Newmark — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were $973.2 million, a 12.7% increase year-over-year (YoY) from $863.5 million; year-to-date (YTD) revenues were $2,708.1 million, an 18.4% increase from $2,288.1 million.
• GAAP net income for fully diluted shares was $67.4 million for Q3 2026 (up 5.3% YoY from $64.0 million) and $114.1 million for YTD 2026 (up 42.5% YoY from $80.1 million).
• GAAP earnings per share (EPS) were $0.27 for Q3 2026 (up 8.0% YoY) and $0.45 for YTD 2026 (up 40.6% YoY).
• Post-tax Adjusted Earnings were $122.1 million for Q3 2026 (up 15.3% YoY) and $303.0 million for YTD 2026 (up 27.4% YoY).
• Adjusted EPS was $0.48 for Q3 2026 (up 14.3% YoY) and $1.20 for YTD 2026 (up 27.7% YoY).
• Adjusted EBITDA was $166.4 million for Q3 2026 (up 14.6% YoY) and $426.7 million for YTD 2026 (up 22.5% YoY).
• Net leverage ratio was 1.0x as of September 30, 2026.
• Total corporate debt was $877.5 million as of September 30, 2026, compared to $671.7 million as of December 31, 2025.
• Cash and cash equivalents were $240.0 million as of September 30, 2026.

Guidance and Future Outlook:

• Revised 2026 Total Revenue outlook is $3,700–$3,800 million (12%–15% YoY growth), down from the prior outlook of $3,775–$3,875 million (15%–18% YoY growth).
• Revised 2026 Adjusted EPS outlook is $1.80–$1.90 (11%–17% YoY growth), down from the prior outlook of $1.87–$1.98 (15%–22% YoY growth).
• Revised 2026 Adjusted EBITDA outlook is $629–$667 million (12%–19% YoY growth), down from the prior outlook of $656–$694 million (17%–23% YoY growth).
• Revised 2026 Adjusted Earnings Tax Rate outlook is 13%–15%.
• Management expects double-digit growth in revenues, Adjusted EBITDA, and Adjusted EPS for the full year 2026, anticipating best-ever full-year results for these metrics.
• The company targets annual share count growth of 2% or less over time.
• The outlook revision is attributed to a challenging macroeconomic environment creating uncertainty regarding the timing of deal closings.

Business Segments and Product Lines:

• Management Services, Servicing Fees, and Other revenues increased 18.3% YoY to $376.3 million for Q3 2026 and 19.0% YoY to $1,071.5 million for YTD 2026; this segment recorded its fifth consecutive record quarter.
• The Servicing and Asset Management portfolio expanded 23.2% YoY.
• Leasing and Other Commissions revenues increased 26.5% YoY to $308.6 million for Q3 2026, marking an all-time best third quarter; growth was driven by demand in AI, data centers, technology, manufacturing, legal services, aerospace, defense, and healthcare.
• Capital Markets revenues declined 4.4% YoY to $288.2 million for Q3 2026, offset by a 33% rise in Investment Sales volumes.
• Investment Sales revenues increased 7.5% YoY to $171.9 million for Q3 2026 and 32.8% YoY to $477.1 million for YTD 2026, led by multifamily (seniors and affordable housing), industrial, and retail volumes.
• Fees from Commercial Mortgage Origination, net, declined 21.1% YoY to $79.6 million for Q3 2026 and 8.7% YoY to $230.3 million for YTD 2026, impacted by a difficult comparison to a 129% growth in Total Debt volumes in Q3 2025 and lower industry multifamily GSE activity.
• Newmark won a long-term Property and Project Management assignment for 601W Companies, covering over 21 million square feet of U.S. office assets.
• Six acquisitions were completed since the third quarter of 2025, contributing to Management Services fee growth.

Market and Competitive Landscape:

• U.S. industry investment sales volumes improved approximately 25% YoY in Q3 2026, while European investment sales volumes declined 24% over the same period.
• U.S. industry commercial and multifamily originations were up 5% YoY, while industry GSE placement activity declined 30%.
• Newmark's Agency originations were down 16% YoY, outperforming the industry decline of 28%.
• Approximately 86% of Newmark's Investment Sales volumes were generated in the U.S. in the twelve months ended September 30, 2026.
• Over 97% of Newmark's Total Debt volumes were generated in the U.S. over the same period.

Risks and Challenges:

• Volatility in the macroeconomic environment creates challenges regarding the timing and certainty of deal closings.
• The company notes that GAAP results are difficult to forecast with precision due to the unpredictable nature of equity-based compensation charges, litigation resolutions, and asset impairment charges.

Management Commentary and Tone:

• Barry M. Gosin, CEO, stated the company generated "strong top- and bottom-line growth, including record third quarter revenues" and produced "double-digit gains in Leasing and in our recurring businesses."
• Management expressed confidence that investments in resilient service lines, international expansion, brand strength, and professional collaboration will drive long-term growth and market share gains.
• The tone remains confident regarding long-term goals, specifically targeting over $2 billion in annual Management and Servicing revenues by 2029.

Other Key Points:

• S&P Global Ratings upgraded Newmark's issuer credit rating to 'BBB-' from 'BB+' on September 16, 2026.
• The Board re-authorized a $400 million share buyback program on October 28, 2026.
• Newmark repurchased 3.9 million shares for $59.4 million in Q3 2026 and 14.3 million shares for $210.5 million YTD 2026; $189.5 million remained under the authorization as of September 30, 2026.
• The Board declared a qualified quarterly dividend of $0.06 per share on October 28, 2026, payable November 30, 2026.
• Newmark operates from approximately 200 offices with 10,500 professionals across four continents.
• The company generated revenues of over $3.7 billion for the twelve months ended September 30, 2026.