8-K: Newmark Reports Record Q2 2026 Revenue, Strong Growth

Newmark Group, Inc. announced record second quarter 2026 revenues of $888.4 million, a 17% increase year-over-year, driven by robust performance across its major business lines.

Summary

• Newmark Group, Inc. reported record second quarter 2026 revenues of $888.4 million, a 17% increase from the prior year's $759.1 million.
• Year-to-date total revenues reached $1.73 billion, up 21.8% compared to the same period in 2025.
• GAAP net income for the quarter was $27.1 million, with GAAP EPS of $0.11.
• Post-tax Adjusted Earnings were $97.5 million, a 25.5% increase, with Adjusted EPS of $0.39, up 25.8%.
• Adjusted EBITDA grew 22.1% to $139.2 million.
• The company experienced double-digit revenue growth in its major business lines for multiple consecutive quarters.
• Management Services, Servicing Fees, and Other revenue increased by 17.7% to $351.2 million.
• Leasing and Other Commissions revenue rose 17.2% to $278.0 million.
• Capital Markets revenue increased by 16.0% to $259.2 million.
• The company reaffirmed its full-year 2026 outlook for Total Revenues and Adjusted EPS.
• Newmark declared a quarterly dividend of $0.06 per share.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, with record revenues, significant growth in key performance indicators, and a reaffirmed positive outlook, indicating robust operational performance and strategic execution.

Positives

• Record second quarter revenues of $888.4 million, up 17.0% year-over-year.
• Year-to-date total revenues increased by 21.8% to $1.73 billion.
• Significant growth in Post-tax Adjusted Earnings (25.5%) and Adjusted EPS (25.8%).
• Adjusted EBITDA increased by 22.1% to $139.2 million.
• Consistent double-digit revenue growth across major business lines for multiple consecutive quarters.
• Management Services, Servicing Fees, and Other revenue up 17.7%, with strong growth in Servicing & Asset Management portfolio and Property & Facilities Management square footage.
• Leasing fees reached an all-time best second quarter, up 17.2%, driven by increased client activity in key sectors.
• Capital Markets revenues up 16.0%, with strong Investment Sales across property types and international share gains.
• Improved GAAP Cash Flow from Operations to $846.0 million for the trailing twelve months, a significant increase from $(241.8) million in the prior year.
• Adjusted Free Cash Flow improved by 71.6% on a trailing twelve-month basis.
• Net leverage ratio of 1.0 times as of June 30, 2026.
• Reaffirmed full-year 2026 outlook for Total Revenues and Adjusted EPS, expecting continued double-digit growth.

Negatives

• Fees from Commercial Mortgage Origination, net decreased by 26.1% to $68.1 million.
• Total Debt volumes decreased by 19% in the second quarter of 2026 compared to the prior year's significant growth.
• GAAP net income for the quarter decreased by 5.7% to $27.1 million, compared to $28.8 million in the prior year.
• GAAP net income (loss) per fully diluted share remained flat at $0.11 for the quarter.
• Non-compensation expenses under GAAP increased by 19.3%, outpacing revenue growth in some areas.
• A charge of $0.2 million related to lease terminations for liquidated entities impacted GAAP non-compensation expenses, compared to a credit of $14.5 million in the prior year.

Risks

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
• The company's business, results, financial position, liquidity, and outlook are subject to the risk that actual impact may differ from expectations.
• Potential future changes in macroeconomic, social, political, and other factors could affect the company's outlook.
• The company's effective tax rates can vary due to factors like geographic and business mix, earnings levels, and timing of equity-based compensation charges.
• The company's financial results are influenced by industry fundamentals and transaction volumes in commercial real estate, which can be cyclical and subject to economic downturns.

Future Outlook

The company reaffirms its full-year 2026 outlook, expecting double-digit topand bottom-line growth for the third consecutive year. This outlook anticipates continued investments in recurring revenue businesses, international expansion, improving industry fundamentals, and talent to drive long-term growth and market share gains. The company also targets annual share count growth of 2% or less over time.

Management Comments

• "Newmark once again delivered strong financial results, including record second quarter revenues. We produced double digit gains in each of our major business lines, led by our recurring businesses, as we continue to drive towards our goal of over $2 billion in annual Management and Servicing revenues by 2029."
• "Our year to date results demonstrate the Company's strong operating leverage, as we increased Total Revenues 22%, GAAP EPS 200%, and Adjusted EPS 37%, all compared with a year earlier."
• "Given Newmark's strong results and healthy transaction pipeline, we continue to expect double-digit topand bottom-line growth for the third consecutive year in 2026."
• "We also anticipate that our investments in recurring revenue businesses, ongoing international expansion, improving industry fundamentals, and talented professionals will together drive Newmark's long-term growth and market share gains."

Industry Context

StockSavvy.ai notes that Newmark's strong performance in commercial real estate advisory services, particularly in leasing and investment sales, aligns with a broader market recovery and increased client activity in key sectors like technology and financial services. The company's focus on recurring revenue businesses and international expansion reflects strategic industry trends aimed at diversifying revenue streams and capturing global market share.

Comparison to Industry Standards

• Newmark's Q2 2026 revenue growth of 17.0% outpaced the U.S. industry investment sales volume improvement of approximately 28% for the same period, though this comparison is for a specific segment.
• The company's Q2 2026 leasing fees increased by 17.2%, contributing to an all-time best second quarter for this segment, indicating strong performance relative to general market activity.
• MSCI data indicates Newmark moved up to #2 in overall U.S. investment sales for the first half of 2026, suggesting competitive performance within the investment sales market.
• U.S. industry commercial and multifamily originations were up approximately 21% and 25% respectively, while Newmark's Fees from Commercial Mortgage Origination, net decreased by 26.1%, indicating a divergence in this specific area compared to broader industry trends.

Related Party Transactions

• Payables to related parties were $5.641 million as of June 30, 2026, compared to $1.835 million as of December 31, 2025.

Stakeholder Impact

• Shareholders: Benefit from a declared quarterly dividend of $0.06 per share and continued positive financial performance, potentially leading to stock price appreciation.
• Employees: Benefit from the company's growth and investments in talent, with a significant portion of compensation tied to equity and performance.
• Investors: Provided with detailed financial results, non-GAAP metrics, and a reaffirmed positive outlook, enabling informed investment decisions.
• Clients: Continue to receive comprehensive commercial real estate advisory and services, with the company demonstrating strong capabilities in leasing, investment sales, and management services.

Next Steps

• Continue to drive towards the goal of over $2 billion in annual Management and Servicing revenues by 2029.
• Continue investments in recurring revenue businesses.
• Continue ongoing international expansion.
• Monitor and adapt to improving industry fundamentals.
• Continue to leverage talented professionals for long-term growth and market share gains.
• Continue annual share count growth of 2% or less over time.

Key Dates

Recommendation

The company delivered strong results with record revenues and significant growth in adjusted metrics, reaffirming its positive outlook. However, the slight decrease in GAAP net income and the ongoing challenges in commercial mortgage origination warrant a cautious approach. While the company is performing well operationally, the broader market conditions and specific segment weaknesses suggest a 'hold' rating until further clarity on sustained GAAP performance and market recovery in all segments.

Keywords

commercial real estate, financial results, revenue growth, investment sales, leasing, capital markets, management services, servicing fees