GICS Sector : Real Estate
Newmark Group, Inc.provides commercial real estate services in the United States and internationally.The company's investor/owner services and products include capital markets, such as investment, debt and structured finance, and loan sales; agency leasing, property management, and valuation and advisory; and commercial real estate due diligence consulting and advisory services, as well as government sponsored enterprise lending, loan servicing, mortgage broking, and equity-raising services.
Newmark Group reported a robust third quarter 2025, with total revenues reaching $863.5 million, a 25.9% increase compared to $685.9 million in the same period last year. The company's adjusted EBITDA was $145.2 million, up 28.9% versus $112.6 million, resulting in an adjusted EBITDA margin of 16.8%, a 40 basis point improvement. Earnings per share (EPS) came in at $0.42, slightly beating estimates of $0.41. The company's financial performance was driven by double-digit gains across every major business line, with management services, servicing, and other revenues increasing by 12.6% to a record quarterly high.
Publication Date: Nov -16
Newmark acquired RealFoundations, a management consulting and outsourced managed services provider for institutional real estate clients, and launched a fund administration business. According to Michael Rispoli, "We think RealFoundations has enormous traction, and launching fund administration with them made it easier for us to deliver on that." The company is focusing on growing its facilities management and other services, with a strategy that is "agile, accountable, and nimble."
Newmark is confident in its stated goal of producing more than $2 billion of recurring revenues annually by 2029. The company expects 10% earnings improvement next year and has a strong pipeline heading into the fourth quarter. As Barry Gosin noted, "I don't really see any sign of impact or cautiousness from buyers in New York City due to the mayor's race. I believe it's just a lot of noise, and New York is still expanding."
Analysts estimate Newmark's revenue growth at 9.9% next year. With a current P/E Ratio of 28.16 and EV/EBITDA of 13.26, the market is pricing in a certain level of growth. The company's ROE is 7.62%, and ROIC is 3.64%. Newmark's Net Debt / EBITDA ratio is 5.93, indicating a significant level of debt. Investors should carefully consider these valuation metrics when assessing the company's prospects.
Newmark Appoints Globally Recognized Real Estate Executive Peter Trollope to Lead Occupier Solutions
Dec -04
Newmark Appoints Globally Recognized Real Estate Executive Peter Trollope to Lead Occupier Solutions
Dec -04
Newmark Group (NMRK) Upgraded to Buy: Here's What You Should Know
Dec -01
Macquarie Small Cap Value Fund Q3 2025 Portfolio Performance
Nov -30
Boston Partners Raises Holdings in Newmark Group, Inc. $NMRK
Nov -28
Newmark Acquires Catella Valuation Advisory in Paris, France
Nov -24
Down 15.4% in 4 Weeks, Here's Why Newmark Group (NMRK) Looks Ripe for a Turnaround
Nov -18
Newmark Continues Strategic Debt & Structured Finance Growth in Europe with Senior Hires
Nov -10
Newmark Group's 5.5% growth in Leasing and Other Commissions is driven by increasing demand for commercial real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's diversified revenue streams, including leasing, investment sales, and mortgage brokerage, contribute to its growth. Furthermore, Newmark's strong brand reputation and experienced professionals also support its growth momentum.
Newmark Group's Management Services segment growth of 5.0% is driven by increasing demand for outsourced real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology-enabled services, such as data analytics and portfolio management, is attracting clients seeking to optimize their real estate portfolios.
Newmark Group, Inc.'s 7.0% growth is driven by increasing demand for commercial real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's diversified revenue streams, including leasing, capital markets, and property management, contribute to its growth. Furthermore, investments in technology and data analytics enhance operational efficiency and drive revenue growth.
Newmark Group's 4.5% growth in Servicing Fees and Other is driven by increasing demand for commercial mortgage servicing, expansion of its investment sales and debt placement businesses, and growth in its asset management platform. Additionally, the company's strategic acquisitions and partnerships have contributed to the growth, along with a favorable interest rate environment and strong property market fundamentals.
Newmark Group's Mortgage Brokerage and Debt Placement segment growth of 6.5% is driven by increasing demand for commercial mortgage brokerage services, expansion of debt placement capabilities, and strategic partnerships. Additionally, the segment benefits from a strong pipeline of transactions, favorable interest rate environment, and growing demand for capital markets services.
Newmark Group, Inc.'s 5.8% growth in Fair Value of Expected Net Future Cash Flows from Servicing Recognized at Commitment is driven by increasing commercial property transactions, expansion of mortgage servicing rights, and strategic acquisitions. Additionally, the company's diversified revenue streams, strong brand reputation, and cost-saving initiatives contribute to its growth momentum.
The 6.2% growth in Loan Originations Related Fees and Sales Premiums from Newmark Group, Inc. is driven by increasing demand for commercial mortgage brokerage services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in technology and digital platforms has enhanced its ability to originate and close loans efficiently, resulting in higher fees and premiums.
Newmark Group's leasing services provide comprehensive solutions for tenants, landlords, and investors across various property types, including office, industrial, retail, and multifamily.
Newmark's investment sales platform provides advisory services for buyers and sellers of commercial properties, including office buildings, shopping centers, and apartments.
Newmark's global corporate services provide strategic consulting and transaction management services for corporate occupiers, including portfolio optimization and workplace strategy.
Newmark's valuation and advisory services provide independent and unbiased valuations, appraisals, and consulting services for commercial properties.
Newmark's project management services provide comprehensive oversight and coordination of construction projects, including budgeting, scheduling, and quality control.
Newmark's property management services provide comprehensive management and operational services for commercial properties, including accounting, budgeting, and maintenance.
Newmark Group, Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.
Newmark Group, Inc. has a large customer base, but the customers have significant bargaining power due to the availability of substitutes and the company's dependence on a few large clients.
Newmark Group, Inc. has a diverse supplier base, and the suppliers have limited bargaining power due to the company's large scale of operations and its ability to negotiate favorable terms.
The threat of new entrants is moderate due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles. However, new entrants can still disrupt the market with innovative business models.
The real estate services industry is highly competitive, with many established players competing for market share. Newmark Group, Inc. faces intense rivalry from its competitors, which can lead to downward pressure on prices and profit margins.
| Value | |
|---|---|
| Debt Weight | 47.74% |
| Debt Cost | 3.95% |
| Equity Weight | 52.26% |
| Equity Cost | 13.92% |
| WACC | 9.16% |
| Leverage | 91.37% |
Value: 5.0
Growth: 4.0
Quality: 5.4
Yield: 2.0
Momentum: 7.5
Volatility: 5.7
1-Year Total Return ->
Value: 8.5
Growth: 3.2
Quality: 6.8
Yield: 2.0
Momentum: 2.0
Volatility: 3.7
1-Year Total Return ->
Value: 9.6
Growth: 3.3
Quality: 5.4
Yield: 0.0
Momentum: 5.0
Volatility: 0.7
1-Year Total Return ->
Value: 3.8
Growth: 4.4
Quality: 2.7
Yield: 0.0
Momentum: 6.5
Volatility: 6.3
1-Year Total Return ->
Value: 2.5
Growth: 4.0
Quality: 6.5
Yield: 0.0
Momentum: 1.5
Volatility: 8.7
1-Year Total Return ->
Value: 5.1
Growth: 1.4
Quality: 5.0
Yield: 3.0
Momentum: 2.0
Volatility: 6.7
1-Year Total Return ->