Newmark Q1 2025 slides: Revenue jumps 21.8%, adjusted EBITDA soars 40.5%

Newmark Group , Inc. (NASDAQ:NMRK) reported strong first-quarter 2025 results on April 30, showcasing significant growth across all business segments and substantial improvements in profitability metrics. The commercial real estate services firm continued its momentum from a strong fourth quarter, positioning itself to capitalize on upcoming opportunities in the CRE debt market.

Quarterly Performance Highlights

Newmark delivered total revenues of $665.5 million in the first quarter of 2025, representing a 21.8% increase compared to the same period last year. The company’s adjusted EBITDA surged 40.5% year-over-year to $89.2 million, while adjusted earnings per share rose 40.0% to $0.21.

"Our strong operating leverage drove the increases in Adjusted EPS and Adjusted EBITDA," the company noted in its presentation, highlighting that all of the year-over-year improvement was organic.

As shown in the following consolidated results table, Newmark significantly reduced its GAAP net loss from $16.3 million in Q1 2024 to $8.8 million in Q1 2025, an improvement of 46.1%:

The company’s revenue growth was broad-based across all business segments. Capital Markets revenues increased by 32.7%, Leasing & Other Commissions improved by 31.0%, and Management Services, Servicing Fees & Other grew by 10.5%.

The following chart illustrates Newmark’s revenue distribution by business segment for Q1 2025:

Strategic Market Positioning

Newmark continues to strengthen its position among top global commercial real estate services companies. With trailing twelve-month revenues exceeding $2.8 billion and approximately 8,100 professionals across 165 global client service locations, the company has secured notable industry rankings.

As illustrated in the following slide, Newmark has achieved #1 rankings for Office Broker, Office Originations, and as a Top Mortgage Banking and Brokerage Firm:

The company has made significant strides in gaining market share in U.S. Capital Markets. Since 2015, Newmark has increased its U.S. Debt Market Share approximately six-fold from 1.5% to 8.7%, while its U.S. Investment Sales Market Share has nearly tripled from 3.3% to 9.8%.

This market share growth has translated into substantial volume increases in Q1 2025. Total (EPA:TTEF) Capital Markets volumes surged 62.5% year-over-year to $22.9 billion, with Investment Sales volumes up 90.9% and Total Debt volumes up 37%.

The following slide details Newmark’s expanding international presence, which represents a significant growth opportunity:

Servicing Portfolio Growth

Newmark’s servicing portfolio continues to be a key driver of recurring revenue. The portfolio generated $65.8 million in the first quarter, a 10.0% year-over-year increase. The total servicing and asset management portfolio grew 7.1% year-over-year to a record balance of $186.4 billion.

The company’s higher-margin primary servicing portfolio increased 7.4% year-over-year to $68.5 billion. The composition of the portfolio and its maturity schedule are illustrated in the following slide:

A notable aspect of Newmark’s servicing portfolio is its long-dated nature, with approximately 94% of the Fannie Mae/Freddie Mac portfolio maturing in 2027 or later, providing visibility into future servicing revenue.

Financial Position & Capital Deployment

Newmark maintains a strong balance sheet with $157.1 million in cash and cash equivalents as of March 31, 2025. The company’s net leverage ratio stands at 1.3x, below its long-term target of ≤1.5x, providing financial flexibility for strategic investments.

The following slide outlines Newmark’s financial position and cash generation capabilities:

On April 29, 2025, Newmark’s Board declared a 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.

Market Opportunity (SO:FTCE11B) & Outlook

Newmark is well-positioned to capitalize on the significant volume of commercial real estate debt maturing in the coming years. According to the company, approximately $1 trillion of outstanding CRE debt is potentially troubled, with $542 billion maturing between 2025 and 2027.

The Mortgage Bankers Association expects a record $957 billion of mortgage maturities in 2025 and approximately $2.1 trillion by 2027, creating substantial opportunities for Newmark’s capital markets business.

For the full year 2025, Newmark provided the following outlook:

The company expects total revenues between $2.9 billion and $3.1 billion, representing year-over-year growth of 6% to 13%. Adjusted earnings per share is projected to be between $1.40 and $1.50, an increase of 14% to 22% compared to 2024.

Newmark’s stock closed at $11.06 on April 29, 2025, down 1.16% for the day, with premarket trading on April 30 showing an increase of 1.72% to $11.25, suggesting a positive but measured market reaction to the quarterly results.

The company’s continued execution on its growth strategy, combined with its strengthening market position and the upcoming wave of CRE debt maturities, positions Newmark to potentially deliver on its ambitious 2025 financial targets.

Full presentation:

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