Executive Summary

Record quarter: revenue $863.5M (+25.9% YoY), Adjusted EPS $0.42 (+27.3% YoY), Adjusted EBITDA $145.2M (+28.9% YoY) . Versus consensus, revenue and EPS were both beats (see Estimates Context).
Broad-based strength: double‑digit gains across every major business line; Capital Markets +59.7% with Total Debt volumes +129% and Investment Sales +67% YoY .
Guidance raised: FY25 revenue to $3.175–$3.325B, Adjusted EPS to $1.53–$1.63, Adjusted EBITDA to $543–$579M; Adjusted EPS tax rate lowered to 13–15% .
Strategic catalysts: continued expansion in recurring businesses (Management Services/Servicing/Other), RealFoundations acquisition, and India/APAC Property & Facilities Management entry support medium‑term margin expansion targets .
Balance sheet/capital return: cash $224.1M, net leverage 1.0x; $0.03 dividend declared; buyback authorization ~$245M remaining as of 10/30/25 .

What Went Well and What Went Wrong

What Went Well

Record, organic growth across lines: “Newmark again delivered strong quarterly top‑ and bottom‑line improvement… double‑digit gains across every major business line” .
Capital Markets outperformance: +59.7% revenues; Total Debt volumes +129% and Investment Sales +67%, outpacing industry trends in U.S./Europe .
Recurring businesses momentum: Management Services/Servicing/Other +12.6% YoY; V&A +23.5%; best‑ever quarter for recurring businesses .
Confidence and targets: “We are again raising our full year outlook… confident… expand Adjusted EBITDA margin ~100 bps in both 2025 and 2026” . CFO reiterated path to >$630M AEBITDA and ~$1.75 Adjusted EPS in 2026 (formal guidance to come) .
International expansion: launched Property & Facilities Management in India/APAC; nine international offices opened since last year with 100+ revenue generators hired .

What Went Wrong

Expense inflation alongside growth: GAAP compensation +30.1% and equity‑based comp +66.4% YoY; Adjusted compensation +28.1% YoY reflecting higher commissions and growth investments .
Servicing fee headwind from rates: Servicing & Other up >12% excluding lower escrow interest (pressure from declining interest rates) .
Near‑term margin trade‑off from investments: CFO noted EBITDA margin could have expanded double if not for purposeful growth investments; targeting ~10% earnings improvement next year from these investments .
Tougher Q4 comp: management flagged 4Q24 as a “tougher comp”; timing of transaction closings can push/pull quarters .

Financial Results

Consolidated Results vs Prior Quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$665.5	$759.1	$863.5
GAAP Diluted EPS ($)	$(0.05)	$0.11	$0.25
Adjusted EPS ($)	$0.21	$0.31	$0.42
Adjusted EBITDA ($USD Millions)	$89.2	$114.0	$145.2

Adjusted EBITDA Margin (calculated from reported AEBITDA / Revenue)

Metric	Q1 2025	Q2 2025	Q3 2025
Adjusted EBITDA Margin (%)	13.4%	15.0%	16.8%
Note: Margins computed using Adjusted EBITDA divided by Total Revenues; citations reference underlying figures.

Segment Revenue Breakdown (YoY)

Segment ($USD Millions)	Q3 2024	Q3 2025	YoY Change
Fees from Mgmt Services, Servicing, and Other	$199.0	$227.6	+14.3%
Pass Through Revenues	$83.6	$90.6	+8.3%
Mgmt Services, Servicing Fees, and Other (incl. pass-through)	$282.6	$318.1	+12.6%
Leasing and Other Commissions	$214.6	$244.0	+13.7%
Investment Sales	$99.2	$159.9	+61.1%
Fees from Commercial Mortgage Origination, net	$63.3	$101.0	+59.6%
OMSR Revenues	$26.2	$40.5	+54.5%
Capital Markets (incl. OMSR)	$188.7	$301.3	+59.7%
Total Revenues	$685.9	$863.5	+25.9%

KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Leasing revenue YoY	+31.0%	+13.8%	+13.7%
Capital Markets revenue YoY	+32.7%	+37.9%	+59.7%
Total Debt volumes YoY	+40% (GSE/FHA)	+135%	+129.1%
Investment Sales volumes YoY	+31.1%	+26%	+67.3%
Valuation & Advisory fees YoY	Strong growth (not quantified)	~30% growth	+23.5%
Cash & Cash Equivalents ($M)	$157.1	$195.8	$224.1
Total Corporate Debt ($M)	$770.9	$871.2	$746.5
Net Leverage (x)	1.3x	1.4x	1.0x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($M)	FY 2025	$3,050–$3,250	$3,175–$3,325	Raised
Adjusted EPS ($)	FY 2025	$1.47–$1.57	$1.53–$1.63	Raised
Adjusted EBITDA ($M)	FY 2025	$523–$573	$543–$579	Raised
Adjusted Earnings Tax Rate (%)	FY 2025	14–16%	13–15%	Lowered
Dividend per share ($)	Quarterly	$0.03 (7/29/25 declaration)	$0.03 (10/29/25 declaration)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
AI/data centers	Q1: Large SF Bay Area deals incl. AI; Capital Markets +32.7% . Q2: $7.1B AI data center construction loan; Capital Markets strength .	Strong data center financing/investment sales; team build‑out; expectation of sustained infrastructure investment; disciplined staffing .	Strengthening and scaling
International expansion	Ongoing additions across EMEA/APAC; new offices and hires . Q2: Continued expansion and key hires in Europe/EMEA .	Launch of Property & Facilities Mgmt in India/APAC; nine new offices; 100+ hires outside U.S. since last year .	Accelerating
Macro/interest rates and pipelines	Q1 outlook dependent on tariffs/interest volatility . Q2: broad recovery, strong pipelines .	CFO: strong pipelines into Q4; comps tougher but reflected in guidance; transactions timing noted .	Improving with caution
Recurring revenue strategy	Q1/Q2: consistent growth in Mgmt Services/Servicing/Other .	Best‑ever quarter for recurring businesses; RealFoundations acquisition; fund administration launch .	Building scale/visibility
Taxes	Q1 Adjusted tax rate ~14.3% . Q2 Adjusted tax ~14.0% .	Q3 Adjusted tax 12.1% for quarter; FY25 tax rate lowered to 13–15% .	Downward bias aiding EPS

Management Commentary

CEO: “We increased revenues by 26%, GAAP EPS by 150.0% and Adjusted EPS by 27%… Given our strong results and robust pipeline, we are again raising our full year outlook” .
CEO on strategy: “We continue to invest in growing our recurring revenue businesses and expanding our global footprint… excited about the earnings potential of our platform” .
CFO: “We increased adjusted EPS by 27.3% to $0.42… Adjusted EBITDA was $145.2 million… updated outlook: revenues $3.175–$3.325B; Adjusted EPS $1.53–$1.63; Adjusted EBITDA $543–$579M” .
CEO on RealFoundations and fund admin: building comprehensive investor solutions and enabling cross‑sell, including technology integration (MRI/Yardi) for investors/occupiers .

Q&A Highlights

Data center capacity vs capital: Management sees sustained infrastructure investment needs (nuclear/power pipelines) and expects more capital to be deployed; Newmark engaged across financing and eventual exits .
Investment drag vs margin: CFO noted deliberate growth investments compress near‑term margin expansion but model supports ~10% earnings improvement next year while expanding margins .
NYC political noise: CEO does not see material impact on CRE activity; clients (law firms, financial institutions) are expanding .
Quarter cadence/pipeline: Broadly strong across months; pipeline into Q4 remains robust, with normal close timing variability accounted for in guidance .
Staffing discipline in AI/data centers: “More with less” approach; appropriately staffed to scale, targeted expansion particularly on leasing side .

Estimates Context

Metric	Q1 2025 Actual	Q1 2025 Consensus*	Surprise	Q2 2025 Actual	Q2 2025 Consensus*	Surprise	Q3 2025 Actual	Q3 2025 Consensus*	Surprise
Revenue ($USD)	$665,494,000	$606,136,000*	+$59,358,000	$759,112,000	$691,378,600*	+$67,733,400	$863,460,000	$769,048,500*	+$94,411,500
Adjusted EPS ($)	$0.21	$0.186*	+$0.024	$0.31	$0.265*	+$0.045	$0.42	$0.40667*	+$0.01333

Values retrieved from S&P Global.*

Implications: Consistent beats on both revenue and EPS across the last three quarters suggest estimates likely need upward revision, especially within Capital Markets and recurring revenue lines. The lowered tax rate range (13–15%) also benefits EPS trajectories .

Key Takeaways for Investors

Momentum is broad and organic: triple beats across Q1–Q3 on revenue/EPS highlight operational leverage and share gains in Capital Markets and Leasing .
Guidance raised with margin ambition: FY25 upsized across revenue, EPS, EBITDA; management reiterates ~100 bps annual Adjusted EBITDA margin expansion targets into 2026 .
Recurring revenue scale: best‑ever quarter for Management Services/Servicing/Other and expanding V&A underpin cash flow resiliency through cycles .
AI/data center cycle offers multi‑year tailwinds: financing and investment sales pipelines, plus leasing adaptations, position Newmark to benefit from infrastructure build‑out .
Tax rate tailwind: quarterly adjusted tax rate at 12.1%; FY25 range lowered to 13–15%, structurally supportive of EPS .
Balance sheet flexibility: net leverage at 1.0x, cash $224M, dividend maintained, authorization for repurchases remains significant—optionality for capital return and growth hiring .
Near‑term watch items: expense trajectory (equity‑based comp, growth investments), Q4 tougher comp and transaction timing variability; monitor Capital Markets close rates and escrow interest dynamics as rates evolve .

NEWMARK GROUP, INC. (NMRK)·Q3 2025 Earnings Summary