Newmark Group, Inc.

Good day and welcome to the Newmark Group 4Q 2024 Financial Results. Today's conference is being recorded. At this time, I would like to turn the conference over to Head of Investor Relations, Jason McGruder. Please go ahead.

Thank you, Operator, and good morning. Newmark issued its fourth quarter 2024 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the three months ending December 31st, 2024 with the year earlier period. Except as otherwise specified, we will be referring to results only on a non-GAAP basis, including the terms adjusted earnings and adjusted EBITDA. Unless otherwise stated, any figures discussed today with respect to cash flow from operations refers to net cash provided by operating activities excluding GSE FHA loan origination and sales. We may also use the term cash generated by the business. which is the same operating cash flow measure before the impact of cash used for employee loans. Please refer to today's press release, the supplemental tables, and the quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliation of these items, the corresponding GAAP results, and how, when, and why management uses them, for additional information on cash flow measures, as well as relevant industry or economic statistics. The outlook discussed today assumes no material acquisitions or meaningful changes in our stock price. Our expectations are subject to change based on various macroeconomic, social, political, and other factors. None of our targets or goals beyond 2025 should be considered formal guidance. Also, I remind you that information on this call contains forward-looking statements, including without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and uncertainties which could cause our actual results to differ from expectations. Except as required by law, we undertake no obligation to update any forward-looking statements. For complete discussion of the risks and other factors that may impact these forward-looking statements, see our SEC filings, including but not limited to the risk factors and disclosures regarding forward-looking information under most recent SEC filings, which are incorporated by reference. I'm now happy to turn the call over to our host and Chief Executive Officer, Barry Gossett.

Good morning, and thank you for joining us. The investments Newmark has made in talent and our platform over the past two years drove double-digit top-line improvement across every major business line in the quarter. We grew management and servicing by 21%, capital markets by 20%, and leasing by 15%. Our capital markets platform materially outpaced the industry as we continued to expand our market share. Excluding the fourth quarter 2023 signature transaction, Newmark increased volumes by 209% for mortgage brokerage, 85% for GSE origination, and 71% for investment sales. For the year, we increased our U.S. debt market share by approximately 300 base points to 9%, which is up by six times compared with our 1.5% market share in 2015. which is when we started the business. These strong results validate our strategy of leading with talent. We are a key advisor to our clients, which continues to drive growth across our platform. As we have said in the past, if you are great, you belong at Newmark. The company is positioned for success in an industry that is poised for growth over the next several years. We anticipate the following industry trends, the stabilization of interest rates, Approximately $2.1 trillion of near-term U.S. debt maturities and the narrowing of bid-ask spreads that are expected to drive double-digit gains in industry capital markets volumes. The ongoing strength and expected capital investments in the U.S. economy. The trend of institutional allocation to real estate as an asset class. The continued outsourcing of real estate services. improving fundamentals for industrial, including the reshoring of manufacturing and investment in data centers fueled by artificial intelligence. Additionally, we expect the following positive factors in the office sector. Return to the workplace and growth in office employment, a reduction in the pipeline of new construction, and ongoing conversion of office space into alternative uses. Newmark continues to elevate its brand and is the go-to advisor for complex transactions that require innovative solutions. This has driven our growth in leasing and capital markets and enables us to create new demand as our professionals execute sophisticated transactions on behalf of clients. Our pipeline across all major business lines remains robust, and we expect momentum throughout the year. We anticipate strong revenue and earnings growth in 2025 and remain confident in meeting our target of at least $630 million of adjusted EBITDA by 2026. I want to take a moment to discuss the recent nomination of Howard Ludnick for United States Secretary of Commerce. As many of you know, Howard announced that upon U.S. Senate confirmation, he will step down from his position at Canter, BGC, and Newmark. It has been a privilege partnering with Howard to build Newmark into a powerhouse and a pleasure to work side by side with someone I can call my friend and advisor. In a highly competitive sector, Howard has helped Newmark make bold and decisive decisions that have catapulted our company's growth in the United States and our expansion abroad. We are thankful for his partnership and the invaluable contributions he has made to the organization. and are thrilled his expertise will serve and support the American people. We have spent the last 12 years building an incredible management team and a deep bench to support our continued growth. We look forward to the future and are excited about our prospects. With that, I'm happy to turn the call over to our CFO, Mike Rispoli.