Newmark shares fell 3.7% to $15.02 at the latest close. The latest three-month filing shows a business that added $129.3 million of revenue and still made slightly less money from operations.
Revenue rose 17.0% from the comparable period to $888.4 million. Operating income fell 5.5% to $40.4 million, pushing operating margin down to 4.5% from 5.6%. Net income also declined, to $19.7 million from $20.8 million, while diluted earnings per share stayed at $0.11.
The surface-level read is familiar: office activity is up, but revenue growth has not translated into operating-income growth. Newmark says leasing commission revenue rose $40.8 million, or 17.2%, to $278.0 million, driven by higher office volumes in New York City, the San Francisco Bay Area, and Los Angeles.
Management's office-market explanation is straightforward:
"Leasing and Other Commission revenues increased by $40.8 million, or 17.2%, to $278.0 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, which was driven by significantly higher office volumes in key markets including New York City, the San Francisco Bay Area, and Los Angeles."
Newmark Group, 10-Q, Aug. 7, 2026
That is a concrete volume gain, not merely a favorable comparison. It also makes the margin result notable. Newmark booked more business in the places it identifies as key markets, yet the additional revenue came with a larger expense base.
Operating, administrative, and other expenses increased $35.1 million to $186.1 million. The company attributes that change partly to a $0.2 million lease-termination charge, compared with a $14.5 million credit for the same item a year earlier. That comparison alone creates a $14.7 million swing, before considering the rest of the expense increase.
The six-month disclosure adds another piece: pass-through expenses rose with the growth of Newmark's Occupier Solutions and Property Management businesses. Pass-through costs are expenses that accompany client work and increase reported revenue, but they do not necessarily carry the same economics as commission revenue. The filing does not provide a clean three-month bridge from the revenue increase to the lower operating profit.
"Operating, Administrative and Other Operating, administrative and other expenses increased by $35.1 million, or 23.3%, to $186.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due to a $0.2 million charge related to lease terminations for liquidated entities, compared to a credit of $14.5 million for the same item in the year earlier period."
Newmark Group, 10-Q, Aug. 7, 2026
The balance sheet offers a separate counterpoint. Cash rose 32.6% to $259.7 million, and lower net interest expense helped keep net income from falling as much as operating income. Newmark said the reduction primarily reflected a $1.7 million increase in interest income.
The annual record provides additional context for this filing. Revenue reached $2.8 billion in 2025, up 21.9%, while operating margin reached 8.4%. The latest period's 4.5% margin sits well below that annual figure, though the periods and business mix are not identical.
The filing shows office volumes up while operating profit is down.