NMRK

• Core Growth Milestones

  • Newmark has delivered 11 consecutive quarters of double-digit year-over-year revenue growth in capital markets, 8 straight quarters in management and servicing, and 7 straight quarters in leasing
  • Newmark moved up one spot to number 2 in overall U.S. investment sales for H1 2026, per MSCI rankings
  • H1 2026 total debt volumes improved 26.7% and investment sales volumes improved 64.8% year-over-year, with a strong transaction pipeline

• Strategic Priorities

  • Artificial intelligence is viewed as a key productivity accelerant that will enable Newmark professionals to deliver more innovative client solutions and improve long-term efficiency
  • Management is focused on recurring revenue growth, with a target of $2 billion annual revenue for management and servicing by 2029, implying mid-teen annual growth over the period
  • Ongoing global expansion: currently prioritizing European growth and planning future expansion into Asia, where Newmark has a minimal current footprint
  • Acquisition strategy focused on targeted deals in the managed services sector that complement existing business lines, create synergies, and increase recurring revenue, rather than unrelated outlier acquisitions

• Operational Efficiency

  • Total expenses grew 16.6% year-over-year, aligned with revenue growth; after excluding pass-through expenses and global growth investments, core expense growth was 9.6%, demonstrating strong operating leverage
  • Share repurchase activity was concentrated in Q1 2026, with capital now prioritized for closing targeted M&A transactions; management will pivot back to share buybacks if planned M&A does not close

• Full-year 2026 guidance remains unchanged from the prior quarter, after guidance was increased in Q1 2026
  • At the midpoint, management expects total revenue growth of approximately 16%, adjusted EPS growth of approximately 19%, and adjusted EBITDA growth of approximately 20% in 2026, marking the third consecutive year of double-digit top and bottom line growth
• Management maintained guidance rather than raising it despite a strong H1 2026 and healthy pipeline due to tougher year-over-year comparables in H2 2026 (20% revenue growth in H2 2025) and uncertainty around the timing of large upcoming transactions
• Management intends to reassess and potentially update guidance in the Q3 2026 earnings call once more transaction timing data is available
• No formal guidance is provided for periods beyond 2026

Total Q2 2026 revenue was $888.4 million, a 17% year-over-year increase. 1. Management and servicing: Revenue grew 17.7% year-over-year, driven by double-digit organic growth across recurring revenue lines and recent acquisitions. This segment achieved its fourth consecutive record quarter, and is on track to hit $2 billion in annual revenue by 2029. It contributed approximately 35-40% of total company revenue based on long-term targets. 2. Leasing: Revenue grew 17.2% year-over-year to an all-time Q2 record, led by high office leasing volumes in major U.S. markets (New York City, San Francisco Bay Area, Los Angeles) and global footprint expansion. It contributed roughly 25-30% of total revenue. 3. Capital markets: Revenue grew 16% year-over-year, driven by a broad recovery across U.S. property types, talent investments for international growth, and strong volumes in multifamily (particularly senior and affordable housing), industrial, and office sales. A year-over-year decline in origination activity partially offset this growth, due to outsized large transactions in the prior year Q2. It contributed approximately 30-35% of total revenue. Overall adjusted EBITDA for the company was $139.2 million, up 22.1% year-over-year, with an adjusted EBITDA margin expansion of 65 basis points.

• Uncertainty around the timing of closing large capital markets and debt transactions, which can impact quarterly results and comparables
• Persistently higher interest rates have impacted multifamily investment sales activity, though Newmark has offset this with market share gains and strength in affordable and senior housing sub-segments
• Overbuilding in some multifamily markets has created weakness in local investment sales volumes
• Local opposition (nimbyism) could slow data center development activity, though management notes many states still actively support data center and advanced manufacturing investment
• Office-to-residential conversion activity is currently concentrated in New York, with a lack of sufficient tax incentives in other U.S. cities limiting broader conversion growth that would reduce excess office inventory
• General macroeconomic uncertainty could impact transaction volumes and cause actual results to differ from management's forward-looking expectations
• All forward-looking statements are subject to additional risks outlined in Newmark's periodic SEC filings

Q: Alexander Goldfarb (Piper Sandler) asked why management did not raise full-year 2026 guidance despite strong H1 results and improving real estate market conditions. / A: Management explained they raised guidance in the prior quarter, and current activity and pipeline remain strong. However, the second half of 2026 faces tougher year-over-year comparables, as Newmark grew 20% in H2 2025. The timing of large pending transactions is still uncertain, so management wants to see more data before updating guidance, and will revisit guidance next quarter. This is not a sign of underlying weakness in the business.

Q: Julian Bluen (Goldman Sachs) asked how much more productivity ramp Newmark can still achieve from U.S. capital markets producers, given the firm has already outperformed industry growth significantly. / A: COO Luis Alvarado noted Newmark still has significant running room for growth, with unaddressed white space in the U.S. and major expansion opportunities internationally. The firm will continue gaining market share, with plans to expand from its current European focus into the small Asian market, and management sees no near-term signs of growth slowing after the recent market share gains.

Q: Mitch Germain (Citizens Bank) asked about the performance of recent M&A, realized cross-sell opportunities, and current capital allocation priorities after most buyback activity occurred in Q1. / A: The most recent acquisition, Real Foundations, has been successfully integrated, with strong cross-sell results that augment Newmark's existing managed services and help advance the $2 billion 2029 managed services revenue target. Capital is currently prioritized for a pipeline of complementary M&A focused on the managed services segment, but if deals do not close, the firm will pivot back to share buybacks in the latter half of 2026.

Q: Jade Romani (KBW) asked about Newmark's strong multifamily performance, especially affordable and senior housing, compared to industry weakness called out by peer firms, and the impact of rates on the segment. / A: Newmark built its affordable housing platform early ahead of current policy momentum, and is now the top investment sales platform for affordable housing, which enjoys bipartisan political support. Higher rates did impact multifamily activity broadly, but stabilized rates with certain spreads have supported transaction activity, and the GSE pipeline for the second half of 2026 is very robust.