NEWMARK GROUP, INC.

Previous wording

This discussion summarizes the significant factors affecting our results of operations and financial condition during the three and six months ended June 30, 2026 and 2025. We operate in one reportable segment, real estate services. This discussion is provided to increase the understanding of, and should be read in conjunction with, our accompanying unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

This discussion summarizes the significant factors affecting our results of operations and financial condition during the three and nine months ended September 30, 2026 and 2025. We operate in one reportable segment, real estate services. This discussion is provided to increase the understanding of, and should be read in conjunction with, our accompanying unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Key Business Drivers. The key drivers of our business include our ability to attract and retain revenue generating headcount across our service lines, the productivity of these employees, and industry volumes in these areas. Volumes are largely a factor of economic and job growth, interest rates, the demand for commercial real estate as an investment, and the need for related debt and equity financing. Demand for our services is also influenced by secular trends with respect to outsourcing and other services we provide.

Current wording

Key Business Drivers. The key drivers of our business include our ability to attract and retain revenue generating headcount across our service lines, the productivity of these employees, and industry volumes in these areas. Volumes are largely a factor of economic and job growth, interest rates, the demand for commercial real estate as an investment, and the need for related debt and equity financing. Demand for our services is also influenced by secular trends with respect to outsourcing and other recurring revenue services we provide.

Previous wording

Continued Trends with Respect to Management Services, Servicing Fees and Other. Many of our Management Services offerings continue to benefit from increased outsourcing by corporations and other occupiers, owners of real estate, lenders, and investors. We expect these outsourcing trends to persist for the foreseeable future, which should benefit our recurring revenue businesses as we continue to invest in areas including property, project, and facilities management, as well across our growing suite of managed services offerings. Between September 2025 and June 2026, our investments in recurring revenue businesses include the Company’s acquisitions of the Altus Appraisal platform, Catella, and RealFoundations, as well as the organic launches of our property and facilities management businesses in India and our new fund administration service line. We believe these recent investments will help drive stable and predictable revenue and earnings growth over time.

Current wording

Continued Trends with Respect to Management Services, Servicing Fees and Other. Many of our Management Services offerings continue to benefit from increased outsourcing by corporations and other occupiers, owners of real estate, lenders, and investors. We expect these outsourcing trends to persist for the foreseeable future, which should benefit our recurring revenue businesses as we continue to invest in areas including property, project, and facilities management, as well as across our growing suite of managed services offerings. Between September 2025 and September 2026, our investments in recurring revenue businesses include six small acquisitions, all of which are recorded as part of Management Services, as well as the organic launches of our property and facilities management businesses in India and our new fund administration service line. See Note 4 — “Acquisitions” to our accompanying unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. We believe these recent investments will help drive stable and predictable revenue and earnings growth over time.

Previous wording

Additionally, we operate a high margin and growing loan servicing and asset management business focused on GSE/FHA loans, as well as on bank, private credit, and commercial mortgage-backed securities clients. We expect this business to benefit as the overall amount of commercial and multifamily debt outstanding increases, we continue to gain origination market share, and we drive further cross selling between service lines. As of June 30, 2026, our overall loan servicing and asset management portfolio grew by 20.5% year-on-year to $219.3 billion (of which 62.2% was limited servicing and asset management, 37.0% was higher margin primary servicing, and 0.7% was special servicing). We expect our overall portfolio to continue providing a steady stream of income and cash flow over the life of the serviced loans.

Current wording

Additionally, we operate a high margin and growing loan servicing and asset management business focused on GSE/FHA loans, as well as on bank, private credit, and commercial mortgage-backed securities clients. We expect this business to benefit as the overall amount of commercial and multifamily debt outstanding increases, we continue to gain origination market share, and we drive further cross selling between service lines. As of September 30, 2026, our overall loan servicing and asset management portfolio grew by 23.2% year-on-year to $228.3 billion (of which 61.7% was limited servicing and asset management, 37.6% was higher margin primary servicing, and 0.7% was special servicing). We expect our overall portfolio to continue providing a steady stream of income and cash flow over the life of the serviced loans.

Previous wording

These factors, combined with our ability to increase revenue synergies between our service lines, enabled us to grow Management Services, Servicing Fees and Other revenues by an approximately 16% CAGR between 2017 and 2025, and to increase these recurring revenues by 17.7% year-on-year in the quarter ended June 30, 2026.

Current wording

These factors, combined with our ability to increase revenue synergies between our service lines, enabled us to grow Management Services, Servicing Fees and Other revenues by an approximately 16% CAGR between 2017 and 2025, and to increase these recurring revenues by 18.3% year-on-year in the quarter ended September 30, 2026.

Previous wording

Attracting and Retaining Revenue-Generating Headcount. Over the twelve months ended June 30, 2026, we continued to solidify what we believe is our position as the platform of choice for many top professionals. We continue to attract some of the most prolific and experienced client-facing professionals in countries including the U.S., U.K., France, Germany, India, Italy, South Korea, Canada, and Singapore. We believe that these additions further demonstrate the strength of our global brand, and the value of our substantial investments in data analytics, technology, and talent. Our revenue-generating headcount in the U.S. was flat or up modestly year-on-year on a net basis over the last several quarters. Therefore, strong productivity gains were the primary driver of our double-digit percentage year-on-year U.S. revenue growth in second quarter and first half of 2026. We increased both the number of non-U.S. offices and our international revenue-generating headcount by mid-double-digit percentages year-on-year in the second quarter of 2026. As with nearly all newly hired professionals, these recent additions are expected to take at least 6 to 18 months to produce meaningful fees, although we generally record related expenses beginning in their first quarter with the Company. As more of Newmark’s newer team members ramp up, we expect to further improve our productivity and earnings over time, all else equal.

Current wording

Attracting and Retaining Revenue-Generating Headcount. Over the twelve months ended September 30, 2026, we continued to solidify what we believe is our position as the platform of choice for many top professionals. We continue to attract some of the most prolific and experienced client-facing professionals in countries including the U.S., U.K., France, Germany, India, Italy, South Korea, Canada, and Singapore. We believe that these additions further demonstrate the strength of our global brand, and the value of our substantial investments in data analytics, technology, and talent. Our revenue-generating headcount in the U.S. was flat or up modestly year-on-year on a net basis over the last several quarters. Therefore, strong productivity gains were the primary driver of our year-on-year U.S. revenue growth in the third quarter and first nine months of 2026. We increased both the number of non-U.S. offices and our international revenue-generating headcount by double-digit percentages year-on-year as of September 30, 2026. As with nearly all newly hired professionals, these recent additions are expected to take at least 6 to 18 months to produce meaningful fees, although we generally record related expenses beginning in their first quarter with the Company. As more of Newmark’s newer team members ramp up, we expect to further improve our productivity and earnings over time, all else equal.

Previous wording

According to a preliminary estimate by the Bureau of Economic Analysis, U.S. GDP increased at an annualized rate of 1.5% in the second quarter of 2026, after having expanded 2.1% in 2025 and 2.8% in 2024. According to the Wall Street Journal, U.S. GDP growth was led by increased capital expenditures on categories closely tied to AI, which may have contributed more than half of all GDP growth in the quarter. While higher consumer spending also contributed to the rise, these factors were partially offset by lower federal spendings, private inventory investment, nonresidential structure investment, and net exports. While U.K. GDP for the quarter has not yet been released, the consensus is for it to grow by 0.2% year-on-year, after having expanded 1.3% in 2025 and 1.1% in 2024.

Current wording

According to a preliminary estimate by the Bureau of Economic Analysis, U.S. GDP increased at an annualized rate of 3.4% in the third quarter of 2026, after having expanded 2.3% in 2025 and 3.0% in 2024. According to the Wall Street Journal, U.S. GDP growth was led by increased consumer spending on both goods and services, as well as higher capital expenditures, much of which was related to on categories closely tied to AI. S&P Global Ratings estimates that technology-related business investment accounted for more than a third of GDP growth over the trailing twelve months ended September 30, 2026, even after accounting for the fact that imports of items like computer chips are a drag on GDP. Higher private inventory investment and federal government spendings also contributed to the GDP increase. These factors were partially offset by lower and net exports and residential investment. While U.K. GDP for the quarter has not yet been released, the consensus is for it to grow by 1.5% year-on-year, after having expanded 1.2% in 2025 and 1.1% in 2024.

Previous wording

According to a revised estimate by the Bureau of Labor Statistics, the seasonally adjusted monthly average of U.S. non-farm payroll employment increased by approximately 77,000 in the second quarter of 2026. In comparison, the monthly average grew by 10,000 and 122,000 in full years 2025 and 2024. The June 2026 U.S. unemployment rate (based on U-3) was 4.2% compared with 4.1% a year earlier. Per the Office for National Statistics, the comparable U.K. unemployment rate as of May 2026 (the most recent data available) was 4.9% versus 4.7% a year earlier.

Current wording

According to a preliminary estimate by the Bureau of Labor Statistics, the seasonally adjusted monthly average of U.S. non-farm payroll employment increased by approximately 51,000 in the third quarter of 2026. In comparison, the monthly average grew by 10,000 and 122,000 in full years 2025 and 2024. The September 2026 U.S. seasonally adjusted unemployment rate (based on U-3) was 4.2% compared with 4.4% a year earlier. According the Federal Reserve, lower recent U.S. job creation figures may be due in part to a sharp drop in immigration and an aging native-born workforce. Per the Office for National Statistics, the comparable U.K. unemployment rate as of August 2026 (the most recent data available) was 4.7% versus 4.8% a year earlier.

Previous wording

Interest Rate Environment. Commercial real estate capital markets transactions involving financing generally utilize medium- or long-term debt, and the interest rates for such debt are influenced by movements in benchmark rates with similar tenors, including U.S. Treasuries. Such benchmark rates can often be meaningfully impacted by actual or anticipated movements in key short-term rates, such as the Fed Funds Target rate. In addition, a portion of commercial and multifamily mortgages involve floating interest rates tied to short-term benchmarks. Sudden changes in short term interest rates can therefore have pronounced effects on commercial mortgage origination and investment sales volumes.

Current wording

Interest Rate Environment. Commercial real estate capital markets transactions involving financing generally utilize medium- or long-term debt, and the interest rates for such debt are influenced by movements in benchmark rates with similar tenors, including U.S. Treasuries. Such benchmark rates can often be meaningfully impacted by actual or anticipated movements in key short-term rates, such as the Fed Funds Target rate, as well as by market expectations with respect to inflation. In addition, a portion of commercial and multifamily mortgages involve floating interest rates tied to short-term benchmarks. Sudden changes in short term interest rates can therefore have pronounced effects on commercial mortgage origination and investment sales volumes.

Previous wording

The ten-year U.S. Treasury yield increased by approximately 150 and 240 basis points quarter-on-quarter and year-on-year, respectively to 4.7% as of June 30, 2026. The ten-year U.K. Gilt yield declined by approximately 160 basis points quarter-on-quarter and increased by nearly 270 basis points year-on-year to 4.8% over the same timeframe. The year-on-year increases are mainly due to the sharp rise in prices for oil, natural gas, and other commodities due to the recent Middle East conflict and the closure of or disruption to the Strait of Hormuz. For context, ten-year U.S. Treasury and ten-year U.K. Gilt yields still remain below their 50-year average through December 31, 2025 of approximately 5.8% and 7.0%, respectively.

Current wording

The ten-year U.S. Treasury yield increased by approximately 113 and 82 basis points quarter-on-quarter and year-on-year, respectively to 5.3% as of September 30, 2026. Over the same time periods, the ten-year U.K. Gilt yield was up by approximately 67 basis points and 73 basis points, respectively, to 5.4%. These increases are mainly due to the sharp rise in prices for oil, natural gas, and other commodities related to the recent Middle East conflict and the closure of or disruption to the Strait of Hormuz. For context, ten-year U.S. Treasury and ten-year U.K. Gilt yields still remain below their 50-year average through December 31, 2025 of approximately 5.8% and 7.0%, respectively.

Previous wording

For the month ending June 30, 2026, the U.S. and U.K. consumer price indices were up 3.5% and 2.8%, respectively, versus a year earlier. Inflation has both been higher than the 2% targets set by both the FOMC and MPC since June 2021, and the headline figures in both countries have been elevated in recent months due largely to the aforementioned increase in energy prices. The surveyed economists continue to expect inflation to remain above these targets for at least the next two calendar years. Concerns about continued U.S. GDP growth, above-target inflation, and a potentially slowing job market may present a challenge to the FOMC's dual mandate. This has led more economists to expect the central bank to either maintain or possibly raise short term rates in the near term. The U.K. has experienced many of these same issues, albeit with lower GDP and labor productivity growth and, in most recent periods, higher inflation. As a result, both economists and futures markets expect short-term yields in both countries to be higher for the foreseeable future. The futures market is currently pricing in moderate short term benchmark rate hikes in the U.S., U.K., and Eurozone through at least the second quarter of 2027.

Current wording

For the month of September, 2026, the U.S. and U.K. consumer price indices (including the imputed cost of housing) were up 3.7% and 3.5%, respectively, versus a year earlier. The various key inflation measures have both been higher than the 2% targets set by both the FOMC and MPC since June 2021, and the headline figures in both countries have been elevated in recent months due largely to the aforementioned increase in energy prices. The surveyed economists continue to expect inflation to remain above these targets through at least the end of 2027. Concerns about continued U.S. GDP growth, above-target inflation, and a potentially slowing job market may present a challenge to the FOMC’s dual mandate. The U.K. has experienced many of these same issues, albeit with lower GDP and labor productivity growth. Similar inflation and interest rate dynamics have also impacted the Eurozone and other major economies in recent months. As a result, both economists and futures market participants expect short-term yields in most of the countries in which Newmark conducts business to be higher for the foreseeable future.

Previous wording

Industry Capital Markets Activity. We believe that we continue to gain share in Capital Markets, while overall industry volumes continued to improve. For example, based on their analysis of the most recently available data from MSCI and/or the MBA, Newmark Research estimates that U.S. notional investment sales volumes were up by approximately by 28% and 29%year-on-year in the three and twelve months ending June 30, 2026, respectively. Activity improved by double digit percentages nationally across nearly every major property type. In comparison, Newmark's U.S. Investment Sales volumes improved by approximately 73% and 53% year-on-year over same respective periods. Preliminary MSCI data indicates that global investment sales volumes excluding the U.S. were up 1% year-on-year over the twelve months ending June 30, 2026, although this source often revises such figures upwards at a later date. Due to our international investments, we grew our non-U.S. Investment Sales volumes by 132% over the same trailing twelve months, albeit from a low base.

Current wording

Industry Capital Markets Activity. With respect to notional volumes, we believe that we continued to gain share in Capital Markets in the third quarter of 2026, while overall industry volumes were mixed. For example, based on their analysis of the most recently available data from MSCI and/or the MBA, Newmark Research estimates that U.S. notional investment sales volumes (excluding entity transactions) were up by approximately by 25% and 26% year-on-year in the three and twelve months ending September 30, 2026, respectively. While activity declined for multifamily and retail year-on-year in the quarter, it improved by double digit percentages for office, industrial, and other property types they track. In comparison, Newmark’s U.S. Investment Sales volumes improved by approximately 31% and 44% year-on-year over the same respective periods. Preliminary MSCI data indicates that global investment sales volumes excluding the U.S. were roughly flat year-on-year over the twelve months ending September 30, 2026, although this source often revises such figures upwards at a later date. Due mainly to our international investments, we grew our non-U.S. Investment Sales volumes by 121% over the same trailing twelve months, albeit from a low base.

Previous wording

Newmark faced challenging year-on-year comparisons in the second quarter of 2026 due to our approximately 135% improvement in Total Debt volumes in the year earlier period, which included the $7.1 billion AI data center construction loan related to the Stargate Project. On a trailing twelve month basis, we continued to gain share. Based on their analysis of historical figures from the MBA and MSCI lending data, Newmark Research estimates that U.S. commercial and multifamily originations increased by 21% and 37%, respectively, in the three and twelve months ending June 30, 2026 versus the year earlier periods. In comparison, Newmark’s U.S. Total Debt volumes declined by approximately 19% and grew by 43%, respectively, over these same periods.

Current wording

Newmark faced challenging year-on-year comparisons in the third quarter of 2026 due to our approximately 129% improvement in Total Debt volumes in the year earlier period. On a trailing twelve month basis, our Total Debt volumes grew in line with the market. Based on their analysis of historical figures from the MBA and MSCI lending data, Newmark Research estimates that U.S. commercial and multifamily originations increased by 5% and 27%, respectively, in the three and twelve months ending September 30, 2026 versus the year earlier periods. In comparison, Newmark’s U.S. Total Debt volumes declined by approximately 37% and grew by 27%, respectively, over these same periods.

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While we still generate the large majority our Capital Markets volumes in the U.S., we expect to further expand international offerings across investment sales, equity advisory, mortgage brokerage, and debt placement as we continue to invest in non-U.S. talent.

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On a two year stacked basis, Newmark’s overall Capital Markets volumes increased 75% in the third quarter of 2026, compared to the third quarter of 2024, which represented significantly better improvement measured against the abovementioned comparable industry metrics. While we still generate the large majority our Capital Markets volumes in the U.S., we expect to further expand international offerings across investment sales, equity advisory, mortgage brokerage, and debt placement as we continue to invest in non-U.S. talent.

Previous wording

U.S. industry office leasing activity (for deals over 10,000 square feet) totaled just over 55 million square feet in the second quarter of 2026. This represented a 9.1% improvement year-over-year, but was roughly 30% below the average for 2018 and 2019. The continuing recovery was geographically diverse, led by New York and San Francisco. This was the 13th consecutive quarter with activity above 3 million square feet in New York City, while it was the third highest quarterly total on record for San Francisco. However, the latter continues to have one of the highest vacancy rates among major U.S. markets. AI and other technology companies have become a strong driver of office demand, concentrated in key hubs like New York and San Francisco, as well as Seattle, Los Angeles, and Austin. With respect to the U.K., London continues to lead the country in demand for office space, including from AI firms and other technology companies, as well as companies in financial services, retail, consulting, and legal services. Office leasing volumes for London increased by approximately 10% year-on-year in the second quarter of 2026. With the pipeline of new U.S. office construction down 85% from the early 2020 peak and U.K. office starts at or near all time lows, and the conversion of obsolete space into multifamily and other uses, we expect office fundamentals to continue to improve in our key markets.

Current wording

U.S. industry office leasing activity (for deals over 10,000 square feet) totaled just over 62 million square feet in the third quarter of 2026. This represented an approximately 18% increase year-over-year, but was 21% below the quarterly average for 2018 and 2019. The continuing recovery was geographically diverse, with the San Francisco Bay Area, New York City, Orange County California, and Phoenix leading in annual occupancy growth. This was also the fifth consecutive quarter of leasing activity above 10 million square feet in New York City while it was the third highest quarterly leasing total since 2019 in San Francisco. However, the latter continues to have one of the highest vacancy rates among major U.S. markets. AI firms and other technology companies have become a strong driver of office demand, concentrated in key hubs like the New York and San Francisco regions, as well as the Seattle, Los Angeles, and Austin regions. With respect to the U.K., the central London office market remains relatively strong, particularly for better-quality accommodation where supply is increasingly constrained. Initial estimates are that office leasing volumes for London may have increased by as much as 20% in the third quarter of 2026 and continue to be supported by technology and AI businesses, law firms, retail, consulting, and financial occupiers. With the pipeline of new U.S. and U.K. office construction well below peak levels, and the conversion of obsolete space into multifamily and other uses, we expect office fundamentals to continue to improve in our key markets.

Previous wording

We expect demand for office space to continue to be supported by the reset in values due to near-term debt maturities. We also continue to see increased need for high quality office space in an increasing number of markets, led by ongoing return-to-workplace plans. Placer.ai data for June 2026 indicates that in-person attendance in the U.S. increased to an average of 75.2% of June 2019 pre-pandemic levels versus 72.8% a year earlier, all on per working day basis. June was the best post-pandemic month in terms of nationwide attendance relative to the same month in 2019. According to this same source, Miami exceeded pre-pandemic levels by 2.7 percentage points, while every other major metropolitan area in the U.S. improved year-on-year, with Los Angeles and San Francisco showing the largest gains. In the U.K., data from Remit Consulting indicate that office attendance in June 2026 reached its highest level since the pandemic began.

Current wording

We also continue to see increased need for high quality office space in an increasing number of markets, led by ongoing return-to-workplace plans. Placer.ai data for September 2026 indicates that in-person attendance in the U.S. increased to an average of 74.5% of September 2019 pre-pandemic levels versus 71.6% September 2025. According to this same source, Miami remained above pre-pandemic levels, while New York City was at 89.0% as of September 2019. 9 out of 11 major U.S. metropolitan areas measured by Placer.ai improved year-on-year, with San Francisco once again showing the largest gains. With respect to the U.K., office attendance in the last week of September 2026 reached its highest level since the pandemic began, which was equivalent to 76.5% of pre-pandemic levels, according to CoStar and Remit Consulting.

Previous wording

New U.S. industrial leasing activity continued its momentum in the second quarter of 2026, growing by nearly 29% versus the second quarter of 2025. While it was a relatively easy year-on-year comparison, this was the best quarter of new industrial leasing volume since the third quarter of 2022, led by large modern warehouses and distribution centers. Tenants in many markets are upgrading to newer facilities, and there was a notable uptick in industrial leasing related to data center development in certain markets. The national industrial vacancy rate fell for the second consecutive quarter, signaling the market is past peak vacancy. With respect to the U.K., industrial vacancy fell for the fourth consecutive period to 7.0% in the second quarter of 2026. Occupier activity in the second quarter was led both by new overseas entrants to the U.K. and by domestic firms, particularly those aligned with e-commerce and defense. Speculative development activity remained low in the second quarter of 2026 and far below the five year average, which should continue to support prime headline rents in the U.K.

Current wording

New U.S. industrial leasing volume (for deals over 10,000 square feet) rose nearly 19% year over year in the third quarter of 2026, which was the strongest quarter since the first quarter of 2022 and led by large modern warehouses and distribution centers. Tenants in many markets are upgrading to newer facilities, and there was a notable uptick in industrial leasing related to data center development in certain markets. As demand has strengthened, national vacancy has fallen for a third consecutive quarter to 7.3%, a sign that the market has moved past peak vacancy. With respect to the U.K., industrial vacancy fell for the fifth consecutive period to 6.5% in the third quarter of 2026. Leasing activity was down 13% compared with a year ago but was nevertheless around the 5-year pre-pandemic average. Transaction count was higher than the same period last year, reflecting a smaller average deal size. Manufacturing led leasing activity in the third quarter of 2026, followed by logistics, and there was overall a broader occupier mix than in the previous quarter. Speculative completions remain low and U.K. prime annual rental growth picked up to 3.5% in the period.

Previous wording

U.S. retail leasing activity for centers and properties of at least 20,000 square feet fell to 27.5 million square feet in the second quarter of 2026, which was approximately 34% below the trailing ten-year average. Among major markets, Dallas-Fort Worth, Phoenix, and Houston remain the most active. With limited new construction, occupiers continue to have difficulty finding suitable locations. The 8.4 million square feet of positive net absorption, along with a limited number of move-outs, reduced the overall U.S. vacancy rate to 5.2%, which is 1.3 percentage points below the long-term average as of June 30, 2026. Retail properties built from 2000 onward remain the most desirable, with a national availability rate below 3%. In the U.K., retail has entered a more stable phase after its long correction, with annual rental growth positive since 2023 and vacancy now trending downwards.

Current wording

Based on preliminary data, U.S. retail leasing activity for centers and properties of at least 20,000 square feet was 26 million square feet, or approximately 41% below the trailing ten-year average in the third quarter of 2026. These figures may be revised upwards at a later date. Among major markets, Dallas-Fort Worth, Phoenix, and Houston remain the most active. The New York City region is also active as it had the second-highest net absorption of the markets with over 150 million square feet of supply. With limited new construction, occupiers continue to have difficulty finding suitable locations. The 14 million square feet of positive net absorption, along with a limited number of move-outs, has stabilized the overall U.S. vacancy rate at 5.2%, which is 1.3 percentage points below the long-term average as of September 30, 2026. Retail properties built from 2000 onward remain the most desirable, with a national availability rate below 3%. In the U.K., retail property has stabilized following its prolonged correction, although performance remains uneven. Rental growth has remained positive since 2023 (albeit with signs of a recent plateau), supported by improving occupier demand and a longer-term reduction in vacancy. Retail parks and prime shopping destinations continue to outperform, benefiting from limited new supply and competition for well-located space. In contrast, secondary high streets and shopping centers remain more challenging. With household finances under pressure and occupancy costs elevated, retailers remain selective about expansion.

Previous wording

Against this generally improving market backdrop, Newmark’s revenues from Leasing and Other Commissions increased by 17.2% for the quarter ended June 30, 2026.

Current wording

Against this generally improving market backdrop, Newmark’s revenues from Leasing and Other Commissions increased by 26.5% for the quarter ended September 30, 2026.

Previous wording

On July 4, 2025, President Trump signed the OBBBA into law, which, among other things, introduces a broad range of changes to existing tax rules, including significant modifications to certain incentives previously introduced or expanded by the Inflation Reduction Act of 2022, as well as extensions and modifications of certain provisions of the Tax Cuts and Jobs Act of 2017. OBBBA tax provisions did not have a material impact on the Company, including with respect to its future financial condition, results of operations or liquidity.

Current wording

On July 4, 2025, President Trump signed the OBBBA into law, which, among other things, introduces a broad range of changes to existing tax rules, including significant modifications to certain incentives previously introduced or expanded by the Inflation Reduction Act of 2022, as well as extensions and modifications of certain provisions of the Tax Cuts and Jobs Act of

Previous wording

“Capital Markets” in our consolidated statement of operations, tend to be lower, as we retain rights to service loans over time, and because this item includes non-cash GAAP gains attributable to OMSRs, which represent the fair value of expected net future cash flows from servicing recognized at commitment, net. Capital Markets transactions tend to have higher pre-tax margins than leasing transactions. Pre-tax earnings margins on our property management and parts of our other OS businesses are at the lower end of margins for the Company as a whole because they include some revenues that equal their related expenses. These revenues represent fully reimbursable compensation and non-compensation costs and may be referred to as “pass through revenues.”

Current wording

Our pre-tax margins are affected by the mix of revenues generated. For example, servicing revenues tend to have higher pre-tax margins than Newmark as a whole, and margins from originating GSE/FHA loans, which are included in “Capital Markets” in our consolidated statement of operations, tend to be lower, as we retain rights to service loans over time, and because this item includes non-cash GAAP gains attributable to OMSRs, which represent the fair value of expected net future cash flows from servicing recognized at commitment, net. Capital Markets transactions tend to have higher pre-tax margins than leasing transactions. Pre-tax earnings margins on our property management and parts of our other OS businesses are at the lower end of margins for the Company as a whole because they include some revenues that equal their related expenses. These revenues represent fully reimbursable compensation and non-compensation costs and may be referred to as “pass through revenues.”

Previous wording

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.

Current wording

Leasing and Other Commission revenues increased by $64.6 million, or 26.5%, to $308.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, which was driven by higher fees from industrial and office clients across several key West Coast U.S. markets and Texas.

Previous wording

Compensation and employee benefits expense increased by $84.7 million, or 18.6%, to $539.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is due to higher commission-based revenues, costs recorded by recently acquired companies, expenses related to global growth initiatives, and pass through expenses related to the double-digit growth of Newmark's Occupier Solutions and Property Management businesses.

Current wording

Compensation and employee benefits expense increased by $65.9 million, or 12.9%, to $576.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase is primarily due to higher commission-based revenues, costs recorded by recently acquired companies, higher pass through compensation expense, and expenses related to investments in growth.

Previous wording

Equity-based compensation and allocations of net income to limited partnership units and FPUs increased by $8.0 million, or 13.3%, to $68.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase is due to the timing of grants of exchangeability, including with respect to contract renewals.

Current wording

Equity-based compensation and allocations of net income to limited partnership units and FPUs decreased by $20.7 million, or 25.6%, to $60.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. This decrease is due to the timing of grants of exchangeability, including with respect to contract renewals.

Previous wording

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. This also reflects an $11.8 million increase in overall pass through items related to thedouble-digit growth of Newmark’s Occupier Solutions and Property Management businesses.

Current wording

Operating, administrative and other expenses increased by $23.1 million, or 13.2%, to $198.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to a $22.4 million increase inoverall pass through items related to thedouble-digit growth of Newmark’s Occupier Solutions and Property Management businesses.

Previous wording

Fees to related parties increased by $0.3 million, or 3.8%, to $8.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

Fees to related parties increased by $1.0 million, or 12.7%, to $9.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Depreciation and amortization for the three months ended June 30, 2026 increased by $3.4 million, or 7.9%, to $46.0 million compared to the three months ended June 30, 2025 primarily due to a $3.1 million increase in fixed asset impairments related to terminated leases.

Current wording

Depreciation and amortization for the three months ended September 30, 2026 decreased by $0.4 million, or 0.9%, to $45.1 million compared to the three months ended September 30, 2025.

Previous wording

Other income (loss), net was $16.0 thousand and $0.2 million for the three months ended June 30, 2026 and 2025, respectively. The income for the three months ended June 30, 2025 related to recoveries from forfeited shares of restricted Newmark Class A common stock.

Current wording

Other income (loss), net was $1.2 million and $42.0 million for the three months ended September 30, 2026 and 2025, respectively. The income for the three months ended September 30, 2026 primarily related to recoveries from forfeited shares of restricted Newmark Class A common stock. For the three months ended September 30, 2025, income primarily included net $42.3 million received from insurers pursuant to the previously disclosed settlement of a stockholder derivative litigation.

Previous wording

Interest expense, net decreased by $1.6 million, or 17.8%, to $7.4 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to a $1.7 million increase in interest income.

Current wording

Interest expense, net increased by $0.2 million, or 3.1%, to $8.2 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Provision for income taxes increased by$5.4 million, or 127.7%, to$9.6 million for thethree months ended June 30, 2026 compared to thethree months ended June 30, 2025 primarily due to certain deferred tax asset adjustments. In general, our consolidated effective tax rate can vary from period to period depending on, among other factors, the level, geographic and business mix of our earnings.

Current wording

Provision for income taxes decreased by$0.8 million, or 4.1%, to$18.0 million for thethree months ended September 30, 2026 compared to thethree months ended September 30, 2025 primarily due to the impact of change in the level and geographical mix of pretax earnings. In general, our consolidated effective tax rate can vary from period to period depending on, among other factors, the level, geographic and business mix of our earnings.

Previous wording

Net income attributable to noncontrolling interests decreased by $5.0 million, or 57.2%, to $3.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

Net income attributable to noncontrolling interests decreased by $2.2 million, or 18.3%, to $10.1 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

Leasing and Other Commission revenues increased by $82.7 million, or 18.6%, to $528.1 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was led by significant office activity for clients across several major industry categories.

Current wording

Leasing and Other Commission revenues increased by $147.4 million, or 21.4%, to $836.7 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was led by significant office activity for clients across several major industry categories.

Previous wording

Capital Markets revenues increased by $114.7 million, or 28.9%, to $511.7 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase reflects higher multifamily sales volumes, particularly in senior housing and affordable housing and a strong improvement in industrial and office sales.

Current wording

Capital Markets revenues increased by $101.6 million, or 14.5%, to $799.9 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase reflects higher multifamily sales activity, particularly in senior housing and affordable housing, as well as higher lodging volumes.

Previous wording

Compensation and employee benefits expense increased by $200.8 million, or 23.5%, to $1,055.3 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase reflects higher commission-based revenues, costs recorded by recently acquired companies, expenses related to global growth initiatives, and pass through expenses related to the growth of Newmark's Occupier Solutions and Property Management businesses.

Current wording

Compensation and employee benefits expense increased by $266.7 million, or 19.5%, to $1,631.5 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase is primarily due to higher commission-based revenues, costs recorded by recently acquired companies, higher pass through compensation expense, and expenses related to investments in growth.

Previous wording

Operating, administrative and other expenses increased by $62.6 million, or 20.5%, to $367.6 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025 due to an increase in overall pass through expenses related to the growth of Newmark’s Occupier Solutions and Property Management businesses. The increase also reflects a charge of $1.8 million related to lease terminations related to liquidated entities compared with a credit of $14.4 million for the same item in the year earlier period.

Current wording

Operating, administrative and other expenses increased by $85.7 million, or 17.8%, to $566.0 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025 due to an increase in overall pass through expenses related to the growth of Newmark’s Occupier Solutions and Property Management businesses. The increase also reflects a charge of $1.8 million related to lease terminations related to liquidated entities compared with a credit of $14.7 million for the same item in the year earlier period.

Previous wording

Depreciation and amortization for thesix months ended June 30, 2026 increased by $3.2 million, or 3.6%, to $92.2 million compared to the six months ended June 30, 2025 primarily due to a $4.7 million increase in MSR amortization.

Current wording

Depreciation and amortization for thenine months ended September 30, 2026 increased by $2.8 million, or 2.1%, to $137.3 million compared to the nine months ended September 30, 2025.

Previous wording

Other income (loss), net was $0.7 million and $1.0 million of income for thesix months ended June 30, 2026 and 2025, respectively, which consisted of recoveries from forfeited shares of restricted Newmark Class A common stock.

Current wording

Other income (loss), net was $1.9 million and $43.0 million of income for thenine months ended September 30, 2026 and 2025, respectively. The income for thenine months ended September 30, 2026 primarily consisted of recoveries from forfeited shares of restricted Newmark Class A common stock. For the nine months ended September 30, 2025, the income primarily included net $42.3 million received from insurers pursuant to the previously disclosed settlement of a stockholder derivative litigation.

Previous wording

Interest expense, net decreased by $3.2 million, or 18.2%, to $14.3 million during thesix months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to a $3.0 million increase in interest income.

Current wording

Interest expense, net decreased by $2.9 million, or 11.5%, to $22.5 million during thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to a $4.1 million increase in interest income.

Previous wording

Provision for income taxes increased by$18.9 million, or 322.7%, to$13.0 million for the six months ended June 30, 2026 compared to thesix months ended June 30, 2025 primarily due to the impact of change in the level and geographic mix of pre-tax earnings and 2025 tax benefit from revaluation of deferred tax assets due to a corporate ownership change. In general, our consolidated effective tax rate can vary from period to period depending on, among other factors, the level, geographic and business mix of our earnings.

Current wording

Provision for income taxes increased by$18.1 million, or 140.4%, to$31.0 million for the nine months ended September 30, 2026 compared to thenine months ended September 30, 2025 primarily due to the impact of change in the level and geographical mix of pretax earnings and 2025 tax benefit from revaluation of deferred tax assets due to corporate ownership change. In general, our consolidated effective tax rate can vary from period to period depending on, among other factors, the level, geographic and business mix of our earnings.

Previous wording

Net income attributable to noncontrolling interests increased by $4.4 million, or 291.9%, to $5.9 million for thesix months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was primarily driven by higher pre-tax income.

Current wording

Net income attributable to noncontrolling interests increased by $2.2 million, or 15.6%, to $16.0 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily driven by higher pre-tax income.