Newmark Reports Over 23% Revenue Growth

Newmark Group, Inc. (NASDAQ: NMRK) has reported its financial results for the fourth quarter and full year of 2023. The company's revenues increased by over 23% in the quarter, with double-digit gains in every revenue category. Barry M. Gosin, Chief Executive Officer of Newmark, commented on the results, stating, "We anticipate industry volumes accelerating throughout the second half of 2024. Due to our strong incremental margins and our investments in talent, we expect significant earnings outperformance towards the end of the year and into 2025."

Here are some selected financial highlights compared with the year-earlier period:

  • Total revenues for the fourth quarter of 2023 were $747.4 million, representing a 23.1% increase from the year-earlier period. For the full year 2023, total revenues were $2,470.4 million, an 8.7% decrease from the prior year.
  • GAAP net income for fully diluted shares increased by 493.4% in the fourth quarter of 2023, reaching $52.9 million, while GAAP net income per fully diluted share was $0.21, a 425.0% increase from the year-earlier period.
  • Adjusted EBITDA (AEBITDA) for the fourth quarter of 2023 was $166.2 million, marking a 62.6% increase from the year-earlier period.

Gosin also highlighted, "Already in 2024, we hired the preeminent affordable housing team, some of the most prolific and experienced debt and structured finance professionals, as well as one of the most innovative and active U.S. leasing teams. By empowering our extraordinary talent with world-class research, data analytics, and technology, they bring their best to Newmark’s clients."

In terms of market performance, Newmark grew revenues from leasing and other commissions by 19.6% year-on-year in the fourth quarter, exceeding a more than 10% decline in industry-wide leasing activity. The company also gained significant market share in capital markets and grew revenues from investment sales and commercial mortgage origination, net, by 20.7% and 45.9%, respectively.

Newmark's board of directors declared a qualified quarterly dividend of $0.03 per share payable on March 22, 2024, to class A and class B common stockholders of record as of March 8, 2024.

Following the release of the financial results, Newmark's shares moved 5.1% and are currently trading at a price of $10.92.

The full 8-K submission by the company is available here.

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