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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The accompanying consolidated financial statements include U.S. federal, state and local income taxes on Newmark’s allocable share of its U.S. results of operations, as well as taxes payable to jurisdictions outside the U.S. In addition, certain of Newmark’s entities are taxed as U.S. partnerships and are subject to primarily the UBT in New York City. Therefore, the tax liability or benefit related to the partnership income or loss, except for the UBT, rests with the partners, rather than the partnership entity (see Note 2 — “Limited Partnership Interests in Newmark Holdings and BGC Holdings” for a discussion of partnership interests). Income taxes are accounted for using the asset and liability method, as prescribed in U.S. GAAP guidance for Income Taxes. The provision for income taxes consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Current:  
U.S. federal$15,252 $22,931 $28,317 
U.S. state and local7,215 9,748 11,634 
Foreign6,433 10,343 3,881 
UBT365 1,714 2,466 
Total$29,265 $44,736 $46,298 
Deferred:
U.S. federal12,615 2,660 (2,592)
U.S. state and local7,062 222 (2,074)
Foreign(2,895)(2,275)(91)
UBT27 440 (438)
Total$16,809 $1,047 $(5,195)
Provision for income taxes$46,074 $45,783 $41,103 
 
Pre-Tax Book Income in the consolidated statements of income included the following components (in thousands):

 Year Ended December 31,
 202520242023
U.S.
223,585 144,246 111,902 
International
(22,065)(12,972)(8,424)
Total$201,520 $131,274 $103,478 

Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate is as follows:

 Year ended December 31, 2025
 
Amount
Rate
U.S. Federal Statutory Rate $42,319 21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effects (1)
11,489 5.7 
Foreign Tax Effects
United Kingdom
Valuation Allowance3,721 1.9 
Non-Controlling Interest(2,206)(1.1)
Other 605 0.3 
France
Valuation Allowance2,249 1.1 
Other(301)(0.1)
Other Foreign 3,869 1.9 
Effect of Cross- Borders Tax Laws
Foreign branch income (losses)(4,770)(2.4)
Tax Credits
(410)(0.2)
Nontaxable / Nondeductible Items
Non-Controlling Interest(4,777)(2.4)
Sec 162(m) Compensation Deduction Limitation572 0.3 
Travel and Entertainment 2,493 1.3 
Other2,301 1.1 
Changes in Unrecognized Tax Benefits335 0.2 
Other Adjustments
Stock-Based Compensation(7,032)(3.5)
Revaluation of deferred taxes related to ownership changes(4,383)(2.2)
Provision for income tax$46,074 22.9 %
(1)State and local income taxes in New York State, New York City and California made up the majority(greater than 50 percent) of the tax effect     in this category.

Differences between Newmark’s actual income tax expense and the amount calculated utilizing the U.S. federal statutory rates were as follows (in thousands):
 Year Ended December 31,
 20242023
Tax expense at federal statutory rate$27,567 $21,728 
Non-controlling interest(10,246)(5,909)
Incremental impact of foreign taxes compared to the federal rate(3,723)(2,127)
Other permanent differences2,602 (829)
U.S. state and local taxes, net of U.S. federal benefit6,098 5,872 
New York City UBT1,762 1,041 
Section 162(m) compensation deduction limitation8,149 5,806 
Revaluation of deferred taxes related to ownership changes2,134 2,752 
Other rate change581 (1,408)
Valuation allowance7,904 6,881 
Prior year true ups3,901 7,439 
Windfall Tax Benefit(4,201)828 
Uncertain Tax Positions3,468 — 
Other(213)(971)
Provision for income tax$45,783 $41,103 

 Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded against deferred tax assets if it is deemed more likely than not that those assets will not be realized. 

Significant components of Newmark’s deferred tax asset and liability consisted of the following (in thousands):
December 31,
 20252024
Deferred tax asset
Basis difference of investments$32,371 $36,266 
Deferred compensation143,685 130,510 
Other deferred and accrued expenses8,510 11,576 
Net operating loss and credit carry-forwards
50,825 37,599 
Other
— 1,238 
             Total deferred tax asset235,391 217,189 
Valuation Allowance(48,815)(38,261)
             Deferred tax asset, net of allowance$186,576 $178,928 
Deferred tax liability
Depreciation and amortization84,041 80,016 
Other2,271 — 
             Deferred tax liability(1)
$86,312 $80,016 
Net deferred tax asset$100,264 $98,912 
(1)Before netting within tax jurisdictions.

Newmark has NOLs in non-U.S. jurisdictions of an approximate tax effected value of $49.9 million, of which $45.8 million has an indefinite life. The rest of the $4.1 million primarily consists of the Canada NOL which has a 20 year life. Management assesses the available positive and negative evidence to determine whether existing deferred tax assets will be realized. Accordingly, substantially all of the total valuation allowance of $48.8 million relates to certain NOLs in non-U.S. jurisdictions. Newmark’s net deferred tax asset and liability are included on the accompanying consolidated balance sheets as components of “Other assets” and “Other liabilities,” respectively.

The Company files income tax returns in the United States federal jurisdiction and various states, local and foreign jurisdictions. The Company is currently open to examination by tax authorities in United States federal, state and local jurisdictions and certain non-U.S. jurisdictions for tax years beginning 2022, 2018 and 2022, respectively.

The Company has elected to treat taxes associated with the Global Intangible Low-Taxed Income (GILTI) provision using the Period Cost Method and thus has not recorded deferred taxes for basis differences under this regime as of December 31, 2025.
Pursuant to U.S. GAAP guidance on Accounting for Uncertainty in Income Taxes, Newmark provides for uncertain tax positions based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities.

A reconciliation of the beginning to the ending amounts of gross unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands):

Balance, January 1, 2023$— 
Balance, December 31, 2023$— 
Increases related to prior year
$2,577 
Balance, December 31, 20242,577 
Increases related to prior year
142 
Balance, December 31, 2025$2,719 

As of December 31, 2025, the Company’s unrecognized tax benefits, excluding interest and penalties, were $2.7 million, of which $2.6 million, if recognized, would affect the effective tax rate.

Newmark recognizes interest and penalties related to income tax matters in “Provision for income taxes” on the accompanying consolidated statements of operations. As of December 31, 2025, Newmark had accrued $1.2 million for income tax-related interest and penalties of which $0.9 million was accrued during 2024.

The cash tax payments, net of refunds, consisted of the following (in thousands):
Year Ended December 31,
 2025
Federal$23,494 
State
         NYS$2,395 
         NYC1,799 
         Other States5,035 
Foreign
          United Kingdom 8,022 
          Other Foreign2,718 
Total Cash Payments, net of refunds$43,463