Newmark Group Reports $2.7 Billion Revenue for Fiscal Year 2024, Driven by Growth in All Revenue Streams

Newmark Group, Inc. reported revenues exceeding $2.7 billion for the fiscal year ended December 31, 2024, a significant increase compared to the $2.47 billion reported in 2023. This growth was driven primarily by increases across all three revenue streams: Management Services, Servicing Fees and Other; Leasing and Other Commissions; and Capital Markets. The company's net income available to common stockholders was $61.2 million in 2024, up from $42.6 million in 2023, representing a 2.2% and 1.7% margin, respectively. The increase in net income reflects growth in revenues, partially offset by increased compensation and operating expenses.

Significant changes compared to the previous fiscal year include a 14% increase in Management Services, Servicing Fees and Other revenue, reaching $1.1 billion, and a 17.3% increase in Capital Markets revenue, totaling $774.2 million. Leasing and Other Commissions revenue saw a more modest 2.1% increase to $857.6 million. These increases were partially offset by higher compensation and employee benefits expenses, which rose by 7.3% to $1.6 billion, and an increase in equity-based compensation and allocations of net income to limited partnership units and FPUs, which rose by 32.7% to $185.4 million.

Strategic developments during the year included the acquisition of Gerald Eve, a U.K.-based real estate advisory firm, and the acquisition of the remaining ownership interest in Spring11, a provider of asset management and servicing, commercial real estate due diligence, consulting, and advisory services. The company also expanded its international footprint by launching brokerage businesses in France and Germany, adding to its existing operations in the U.S. and U.K. Organizational changes included the appointment of Kyle Lutnick and Stephen M. Merkel to the Board of Directors, with Merkel assuming the role of Chairman, and Barry M. Gosin becoming Principal Executive Officer following Howard W. Lutnick's confirmation as U.S. Secretary of Commerce.

Key operational developments included a modest year-on-year increase in revenue-generating headcount, with productivity gains driving a substantial portion of revenue growth. The company's loan servicing and asset management portfolio reached $183.4 billion by year-end 2024. Newmark also highlighted its continued investments in technology and data analytics, including the implementation of an AI solution to improve efficiency. The company's strong financial position, with $197.7 million in cash and cash equivalents and $525.0 million available under its revolving Credit Facility as of December 31, 2024, is expected to support future growth.

The company anticipates continued growth in its capital markets business driven by record commercial and multifamily mortgage maturities and interest rate stabilization. They also expect continued growth in their multifamily business due to favorable demographics and the ongoing trend toward outsourcing of commercial real estate services. However, the company acknowledges several risk factors, including general economic conditions, competition, regulatory compliance, and cybersecurity threats, which could materially affect future results. The company's forward-looking statements are subject to various uncertainties and risks detailed in the filing.