Newmark saw double-digit growth across all of its businesses during the first quarter of 2025, but the wider economic uncertainty prompted the firm's executives to issue conservative projections for the rest of the year.

Revenues for the New York-based commercial real estate advisory and services firm grew by 21.8% year-over-year to roughly $666M. Leasing fees were up 31% from the same period in 2024, and capital markets grew by 32.7% year-over-year to $173.5M.

But despite its Q1 performance, Newmark’s stock price dropped by more than 3% in early trading Wednesday — slightly outpacing broader market declines — as it declined to raise its earnings guidance.

“Given the macroenvironment, I think we’re just taking a more cautious approach right now,” Newmark Group Chief Financial Officer Mike Rispoli said on a Wednesday morning call with analysts.

Newmark’s earnings and revenues beat Wall Street expectations, but the firm still posted an $8.8M loss for the quarter. That loss, however, was narrower than the $16.3M loss it posted after Q1 last year, although it followed a $66M profit at the end of 2024.

Robust leasing activity in New York City and Boston as well as improved leasing in San Francisco drove the increase in leasing fees in the first quarter from the end of 2024, CEO Barry Gosin said on the call.

“Despite recent market turbulence, we are excited to come to work every day to continue this odyssey of building on the foundation we have created for a scalable and sustainable enterprise,” Gosin said.

Growth in Newmark’s valuation and advisory businesses led to revenue increases of 10.5% for the firm’s management, servicing and other businesses, reaching $283.9M for the quarter.

While the specter of tariffs hovers over U.S. businesses, the macroeconomic uncertainty is “annoying and concerning” but isn’t killing deals yet, Gosin said.

“It’s 100 days in,” he said. “It’s been an active 100 days. We’ll see what happens over the next 90 days.”

Around 40% of Newmark’s revenues and earnings come from recurring business, Rispoli said. Still, the firm opted to maintain its projections of $3B in revenue for the year rather than increase its 2025 earnings guidance based on its Q1 results.

Earnings per share grew by 40% over the same period in 2024. Newmark plans to continue its planned share buybacks, Rispoli said on the call, and it expects stock compensation to be similar to last year.

“I would say that we have pretty good visibility through the first half of the year,” Rispoli said. “In the back half of the year, our transaction business is up low single digits to get to the midpoint of our guidance range, which isn’t a lot.”

Newmark’s also disclosed $21.1M in charges during the first quarter “related to the exchange and redemption of units” held by its controlling shareholder and former chairman, Howard Lutnick.

Lutnick had promised to divest his controlling stake in the company within 90 days of his Feb. 18 confirmation to serve as President Donald Trump’s Secretary of Commerce. The charges are a one-off related to Lutnick's exit, Rispoli said on the call.