Quarterly Earnings Discussion for Newmark in 2025, Transcribed
Newmark Group's Positive Outlook for Second Half of 2025
The growth outlook for Newmark Group's management services, leasing, and capital markets businesses in the second half of 2025 is promising, with expectations of continued double-digit revenue growth and strengthening deal pipelines.
According to the company's latest earnings report, total revenues for Q2 2025 reached $759.1 million, marking a 19.9% increase year-over-year. The midpoint of Newmark Group, Inc.'s full-year 2025 revenue guidance suggests high single-digit revenue growth and mid-teens earnings growth for 2026.
Sustained Growth in Management Services
The company's management services, including property management, servicing fees, and investment management, grew by about 13.6% year-over-year. This growth is driven by a 30% increase in valuation and advisory services and steady gains in the asset management platform.
Leasing Rebound
Leasing commissions rose 13.8%, helped by a rebound in both office and retail leasing in major U.S. urban centers like New York and San Francisco. High-profile lease transactions bolster this segment, indicating robust demand amid improving market conditions.
Capital Markets Growth
The capital markets segment benefits from increased transaction activity and stable pricing and cap rates. Retail investment sale volumes grew 22% year-over-year in Q2 2025, signaling growing investor interest that could drive further capital markets growth through year-end 2025 and into 2026.
Stable Market Fundamentals and Active Pipeline
Newmark's pipeline of deals and transaction activity remained strong throughout the first half of 2025, with no significant slowdowns despite some broader economic and policy uncertainties. Executives emphasize that pipelines continue to grow stronger, supporting optimism for the second half of the year.
Focus on M&A
CFO Mike Rispoli stated that buybacks are still on the table for the back half of the year, but management expects to pivot to M&A. Management confirmed most M&A will focus on "bolt-ons" and businesses complementing recurring revenue and platform synergies.
International Expansion
Europe now represents over 13% of volumes, and the international platform continues to expand with significant new broker hires in Germany and ongoing development in Asia.
The call was held on Wednesday, July 30, 2025, at 12:00 p.m. ET. For more information, visit Newmark Group, Inc.'s official website.
The Newmark Group is anticipating growth in various sectors, such as management services, leasing, and capital markets, for the second half of 2025, due to strong earnings and a steady pipeline. The management services growth is attributed to an increase in valuation and advisory services, and a stable asset management platform. Leasing commissions have shown a rebound, particularly in urban centers like New York and San Francisco, driven by high-profile lease transactions. Capital markets growth is expected with increasing retail investment sale volumes, signaling growing investor interest. While buybacks are still on the table for the second half, the focus is expected to shift towards M&A, with a focus on "bolt-ons" and businesses that complement recurring revenue and platform synergies. International expansion is also a key focus, with significant growth in Europe and ongoing development in Asia.
