Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Fair Value Hierarchy of Financial Assets and Liabilities under U.S. GAAP Guidance

The following table sets forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance (in thousands):


	As of March 31, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	58	$	—	$	—	$	58
Loans held for sale, at fair value	—		848,044		—		848,044

Rate lock commitments	—		—		4,679		4,679

Forward Sales Contracts	—		—		1,463		1,463
Total	$	58	$	848,044	$	6,142	$	854,244
Liabilities:

Contingent consideration	—		—		22,927		22,927
Rate lock commitments	—		—		295		295
Forward Sales Contracts	—		—		8,715		8,715
Total	$	—	$	—	$	31,937	$	31,937


	As of December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	93	$	—	$	—	$	93
Loans held for sale, at fair value	—		774,905		—		774,905

Rate lock commitments	—		—		1,010		1,010

Forward Sales Contracts	—		—		7,491		7,491
Total	$	93	$	774,905	$	8,501	$	783,499
Liabilities:
Contingent consideration	$	—	$	—	$	21,935	$	21,935
Rate lock commitments	—		—		1,350		1,350
Forwards Sales Contracts	—		—		3,253		3,253
Total	$	—	$	—	$	26,538	$	26,538

Schedule of Changes in Level 3 RBC Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis

Changes in Level 3 rate lock commitments, Forward Sales Contracts and contingent consideration measured at fair value on recurring basis were as follows (in thousands):


	As of March 31, 2025
	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Assets:
Rate lock commitments	$	1,010	$	4,679	$	—	$	(1,010)	$	4,679	$	4,679
Forward Sales Contracts	7,491		1,463		—		(7,491)		1,463		1,463

Total	$	8,501	$	6,142	$	—	$	(8,501)	$	6,142	$	6,142

	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Liabilities:
Contingent consideration	$	21,935	$	992	$	—	$	—	$	22,927	$	992
Rate lock commitments	1,350		295		—		(1,350)		295		295
Forward Sales Contracts	3,253		8,715		—		(3,253)		8,715		8,715
Total	$	26,538	$	10,002	$	—	$	(4,603)	$	31,937	$	10,002


	As of December 31, 2024
	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Assets:
Rate lock commitments	$	9,604	$	1,010	$	—	$	(9,604)	$	1,010	$	1,010
Forward Sales Contracts	1,259		7,491		—		(1,259)		7,491		$	7,491

Total	$	10,863	$	8,501	$	—	$	(10,863)	$	8,501	$	8,501

	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Liabilities:
Contingent consideration	$	25,740	$	(3,236)	$	—	$	(569)	$	21,935	$	(3,236)
Rate lock commitments	1,023		1,350		—		(1,023)		1,350		1,350
Forward Sales Contracts	20,304		3,253		—		(20,304)		3,253		3,253
Total	$	47,067	$	1,367	$	—	$	(21,896)	$	26,538	$	1,367

Schedule of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about the significant unobservable inputs utilized by Newmark in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis:


March 31, 2025
Level 3 assets and liabilities	Assets		Liabilities		Significant Unobservable Inputs	Range		Weighted Average
Accounts payable, accrued expenses and other liabilities:
Contingent consideration	$	—	$	22,927	Discount rate	0.0% - 8.0%	(1)	3.3%
					Probability of meeting earnout and contingencies	99.0% - 100.0%	(1)	99.6%

Derivative assets and liabilities:

Forward Sales Contracts	$	1,463	$	8,715	Counterparty credit risk	N/A		N/A
Rate lock commitments	$	4,679	$	295	Counterparty credit risk	N/A		N/A


December 31, 2024
Level 3 assets and liabilities	Assets		Liabilities		Significant Unobservable Inputs	Range		Weighted Average
Accounts payable, accrued expenses and other liabilities:
Contingent consideration	$	—	$	21,935	Discount rate	0.0% - 8.0%	(1)	3.3%
					Probability of meeting earnout and contingencies	99.0% - 100.0%	(1)	99.6%

Derivative assets and liabilities:

Forward Sales Contracts	$	7,491	$	3,253	Counterparty credit risk	N/A		N/A
Rate lock commitments	$	1,010	$	1,350	Counterparty credit risk	N/A		N/A

(1)Newmark’s estimate of contingent consideration as of March 31, 2025 and December 31, 2024 was based on the acquired business’ projected future financial performance, including revenues.