Newmark Group (NMRK) Q4 2021 earnings summary

Executive summary

• FY 2021 revenue rose 53% to $2.906B; Q4 revenue increased 35% YoY to $678.2M, supported by growth across service lines.

• GAAP results included a $1.203B gain tied to accelerated Nasdaq share receipts; adjusted measures exclude this impact and the 2021 Equity Event.

• Growth priorities include expanding internationally, increasing recurring revenue, cross-selling services, and selectively hiring and acquiring.

Financial highlights

• FY revenue was $2.906B vs. $1.905B in 2020; Q4 revenue was $678.2M vs. $504.0M, up 35% YoY.

• FY GAAP net income available to common stockholders was $750.7M vs. $80.1M; diluted EPS was $3.80 vs. $0.39.

• FY Adjusted EBITDA was $597.5M vs. $252.9M; Q4 Adjusted EBITDA was $225.4M vs. $107.9M.

• FY post-tax Adjusted Earnings per diluted share were $1.64 vs. $0.60; Q4 was $0.65 vs. $(0.03).

Outlook and guidance

• 2025 targets are revenue of $4.25B–$4.75B and Adjusted EBITDA of $900M; these targets are not guidance and imply over 50% growth from 2021.

• Recurring businesses represented 31% of trailing-12-month revenue, up from 24% in 2017; target is over 40% by 2025.

• International revenue was under 5% in 2021; target is over 10% by 2025, with direct presence planned in 8–10 key international markets.