Newmark Group Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alexander Goldfarb - Piper Sandler & Co - Analyst : Hey, Good morning down there. And first Luis congratulations, [Mazelov], that's awesome on the promotion. Thank you. So the first question is just Barry, I mean obviously what everyone wants to know is what the what your clients your relationships what they're saying very strong first quarter we've seen from the office res, there doesn't seem to be any leasing slowdown we've heard the same on the retail res so far. So how do we interpret sort of this macro uncertainty with what you're seeing in the business and do you have any anecdotes of people pulling back. Leasing deals or or stepping away from transactions, building sales, etc. Anything that gives color to what's going on in the market.

Question: Alexander Goldfarb - Piper Sandler & Co - Analyst : And on the transaction front have you seen people pulling buildings from the market or I mean that would seem logical just given what's going on in the capital markets or your view is people are still putting product out on the market to transact.

Question: Alexander Goldfarb - Piper Sandler & Co - Analyst : And then Mike, just on the stock buybacks you mentioned that in your opening comments again just with the backdrop of this of the uncertain economy, the capital markets, etc. Do you feel comfortable engaging in stock buybacks in the current or you would say, hey we're better off to keep our cash on hand for the future rather than buying back stock?

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc - Analyst : Thank you very much. You all have grown the management services part of the business and continue to do so. Can you talk about what differentiates Newmark in that business, what the core services are that you're providing and what's driving the growth there?

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc - Analyst : Thanks very much. I wanted to ask about stock compensation, which was I think out outside in the quarter but may have included a one-time item, just the $21 million in GAAP charges related to him that is called out in the press release. Is that a one-time item? Do you expect any other charges related to him that investors should anticipate? Would be helpful to know about that. Thanks.

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc - Analyst : Thanks very much. We will now take your next question coming from Julian Bluin with Goldman Sachs.

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc - Analyst : Hey, good morning. So Newmark hasn't done an acquisition in a while. I'm just curious, what's your current appetite for M&A versus continued broker team lift outs?

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc - Analyst : Okay, great. And then can I get your current thoughts on the outlook for multi-family and then I guess Danny and Freddie in particular given some of the leadership changes there.

Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc - Analyst : All. Right. Terrific thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 2:00PM, NMRK.OQ - Q1 2025 Newmark Group Inc Earnings Call

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc - Analyst : I'm not sure if the tariff environment has impacted this, but competitive environment for recruiting has seemingly picked up quite a lot. I think Cushman and Wakefield, outlined their plans and some of the teams they're hiring. I know E-Still is also active as well, so I just wanted to get your comment on the competitive environment recruiting and Newmark's plans. I believe you do still plan. To grow in terms of your commissioner driven revenue producing staff.

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc - Analyst : Thank you.