Highlights

  • Second quarter revenue rose 17% to $888.4 million, with growth across management services, leasing and capital markets.
  • Net income available to common stockholders slipped to $19.7 million from $20.8 million, with fully diluted EPS at $0.11.
  • Barry Gosin will step down as chief executive on December 31, 2026, and the board expects to name a successor.
  • Newmark repurchased 10.4 million shares in six months, carried $270.0 million of facility borrowings and declared a $0.06 dividend.

Newmark Group (NASDAQ:NMRK) shares were trading near their 52-week low at USD 11.49 on October 21, 2026, down 1.25%. The commercial real estate services firm amended and extended its credit facility in April, reported second quarter 2026 results in a quarterly report filed on August 7, and announced that its chief executive will step down at year end.

Based in New York City, Newmark is a Delaware corporation that describes itself as a leading commercial real estate advisor and service provider to institutional investors, corporations and other owners and occupiers. It operates as one reportable segment, real estate services, and earns revenue from three sources: management services, servicing fees and other; leasing and other commissions; and capital markets, which covers investment sales and commercial mortgage origination.

Revenue Growth With Higher Compensation Costs

For the three months ended June 30, 2026, total revenues rose 17% to $888.4 million from $759.1 million. Management services, servicing fees and other revenues grew 17.7% to $351.2 million, which the company tied to double-digit organic growth in valuation and advisory, loan servicing and asset management, and outsourcing businesses. Leasing and other commissions rose 17.2% to $278.0 million on higher office volumes in New York City, the San Francisco Bay Area and Los Angeles. Capital markets revenues increased 16.0% to $259.2 million, as investment sales fees rose 54.4%; the filing notes a tough debt volume comparison with a year-earlier quarter that included a $7.1 billion data center construction loan.

Costs grew faster than the profit line. Total operating expenses were 95.5% of revenue, compared with 94.4%. Compensation and employee benefits rose 18.6% to $539.7 million, and operating, administrative and other expenses rose 23.3% to $186.1 million. Income from operations was $40.4 million versus $42.7 million. Net income available to common stockholders was $19.7 million, with basic earnings per share of $0.11 versus $0.12, and fully diluted earnings per share of $0.11 in both periods.

For the six months, revenues were $1.73 billion, up from $1.42 billion, and net income available to common stockholders was $34.1 million compared with $12.1 million.

CEO Transition, Buybacks and Dividend

On August 7, 2026, Newmark announced that Barry Gosin will step down as chief executive on December 31, 2026. Under an amended employment agreement, he will remain chairman of the operating entity, Newmark & Company Real Estate, through at least December 31, 2027, with employment extended through December 31, 2029 unless terminated earlier. The board expects to identify a new chief executive by year end.

Newmark repurchased 10.4 million Class A shares in the six months at an average price of $14.58, including 1.0 million in the second quarter at $14.97. On February 18, the board raised its repurchase and unit redemption authorization to $400.0 million, and $248.9 million remained at June 30. On July 29, the company bought 300,000 shares from Gosin at the closing price that day. The board declared a $0.06 quarterly dividend on July 28, payable August 28 to holders of record on August 14.

Balance Sheet and Outlook

At June 30, 2026, cash and cash equivalents were $259.7 million, and $630.0 million was available under a $900.0 million revolving credit facility, which was amended in April and now matures on April 17, 2030. Corporate debt was $867.3 million, consisting of $597.3 million of 7.500% senior notes and $270.0 million drawn on the facility, up from $75.0 million at year end. Warehouse facilities used to fund mortgage loans were about $0.9 billion.

The filing does not include numerical financial guidance. Management says it expects to generate cash from operations and use its credit facility to meet short-term and long-term liquidity needs, and notes it may need to raise public equity or debt financing if those sources prove insufficient. The successor search is the main announced milestone ahead.