Newmark Earnings Exceed Estimates on Heels of ‘AI Scare Trade’ Stock Dip

Newmark reported higher than expected fourth-quarter earnings Wednesday, two weeks after its stock price took a dip from the brokerage industry’s broader “AI scare trade.” 

The company achieved a quarterly profit of 68 cents per share, surpassing analyst estimates of 66 cents6 per share. Newmark’s stock was down 1.22 percent as of 11:09 a.m. to $14.22 per share, which was down 4.88 percent from when it tumbled 13.43 percent on Feb .11.

Despite some market concerns about how artificial intelligence could remove sales leads crucial to brokerage firms, Newmark CEO Barry Gosin said the tool should provide plenty of positives for future growth. 

“Newmark and our other large competitors possess incredible proprietary data, which we can leverage to the benefits of our professionals and clients,” Gosin said during a fourth-quarter investors call Wednesday morning. “We expect AI to provide an additional tailwind for our future results.” 

Gosin added that he sees AI as “an accelerant” that will enable the firm’s talent to further grow through new proprietary data tools that will produce more deal volumes. 

Newmark’s fourth-quarter performance saw growth in multiple business lines, including a 19.2 percent jump in capital markets revenue to $348.9 million compared to the year-ago period, marking the ninth consecutive quarter of double-digit growth. Fees from commercial mortgage originations also climbed 10.1 percent to $112.7 million. 

Investment sales revenues increased 28.3 percent from the 2024 fourth quarter to $200.1 million, powered by strong activity in the office and retail sectors along with multifamily, which was led by robust activity in senior housing deals.

Newmark also said revenues from management services, servicing fees and other operating incomes grew by 13 percent to $250.6 million, led by “strong organic growth” from its valuation and advisory and its property management businesses. 

The brokerage giant’s balance sheet ended 2025 with $229.1 million of available cash, up 16.2 percent from late 2024. Its total corporate debt was $670.7 million as of Dec. 31, 2025, with net leverage of 0.8 times, according to the earnings report.

“Given the success of our strategy and the favorable macroeconomic backdrop for commercial real estate, we expect to achieve double digit top and bottom line growth for the third consecutive year in 2026 while generating our best ever total revenues,” Gosin said. 

Andrew Coen can be reached at acoen@commercialobserver.com.