Why was full-year guidance not increased despite strong Q2 results and improving real estate markets?

Guidance was already increased last quarter. The company faces tougher year-over-year comparisons in the second half (up 20% in H2 last year) and there's uncertainty regarding the timing of large transactions in the pipeline. Management wants to see more data given the current macro environment before updating guidance. “But we're up against a little bit of a tougher comp in the second half of the year. We were up 20% in the second half last year. And as Barry said, we have some pretty sizable transactions in the pipeline. It's a little bit difficult to determine the timing of that. And given the current macro environment, we just thought we wanted to see a little bit more data, and we'll update you on that next quarter.”

How much more room for productivity and outperformance does Newmark have in investment sales, given its current strong performance?

Newmark still has significant running room in both the U.S. (identifying white space for growth) and international sectors (planning expansion into Asia). The company expects to continue gaining market share and sees no reason for a slowdown. “I think we still have a lot of running room in that sector as well as in the international sector. As you know, right now, we're primarily Europe, but we're still looking to expand into Asia as well, which is very small for us right now.”

What is the high-level opportunity set for data center financing, given fewer large deals this year?

The need for compute remains enormous, and the data center financing pipeline is very robust. This includes hyperscaler deals, infrastructure transactions, and capital for neocloud and smaller data centers. The market is still in its early stages, with continuous demand for capacity and new avenues for investment. “I mean the need for compute is still enormous. There is not a sufficient amount of power for all of the compute requirements if AI proliferates the way everybody anticipates it to.”

NMRK

Newmark (NMRK) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Jul 29, 2026

Source: earnings call transcript

Executive summary

Newmark Q2 FY26 — Double-Digit Growth Across Segments and Strong Operating Leverage

Newmark delivered another quarter of robust financial performance, marked by double-digit revenue growth across all key segments and significant operating leverage. The company maintained its full-year guidance, citing tougher second-half comparisons and transaction timing, while actively pursuing strategic M&A to expand its managed services and recurring revenue streams. Investments in talent and technology, including AI, are expected to drive continued market share gains and long-term growth.

Highlights

Total revenue increased 17% to $888.4 million, an all-time second quarter best.
Adjusted EPS grew 26% to $0.39.
Adjusted EBITDA increased 22.1% to $139.2 million, with margin improving by 65 basis points.
Achieved #2 ranking in overall U.S. investment sales for the first half of 2026, gaining market share.
Trailing 12-month adjusted free cash flow increased 71.6% to $391.1 million, representing 85.3% of adjusted earnings.

Concerns

Guidance for full-year 2026 remained unchanged despite strong Q2 results, due to tougher comps in H2 and timing uncertainty of large transactions.
Lower origination activity in Capital Markets partially offset growth, mainly due to significant transactions in the prior year quarter.
Office to multifamily conversions are a costly process, with recent incidents in NYC highlighting construction challenges.

Guidance & targets

Category	Target	Timeline	Confidence
Total revenues growth	approximately 16% high materiality	Full-year 2026 · FY26	Medium
Adjusted EPS growth	approximately 19% high materiality	Full-year 2026 · FY26	Medium
Adjusted EBITDA growth	approximately 20% high materiality	Full-year 2026 · FY26	Medium
Management and Servicing annual revenue	more than $2 billion medium materiality	Annual by 2029 · FY29	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Management Services, Servicing and Other This segment achieved its fourth consecutive record quarter, driven by double-digit organic growth across recurring revenue businesses and recent acquisitions.	—	17.7%	—	—
Leasing Achieved an all-time best second quarter, led by significantly higher office volumes in key markets like New York City, San Francisco Bay Area, and Los Angeles, alongside global footprint expansion.	—	17.2%	—	—
Capital Markets Reflected a broad recovery across property types and U.S. investment sales, as well as talent-driven international growth. Growth was partially offset by lower origination activity compared to the prior year due to significant transactions in Q2 2025.	—	16%	—	—

Orderbook & backlog

Office to multifamily conversions pipeline $19 million Q2 FY26

Value of projects in the pipeline for office to multifamily conversions in New York City.

Deals & partnerships

RealFoundations Acquisition to augment managed services and integrate into consulting practices.

RealFoundations provides implementation and integration services for real estate software (Yardi, MRI), creating synergies and a more holistic solution for clients.

Risks & headwinds

Tougher second-half comparables H2 FY26

Up 20% in H2 last year

Mitigation:Management is taking a cautious approach to guidance, awaiting more data.

Uncertainty in timing of large transactions H2 FY26

Pretty sizable transactions in the pipeline

Mitigation:Management is monitoring the timing and will update guidance next quarter.

Macroeconomic environment Near-term

Current macro environment

Mitigation:Management is waiting for more data before adjusting guidance.

Cost of office to multifamily conversions Ongoing

Very costly process

Mitigation:Advocating for government tax incentives to make conversions more feasible.

Impact of interest rates on multifamily volumes Ongoing

Slowdown in a variety of markets

Mitigation:Certainty in interest rates and secure spreads are helping the market to transact; focus on affordable housing and GSE business.

What to watch in Q3 FY26

Full-year guidance update

Next quarter

Current Unchanged (Total revenue up ~16%, Adj EPS up ~19%, Adj EBITDA up ~20%)

Target Potential revision (upwards or downwards)

Why it matters

Indicates management's confidence in H2 performance and market conditions, impacting investment thesis.

And given the current macro environment, we just thought we wanted to see a little bit more data, and we'll update you on that next quarter.

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Q&A highlights

How is the debt business performing given prior outsized transactions and upcoming maturities, and what's the outlook for quarterly cadence?

The debt pipeline remains strong for the second half of the year, with significant maturities expected over the next three years. Last year's Q2 included a large $7 billion transaction, impacting year-over-year comparisons. There is a robust pipeline in data centers, digital infrastructure, and large office deals, supported by ample liquidity.

“I would say our debt pipeline remains really strong through the back half of the year. Hard to say what it will be next year, but the market certainly has a significant amount of maturities over the next 3 years.”

asked by Alexander Goldfarb · answered by Michael Rispoli

2 min read 5 chapters

Detailed narrative

Strong Segment Performance & Market Share Gains

Newmark achieved double-digit year-on-year revenue growth across all segments, marking 11 consecutive quarters in Capital Markets, 8 in Management & Servicing, and 7 in Leasing. The company's Capital Markets segment saw a broad recovery and talent-driven international growth, leading to Newmark moving up to #2 in overall U.S. investment sales for the first half of 2026, demonstrating significant market share gains.

Strategic Investments and AI Integration

The company is actively investing in recurring revenue businesses, international expansion, and talent to drive long-term growth. Management highlighted the advent of AI as a defining economic force and an accelerant to enhance professional productivity and deliver innovative client solutions, indicating a focus on leveraging technology for future growth.

Capital Allocation Strategy

Newmark generated strong free cash flow, increasing 71.6% on a trailing 12-month basis to $391.1 million. The capital allocation strategy is shifting from share buybacks towards strategic M&A, particularly in the managed service sector. Acquisitions like RealFoundations are aimed at building a holistic client solution, creating synergies, and expanding recurring revenue streams, with a goal of achieving multiple expansion.

Multifamily and Data Center Opportunities

Newmark is building a leading affordable housing platform, recognized as the #1 investment sales platform in this sector, benefiting from strong government focus on affordability. The data center financing pipeline remains robust, driven by the enormous need for compute and capital for hyperscaler and infrastructure transactions, with new avenues like neocloud and distributed power emerging.

Office Market Dynamics and Conversions

The office leasing market is characterized by activity concentrated in A-quality assets, with B-assets undergoing amenitization to compete. Office-to-multifamily conversions are most robust in New York City, with 11 million square feet under construction and $19 million in the pipeline. This process helps repurpose obsolete office inventory and create housing, though it is costly and requires government tax incentives.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.