NEWMARK GROUP, INC.NMRK

NEWMARK GROUP, INC. Revenue Disclosure

10-KFiled Mar 3, 20253 min read
Revenues from Contracts with Customers
The following table presents Newmark’s total revenues separately for its revenues from contracts with customers and other sources of revenues (in thousands):
 Year Ended December 31,
 202420232022
Revenues from contracts with customers:
Leasing and other commissions$857,617 $839,595 $831,874 
Investment sales417,684 381,276 606,416 
Mortgage brokerage and debt placement164,686 126,934 173,253 
Management services833,002 725,034 692,957 
Total$2,272,989 $2,072,839 $2,304,500 
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net$100,171 $82,082 $109,926 
Loan originations related fees and sales premiums, net91,645 69,604 74,573 
Servicing fees and other (2)
273,697 245,843 216,528 
Total$2,738,502 $2,470,368 $2,705,527 
(1)Although these items have customers under contract, they were recorded as other sources of revenue as they were excluded from the scope of ASU No. 2014-9.
(2)Beginning in the first quarter of 2024, the portion of Spring11’s revenues associated with its servicing and asset management portfolio is no longer reported under “Management services” but is instead recorded as part of “Servicing fees” for all periods from the first quarter of 2023 onwards. For the year ended December 31, 2023, $8.6 million was reclassified from “Management services” to “Servicing fees.”

Disaggregation of Revenues
Newmark’s chief operating decision-maker, regardless of geographic location, evaluates the operating results, including revenues, of Newmark as total real estate services (see Note 3 — “Summary of Significant Accounting Policies” for further discussion).

Contract Balances
The timing of Newmark’s revenue recognition may differ from the timing of payment by its customers. Newmark records a receivable when revenue is recognized prior to payment and Newmark has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, Newmark records deferred revenue until the performance obligations are satisfied.

Newmark’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue is recorded as a contract liability. Deferred revenue at December 31, 2024 and December 31, 2023 was $1.3 million and $2.7 million, respectively. During the years ended December 31, 2024, 2023 and 2022, Newmark recognized revenue of $1.4 million, $1.7 million and $2.5 million, respectively, that was recorded as deferred revenue at the beginning of the period.

For Knotel and Deskeo, the Company’s remaining performance obligations that represent contracted customer revenues, that have not yet been recognized as revenue as of December 31, 2024 and that will be recognized as revenue in future periods over the life of the customer contracts in accordance with ASC 606, are approximately $145.7 million. Over half of the remaining performance obligations as of December 31, 2024 are scheduled to be recognized as revenue within the next twelve months, with the remaining to be recognized over the remaining life of the customer contracts, which extends through 2030.

Approximate future cash flows to be received over the next five years as of December 31, 2024 are as follows (in thousands):

2025$88,134 
202639,660 
202712,886 
20284,773 
2029215 
Thereafter— 
Total$145,668 
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Historical Timeline

Fiscal YearFiled
2024Mar 3, 2025Showing above
2022Mar 16, 2023
2021Mar 1, 2022
2020Mar 1, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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