Newmark’s first quarter results for 2025 exceeded Wall Street’s revenue and non-GAAP profit expectations, yet the market responded negatively. Management attributed the quarter’s growth to strong capital markets activity, a rebound in leasing—especially in key U.S. cities—and ongoing expansion of management and servicing revenues. CEO Barry Gosin pointed to a 33% rise in capital markets transactions and a 31% increase in leasing fees, driven by office and retail demand, as primary contributors. Gosin also highlighted “the expansion of services across our recurring business lines” and underscored the company’s continued investment in talent and operational footprint as foundations for the quarter’s performance.
Is now the time to buy NMRK? Find out in our full research report (it’s free).
Newmark (NMRK) Q1 CY2025 Highlights:
- Revenue: $665.5 million vs analyst estimates of $611 million (21.8% year-on-year growth, 8.9% beat)
- Adjusted EPS: $0.21 vs analyst estimates of $0.19 (12.9% beat)
- Adjusted EBITDA: $89.2 million vs analyst estimates of $85 million (13.4% margin, 4.9% beat)
- The company reconfirmed its revenue guidance for the full year of $3 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $1.45 at the midpoint
- EBITDA guidance for the full year is $520 million at the midpoint, above analyst estimates of $503.8 million
- Operating Margin: -2.7%, up from -4.1% in the same quarter last year
- Market Capitalization: $2.22 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 Newmark’s Q1 Earnings Call
- Alex Goldfarb (Piper Sandler) asked about client sentiment amid macro uncertainty and whether leasing or transactions are being delayed. CEO Barry Gosin responded that deals are still closing and there’s no widespread pullback, but acknowledged that ongoing uncertainty is "annoying and concerning."
- Jade Rahmani (KBW) inquired about management services differentiation and growth drivers. Gosin explained that the company’s managed service program, staffing solutions, and entry into property accounting distinguish Newmark, and recurring services are becoming a more significant revenue source.
- Jade Rahmani (KBW) also asked about stock compensation and the nature of a one-time GAAP charge. CFO Mike Rispoli clarified that the charge related to a departing executive is not expected to recur, and annual stock compensation should remain similar to last year.
- Julien Blouin (Goldman Sachs) questioned the decision to maintain guidance after a strong quarter. Rispoli cited macroeconomic caution as the primary reason, despite a 10% increase in pipeline and no signs of deals falling out.
- Patrick O'Shaughnessy (Raymond James) asked about M&A appetite versus hiring broker teams. Gosin stated that targeted talent acquisition remains preferred due to lower integration risk, but the company remains open to strategic acquisitions where it makes sense.
Catalysts in Upcoming Quarters
In the quarters ahead, StockStory analysts will be closely monitoring (1) the sustainability of capital markets and leasing momentum, especially in key U.S. cities and Europe, (2) the continued growth and retention of recurring management and servicing revenues, and (3) management’s ability to navigate macroeconomic risks such as tariffs and interest rate changes. Progress in expanding into new service lines and geographies will also be key performance indicators.
Newmark currently trades at $12.16, up from $11.05 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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