Revenues from Contracts with Customers

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

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):

	Three Months Ended March 31,
	2025		2024
Revenues from contracts with customers:
Leasing and other commissions	$	208,074	$	158,799
Investment sales	92,858		70,823
Mortgage brokerage and debt placement	37,186		27,100
Management services	218,112		193,437
Total	$	556,230	$	450,159
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	$	21,403	$	16,144
Loan originations related fees and sales premiums, net	22,080		16,699
Servicing fees and other	65,781		63,497
Total	$	665,494	$	546,499

(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.

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 March 31, 2025 and December 31, 2024 was $0.8 million and $1.3 million, respectively. During the three months ended March 31, 2025 and 2024, Newmark recognized revenue of $0.5 million and $0.3 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 March 31, 2025 and that will be recognized as revenue in future periods over the life of the customer contracts in accordance with ASC 606, are approximately $165.2 million. Over half of the remaining performance obligations as of March 31, 2025 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 March 31, 2025 are as follows (in thousands):

2025	$	86,292
2026	53,094
2027	18,336
2028	6,761
2029	752
Thereafter	—
Total	$	165,235