While revenue grew 27.3% in 2026Q1, operating margins remain thin at 3.2% due to a producer-heavy cost structure that limits scalability.
| Sales/Revenue | 3.48B | 3.34B | 2.74B | 2.47B | 2.71B | 2.91B | 1.9B | 2.22B | 2.05B | 1.6B | 1.35B | 1.2B |
| Revenue Growth % | 21.64% | 21.86% | 10.85% | -8.69% | -6.91% | 52.57% | -14.12% | 8.33% | 28.26% | 18.26% | 12.48% | - |
| Cost of Goods Sold | 93.11M | 181.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 5.43% | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 3.38B | 3.16B | 2.74B | 2.47B | 2.71B | 2.91B | 1.9B | 2.22B | 2.05B | 1.6B | 1.35B | 1.2B |
| Gross Margin % | 97.32% | 94.57% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 15.24% | 10.85% | -8.69% | -6.91% | 52.57% | -14.12% | 8.33% | 28.26% | 18.26% | 12.48% | - |
| Operating Expenses | 3.1B | 2.92B | 2.58B | 2.35B | 2.52B | 1.65B | 1.72B | 1.97B | 1.71B | 1.4B | 1.18B | 1.21B |
| OpEx % of Revenue | - | 87.55% | 94.05% | 94.93% | 93.14% | 56.84% | 90.34% | 88.9% | 83.76% | 87.49% | 87.6% | 100.94% |
| Selling, General & Admin | 1.63B | 658.94M | 2.41B | 2.19B | 2.24B | 2.76B | 1.59B | 1.92B | 1.74B | 1.37B | 1.13B | 1.14B |
| SG&A % of Revenue | - | 19.75% | 87.93% | 88.46% | 82.87% | 95.05% | 83.46% | 86.64% | 85.2% | 86.11% | 83.38% | 94.92% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 278.48M | 234M | 163.04M | 125.22M | 185.57M | 1.25B | 184M | 246.24M | 332.59M | 199.79M | 167.42M | -11.24M |
| Operating Margin % | 8.01% | 7.01% | 5.95% | 5.07% | 6.86% | 43.16% | 9.66% | 11.1% | 16.24% | 12.51% | 12.4% | -0.94% |
| Operating Income Growth % | - | 43.52% | 30.21% | -32.52% | -85.21% | 581.84% | -25.28% | -25.96% | 66.47% | 19.33% | 1589.88% | - |
| EBITDA | 459.66M | 415.31M | 337.34M | 291.44M | 351.38M | 1.38B | 317.89M | 377.38M | 430.32M | 295.6M | 239.62M | 60.54M |
| EBITDA Margin % | 13.22% | 12.45% | 12.32% | 11.8% | 12.99% | 47.35% | 16.69% | 17.01% | 21.02% | 18.52% | 17.75% | 5.04% |
| EBITDA Growth % | 33.31% | 23.11% | 15.75% | -17.06% | -74.47% | 332.95% | -15.76% | -12.3% | 45.57% | 23.37% | 295.82% | - |
| D&A (Non-Cash Add-back) | 181.18M | 181.3M | 174.3M | 166.22M | 165.82M | 121.73M | 133.89M | 131.14M | 97.73M | 95.81M | 72.2M | 71.77M |
| EBIT | 313.59M | 234M | 163.04M | 125.22M | 185.57M | 1.25B | 169.9M | 246.24M | 332.59M | 125.86M | 152.14M | -10.78M |
| Net Interest Income | -65.92M | -32.48M | -31.77M | -21.74M | -30.97M | -33.47M | -37.73M | -32.09M | -50.2M | 2.79M | 3.79M | 1.87M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.79M | 3.79M | 1.87M |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 247.57M | 201.52M | 131.27M | 103.48M | 154.6M | 1.22B | 146.27M | 214.15M | 282.38M | 202.57M | 171.21M | -9.37M |
| Pretax Margin % | 7.12% | 6.04% | 4.79% | 4.19% | 5.71% | 42.01% | 7.68% | 9.65% | 13.79% | 12.69% | 12.68% | -0.78% |
| Income Tax | 59.56M | 46.07M | 45.78M | 41.1M | 42.05M | 242.96M | 36.99M | 52.44M | 90.49M | 57.48M | 3.99M | -6.64M |
| Effective Tax Rate % | 24.06% | 22.86% | 34.88% | 39.72% | 27.2% | 19.9% | 25.29% | 24.49% | 32.04% | 28.37% | 2.33% | 70.91% |
| Net Income | 149.37M | 126.19M | 61.23M | 42.58M | 83.28M | 750.73M | 80.06M | 117.31M | 106.73M | 144.49M | 168.4M | -2.8M |
| Net Margin % | 4.3% | 3.78% | 2.24% | 1.72% | 3.08% | 25.83% | 4.2% | 5.29% | 5.21% | 9.05% | 12.47% | -0.23% |
| Net Income Growth % | 117.36% | 106.07% | 43.83% | -48.87% | -88.91% | 837.71% | -31.75% | 9.91% | -26.13% | -14.2% | 6107.88% | - |
| Net Income (Continuing) | 188.01M | 155.45M | 85.49M | 62.38M | 112.55M | 978.13M | 109.28M | 161.71M | 191.9M | 145.1M | 167.21M | -2.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 318.64M | 325.75M | 343.53M | 386.27M | 286.14M | 362.48M | 489.23M | -38.09M | 2.01M | 3.84M |
| EPS (Diluted) | 0.58 | 0.68 | 0.34 | 0.24 | 0.45 | 3.80 | 0.39 | 0.58 | 0.64 | 0.85 | 0.75 | -0.01 |
| EPS Growth % | 222.51% | 100% | 41.67% | -46.67% | -88.16% | 874.36% | -32.76% | -9.38% | -24.71% | 13.65% | 6107.88% | - |
| EPS (Basic) | - | 0.71 | 0.36 | 0.25 | 0.46 | 3.91 | 0.39 | 0.59 | 0.65 | 1.08 | 1.12 | -0.02 |
| Diluted Shares Outstanding | 256.04M | 253.45M | 177.69M | 176.38M | 245.18M | 195.81M | 179.69M | 185.02M | 163.81M | 138.4M | 225.16M | 225.16M |
| Basic Shares Outstanding | 182.65M | 178.46M | 172.18M | 173.47M | 180.34M | 190.18M | 179.11M | 177.77M | 157.26M | 133.41M | 150.09M | 150.09M |
| Dividend Payout Ratio | - | 17.22% | 33.68% | 49.1% | 21.53% | 1.02% | 28.94% | 59.03% | 39.15% | 70.41% | - | - |
Cyclical Transaction Volume Sensitivity
According to recent quarterly filings, Newmark Group achieved a notable 27.3% year-over-year revenue growth in 2026Q1, signaling a robust recovery in transaction activity that appears to outpace the broader commercial real estate services sector despite persistent headwinds in the institutional office and capital markets segments.
The acceleration in top-line performance suggests that Newmark's aggressive talent acquisition strategy is successfully capturing market share during a period of industry consolidation. Investors should monitor whether this growth is sustainable or merely a reflection of pent-up transaction demand being released as interest rate expectations stabilize.
As reported in financial statements, Newmark's operating margin remains thin at 3.2% for 2026Q1, illustrating that the firm's high-incentive compensation model prevents significant operating leverage from materializing even as revenue scales, which warrants further investigation into the long-term scalability of their current producer-heavy cost structure.
The firm's reliance on high commission splits and recruitment-related expenses creates a rigid cost base that limits profitability during cyclical upturns. This suggests that Newmark may struggle to achieve meaningful margin expansion unless it successfully pivots toward more recurring, fee-based revenue streams that are less sensitive to broker-level payouts.
Based on Newmark's reported figures, the consistent and substantial quarterly stock-based compensation, which reached $68.4 million in 2026Q1, significantly obscures the underlying cash profitability of the business and suggests that reported EPS may not fully capture the true economic cost of maintaining the firm's competitive talent pool.
The frequent use of equity-linked incentives creates a persistent dilution risk that investors must weigh against the firm's growth prospects. The volatility in net income, ranging from losses in early 2024 to positive earnings in recent quarters, highlights the sensitivity of the bottom line to non-operating items and the heavy reliance on recruitment-related accounting adjustments.
Data from the income statement indicates that Newmark's profitability is highly vulnerable to market cycles, as evidenced by the sharp contraction in operating margins during periods of lower transaction volume, which suggests that the firm's reliance on capital markets mandates may be a significant long-term liability.
Short-sellers may focus on the firm's inability to maintain consistent profitability during market troughs, which highlights the inherent risk of a business model tied to large-scale, episodic property closings. The lack of a substantial, diversified recurring revenue base compared to larger global peers suggests that Newmark remains a high-beta play that could face severe pressure if commercial real estate transaction volumes remain depressed.
Quick answers to the most common questions about buying NMRK stock.
For fiscal year 2025, Newmark Group, Inc. (NMRK) reported total revenue of $3.34B. This represents a 178.0% increase compared to $1.20B in 2015.
Newmark Group, Inc. (NMRK) is profitable, generating $126.2M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
Newmark Group, Inc. (NMRK) reported an operating income of $234.0M, resulting in an operating profit margin of 7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Newmark Group, Inc. (NMRK) generated $3.16B in gross profit for the year, representing a gross profit margin of 94.6%. This demonstrates the company's core pricing power and production efficiency.