NMRK Q2 Deep Dive: Data Center Momentum, International Expansion, and Raised Guidance Shape Outlook

August 12, 2025 at 00:41 AM EDT

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Real estate services firm Newmark (NASDAQ: NMRK) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 19.9% year on year to $759.1 million. The company’s full-year revenue guidance of $3.15 billion at the midpoint came in 2.5% above analysts’ estimates. Its non-GAAP profit of $0.31 per share was 17% above analysts’ consensus estimates.

Is now the time to buy NMRK? Find out in our full research report (it’s free).

Newmark (NMRK) Q2 CY2025 Highlights:

Revenue: $759.1 million vs analyst estimates of $685.9 million (19.9% year-on-year growth, 10.7% beat)
Adjusted EPS: $0.31 vs analyst estimates of $0.27 (17% beat)
Adjusted EBITDA: $114 million vs analyst estimates of $101 million (15% margin, 12.8% beat)
The company lifted its revenue guidance for the full year to $3.15 billion at the midpoint from $3 billion, a 5% increase
Management raised its full-year Adjusted EPS guidance to $1.52 at the midpoint, a 4.8% increase
EBITDA guidance for the full year is $548 million at the midpoint, above analyst estimates of $525.2 million
Operating Margin: 5.6%, in line with the same quarter last year
Market Capitalization: $2.85 billion

StockStory’s Take

Newmark’s second quarter results were met with a positive market reaction, reflecting strong revenue and profit growth that surpassed Wall Street’s expectations. Management attributed this performance to broad-based gains across major business lines, with CEO Barry Gosin highlighting double-digit growth in office and retail leasing, significant market share gains in capital markets, and a notable 135% increase in debt volumes. The firm’s expanding leasing footprint and robust activity in key markets like New York and San Francisco were emphasized as primary drivers.

Looking ahead, management pointed to a strengthened pipeline and ongoing investments in international expansion and management services as key pillars for growth. CFO Michael Rispoli stated that expectations for continued high-single to low-double-digit growth in leasing and management, along with mid- to high-teens growth in capital markets, support the updated full-year outlook. Gosin emphasized the “enormous runway” in both data center and international markets, while Rispoli cited a focus on recurring revenue streams and the potential for select acquisitions to augment organic growth.

Key Insights from Management’s Remarks

Newmark’s leadership credited second quarter momentum to accelerated capital markets activity, robust demand for leasing in key cities, and the early success of its international platform buildout.

Capital markets share gains: Newmark increased its market share in capital markets, driven by a 135% rise in total debt volumes, outpacing broader U.S. industry trends. Management noted this was supported by growing data center transactions and higher office and multifamily activity.
International platform expansion: The company’s launch in Germany and broader European hiring efforts have started to contribute to global deal flow. Gosin explained that international operations now represent over 13% of volume, with further expansion in Asia underway.
Leasing growth in key regions: San Francisco led leasing growth, with activity attributed to both AI-driven demand and continued tech sector expansion, alongside improving office activity in New York. Gosin described the Bay Area as showing “activity coming from every direction.”
Management services and recurring revenue: Management services, including valuation and advisory, grew by approximately 30%. Rispoli indicated this segment is a strategic focus for increasing recurring, high-margin revenue.
Disciplined capital allocation: Share repurchases were significant during the quarter, but Rispoli indicated a shift toward pursuing acquisitions in management services for the second half of the year, aiming to further diversify and stabilize revenue streams.

Drivers of Future Performance

Management expects international expansion, data center activity, and growth in management services to drive guidance for the rest of the year.

International and data center runway: Gosin highlighted the early-stage nature of Newmark’s European and Asian businesses, describing them as offering substantial growth potential. The firm believes its integrated approach across markets will serve global clients and capitalize on the increasing complexity of real estate needs.
Recurring revenue focus: Rispoli and Gosin pointed out the strategy to boost recurring revenue through management services, including valuation, advisory, and asset management. This shift is intended to create more stable and predictable earnings, reducing reliance on transactional business cycles.
Strategic M&A plans: While organic growth remains the priority, management outlined plans to pursue targeted acquisitions in areas complementary to management services. Rispoli stated that bolt-on deals are favored to minimize disruption and accelerate the buildout of recurring revenue streams.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) continued expansion and deal flow in international markets, particularly Europe and Asia, (2) sustained growth and diversification in management services and recurring revenue streams, and (3) the pace of data center transaction activity, especially as AI-driven demand evolves. Execution on targeted M&A and integration of new hires will also be closely monitored.

Newmark currently trades at $16.45, up from $14.47 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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