Slide 1: Fourth Quarter 2024 Financial Results Presentation
Newmark Group, Inc. (Nasdaq: NMRK) Fourth Quarter 2024 Financial Results Presentation Updated March 3, 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 4Q24 4Q23 Change FY 2024 FY 2023 Change (USD millions, except per share data) Total Revenues $872.7 $747.4 16.8% $2,738.5 $2,470.4 10.9% GAAP income before income taxes and noncontrolling interests ("GAAP pre-tax income") 95.5 82.4 15.8%
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 2024 Revenues 2024 Transaction Volume Professionals Global Client Service Locations $2.7B+ ~$1.1T 8,0
Slide 5: Fourth Quarter and FY 2024 Highlights
Fourth Quarter and FY 2024 Highlights Total AEBITDA Margin AEBITDA Margin Revenues AEPS AEBITDA (as Reported) (Ex-2023 Legal Settlement) $872.7M $0.55 $182.9M 21.0% 21.0% 4Q 2024 16.8% 19.6% 10.1% 128bps 43bps $2,738.5 $1.23 $445.3M 16.3% 16.3% FY 2024 18% 118bps 8% 10.9% 17.1% 11.8% 14bps 65bps - N
Slide 6: 4Q 2024 Revenue Detail
4Q 2024 Revenue Detail Management services, Leasing & servicing fees, and other other commissions $304 15.2% 15.1% $276 $264 $239 Capital Markets 33.5% 34.9% 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2024 Revenue Capital Markets Total Revenues by Business Management services, 20.0% 16.8% $873 $293 servicin
Slide 7: FY 2024 Revenue Detail
FY 2024 Revenue Detail Management services, Leasing & servicing fees, and other other commissions $1,107 $840 $858 14.0% 2.1% $971 Capital Markets 28.3% FY 2023 FY 2024 FY 2023 FY 2024 40.4% FY 2024 Revenue Capital Markets Total Revenues by Business Management services, $774 $2,739 17.3% 10.9% servi
Slide 8: 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 12/31/2024 Newmark Fannie Mae/Freddie Mac Portfolio Maturities by Year FHA/Other 4.8% 47.8% Freddie Mac 14.5% 39.3% $183.4 Billion Fannie Mae 17.5% Limited Servicing & 9.9% Asset Managemen
Slide 9: Strong Balance Sheet & Credit Metrics
Strong Balance Sheet & Credit Metrics No near-term debt maturities AS OF 12/31/2024, UNLESS OTHERWISE STATED ($ IN MILLIONS) Cash and Cash Equivalents $197.7 Credit Metrics as of 12/31/2024 Interest Rate Maturity Senior Notes 7.50% 01/12/2029 $595.7 $445.3 million 2024 Adjusted EBITDA Credit Facilit
Slide 10: 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 11: 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) 219% Fees from these businesses have grown ~16% & 18% 219% between 2017 and 2024 respective total & fee 40% revenue CAGRs 39% $1,107 32% $971 1
Slide 12: International Expansion Gives Newmark Significant Upside Potential
International Expansion Gives Newmark Significant Upside Potential Newmark’s Non-U.S. Revenue Our full service U.S.-listed public peers ~59% generated ~28% to 46% of their revenue CAGR 13.3% revenues outside the U.S., which 12.5% leaves significant upside for Newmark Our European expansion continues
Slide 13: 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 14: 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 Have increased Have increased our relative our relative standing by ~6x standing by >2.5x 8.9% 8.7% 3.3% 1.5% FY 2015 FY 2024 FY 201
Slide 15: Outlook & Targets
Outlook & Targets Property Type: Multifamily 15
Slide 16: 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 outlook a
Slide 17: GAAP Financial Results
GAAP Financial Results Property Type: Office 17
Slide 18: 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 December 31, Year Ended December 31, Revenues: 2024 2023 2024 2023 Management services, servicing fees and other $ 304,364 $ 264,176 $ 1,106,699 $ 970
Slide 19: 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 December 31, Year Ended December 31, Per share data: 2024 2023 2024 2023 Basic earnings per share Net income available to common stockhold
Slide 20: Condensed Consolidated Balance Sheets
Newmark Group, Inc. Condensed Consolidated Balance Sheets (IN THOUSANDS) (UNAUDITED) (UNDER GAAP) December 31, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 197,691 $ 164,894 Restricted cash 107,174 93,812 Loans held for sale, at fair value 774,905 528,944 Receivables, ne
Slide 21: 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 December 31, Year Ended December 31, 2024 2023 2024 2023 Net cash provided by (used in) operating activities $ 402,577 $ 219,977 $ (9,936) $ (265,961) Net cash (u
Slide 22: Appendix 1: Additional Information on Newmark
Appendix 1: Additional Information on Newmark Property Type: Retail NEWMARK NEWMARK 22
Slide 23: Newmark Volumes
Newmark Volumes ($ IN MILLIONS) Quarterly Volumes Annual Volumes 4Q 2024 4Q 2023 % Change 2024 2023 % Change 1 Newmark Volumes (Excluding Signature) Total GSE/FHA Origination Volume $3,113 $1,686 84.6% $8,416 $7,064 19.1% Mortgage Brokerage & Debt Placement 14,963 4,842 209.0% 36,178 17,880 102.3% T
Slide 24: Fully Diluted Period-End Share Count Summary
Newmark Group, Inc. Fully Diluted Period-End Share Count Summary As of December 31, 2024 Fully Diluted Shares (millions) Ownership (%) Class A owned by Public 132.0 52.2% Limited partnership units owned by employees1 50.4 19.9% Class A owned by employees 17.5 6.9% Other owned by employees 6.2 2.4% P
Slide 25: 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 Global Corporate Servi
Slide 26: Other Useful Information
Other Useful Information Information on Newmark’s Recent Servicing Business Results Newmark produced $173.3 million in servicing fees during the twelve months ended December 31, 2024. In addition to servicing fees, the Company generated $100.4 million of other revenues, for a total of $273.7 million
Slide 27: Other Useful Information (continued)
Other Useful Information (continued) Recent Notable Transactions For additional information about certain notable business wins and/or transactions for which Newmark acted as an advisor, and which were announced during the fourth quarter of 2024 or thus far in 2025, please see press releases includi
Slide 28: Appendix 2: Additional Industry Information
Appendix 2: Additional Industry Information Property Type: Office NEWMARK 28
Slide 29: Demand For New Data Centers Has Propelled Development to New Heights
Demand For New Data Centers Has Propelled Development to New Heights AI remains the primary growth driver of demand, fueled by extraordinary hyperscaler investment U.S. Total Real Private Manufacturing Construction Spending ($B) U.S. Data Center Development Pipeline (MSF) 50 $145.0 45 $125.0 40 35 $
Slide 30: 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)* 4&5 Star (Costar
Slide 31: Return to Workplace Continues to Improve Year-Over-Year
Return to Workplace Continues to Improve Year-Over-Year Momentum in workplace utilization continues as leading data providers have shown 4 consecutive quarters of YoY increases As a % of 2019 levels 79% 76% 66% 63% 54% 51% SWAA* Placer.ai (U.S.) Kastle U.S. 4Q 2023 4Q 2024 - While each of the above
Slide 32: Appendix 3: Financial Tables & Reconciliations
Appendix 3: Financial Tables & Reconciliations Property Type: Various NEWMARK 32
Slide 33: 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 34: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) - Charges with respect to preferred units. Any preferred units would not be included in the Company’s fully diluted share count because they cannot be made exchangeable into shares of common stock and are entitled only to a fixed distribution. Preferred units
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 December 31, Year Ended December 31, 2024 2023 20
Slide 43: 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 December 31, Year Ended December 31,
Slide 44: 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 December 31, Year Ended December 31,
Slide 45: Reconciliation of GAAP Income to Adjusted EBITDA
Reconciliation of GAAP Income to Adjusted EBITDA (in Thousands) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 GAAP net income available to common stockholders $ 45,411 $ 36,548 $ 61,234 $ 42,575 Adjustments: Net income attributable to noncontrolling interest
Slide 46: Other Income
Other Income (in Millions) (Unaudited) NEWMARK 46
Slide 47: 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