Key Highlights

  • Record third quarter Revenue of USD 973.2 million rose 12.7% and beat the consensus estimate of USD 953.93 million.
  • Adjusted EPS of USD 0.48 topped the consensus estimate of USD 0.47; GAAP EPS was USD 0.27 versus USD 0.25.
  • Leasing commissions climbed 26.5% to USD 308.6 million, while Capital Markets revenue fell 4.4% to USD 288.2 million.
  • Full year revenue guidance was revised to USD 3.7 to 3.8 billion from a prior USD 3.775 to 3.875 billion.

Newmark Group, Inc. (NASDAQ:NMRK) reported third quarter 2026 total revenues of USD 973.2 million, up 12.7% from USD 863.5 million and above a consensus estimate of USD 953.93 million. Adjusted Earnings Per Share were USD 0.48, ahead of a consensus estimate of USD 0.47 and up 14.3% from USD 0.42. GAAP Net Income for Fully Diluted Shares was USD 67.4 million, or USD 0.27 per share, compared with USD 64.0 million, or USD 0.25. Adjusted EBITDA rose 14.6% to USD 166.4 million.

Recurring Businesses and Leasing Offset Weaker Originations

Management Services, Servicing Fees, and Other revenue rose 18.3% to USD 376.3 million, the fifth consecutive record quarter for those businesses, and the servicing and asset management portfolio grew 23.2%. Leasing and Other Commissions gained 26.5%, the best third quarter on record, led by Demand tied to artificial intelligence, data centers and other technology sectors. Investment Sales revenue rose 7.5% to USD 171.9 million on volumes up about 33%.

Origination fees fell 21.1% to USD 79.6 million against a difficult comparison, since total Debt volumes rose about 129% a year earlier, and industry GSE activity declined about 30%. Total expenses under GAAP rose 8.4% to USD 889.2 million. The company's tax rate for adjusted earnings was 12.9%, and the issuer Credit rating was upgraded by a major rating agency to BBB- from BB+ on September 16, 2026.

Revised Outlook and Leadership Transition

Chief Executive Officer Barry Gosin said volatile macroeconomic conditions complicate the timing of deal closings, leading the company to revise its 2026 outlook while still projecting double-digit growth and best-ever full year results. Adjusted EPS is now guided to USD 1.80 to 1.90 versus a prior USD 1.87 to 1.98, and Adjusted EBITDA to USD 629 to 667 million versus USD 656 to 694 million. The adjusted tax rate range of 13% to 15% was unchanged.

Mr. Gosin also said he is stepping down as CEO at the end of this year after 47 years, with internal and external candidates under evaluation and a successor targeted by year end. Management indicated that industry Capital Markets volumes could stay lower through at least the first half of next year, and that 2027 earnings could land within 10% either way of 2026 results, excluding acquisitions.

Cash Returns and Items to Track

The company repurchased 3.9 million shares for USD 59.4 million in the quarter and 14.3 million shares for USD 210.5 million year to date, with USD 189.5 million remaining before the board re-authorized its USD 400 million program on October 28. A quarterly Dividend of USD 0.06 per share is payable November 30 to holders of record on November 13. Cash was USD 240.0 million, total corporate debt was USD 877.5 million versus USD 671.7 million at year end, and net Leverage held at 1.0x.

Several figures merit attention in the next report: the revised EPS range of USD 1.80 to 1.90, the CEO succession deadline at year end, the pace of GSE and origination volumes after a 37% drop in total debt volumes, and the goal of more than USD 2 billion in annual management and servicing revenue by 2029.