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The call presented multiple material operational and financial positives: strong top‑line growth (27%+), outsized EPS improvement (57%+), significant free cash flow expansion (+111.7%), raised full‑year guidance, active share repurchases and a dividend increase. These highlights are balanced against notable but manageable headwinds including a 24.5% rise in expenses, leasing comps that temper leasing guidance, tax rate uncertainty, short‑term drag from international hiring/garden‑leave, and execution risks around complex transactions and data center power/permitting. Overall, the favorable revenue, earnings, cash flow and guidance momentum substantially outweigh the lowlights, supporting a constructive outlook.
Newmark raised its full‑year 2026 outlook, now forecasting total revenues of $3.775–$3.875 billion (up 15%–18%), adjusted EBITDA of $656–$694 million (up 17%–23%), and adjusted EPS of $1.87–$1.98 (up 15%–22%), and said it expects to deliver double‑digit top‑ and bottom‑line growth for the third straight year; management highlighted that capital markets should grow faster than the midpoint of revenue guidance, management & servicing should be roughly in line with the midpoint, leasing is expected below the midpoint, and the adjusted‑earnings tax rate is projected at 13%–15% (versus 11.4%), while the outlook excludes the impact of future acquisitions and assumes no material change in the stock price.
Total revenues rose 27.2% year-over-year to $846.5M (Q1 2026 vs Q1 2025). Adjusted EPS increased 57.1% to $0.33 from $0.21. Adjusted EBITDA grew 35.8% to $121.2M (from $89.2M). Adjusted EBITDA margin improved by 91 basis points.
Trailing 12-month adjusted free cash flow increased 111.7% to $361.5M, representing 82.4% of adjusted earnings (top of 65%-85% target range). Repurchased 10.4M shares for $151.1M at an average price of $14.58. Increased quarterly dividend from $0.03 to $0.06 (first raise since 2022).
Management & servicing revenues grew 21.2%, leasing fees rose 20.2%, and capital markets revenues jumped 45.5%. Capital markets volumes increased 67.6%, led by a 112.3% improvement in total debt. Servicing book expanded to over $220B.
Updated full-year revenue guidance of $3.775B–$3.875B (+15% to +18%). Adjusted EBITDA guidance raised to $656M–$694M (+17% to +23%). Adjusted EPS guide increased to $1.87–$1.98 (+15% to +22%).
Non-U.S. (outside U.S./U.K.) growth accelerating ~37.9% while U.S. grew ~26.6%. Integrated acquisitions (e.g., Real Foundations) and expanded advisory/M&A capabilities; ranked #4 in real estate M&A in 2025 among full-service intermediaries.
Active data center leasing pipeline and pursuit of 'powered land' opportunities; seeing early synergies between hyperscalers and advanced manufacturing. Company pursuing broad AI adoption to boost producer productivity and margins.
Good day, and welcome to the Newmark's First Quarter 2026 Public Financial Results Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jason McGruder, Head of Investor Relations. Please go ahead.
Thank you, operator. Good morning. Newmark issued its first quarter 2026 financial results press release earlier today. Unless otherwise stated, the results provided on today's call compare only the 3 months ending March 31, 2026, with the year earlier period, except as noted -- as otherwise specified, we will be referring to our results only on a non-GAAP basis, including the terms adjusted earnings, adjusted EBITDA and adjusted free cash flow. Unless otherwise stated, any figures discussed today with respect to cash flow from operations, refer to net cash provided by operating activities, excluding the impact of GSE FHA loan origination and sales. We may also use the term cash generated by the business, which is that same operating cash flow measure before the impact of cash used for employee loans. Please refer to today's press release, the supplemental tables in the quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results and how, when and why management uses them. For additional information on the cash flow measures as well as relevant industry or economic statistics.
The outlook discussed today excludes the potential impact of any future acquisitions and assumes no material changes to Newmark's stock price compared...