Newmark Group (NMRK) Q1 2025 earnings summary

Executive summary

• Achieved 21.8% year-over-year revenue growth to $665.5M in Q1 2025, with double-digit gains across all major business lines and all growth organic.

• Adjusted EPS increased 40% to $0.21, and Adjusted EBITDA rose 40.5% to $89.2M, driven by strong operating leverage and fee revenue growth.

• Management and Servicing revenues marked their seventh consecutive quarter of year-over-year growth, up 10.5%.

• Net loss for fully diluted shares improved to $(8.8)M from $(16.3)M year-over-year; GAAP EPS at $(0.05) vs. $(0.09).

• Board declared a $0.03 per share quarterly dividend, payable May 29, 2025.

Financial highlights

• Revenues reached $665.5M, up from $546.5M year-over-year; fee revenues increased 22.8% to $560.2M.

• Adjusted EPS was $0.21, up from $0.15 in Q1 2024; post-tax Adjusted Earnings rose 45.2% to $54.3M.

• Adjusted EBITDA margin improved by 179–180 basis points to 13.4%.

• Cash and cash equivalents were $157.1M at quarter-end; net leverage at 1.3x.

• Servicing portfolio reached a record $186.4B, up 7.1% YoY, with high-margin recurring revenue of $65.8M.

Outlook and guidance

• FY 2025 revenue guidance: $2.9B–$3.1B (6%–13% growth over FY 2024); Adjusted EPS: $1.40–$1.50 (14%–22% growth); Adjusted EBITDA: $495M–$545M (11%–22% growth).

• Guidance assumes continued recovery in leasing and capital markets, and further growth in Management and Servicing.

• Revenue pipeline for Q2 up about 10% year-over-year, with strong visibility into recurring revenues.

• Management expects continued growth in recurring revenue businesses, supported by outsourcing trends and a growing loan servicing portfolio.

• Guidance remains cautious due to macroeconomic, geopolitical, and interest rate uncertainty.