Real estate services firm Newmark (NASDAQ: NMRK) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 21.8% year on year to $665.5 million. The company expects the full year’s revenue to be around $3 billion, close to analysts’ estimates. Its non-GAAP profit of $0.21 per share was 12.9% above analysts’ consensus estimates.
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Newmark (NMRK) Q1 CY2025 Highlights:
- Revenue: $665.5 million vs analyst estimates of $611 million (21.8% year-on-year growth, 8.9% beat)
- Adjusted EPS: $0.21 vs analyst estimates of $0.19 (12.9% beat)
- Adjusted EBITDA: $89.2 million vs analyst estimates of $85 million (13.4% margin, 4.9% beat)
- The company reconfirmed its revenue guidance for the full year of $3 billion at the midpoint
- EBITDA guidance for the full year is $520 million at the midpoint, above analyst estimates of $503.8 million
- Market Capitalization: $2.00 billion
Company Overview
Founded in 1929, Newmark (NASDAQ: NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Sales Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Newmark grew its sales at a sluggish 4.9% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Newmark’s annualized revenue growth of 5.9% over the last two years is above its five-year trend, but we were still disappointed by the results. 
We can better understand the company’s revenue dynamics by analyzing its three most important segments: Management, Leasing, and Investment Sales, which are 42.7%, 31.3%, and 26.1% of revenue. Over the last two years, Newmark’s revenues in all three segments increased. Its Management revenue (property management) averaged year-on-year growth of 13% while its Leasing (sourcing tenants) and Investment Sales (financial advisory) revenues averaged 5.5% and 13.7%.
This quarter, Newmark reported robust year-on-year revenue growth of 21.8%, and its $665.5 million of revenue topped Wall Street estimates by 8.9%.
Looking ahead, sell-side analysts expect revenue to grow 6.3% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and indicates its newer products and services will not catalyze better top-line performance yet.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Newmark, its EPS declined by 2.7% annually over the last five years while its revenue grew by 4.9%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
In Q1, Newmark reported EPS at $0.21, up from $0.15 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Newmark’s full-year EPS of $1.31 to grow 8.6%.
Key Takeaways from Newmark’s Q1 Results
It was good to see Clean Harbors provide full-year EBITDA guidance that met analysts’ expectations. On the other hand, this quarter's EBITDA fell slightly short of Wall Street’s estimates. Zooming out, we think this was a decent print featuring some areas of strength but also some blemishes. The stock remained flat at $211.99 immediately following the results.
Indeed, Newmark had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
