Newmark Group, Inc. · NASDAQ:NMRK
Newmark — Q1 2025 Earnings Presentation
44 slides from Newmark's earnings presentation, Apr 2, 2025
Slide 1: First Quarter 2025 Financial Results Presentation
Newmark Group, Inc. (Nasdaq: NMRK) First Quarter 2025 Financial Results Presentation April 30, 2025 Property Type: Office NMRK.COM
Slide 2: Disclaimers
Disclaimers Discussion of Forward-Looking Statements References in this document to “we,” “us,” “our,” the “Company” and “Newmark” mean Newmark Group, Inc., and its consolidated subsidiaries. Statements in this document regarding Newmark that are not historical facts are "forward-looking statements"
Slide 3: Recent Consolidated Results
Recent Consolidated Results Highlights of Consolidated Results 1Q25 1Q24 Change (USD millions, except per share data) Total Revenues $665.5 $546.5 21.8% GAAP net income (loss) for fully diluted shares (8.8) (16.3) 46.1% GAAP net income (loss) per fully diluted share (0.05) (0.09) 44.4% Post-tax Adju
Slide 4: Leading Commercial Real Estate Advisor and Service Provider
Leading Commercial Real Estate Advisor and Service Provider Founded in 1929, Newmark is a global leader in commercial real estate services, seamlessly powering every phase of the property life cycle TTM Revenues 2024 Transaction Volume Professionals Global Client Service Locations +$2.8B ~$1.1T ~8,1
Slide 5: First Quarter Highlights
First Quarter Highlights Total Revenues AEPS AEBITDA AEBITDA Margin $665.5M $0.21 $89.2M 13.4% 1Q 2025 21.8% 40.0% 40.5% 179bps - Newmark's strong operating leverage drove increases of 40.0% in Adjusted EPS and 40.5% in Adjusted EBITDA on 22.8% fee revenue growth. - AEBITDA Margin expanded by 179 ba
Slide 6: 1Q 2025 Revenue Detail
1Q 2025 Revenue Detail Management Services, Leasing & Servicing Fees, and Other Other Commissions 10.5% 31.0% $208 $284 $257 $159 Capital Markets 26.1% 1Q 2024 1Q 2025 1Q 2024 1Q 2025 42.7% 1Q 2025 Revenue Capital Markets Total Revenues by Business $665 Management Services, 32.7% 21.8% Servicing Fee
Slide 7: Servicing & Asset Management Provides Long-term and Recurring, High-Margin Revenues
Servicing & Asset Management Provides Long-term and Recurring, High-Margin Revenues Portfolio Composition as of 03/31/2025 Newmark Fannie Mae/Freddie Mac Portfolio Maturities by Year FHA/Other 4.7% 39.9% Freddie Mac 35.4% 14.5% $186.4 Billion 18.7% Fannie Mae 17.6% Limited Servicing & Asset Manageme
Slide 8: Strong Balance Sheet & Credit Metrics
Strong Balance Sheet & Credit Metrics No near-term debt maturities AS OF 03/31/2025, UNLESS OTHERWISE STATED ($ IN MILLIONS) Cash and Cash Equivalents $157.1 Credit Metrics as of 03/31/2025 Interest Rate Maturity Senior Notes 7.50% 01/12/2029 $595.9 $471.0 million TTM Adjusted EBITDA Credit Facility
Slide 9: Our Strong Financial Position & Cash Generation Will Help Fuel Our Continued Growth
Our Strong Financial Position & Cash Generation Will Help Fuel Our Continued Growth Low Risk Strong Financial Profile & Strong Cash Flow Intermediary Credit Metrics – Capital-light model; we do not own real estate – Operates with investment grade credit metrics – Newmark has a history of strong Cash
Slide 10: Strong Growth in Management & Servicing Revenues
Strong Growth in Management & Servicing Revenues1 We target growing total revenues for these service lines to over $2 billion within 5 years ($ in millions) 227% Fees from these businesses have grown 227% ~16% & 18% between 2017 and the TTM respective total & fee 40% revenue CAGRs $1,134 39% 197% $9
Slide 11: International Expansion Gives Newmark Significant Upside Potential
International Expansion Gives Newmark Significant Upside Potential Newmark’s Non-U.S. Revenue ~56% revenue CAGR Our full service U.S.-listed public peers 12.9% generated ~29% to 47% of their revenues 12.5% outside the U.S., which leaves significant upside for Newmark Our European expansion continues
Slide 12: We Expect Record Quantities of Maturing Debt to Continue Driving Newmark's Results
We Expect Record Quantities of Maturing Debt to Continue Driving Newmark’s Results ~$1T of Outstanding CRE Debt is Potentially Troubled, $542B of this is Maturing in 2025-2027 U.S. Commercial & Multifamily Mortgage Maturities ($B) 1,000 900 ~$2.1T 800 700 Dollars in Billions 600 500 400 300 200 100
Slide 13: Newmark Has a Long-Term Track Record of Gaining Share in U.S. Capital Markets
Newmark Has a Long-Term Track Record of Gaining Share in U.S. Capital Markets Total market size of nearly $1 trillion: Expect Double-Digit Growth Over the Next 2 Years ~6x Since ~3x Since 2015 2015 9.8% 8.7% 3.3% 1.5% FY 2015 TTM 1Q 2025 FY 2015 TTM 1Q 2025 NMRK U.S. Debt Market Share NMRK U.S. Inve
Slide 14: Outlook & Targets
Outlook & Targets Property Type: Multifamily 14
Slide 15: 2025 Outlook
2025 Outlook Metric FY 2025 Outlook YoY Change FY 2024 Actual Total Revenues (millions) $2,900 - $3,100 6% - 13% $2,738.5 Adjusted Earnings Per Share $1.40 - $1.50 14% - 22% $1.23 Adjusted Earnings Tax Rate 14% - 16% 14.1% Adjusted EBITDA (millions) $495 - $545 11% - 22% $445.3 ‒ Newmark's guidance
Slide 16: GAAP Financial Results
GAAP Financial Results Property Type: Various 16
Slide 17: Condensed Consolidated Statements of Operations
Newmark Group, Inc. Condensed Consolidated Statements of Operations (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended March 31, Revenues: 2025 2024 Management services, servicing fees and other $ 283,893 $ 256,934 Leasing and other commissions 208,074 158,799 Capital
Slide 18: Condensed Consolidated Statements of Operations (continued)
Newmark Group, Inc. Condensed Consolidated Statements of Operations (continued) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended March 31, Per share data: 2025 2024 Basic earnings per share Net income (loss) available to common stockholders $ (8,766) $ (16,254) Basic
Slide 19: Condensed Consolidated Balance Sheets
Newmark Group, Inc. Condensed Consolidated Balance Sheets (IN THOUSANDS) (UNAUDITED) (UNDER GAAP) March 31, 2025 December 31, 2024 Assets Current Assets: Cash and cash equivalents $ 157,078 $ 197,691 Restricted cash 110,564 107,174 Loans held for sale, at fair value 848,044 774,905 Receivables, net
Slide 20: Summarized Condensed Consolidated Statements of Cash Flows
Newmark Group, Inc. Summarized Condensed Consolidated Statements of Cash Flows (IN THOUSANDS) (UNAUDITED) (UNDER GAAP) Three Months Ended March 31, 2025 2024 Net cash provided by (used in) operating activities $ (179,404) $ (68,783) Net cash (used in) investing activities (5,444) (7,354) Net cash pr
Slide 21: Appendix 1: Additional Information on Newmark
Appendix 1: Additional Information on Newmark Property Type: Office NEWMARK 21
Slide 22: Newmark Volumes
Newmark Volumes ($ IN MILLIONS) 1Q 2025 1Q 2024 % Change Newmark Volumes Fannie Mae $1,047 $835 25.3% Freddie Mac 878 556 57.9% FHA / Other 24 - NMF Total GSE/FHA Origination Volume $1,948 $1,391 40.0% Mortgage Brokerage & Debt Placement 8,249 6,050 36.4% Total Debt $10,197 $7,441 37.0% Investment S
Slide 23: Fully Diluted Period-End Share Count Summary
Newmark Group, Inc. Fully Diluted Period-End Share Count Summary The table below reflects a reclassification of certain share equivalents held by our former Executive Chairman into common shares held by the public As of March 31, 2025 Fully Diluted Shares (millions) Ownership (%) Class A owned by Pu
Slide 24: Certain Revenue Terms Defined
Certain Revenue Terms Defined Fee and non-fee revenues The Company’s total revenues include certain Management Services revenues that equal their related expenses. These revenues represent fully reimbursable compensation and non-compensation costs recorded as part of Newmark's Occupier Solutions ("O
Slide 25: Other Useful Information
Other Useful Information Information on Newmark’s Recent Servicing Business Results Newmark produced $175.8 million in servicing fees during the twelve months ended March 31, 2025. In addition to servicing fees, the Company generated $100.1 million of other revenues, for a total of $275.9 million of
Slide 26: Other Useful Information (continued)
Other Useful Information (continued) Recent Notable Transactions For additional information about certain notable business wins and/or transactions for which Newmark acted as an advisor, and which were announced thus far in 2025, please see press releases including: "Newmark Arranges $360M Sale of T
Slide 27: Appendix 2: Additional Industry Information
Appendix 2: Additional Industry Information Property Type: Various NEWMARK 27
Slide 28: U.S. Office Activity is Strongest in Class A Properties
U.S. Office Activity is Strongest in Class A Properties Recent leasing activity has been more robust in Manhattan and San Francisco than in other gateway cities Leasing Activity as a Percentage of Inventory* Leasing Activity by Market as a Percent of Inventory (4-Quarter Trailing)* Boston 3 Star (Co
Slide 29: Appendix 3: Financial Tables & Reconciliations
Appendix 3: Financial Tables & Reconciliations Property Type: Retail, Mixed-Use NEWMARK 29
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures NON-GAAP FINANCIAL MEASURES This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"). Non-GAAP financial mea
Slide 31: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) - Charges with respect to grants of exchangeability, which reflect the right of holders of limited partnership units with no capital accounts, such as LPUs and PSUs, to exchange these units into shares of common stock, or into partnership units with capital ac
Slide 32: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Excluded Compensation-Related Items with Respect to the 2021 Equity Event under Adjusted Earnings and Adjusted EBITDA Newmark does not view the cash GAAP compensation charges related to 2021 Equity Event (the "Impact of the 2021 Equity Event") as being reflect
Slide 33: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Calculation of Other income (loss) for Adjusted Earnings and Adjusted EBITDA Adjusted Earnings calculations also exclude certain other non-cash, non-dilutive, and/or non-economic items, which may in some periods include: – Unusual, non-ordinary or non-recurrin
Slide 34: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) METHODOLOGY FOR CALCULATING ADJUSTED EARNINGS TAXES Although Adjusted Earnings are calculated on a pre-tax basis, Newmark also reports post-tax Adjusted Earnings to fully diluted shareholders. The Company defines post-tax Adjusted Earnings to fully diluted sha
Slide 35: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) The share count for Adjusted Earnings excludes certain shares and share equivalents expected to be issued in future periods but not yet eligible to receive dividends and/or distributions. Each quarter, the dividend payable to Newmark’s stockholders, if any, is
Slide 36: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) ADJUSTED EBITDA DEFINED Newmark also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as GAAP “Net income (loss) available to common stockholders”, adjusted for the following items: – Net income (loss) attribut
Slide 37: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) MANAGEMENT RATIONALE FOR USING ADJUSTED EBITDA Newmark’s calculation of Adjusted EBITDA excludes certain items discussed above because they are either non-cash in nature, because the anticipated benefits from the expenditures are not expected to be fully reali
Slide 38: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) TIMING OF OUTLOOK FOR CERTAIN GAAP AND NON-GAAP ITEMS Newmark anticipates providing forward-looking guidance for GAAP revenues and for certain non-GAAP measures from time to time. However, the Company does not anticipate providing an outlook for other GAAP res
Slide 39: Reconciliation of GAAP Net Income to Adjusted Earnings and Post-Tax Adjusted EPS
Reconciliation of GAAP Net Income Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests And Taxes And GAAP Fully Diluted EPS to Post-Tax Adjusted EPS (in Thousands, Except per Share Data) (Unaudited) Three Months Ended March 31, 2025 2024 GAAP net loss available to co
Slide 40: Reconciliation of GAAP Net Income to Adjusted Earnings (continued)
Reconciliation of GAAP Net Income Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests And Taxes And GAAP Fully Diluted EPS to Post-Tax Adjusted EPS (continued) (in Thousands, Except per Share Data) (Unaudited) Three Months Ended March 31, 2025 2024 GAAP Net loss ava
Slide 41: Reconciliation of GAAP Net Income to Adjusted Earnings (continued)
Reconciliation of GAAP Net Income Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests And Taxes And GAAP Fully Diluted EPS to Post-Tax Adjusted EPS (continued) (in Thousands, Except per Share Data) (Unaudited) Three Months Ended March 31, 2025 2024 GAAP provision (b
Slide 42: Reconciliation of GAAP Income to Adjusted EBITDA
Reconciliation of GAAP Income to Adjusted EBITDA (in Thousands) (Unaudited) Three Months Ended March 31, 2025 2024 GAAP net Income (loss) available to common stockholders $ (8,766) $ (16,254) Adjustments: Net income (loss) attributable to noncontrolling interests (1) (7,183) (10,062) Benefit for inc
Slide 43: Other Income
Other Income (in Millions) (Unaudited) Newmark Group, Inc. Other Income (Loss) (in millions) (unaudited) Three Months Ended March 31, 2025 2024 Other items, net 0.7 — Other income (loss), net under GAAP 0.7 — To reconcile from GAAP other income, exclude: Other items, net (0.7) — Other income, net fo
Slide 44: Media and Investor Contacts
MEDIA CONTACT INVESTOR CONTACT Find out more about Newmark For additional insights from Newmark Research, at the following sites: please go to the following websites: Deb Bergman Jason McGruder t 303-260-4307 nmrk.com Shaun French nmrk.com/insights t 212-829-7124 twitter.com/newmark nmrk.com/service