Newmark : Q1 2025 Presentation

Published: 2025-06-23 12:21:07 ET NMRK

Published on 06/23/2025 at 12:21

Newmark Group, Inc.

(Nasdaq: NMRK)

First Quarter 2025 Financial Results Presentation April 30, 2025

Property Type: Office

N M R K . C O M

Recent Consolidated Results

Highlights of Consolidated Results (USD millions, except per share data)

1Q25

1Q24

Change

Total Revenues $665.5 $546.5 21.8%

GAAP net income (loss) for fully diluted shares (8.8) (16.3) 46.1%

GAAP net income (loss) per fully diluted share (0.05) (0.09) 44.4%

Post-tax Adjusted Earnings to fully diluted shareholders ("Post-tax Adjusted Earnings") 54.3 37.4 45.2%

Post-tax Adjusted Earnings per share ("Adjusted Earnings EPS") 0.21 0.15 40.0%

Adjusted EBITDA ("AEBITDA") 89.2 63.5 40.5%

On April 29, 2025, Newmark's Board declared a qualified quarterly dividend of $0.03 per share payable on May 29, 2025, to Class A and Class B common stockholders

of record as of May 14, 2025, which is the same as the ex-dividend date.

All of the year over year improvement was organic, as the Company made no acquisitions during the TTM1 ended March 31, 2025.

1. Unless otherwise stated, "TTM" refers to the trailing twelve month ended 03/31/2025.

Notes: (i) See the sections of this document including, but not limited to, "Non-GAAP Financial Measures", "Adjusted Earnings Defined", and "Reconciliation of GAAP Net Income (loss) to Common Stockholders to Adjusted Earnings before noncontrolling interests and taxes and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS", including any footnotes to these sections, for the complete and/or updated definitions of these and other non-GAAP terms and how, when and why management uses them, and the differences between results under GAAP and non-GAAP for the periods discussed herein. (ii) The tax rate for Adjusted Earnings was 14.3% in the first quarter of 2025 compared with 15.0% a year earlier. Please see this quarter's press release for more discussion on the Company's tax rate.

NEWMARK 3

Top 4 U.S. Broker by Investment Volume (2024) #1 Office Broker (2024)

#3 Cross-Border Broker (2024)

#4 Apartment Broker (2024)

CRE Finance Firms:

#1 Office Originations (2024)

#3 Total Originations (2024)

#4 Originations as Intermediary (2024)

#4 Fannie Mae Originations (2024)

#1 Multifamily Freddie Mac Lender: Student Housing (2025)

#5 Multifamily Freddie Mac Lender:

Conventional (2025)

#5 Multifamily Freddie Mac Lender: Seniors Housing (2025)

#1 Top Mortgage Banking and

Brokerage Firms (2025)

#3 Fannie Mae Top DUS® Producers:

Seniors Housing

#4 Fannie Mae Top DUS® Producers:

Overall

#5 Fannie Mae Top DUS® Producers: Green Financing

Newmark was the #5 Lender for Fannie Mae and Freddie Mac combined

Notes: (i) Headcount and client service locations include independently-owned business partners. Excluding these business partners, we had nearly 7,600 employees in approximately 140 offices as of March 31, 2025. Our revenues and volumes are for Newmark company-owned offices only. (ii) Volume figure is the notional value of leasing, investments sales, mortgage brokerage, and GSE/FHA origination transacted by the Company as well as the estimated value of all properties appraised by our V&A businesses in 2024.

(iii) GSE lending rankings are based on disclosures by Fannie Mae regarding Multifamily Delegated Underwriting & Servicing Lenders and/or by Freddie Mac about conventional Multifamily Optigo® Lenders. Servicing ranking, when shown, is per the MBA. (iv) Adjusted EBITDA and net leverage are non-GAAP financial measures. See "Non-GAAP Financial Measures" and "Financial Tables and Reconciliations".

NEWMARK 4

Leading Commercial Real Estate Advisor and Service Provider

Founded in 1929, Newmark is a global leader in commercial real estate services, seamlessly powering every phase of the property life cycle

TTM Revenues

+$2.8B

2024 Transaction Volume

~$1.1T

Professionals

~8,100

Global Client Service Locations

165

First Quarter Highlights

Total Revenues

AEPS

AEBITDA

AEBITDA Margin

1Q 2025

$665.5M

$0.21

$89.2M

13.4%

Newmark's strong operating leverage drove increases of 40.0% in Adjusted EPS and 40.5% in Adjusted EBITDA on 22.8% fee revenue growth.

AEBITDA Margin expanded by 179 basis points to 13.4% versus 11.6% in the first quarter of 2024.

1Q 2025 Capital Markets revenues grew by 32.7%, marking the sixth consecutive quarter of double-digit gains.

Newmark increased 1Q 2025 Capital Markets volumes by 62.5%. This reflected significant volumes improvement across every major property type, with the strongest growth in retail and office but also strong growth in multifamily and industrial. In the quarter, the Company more than doubled its U.S. investment sales volumes, and increased GSE/FHA origination volumes by 40%. In comparison, industry investment sales volumes grew by 18% in the U.S., U.S. commercial and multifamily originations were up 42%, while industry GSE placement activity improved by 16%1.

Newmark further enhanced its capabilities, expanding its U.S. multifamily platform with the addition of the leading West Coast investment sales and debt team.

The Company also added to its healthcare and Valuation & Advisory practices, as well as its growing international operations.

Note: See the accompanying excel supplement for more details on NMRK's volumes.

and multifamily originations are from Newmark Research, based on analysis of historical figures from the Mortgage Bankers Association ("MBA") and preliminary 2025 MSCI lending data. GSE data is based on placement activity report by Fannie Mae and Freddie Mac.

NEWMARK 5

1Q 2025 Revenue Detail

Management Services, Servicing Fees, and Other

Leasing & Other Commissions

31.0%

$208

$159

10.5%

1Q 2024

1Q 2025

Capital Markets

32.7%

$174

$131

Capital Markets

26.1%

42.7%

1Q 2025 Revenue

by Business

Management Services, Servicing Fees, & Other

31.3%

Leasing & Other Commissions

$284

$257

1Q 2024 1Q 2025

Total Revenues

$665

$546

21.8%

1Q 2024 1Q 2025 1Q 2024 1Q 2025

Management Services, Servicing Fees, and Other grew by 10.5% on a total revenue basis and by 9.5% on a fee revenue basis, the seventh consecutive period of strong year-on-year improvement. We generated strong organic growth across nearly all our recurring businesses, including V&A, Occupier Solutions (formerly known as GCS), Servicing & Asset Management, Underwriting and Due Diligence, Dedicated Staffing Solutions, as well as Lease Administration and Property Accounting.

The Company improved revenues from Leasing and Other Commissions by 31.0%, driven by strong double-digit growth in office and retail leasing volumes.

Fees from Commercial Mortgage Origination, net increased by 35.3%, while Investment Sales fees rose by 31.1%, both of which reflected strength across every major property type.

Additionally, Newmark completed over $19 billion of Data Center Capital Markets transactions in the TTM.

Newmark increased total Capital Markets volumes by 62.5%. In comparison, overall industry investment sales volumes were up by 18% in the U.S., while overall U.S. Commercial and Multifamily originations increased by 42% and GSE originations grew by 16%1.

Note: Newmark's fee revenues grew by 22.8% to $560.2 million in the first quarter of 2025. See the quarterly Excel supplements on the Company's website for more revenue details. Totals may not foot due to rounding.

1. Industry investment sales volumes are from Newmark Research, based on their analysis of historical revisions to MSCI sales data. MSCI's preliminary figures suggest that U.S. volumes increased by at least 11%, or by 21% excluding portfolio and entity deals. U.S. commercial and multifamily originations are from Newmark Research, based on analysis of historical figures from the Mortgage Bankers Association ("MBA") and preliminary 2025 MSCI lending data. GSE data is based on placement activity report by Fannie Mae and Freddie Mac.

NEWMARK 6

Disclaimer

Newmark Group Inc. published this content on June 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 23, 2025 at 16:20 UTC.