Newmark’s second quarter results were met with a positive market reaction, reflecting strong revenue and profit growth that surpassed Wall Street’s expectations. Management attributed this performance to broad-based gains across major business lines, with CEO Barry Gosin highlighting double-digit growth in office and retail leasing, significant market share gains in capital markets, and a notable 135% increase in debt volumes. The firm’s expanding leasing footprint and robust activity in key markets like New York and San Francisco were emphasized as primary drivers.
Is now the time to buy NMRK? Find out in our full research report (it’s free).
Newmark (NMRK) Q2 CY2025 Highlights:
- Revenue: $759.1 million vs analyst estimates of $685.9 million (19.9% year-on-year growth, 10.7% beat)
- Adjusted EPS: $0.31 vs analyst estimates of $0.27 (17% beat)
- Adjusted EBITDA: $114 million vs analyst estimates of $101 million (15% margin, 12.8% beat)
- The company lifted its revenue guidance for the full year to $3.15 billion at the midpoint from $3 billion, a 5% increase
- Management raised its full-year Adjusted EPS guidance to $1.52 at the midpoint, a 4.8% increase
- EBITDA guidance for the full year is $548 million at the midpoint, above analyst estimates of $525.2 million
- Operating Margin: 5.6%, in line with the same quarter last year
- Market Capitalization: $2.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Newmark’s Q2 Earnings Call
- Mitchell Germain (Citizens): asked about the progress in Germany and international platform expansion. CEO Barry Gosin described the official launch occurring this fall, with positive broker interest and a growing European footprint.
- Mitchell Germain (Citizens): questioned the sustainability of capital markets activity. Gosin replied that diversification across markets and service lines provides a long runway, with Europe viewed as offering particularly attractive opportunities.
- Mitchell Germain (Citizens): inquired about capital allocation and M&A plans. CFO Michael Rispoli stated that while buybacks remain an option, the focus will shift to acquisitions in management services during the second half.
- Alexander Goldfarb (Piper Sandler): pressed on the durability of data center-driven growth. Gosin emphasized that the sector is still early in its cycle, with both equity and financing transactions offering significant runway.
- Patrick O'Shaughnessy (Raymond James): asked about free cash flow conversion expectations. Rispoli explained that the range will depend on internal investments, with 65% to 85% conversion targeted based on growth spending.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) continued expansion and deal flow in international markets, particularly Europe and Asia, (2) sustained growth and diversification in management services and recurring revenue streams, and (3) the pace of data center transaction activity, especially as AI-driven demand evolves. Execution on targeted M&A and integration of new hires will also be closely monitored.
Newmark currently trades at $16.45, up from $14.47 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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