Newmark Group (NMRK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 11.3% to $685.9M, with all major business lines improving and 100% of growth organic.

• Adjusted EPS rose 22.2% to $0.33, and GAAP net income for fully diluted shares increased 85.8% to $26.2M.

• Capital Markets origination fees surged 45%, and Management and Servicing businesses posted double-digit growth for the fifth consecutive quarter.

• Notable transactions included a $3.4B Texas data center JV, a $5B AI data center JV, and a $985M NYC multifamily loan.

• Expanded international presence with new operations in France, Germany, and the UK, and continued strategic hiring.

Financial highlights

• Q3 2024 total revenues: $685.9M (up 11.3% YoY); YTD: $1.87B (up 8.3% YoY).

• Adjusted EBITDA: $112.6M (up 17% YoY); YTD: $262.4M (up 13% YoY).

• Management services and servicing revenues rose 11.4%; leasing revenues up 5.6%, led by retail and industrial.

• Capital Markets revenues increased 18.5% YoY, with commercial mortgage origination fees up 45.2%.

• GAAP net income for fully diluted shares: $26.2M in Q3 2024 (up 85.8% YoY); YTD: $23.0M (up 177% YoY).

Outlook and guidance

• FY 2024 revenue guidance: $2.62B–$2.68B (6–9% growth); Adjusted EPS: $1.11–$1.17 (6–11% growth); Adjusted EBITDA: $410M–$430M (3–8% growth).

• Adjusted Earnings tax rate expected at 13–15% for 2024.

• Anticipates continued growth in capital markets and leasing, with strong pipelines into 2025 and productivity gains from recent hires.

• Targets over $3B in revenue and $630M+ Adjusted EBITDA by 2026 as industry volumes normalize.

• Management expects industry volumes to rebound as central banks lower rates and significant commercial and multifamily debt matures.