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Newmark(NMRK) - 2025 Q1 - Quarterly Results
NMRKNewmark(NMRK)2025-04-30 12:43
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Financial Performance - Total revenues for Q1 2025 were 665.5million,a21.8665.5 million, a 21.8% increase compared to 546.5 million in Q1 2024[5] - GAAP net income improved to a loss of 8.8million,a46.18.8 million, a 46.1% reduction from a loss of 16.3 million in the previous year[5] - Post-tax adjusted earnings rose to 54.3million,reflectinga45.254.3 million, reflecting a 45.2% increase from 37.4 million in Q1 2024[5] - Total revenues for FY 2025 are projected to be between 2,900millionand2,900 million and 3,100 million, representing a year-on-year increase of 6% to 13% from the FY 2024 actual of 2,738.5million[19]−AdjustedEarningsPerShareforFY2025isexpectedtobeintherangeof2,738.5 million[19] - Adjusted Earnings Per Share for FY 2025 is expected to be in the range of 1.40 to 1.50,reflectingayear−on−yeargrowthof141.50, reflecting a year-on-year growth of 14% to 22% from the FY 2024 actual of 1.23[19] - Adjusted EBITDA for FY 2025 is forecasted to be between 495millionand495 million and 545 million, indicating an 11% to 22% increase compared to the FY 2024 actual of 445.3million[19]−TotalrevenuesforQ12025reached445.3 million[19] - Total revenues for Q1 2025 reached 665.5 million, a 21.7% increase from 546.5millioninQ12024[41]−Managementservices,servicingfees,andotherrevenuesincreasedto546.5 million in Q1 2024[41] - Management services, servicing fees, and other revenues increased to 283.9 million, up 10.5% from 256.9millionyear−over−year[41]−Leasingandothercommissionsroseto256.9 million year-over-year[41] - Leasing and other commissions rose to 208.1 million, a 30.9% increase compared to 158.8millioninthesameperiodlastyear[41]−Capitalmarketsrevenuesgrewby32.6158.8 million in the same period last year[41] - Capital markets revenues grew by 32.6% to 173.5 million from 130.8millionyear−over−year[41]−AdjustedEarningsbeforenoncontrollinginterestsandtaxesforQ12025was130.8 million year-over-year[41] - Adjusted Earnings before noncontrolling interests and taxes for Q1 2025 was 62.85 million, up 46% from 42.91millioninQ12024[84]−Post−taxAdjustedEarningsforQ12025reached42.91 million in Q1 2024[84] - Post-tax Adjusted Earnings for Q1 2025 reached 54.35 million, compared to 37.42millioninQ12024,reflectinga4537.42 million in Q1 2024, reflecting a 45% year-over-year increase[84] - Adjusted EBITDA for Q1 2025 was 89.20 million, a 40% increase from 63.48millioninQ12024[92]ExpensesandLiabilities−TotalexpensesforQ12025were63.48 million in Q1 2024[92] Expenses and Liabilities - Total expenses for Q1 2025 were 683.8 million, a 20.1% increase from 569.1millioninQ12024[10]−Totaloperatingexpensesincreasedto569.1 million in Q1 2024[10] - Total operating expenses increased to 683.8 million, up 20.2% from 569.1millioninQ12024[41]−Cashandcashequivalentsdecreasedto569.1 million in Q1 2024[41] - Cash and cash equivalents decreased to 157.1 million from 197.7millionattheendof2024,whiletotalcorporatedebtroseto197.7 million at the end of 2024, while total corporate debt rose to 770.9 million[14] - Total liabilities rose to 3.29billion,comparedto3.29 billion, compared to 3.17 billion at the end of Q4 2024[39] Capital and Liquidity - Newmark's net leverage ratio was 1.3 times as of March 31, 2025[14] - Total corporate debt as of March 31, 2025, was 770.9million,resultinginanetleverageratioof1.3timesbasedontrailingtwelve−monthAdjustedEBITDAof770.9 million, resulting in a net leverage ratio of 1.3 times based on trailing twelve-month Adjusted EBITDA of 471.0 million[99] - Newmark's liquidity is defined as the sum of cash and cash equivalents, marketable securities, and reverse repurchase agreements, less securities lent out[77] - The company’s liquidity excludes marketable securities financed and does not include the value of undrawn revolving credit lines[6] Dividends and Share Count - A quarterly dividend of 0.03persharewasdeclared,payableonMay29,2025[16]−Thecompanyaimsforannualsharecountgrowthof20.03 per share was declared, payable on May 29, 2025[16] - The company aims for annual share count growth of 2% or less over time[20] - Future dividends payable by the company will be at the discretion of its Board of Directors, based on the fully diluted share count[69] Market Outlook - The outlook for FY 2025 is contingent on the recovery of industry leasing and capital markets activity, amidst macroeconomic uncertainties[19] - Newmark's total revenues include non-cash gains from originated mortgage servicing rights, which are recognized at commitment[23] - The company continues to focus on its Management Services, Servicing, and Asset Management businesses, which are considered resilient and recurring revenue streams[24] Notable Transactions - Recent notable transactions include a 360 million sale of two office towers and a 2.3billionconstructionfinancingforadatacenter[32]OperationalMetrics−Newmarkgeneratedrevenuesofover2.3 billion construction financing for a data center[32] Operational Metrics - Newmark generated revenues of over 2.8 billion for the twelve months ended March 31, 2025[102] - As of March 31, 2025, Newmark operated from 165 offices with approximately 8,100 professionals across four continents[102] - Newmark provides a comprehensive suite of services and products tailored to various clients, including owners, occupiers, investors, and startups[102]