Derivatives

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Newmark accounts for its derivatives at fair value and recognizes all derivatives as either assets or liabilities on the accompanying consolidated balance sheets. In its normal course of business, Newmark enters into commitments to extend credit for mortgage loans at a specific rate (rate lock commitments) and commitments to deliver these loans to third-party investors at a fixed price (Forward Sales Contracts).

The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands):

	December 31, 2024						December 31, 2023
Derivative contract	Assets		Liabilities		Notional Amounts(1)		Assets		Liabilities		Notional Amounts(1)
Rate lock commitments	$	1,010	$	1,350	$	81,717	$	9,604	$	1,023	$	290,380
Forward Sales Contracts	7,491		3,253		846,384		1,259		20,304		792,662
Total	$	8,501	$	4,603	$	928,101	$	10,863	$	21,327	$	1,083,042

(1)Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and do not represent anticipated losses.

The changes in fair value of rate lock commitments and Forward Sales Contracts related to mortgage loans are reported as part of “Capital markets” on the accompanying consolidated statements of operations. The changes in fair value of rate lock commitments are disclosed net of $0.1 million, $0.7 million and $0.7 million of expenses for the years ended December 31, 2024, 2023 and 2022, respectively. The changes in fair value of rate lock commitments are reported as part of “Compensation and employee benefits” on the accompanying consolidated statements of operations.

Gains and losses on derivative contracts, which are included on the accompanying consolidated statements of operations were as follows (in thousands):

	Location of gains (losses) recognized in income for derivatives	Year Ended December 31,
		2024		2023		2022
Derivatives not designed as hedging instruments:
Rate lock commitments	Capital markets	(226)		9,274		(4,869)
Rate lock commitments	Compensation and employee benefits	(114)		(693)		(705)
Forward Sale Contracts	Capital markets	4,238		(19,045)		10,516
Total		$	3,898	$	(10,464)	$	4,942

Derivative assets and derivative liabilities are included in “Other current assets” and “Accounts payable, accrued expenses and other liabilities,” on the accompanying consolidated balance sheets.