Newmark Group Reports $665.5 Million Revenue in Q1 2025, Net Loss Improves

Newmark Group, Inc. reported a total revenue of $665.5 million for the first quarter of 2025, marking a 21.7% increase from $546.5 million in the same period of 2024. The growth was driven by significant increases in all three of its primary revenue sources: management services, leasing and other commissions, and capital markets. Management services and servicing fees rose to $283.9 million, up 10.5% year-over-year, while leasing and other commissions surged by 31.0% to $208.1 million. Capital markets revenue also saw a notable increase of 32.7%, reaching $173.5 million, reflecting a strong performance in investment sales and commercial mortgage origination.

Despite the revenue growth, Newmark reported a net loss of $8.8 million for the quarter, an improvement from a loss of $16.3 million in the prior year. The company attributed the loss to increased compensation and employee benefits expenses, which rose by 21.7% to $399.5 million, driven by higher commission-based revenues and costs associated with growth initiatives. Equity-based compensation also increased significantly, reflecting charges related to the exchange and redemption of units held by former Executive Chairman Howard W. Lutnick, who was confirmed as the U.S. Secretary of Commerce.

Operationally, Newmark's total assets increased to $4.8 billion as of March 31, 2025, compared to $4.7 billion at the end of 2024. The company’s liabilities also rose to $3.3 billion, up from $3.2 billion, primarily due to increased borrowings under its credit facilities. Newmark had $157.1 million in cash and cash equivalents and $425.0 million available under its revolving credit facility, indicating a solid liquidity position. The company’s employee headcount remained stable, contributing to its operational capacity and revenue-generating potential.

In terms of strategic developments, Newmark has continued to expand its service offerings and geographic reach, particularly in the U.S. and U.K. markets. The company has also focused on integrating its recent acquisitions, including the full ownership of Spring11, which is expected to enhance its service capabilities. Looking ahead, Newmark anticipates continued growth driven by increased demand for its services, particularly in the context of rising interest rates and ongoing economic recovery. The company remains committed to its capital allocation priorities, including share repurchases and maintaining a dividend policy, while navigating the challenges posed by macroeconomic conditions and market volatility.