Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 2024

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues from contracts with customers:
Leasing and other commissions	$	208,557	$	203,611	$	367,356	$	396,917
Investment sales	91,731		77,604		162,554		149,597
Mortgage brokerage and debt placement	28,260		19,330		55,360		36,476
Management services	198,778		176,196		392,199		336,151
Total	527,326		476,741		$	977,469	$	919,141
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	23,395		23,046		$	39,539	$	37,145
Loan originations related fees and sales premiums, net	18,654		21,593		35,353		33,556
Servicing fees and other (2)	64,000		64,464		127,513		116,801
Total	$	633,375	$	585,844	$	1,179,874	$	1,106,643

(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 and other revenues” for all periods from the first quarter of 2023 onwards. For the three and six months ended June 30, 2023, $2.0 million and $4.1 million, respectively, was reclassified from “Management services” to “Servicing fees and other.”

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 June 30, 2024 and December 31, 2023 was $1.6 million and $2.7 million, respectively. For the three and six months ended June 30, 2024, Newmark recognized revenue of $1.0 million and $1.3 million, respectively, that was recorded as deferred revenue in a previous period. For the three and six months ended June 30, 2023, Newmark recognized revenue of $1.5 million and $3.0 million, respectively, that was recorded as deferred revenue in a previous 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 June 30, 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 $181.0 million. Over half of the

remaining performance obligation as of June 30, 2024 is 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 June 30, 2024 are as follows (in thousands):

2024	$	71,177
2025	69,545
2026	28,511
2027	8,463
2028	3,297
Thereafter	15
Total	$	181,008