8-K: Newmark Achieves Record 2025 Results, Projects Strong 2026

Newmark Group, Inc. announced record quarterly and full-year revenues for 2025, driven by double-digit growth across all major service lines and a positive outlook for 2026.

Summary

• Total Revenues for Q4 2025 reached $1,006.0 million, a 15.3% increase year-over-year, and for the full year 2025, they were $3,294.0 million, up 20.3% year-over-year, marking record revenues.
• GAAP EPS for Q4 2025 was $0.37, a 42.3% increase, and for the full year 2025, it was $0.68, a 100.0% increase.
• Adjusted EPS for Q4 2025 was $0.68, up 23.6%, and for the full year 2025, it was $1.62, up 31.7%.
• Adjusted EBITDA for Q4 2025 grew by 17.0% to $214.0 million, and for the full year 2025, it increased by 26.3% to $562.4 million.
• Management Services, Servicing Fees, and Other revenues grew by 13.0% in Q4 and 12.4% for the full year, achieving the company's best-ever quarter and year for these recurring businesses.
• The total Servicing and Asset Management portfolio increased by 15.2% year-on-year to a record $211.2 billion.
• Leasing fees were up 13.6% in Q4, resulting in an all-time best quarter and year for this service line.
• Capital Markets revenues grew 19.2% in Q4 and 35.3% for the full year, marking the ninth consecutive quarter of double-digit growth.
• Investment Sales volumes increased by 50.4% in Q4 and 56.0% for the full year, significantly outpacing comparable industry activity.
• Total debt volumes increased by 12.2% in Q4 and 67.4% for the full year, also significantly outpacing comparable industry activity.
• Newmark was the #1 Office sales broker in the U.S., with 26% market share, for deals of at least $25 million in 2025.
• The Board of Directors increased the share repurchase and unit redemption authorization to $400 million on February 18, 2026.
• Net leverage stood at 0.8 times as of December 31, 2025.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as an exceptionally strong report, marked by record financial performance, significant market share gains, and an optimistic outlook for sustained double-digit growth, indicating robust operational execution and favorable market conditions.

Positives

• Achieved record quarterly and full-year revenues, with annual top-line in Management and Servicing, Leasing, and Capital Markets each surpassing $1 billion.
• Delivered a second consecutive year of double-digit revenue and earnings growth.
• Management Services, Servicing Fees, and Other businesses recorded their best-ever quarter and year, with the Servicing and Asset Management portfolio growing to a record $211.2 billion.
• Leasing fees reached an all-time best quarter and year, driven by increased activity in key markets.
• Capital Markets revenues demonstrated robust growth for the ninth consecutive quarter, increasing 19.2% in Q4 and 35.3% for the full year.
• Outpaced comparable industry activity in Investment Sales volumes (up 56.0% vs. industry 21%) and Total Debt volumes (up 67.4% vs. industry 36-43%) for FY 2025.
• Recognized as the #1 Office sales broker in the U.S. with 26% market share for deals of at least $25 million in 2025.
• Reported lower effective tax rates for Adjusted Earnings in Q4 and FY 2025 due to increased stock price and higher tax deductions.
• The Board increased the share repurchase and unit redemption authorization to $400 million, signaling confidence and commitment to shareholder returns.
• Maintained a healthy balance sheet with a net leverage ratio of 0.8 times as of December 31, 2025.

Risks

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.
• The Company's business, results, financial position, liquidity, and outlook are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.
• Expectations are subject to change based on various macroeconomic, social, political, and other factors.
• Certain GAAP items, such as equity-based compensation, unusual items, gains or losses on marketable securities, asset impairment charges, and outcomes of acquisitions, dispositions, or litigation, are difficult to forecast with precision and may materially impact GAAP results.

Future Outlook

Newmark expects to achieve double-digit topand bottom-line growth for the third consecutive year in 2026, projecting Total Revenues between $3,700 million and $3,800 million (12%-15% YoY change), Adjusted EPS between $1.82 and $1.92 (12%-19% YoY change), and Adjusted EBITDA between $635 million and $675 million (13%-20% YoY change). The company anticipates over 90% of its earnings growth will be organic in 2026 and targets annual share count growth of 2% or less over time. This guidance excludes potential acquisitions after Q1 2026 and assumes no meaningful changes in stock price from February 24, 2026.

Management Comments

• "Newmark achieved record quarterly and full-year revenues, with strong gains in every major service line, as our annual top-line in Management and Servicing, Leasing, and Capital Markets each surpassed $1 billion."
• "This led to a second consecutive year of double-digit revenue and earnings growth."
• "Our momentum continued in the fourth quarter, as the Company increased revenues by 15%, GAAP EPS by 42%, and Adjusted EPS by 24%."
• "Our strategy of investing in the industry's best talent, leveraging our client relationships to drive recurring revenue growth, and our ongoing international expansion continues to drive our robust financial results."
• "Given the success of our strategy and the favorable macroeconomic backdrop for commercial real estate, we expect to achieve double-digit topand bottom-line growth for the third consecutive year in 2026, while generating our best-ever Total Revenues, Adjusted EPS, and Adjusted EBITDA."

Industry Context

StockSavvy.ai notes that Newmark's strong performance, particularly in Capital Markets and Investment Sales, suggests a robust commercial real estate market, especially in the U.S. and Europe, where industry volumes also showed significant improvement. The company's strategic focus on talent, recurring revenue, and international expansion aligns with broader trends of consolidation and diversification in the real estate advisory sector, positioning it favorably against competitors by capturing market share in key segments like office sales and outperforming overall industry volume growth.

Comparison to Industry Standards

• Newmark's Investment Sales volumes increased by 56.0% in FY 2025, significantly outpacing the U.S. industry's approximately 21% improvement (based on MSCI sales data).
• Newmark's Total Debt volumes increased by 67.4% in FY 2025, significantly outpacing the U.S. industry's approximately 36-43% increase in commercial and multifamily originations (based on Mortgage Bankers Association and MSCI lending data).
• Newmark was the #1 Office sales broker in the U.S., with 26% market share, for deals of at least $25 million in 2025, as reported by Real Estate Alert.
• European investment sales volumes increased by at least 15% in Q4 2025 and 12% in FY 2025, providing a favorable international market context for Newmark's ongoing expansion.

Corporate Governance

Legal Proceedings

• Net $42.3 million was received from insurers in FY 2025 pursuant to the previously disclosed settlement of a stockholder derivative litigation.

Related Party Transactions

• The company purchased 10,839,674 shares beneficially owned by its former Executive Chairman for approximately $125.5 million on May 19, 2025.
• An additional 134,259 shares beneficially owned by the former Executive Chairman and his wife were repurchased on October 6, 2025, as part of the complete divestiture of his Newmark equity.

Stakeholder Impact

• Shareholders are positively impacted by strong financial performance, increased share repurchase authorization, and a declared quarterly dividend.
• Employees and partners benefit from global growth initiatives, acquisitions, and equity/partnership stakes, aligning their interests with company success.
• Clients benefit from enhanced service offerings and global reach through strategic investments in talent and recent acquisitions like RealFoundations and Catella Valuation Advisory, and the upcoming acquisition of Altus Group's Canadian Appraisals business.

Next Steps

• Newmark will host a conference call at 10:00 a.m. ET on February 25, 2026, to discuss these results.
• A webcast replay of the conference call will be accessible within 24 hours of the live call and available for 365 days.
• The acquisition of Altus Group's Canadian Appraisals business is expected to close on or about March 1, 2026.
• A quarterly dividend of $0.03 per share is payable on March 27, 2026, to stockholders of record as of March 13, 2026.
• The forthcoming annual filing on Form 10-K will provide more detailed information.

Key Dates

Recommendation

Newmark's Q4 and full-year 2025 results demonstrate exceptional financial health and operational momentum, significantly outperforming industry benchmarks in key segments. The company's strategic investments in talent and international expansion are yielding robust recurring revenue growth. The strong 2026 guidance, coupled with a healthy balance sheet (0.8x net leverage) and increased share repurchase authorization, signals continued confidence and potential for shareholder value creation. These factors, combined with a favorable macroeconomic backdrop for commercial real estate, make Newmark a compelling "strong buy" for investors seeking growth in the sector.

Keywords

Newmark Group, Commercial Real Estate, Earnings, Revenue, Adjusted EPS, Adjusted EBITDA, Capital Markets, Leasing, Property Management, Servicing, Investment Sales, Real Estate Advisory, Dividend, Share Repurchase, Financial Results 2025, Outlook 2026