 12–18 months, hired producers “really” begin producing on the platform. He said France was “break even” about a year and a few months into operations, earlier than management anticipated.
AI was a recurring topic during Q&A. Gosin said it is “very early” to know the full impact on office use and staffing, but said Newmark is not currently seeing clients talking about reducing office jobs, particularly in primary markets. He described AI as an “accelerant” and “an enabler” that can enhance margins and create new business opportunities, including by leveraging proprietary data and giving teams tools that allow them to do more with less time spent on certain processes.
On the risk of proprietary data becoming public, Gosin said some information is confidential and owners will protect it, while the company is mindful that vendors increasingly seek access to data. He said Newmark has collected extensive proprietary information over years, some of which can be used as derived data to create client value, while some cannot be used.
Discussing transaction activity, Gosin cited approximately $2 trillion of debt coming due over the next three years and said he expects significant activity, including maturities that Newmark will be involved in, as investors reassess sales versus financing decisions and look to redeploy capital.
2026 outlook: revenue, EBITDA, and EPS growth expected to continue
For full-year 2026, Newmark guided to total revenues of $3.7 billion to $3.8 billion, which would represent a 13.8% increase at the midpoint versus 2025. The company expects adjusted EBITDA of $635 million to $675 million (up 13% to 20%) and adjusted EPS of $1.82 to $1.92 (up 12% to 19%). Newmark also expects an adjusted earnings tax rate of 13% to 15%, compared with 11.4% in 2025.
Rispoli said capital markets growth is expected to be above the midpoint of the revenue guide, management and servicing is expected to be roughly in line with the midpoint, and leasing growth is expected to come in below the midpoint.
About Newmark Group (NASDAQ:NMRK)
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.
