Newmark Group Inc Q3 2025 Earnings Call Transcript

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

Question: Alexander Goldfarb - Piper Sandler - Analyst : Hey, morning down there, Barry, first two questions. The first question is on data centers. It's been a topic we've discussed before with you guys and certainly, just seems to show no slowdown in investor and capital enthusiasm as your team looks at the amount of capital that's been committed versus the ability to actually build data centers over the next, foreseeable future. Do you think all the capital can be put to work in the next 5, 10 years, or is there a lot more capital raised versus the physical ability to actually build data centers?

Question: Alexander Goldfarb - Piper Sandler - Analyst : But do you think it's, I mean, but the point is, it sounds like there's, we all know there's a lot out there of potential needs, but it just sounds like physically building the infrastructure, the laying the utilities, building power plants, like all this stuff. It sounds like the capital has gotten ahead of itself. Do you think that's the case or you think that the capital raised can commensurately, basically go into production, in pretty quickly.

Question: Alexander Goldfarb - Piper Sandler - Analyst : Okay, and then the second question is, years ago when you were investing in hiring a lot of different producers and expanding into new areas, acquiring smaller shops, there was a lot of drag initially from those hires. You spent the money on board them. It took a while for them to deliver. Recently, that seems to be a thing of the past and you guys have been expanding into Europe. You mentioned the expansion in India, etc. Is all of that, drag that we experienced years ago when you were on boarding producers, is that just a thing of the past, or is the company gotten big enough or is it where the stock price is today? Just trying to understand because it's a pretty sharp contrast. Now as you grow and expand, it doesn't seem to have a slowdown to earnings, whereas years ago it did.

Question: Alexander Goldfarb - Piper Sandler - Analyst : Thank you.

Question: Jade Rahmani - Keefe Bruyette & Woods Inc - Analyst : Thank you very much. The 2026 targets that Mike reiterated, when were those conceived?

Question: Jade Rahmani - Keefe Bruyette & Woods Inc - Analyst : Yes, well, what I'm trying to imply or suggest is that since they were created prior to the very robust growth that Newmark has demonstrated across its businesses, particularly capital markets, plus the data center fundraising wave in which Newmark is taking part, the outlook. 2026, as previously mentioned, seems quite conservative. Growth coming out of Siri recoveries tends to be a lot stronger than that, and the recovery thus far, macro risks notwithstanding seems to be gaining momentum. So do you believe that those targets are conservative? And are you also seeing anything in the macroeconomy that would cause you to be erring on this side of caution?

Question: Jade Rahmani - Keefe Bruyette & Woods Inc - Analyst : Thank you very much. Great job. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. OCTOBER 30, 2025 / 2:00PM, NMRK.OQ - Q3 2025 Newmark Group Inc Earnings Call

Question: Julien Blouin - Goldman Sachs Group Inc - Analyst : Hi, thank you for the question and congrats on a strong quarter. Barry, I wanted to ask about New York City. I mean, third quarter, CRE transactions and leasing in the city looked really strong, but we continue to hear, signs from signs that institutional investors, especially abroad, are maybe beginning to worry about political risk in the city related to the mayoral race. I guess are you seeing any sign of impact or any cautiousness from buyers in the city?

Question: Julien Blouin - Goldman Sachs Group Inc - Analyst : Got it. That that's helpful. And then Mike, can you help us understand maybe the cadence of capital markets across the quarter? Was September particularly strong given rates coming down, and did you see sort of a follow through of that activity into October and then maybe how do pipelines compare to this time last year?

Question: Julien Blouin - Goldman Sachs Group Inc - Analyst : Okay, great. Thank you.

Question: Mitch Germain - Citizens Capital Markets - Analyst : Thank you and congrats on the quarter. Just maybe on the RealFoundation transaction, Barry, just maybe talk about, kind of your view of the fit and potential to expand or or cross sell that platform. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. OCTOBER 30, 2025 / 2:00PM, NMRK.OQ - Q3 2025 Newmark Group Inc Earnings Call

Question: Mitch Germain - Citizens Capital Markets - Analyst : Great, that's super helpful.

Question: Mitch Germain - Citizens Capital Markets - Analyst : Great, thanks for that perspective. Barry, and obviously you've been making a lot of hires outside the US, opening new offices. I'm curious about your views about organically growing services platform facilities management and other services versus more traditional brokerage and, kind of how you view that organic growth and the timeline to augment those capabilities on a global scale.

Question: Jade Rahmani - Keefe Bruyette & Woods Inc - Analyst : Thank you very much. I just wanted to ask if there's anything in the fourth quarter 24 comp period that you want to call out, for example, leasing commissions were up 15.1%, so that's a tougher comp than what you dealt with this quarter. Capital markets of course was very strong last year, but given the strength this quarter, it seems achievable to exceed that. And then anything on the expense side, just so we're aware.

Question: Jade Rahmani - Keefe Bruyette & Woods Inc - Analyst : Thanks very much.

Question: Julien Blouin - Goldman Sachs Group Inc - Analyst : Thank you. Just a quick follow-up, Barry, following on from Alex's question on data centers, your data center capital market volumes have been really impressive this year, particularly on the financing side. Can you just maybe talk through the team you've built there, how you've been able to build such a dominant early foothold in the space, and then how should we think about the growth in data center financing volumes and investment sales going forward. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. OCTOBER 30, 2025 / 2:00PM, NMRK.OQ - Q3 2025 Newmark Group Inc Earnings Call

Question: Alexander Goldfarb - Piper Sandler - Analyst : Hey, thank you, and Barry, I just want to continue that a while back, if my recollection is right, when you and I discussed this, there was a comparison to life science and how you didn't want to overcommit from an investment to data centers just given that real estate tends to follow boom bust cycles, doesn't mean it's out. It just means, hey, there's a big boom and then there's a cooling and then it grows. There obviously life science, went crazy, during COVID and you know now it's dealing with the consequences. So, from a staffing level, are you now feeling more bullish that this has longer legs to hire more or you're still of that restraint mentality which is, hey, we don't want to get too far over our skis on this. It's a great sector, but every sector that has huge growth eventually has a cooling period and we just want to maintain staffing appropriately.