Newmark Group, Inc.

Good day and welcome to the Newmark 4Q 2025 Public Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jason Magruder, Head of Informed Relations. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Newmark issued its fourth quarter and full year 2025 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the three months ending December 31st, 2025 with the year earlier period. Except as otherwise specified, we will be referring to our 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 referred to are net cash provided by operating activities excluding the impact of GSC 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, quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results, and how, when, and why management uses them, for additional information on our cash flow measures, as well as relevant industry or economic statistics. The outlook discussed today excludes the potential impact of any acquisitions that close after the first quarter of 2026 and assumes no meaningful changes in new market stock price compared with yesterday's close. Our expectations are subject to change based on various macroeconomic, social, and political factors. None of our targets or goals beyond 2026 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 risk 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 in our most recent SEC filings, which are incorporated by reference. I am now happy to turn the call over to our host and Chief Executive Officer, Barry Gossin.

Good morning, and thank you for joining us. Newmark's strong momentum continued in the fourth quarter. as we improved total revenues and adjusted EPS by 15% and 24% respectively. The investments Numark has made in talent and our platform drove double-digit top-line improvement across every major business line, resulting in record total revenues for both the quarter and year. This included our best-ever quarter and year in our recurring revenue and leasing businesses. We increased leasing by 17% in 2025 to outpace the growth of our public competitors and resulted in our first ever billion-dollar-plus year for the service line. Our leasing success is a result of the investments we have made in areas including industrial, retail, data centers, which augment our already strong office platform. We expect to generate further growth from normalizing return to office trends, repositioning existing product, and limited new construction supporting property fundamentals. The ecosystem around artificial intelligence, digital infrastructure, cloud computing, and elevated investments in energy and manufacturing are creating enormous leasing opportunities for Numark and our clients. And our nimble approach has allowed us to get in front of these trends early. We improved our full year management and servicing revenues by 12% to a new high of over $1.24 billion. We continue to use our deep owner and occupier client relationships to drive growth across these recurring revenue businesses. Newmark remains on pace to achieve its goal of over $2 billion in management and servicing revenues by 2029. In capital markets, Newmark gained market share and investment sales for the quarter as our volumes were up 50% compared with 21% industry growth in the U.S. and 15% in Europe. For the full year, our investment sales volumes were up 56% compared with 20% for overall U.S. volumes and 12% for Europe. While Newmark quarterly debt volumes were up 12% compared with 36% for overall U.S. originations, we gained share for the full year. Newmark's 2025 origination volumes were up 67% while U.S. industry originations were up by 43%. As we continue our international expansion, we expect to grow our market share globally across nearly all our business lines over the next several years. Strong results validate our strategy of investing in the industry's best talent, leveraging our client relationship drive, recurring revenue growth, and our ongoing global expansion. With respect to how artificial intelligence might impact Newmark, AI-led demand has helped fuel our strong results in areas including office leasing, particularly in New York and San Francisco, as well as data centers, capital markets, and our valuation business. We believe that there is significant white space and enormous opportunity across our service lines with respect to digital infrastructure. We continue to empower our extraordinary talent with world-class research, data analytics, and technology. accelerated by AI, which we expect to continue to produce efficiency and margin enhancement to our business. Numark and our other large competitors possess incredible amounts of proprietary data, which we can leverage to the benefits of our professionals and clients. In short, we expect AI to provide an additional tailwind for our future results. 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, adjusted EPS and adjusted EBITDA. With that, I'm happy to turn the call over to Mike.