Newmark Group Inc.

02/08/2024 | Press release | Distributed by Public on 02/08/2024 19:01

Second Quarter 2024 Supplemental Tables

Table of Contents

Newmark Group, Inc. - Quarterly Financial Data Supplement - as presented on August 2, 2024 2Q24
Table of Contents
Page
Consolidated Results
Condensed Consolidated Balance Sheets 2
Condensed Consolidated Statements of Operations 3
Revenue Detail 4
GAAP and Adjusted Earnings Expense and Other Income Detail 5
Reconciliation of GAAP Income to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS 6
Historical Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS 7
Reconciliation of GAAP Income to Adjusted EBITDA 8
Historical Reconciliation of GAAP Income (Loss) to Adjusted EBITDA 9
Fully Diluted Weighted-Average Share Count for GAAP and Adjusted Earnings 10
Historical Equity-based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs 11
Debt and Capital Markets Volumes 12
Condensed Consolidated Statements of Cash Flows 13
Analysis of Operating Cash Flow (Excluding Activity from Loan Originations and Sales) Compared with Adjusted EBITDA 14
Details of Certain Components of "Net Cash Provided By (Used In) Operating Activities" 15
Note: Certain tables throughout this document may not reconcile due to rounding. Throughout this document, certain other reclassifications may have been made to previously reported amounts to conform to the current presentation and to show results on a consistent basis across periods. Unless otherwise stated, any such changes would have had no impact on consolidated total revenues or earnings under GAAP or for Adjusted Earnings, all else being equal. Certain numbers in the tables or elsewhere throughout this document may not sum due to rounding. Rounding may have also impacted the presentation of certain year-on-year percentage changes.

US GAAP Bal Sheet PR

NEWMARK GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
June 30, 2024 December 31, 2023
Assets
Current Assets:
Cash and cash equivalents $ 176,387 $ 164,894
Restricted cash 101,812 93,812
Loans held for sale, at fair value 818,993 528,944
Receivables, net 552,660 622,508
Other current assets 110,384 95,946
Total current assets 1,760,236 1,506,104
Goodwill 773,855 776,547
Mortgage servicing rights, net 514,203 531,203
Loans, forgivable loans and other receivables from employees and partners, net 787,735 651,197
Right-of-use assets 531,442 596,362
Fixed assets, net 173,721 178,035
Other intangible assets, net 74,239 83,626
Other assets 143,478 148,501
Total assets $ 4,758,909 $ 4,471,575
Liabilities, Redeemable Partnership Interest, and Equity:
Current Liabilities:
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises $ 792,861 $ 498,631
Accrued compensation 314,956 400,765
Accounts payable, accrued expenses and other liabilities 581,283 583,564
Payables to related parties 6,732 6,644
Total current liabilities 1,695,832 1,489,604
Long-term debt 745,161 547,260
Right-of-use liabilities 528,424 598,044
Other long-term liabilities 253,065 241,741
Total liabilities 3,222,482 2,876,649
Equity:
Total equity (1) 1,536,427 1,594,926
Total liabilities, redeemable partnership interest, and equity $ 4,758,909 $ 4,471,575
(1) Includes "redeemable partnership interests," "noncontrolling interests" and "total stockholders' equity."

US GAAP P&L PR

NEWMARK GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
Revenues: 2024 2023 2024 2023
Management services, servicing fees and other $ 262,778 $ 240,660 $ 519,712 $ 452,952
Leasing and other commissions 208,557 203,611 367,356 396,917
Capital markets 162,040 141,573 292,806 256,774
Total revenues 633,375 585,844 1,179,874 1,106,643
Expenses:
Compensation and employee benefits 377,523 346,930 705,717 675,280
Equity-based compensation and allocations of net income to limited partnership units and FPUs 25,486 19,609 76,929 55,258
Total compensation and employee benefits 403,009 366,539 782,646 730,538
Operating, administrative and other 147,737 146,826 285,680 265,808
Fees to related parties 6,668 6,827 14,209 14,619
Depreciation and amortization 40,879 42,034 84,854 80,864
Total non-compensation expenses 195,284 195,687 384,743 361,291
Total operating expenses 598,293 562,226 1,167,389 1,091,829
Other income, net:
Other income, net 5,637 3,925 5,623 915
Total other income, net 5,637 3,925 5,623 915
Income from operations 40,719 27,543 18,108 15,729
Interest expense, net (8,258) (9,595) (15,478) (17,186)
Income (loss) before income taxes and noncontrolling interests 32,461 17,948 2,630 (1,457)
Provision for income taxes 9,046 6,719 5,530 3,663
Consolidated net income (loss) 23,415 11,229 (2,900) (5,120)
Less: Net income (loss) attributable to noncontrolling interests 9,135 4,800 (927) (1,199)
Net income (loss) available to common stockholders $ 14,280 $ 6,429 $ (1,973) $ (3,921)
Per share data:
Basic earnings per share
Net income (loss) available to common stockholders $ 14,280 $ 6,429 $ (1,973) $ (3,921)
Basic earnings per share $ 0.08 $ 0.04 $ (0.01) $ (0.02)
Basic weighted-average shares of common stock outstanding 173,469 173,939 174,121 173,254
Fully diluted earnings per share
Net income (loss) for fully diluted shares $ 20,582 $ 8,850 $ (1,973) $ (3,921)
Fully diluted earnings per share $ 0.08 $ 0.04 $ (0.01) $ (0.02)
Fully diluted weighted-average shares of common stock outstanding 255,604 244,954 174,121 173,254
Dividends declared per share of common stock $ 0.03 $ 0.03 $ 0.06 $ 0.06
Dividends paid per share of common stock $ 0.03 $ 0.03 $ 0.06 $ 0.06

Revenue Detail

NEWMARK GROUP, INC.
REVENUE DETAIL
(in thousands)
(unaudited)
2024 2023 2022 2021 2020 2019 2018
Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD
Detail of revenues as presented in the Statement of Operations: (9)
Management services fee revenues (1) $ 119,265 $ 121,406 $ 240,671 $ 96,651 $ 108,695 $ 116,779 $ 121,568 $ 443,692 $ 107,268 $ 108,829 $ 100,612 $ 99,913 $ 416,621 $ 58,927 $ 83,752 $ 97,790 $ 112,931 $ 353,400 $ 59,052 $ 48,417 $ 47,345 $ 54,429 $ 209,243 $ 46,345 $ 51,683 $ 52,701 $ 65,051 $ 215,780 $ 37,493 $ 46,554 $ 50,073 $ 54,235 $ 188,355
Pass through revenues (2) (4) 74,176 77,373 151,549 63,347 67,570 73,949 76,642 281,508 77,793 72,568 63,244 62,839 276,444 87,640 95,663 100,843 96,312 380,458 66,519 56,680 60,152 74,917 258,268 51,744 65,790 51,483 61,568 230,585 59,439 60,674 51,895 54,084 226,092
Servicing fees and other revenues (5) (8) 63,493 63,999 127,492 52,295 64,395 63,021 65,965 245,676 48,059 52,288 58,523 57,550 216,420 41,183 40,094 45,836 54,743 181,856 39,575 36,512 39,331 43,207 158,625 42,953 42,783 52,210 39,701 177,647 33,879 37,681 45,529 47,441 164,530
Management services, servicing fees and other $ 256,934 $ 262,778 $ 519,712 $ 212,293 $ 240,660 $ 253,749 $ 264,176 $ 970,876 $ 233,120 $ 233,685 $ 222,379 $ 220,302 $ 909,485 $ 187,750 $ 219,509 $ 244,469 $ 263,986 $ 915,714 $ 165,146 $ 141,609 $ 146,828 $ 172,553 $ 626,136 $ 141,042 $ 160,256 $ 156,394 $ 166,320 $ 624,012 $ 130,811 $ 144,909 $ 147,497 $ 155,760 $ 578,977
Leasing and other commissions $ 158,799 $ 208,557 $ 367,356 $ 193,306 $ 203,611 $ 203,268 $ 239,410 $ 839,595 $ 198,952 $ 212,825 $ 219,903 $ 200,193 $ 831,874 $ 147,433 $ 184,346 $ 231,532 $ 263,631 $ 826,942 $ 140,439 $ 120,079 $ 114,947 $ 138,377 $ 513,842 $ 172,471 $ 217,381 $ 213,242 $ 251,686 $ 854,780 $ 159,371 $ 178,142 $ 203,904 $ 276,017 $ 817,434
Investment sales $ 70,823 $ 91,731 $ 162,554 $ 71,993 $ 77,604 $ 94,707 $ 136,972 $ 381,276 $ 152,113 $ 209,053 $ 131,731 $ 113,518 $ 606,416 $ 101,545 $ 142,233 $ 208,786 $ 305,180 $ 757,744 $ 112,576 $ 47,163 $ 74,298 $ 169,935 $ 403,972 $ 87,018 $ 109,745 $ 120,820 $ 140,762 $ 458,345 $ 88,578 $ 86,342 $ 100,926 $ 127,922 $ 403,769
OMSR revenues (2) (3) 16,144 23,395 39,539 14,099 23,046 20,997 23,940 82,082 29,472 31,499 27,386 21,570 109,927 28,716 25,815 33,644 48,230 136,405 29,347 42,128 60,947 62,392 194,814 16,378 24,855 37,423 30,592 109,248 21,097 24,695 28,685 28,725 103,202
Loan originations related fees and sales premiums, net 16,699 18,653 35,353 11,963 21,593 19,084 16,965 69,604 18,300 17,963 21,455 16,854 74,572 18,678 15,446 26,385 28,568 89,077 21,075 26,943 30,246 37,836 116,100 14,968 20,236 34,909 18,724 88,837 17,817 17,182 23,287 20,776 79,062
Mortgage brokerage and debt placement 27,100 28,260 55,360 17,146 19,330 24,478 65,979 126,933 46,290 50,326 41,792 34,845 173,253 19,858 42,522 43,309 74,871 180,560 15,347 5,796 8,659 20,333 50,135 15,779 19,006 23,846 24,279 82,910 12,785 15,348 14,510 22,492 65,136
Capital markets (9) $ 130,766 $ 162,039 $ 292,806 $ 115,201 $ 141,573 $ 159,266 $ 243,856 $ 659,896 $ 246,175 $ 308,841 $ 222,364 $ 186,787 $ 964,168 $ 168,797 $ 226,016 $ 312,124 $ 456,849 $ 1,163,786 $ 178,345 $ 122,030 $ 174,150 $ 290,496 $ 765,021 $ 134,143 $ 173,842 $ 216,998 $ 214,357 $ 739,340 $ 140,277 $ 143,567 $ 167,408 $ 199,915 $ 651,168
Total revenues $ 546,499 $ 633,375 $ 1,179,874 $ 520,800 $ 585,844 $ 616,283 $ 747,442 $ 2,470,367 $ 678,247 $ 755,351 $ 664,646 $ 607,282 $ 2,705,527 $ 503,980 $ 629,871 $ 788,125 $ 984,466 $ 2,906,443 $ 483,930 $ 383,718 $ 435,925 $ 601,426 $ 1,904,999 $ 447,656 $ 551,479 $ 586,634 $ 632,363 $ 2,218,132 $ 430,459 $ 466,618 $ 518,809 $ 631,692 $ 2,047,579
Detail of revenues as presented in certain investor presentations:
Commission-based revenues (6) $ 308,434 $ 384,662 $ 693,096 $ 327,730 $ 354,980 $ 379,741 $ 498,801 $ 1,561,252 $ 460,983 $ 534,965 $ 452,400 $ 401,688 $ 1,850,036 $ 320,212 $ 420,071 $ 551,979 $ 718,812 $ 2,011,074 $ 317,553 $ 219,915 $ 253,326 $ 400,370 $ 1,191,164 $ 306,660 $ 388,023 $ 418,477 $ 463,876 $ 1,577,036 $ 289,481 $ 313,780 $ 362,132 $ 468,928 $ 1,434,321
Management fees & other revenues (7) 147,745 147,945 295,690 115,623 140,249 141,595 148,058 545,525 110,000 116,320 121,616 121,186 469,122 67,412 88,322 101,660 121,032 378,426 70,511 64,995 61,499 63,747 260,752 72,874 72,810 79,251 76,328 301,263 60,443 67,470 76,097 79,954 283,964
Non-fee revenues (2) (4) 90,320 100,768 191,088 77,446 90,615 94,946 100,583 363,590 107,264 104,067 90,630 84,409 386,370 116,356 121,478 134,487 144,621 516,942 95,866 98,808 121,099 137,309 453,082 68,122 90,645 88,906 92,160 339,833 80,536 85,369 80,580 82,809 329,294
Total Revenues $ 546,499 $ 633,375 $ 1,179,874 $ 520,799 $ 585,844 $ 616,283 $ 747,442 $ 2,470,367 $ 678,247 $ 755,351 $ 664,646 $ 607,283 $ 2,705,527 $ 503,980 $ 629,871 $ 788,126 $ 984,465 $ 2,906,442 $ 483,930 $ 383,718 $ 435,924 $ 601,426 $ 1,904,998 $ 447,656 $ 551,478 $ 586,634 $ 632,364 $ 2,218,132 $ 430,460 $ 466,619 $ 518,809 $ 631,691 $ 2,047,579
Fee revenues detail:
Fees from management services, servicing, and other $ 182,758 $ 185,405 $ 368,163 $ 148,945 $ 173,090 $ 179,800 $ 187,534 $ 689,369 $ 155,327 $ 161,117 $ 159,135 $ 157,463 $ 633,042 $ 100,110 $ 123,846 $ 143,626 $ 167,674 $ 535,256 $ 98,627 $ 84,929 $ 86,676 $ 97,636 $ 367,868 $ 89,298 $ 94,466 $ 104,911 $ 104,752 $ 393,427 $ 71,372 $ 84,235 $ 95,602 $ 101,676 $ 352,885
Leasing and other commissions 158,799 208,557 367,356 193,306 203,611 203,268 239,410 839,595 198,952 212,825 219,903 200,193 831,873 147,433 184,346 231,532 263,631 826,942 140,439 120,079 114,947 138,377 513,842 172,471 217,381 213,242 251,686 854,780 159,371 178,142 203,904 276,017 817,434
Capital Markets - fee revenues only (9) 114,622 138,644 253,266 101,102 118,527 138,269 219,916 577,814 216,703 277,342 194,978 165,217 854,240 140,081 200,201 278,480 408,619 1,027,381 148,998 79,902 113,203 228,104 570,207 117,765 148,987 179,575 183,765 630,092 119,180 118,872 138,723 171,190 547,966
Total fee revenues $ 456,179 $ 532,606 $ 988,785 $ 443,353 $ 495,228 $ 521,337 $ 646,860 $ 2,106,777 $ 570,982 $ 651,284 $ 574,016 $ 522,873 $ 2,319,155 $ 387,624 $ 508,393 $ 653,638 $ 839,924 $ 2,389,579 $ 388,064 $ 284,910 $ 314,826 $ 464,117 $ 1,451,917 $ 379,534 $ 460,834 $ 497,728 $ 540,203 $ 1,878,299 $ 349,923 $ 381,249 $ 438,229 $ 548,883 $ 1,718,285
Non-fee revenues detail: (2) (4)
OMSR revenues $ 16,144 $ 23,395 $ 39,539 $ 14,099 $ 23,046 $ 20,997 $ 23,940 $ 82,082 $ 29,472 $ 31,499 $ 27,386 $ 21,570 $ 109,927 $ 28,716 $ 25,815 $ 33,644 $ 48,230 $ 136,405 $ 29,347 $ 42,128 $ 60,947 $ 62,392 $ 194,814 $ 16,378 $ 24,855 $ 37,423 $ 30,592 $ 109,248 $ 21,097 $ 24,695 $ 28,685 $ 28,725 $ 103,202
Pass through revenues 74,176 77,373 151,549 63,347 67,570 73,949 76,642 281,508 77,793 72,568 63,244 62,839 276,444 87,640 95,663 100,843 96,312 380,458 66,519 56,680 60,152 74,917 258,268 51,744 65,790 51,483 61,568 230,585 59,439 60,674 51,895 54,084 226,092
Total non-fee revenues $ 90,320 $ 100,768 $ 191,088 $ 77,446 $ 90,616 $ 94,946 $ 100,582 $ 363,590 $ 107,265 $ 104,067 $ 90,630 $ 84,409 $ 386,371 $ 116,356 $ 121,478 $ 134,487 $ 144,542 $ 516,863 $ 95,866 $ 98,808 $ 121,099 $ 137,309 $ 453,082 $ 68,122 $ 90,645 $ 88,906 $ 92,160 $ 339,833 $ 80,536 $ 85,369 $ 80,580 $ 82,809 $ 329,294
(1) Management services fee revenues includes Facilities Management, Property Management, Project Management, Consulting, Valuation & Advisory, and Underwriting.
(2) Pass through revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization.
(3) Non-cash gains attributable to originated mortgage servicing rights, which represent the fair value of expected net future cash flows from servicing recognized at commitment, net.
(4) Pass through revenues represent fully reimbursable compensation and non-compensation expenses recorded as part of Newmark's management services business.
(5) Servicing fees include mortgage servicing fees, asset management fees, escrow interest and placement fees, and ancillary fees. "Other revenues" include interest income on loans held-for-sale.
(6) Commission-based revenues include Leasing and other commissions, Investment sales, Mortgage brokerage and debt placement, Loan originations related fees and sales premiums, net, and Valuation and Advisory.
(7) Includes fees from management services, asset management, mortgage servicing, and interest income on loans held for sale.
(8) Beginning in the first quarter of 2024, the portion of Spring11's revenues associated with its servicing and asset management portfolio are no longer reported under "Management services" but are instead recorded as part of "Servicing and other revenues" for all periods from the first quarter of 2023 onwards. This change had no impact on the overall line items "Fees from management services, servicing, and other" and "Management services, servicing fees, and other", or on the Company's consolidated results.
(9) Beginning in the second quarter of 2024, the Company recasted its four main revenue line items (Management services, servicing fees and other, Leasing and other commissions, Investment sales, Commercial mortgage origination, net) into three line items (Management services, servicing fees and other, Leasing and other commissions, and Capital markets).

Expense and Other Income Detail

NEWMARK GROUP, INC.
GAAP AND ADJUSTED EARNINGS EXPENSE AND OTHER INCOME DETAIL
(in thousands)
(unaudited)
2024 2023 2022 2021 2020 2019 2018
Q1 Q2 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
GAAP expense summary:
Compensation and employee benefits $ 328,195 $ 377,523 $ 705,718 $ 328,351 $ 346,930 $ 371,250 $ 442,607 $ 1,489,138 $ 382,583 $ 426,617 $ 388,903 $ 356,680 $ 1,554,783 $ 289,074 $ 541,397 $ 444,409 $ 554,008 $ 1,828,888 $ 300,258 $ 230,518 $ 253,908 $ 362,676 $ 1,147,360 $ 263,403 $ 316,737 $ 341,036 $ 354,862 $ 1,276,038 $ 261,086 $ 266,639 $ 291,382 $ 342,875 $ 1,161,982
Equity-based compensation and allocations of net income to limited partnership units and FPUs 51,443 25,486 76,929 35,648 19,609 29,548 54,941 139,746 16,900 41,988 44,088 35,338 138,314 14,248 267,532 33,962 40,601 356,344 12,914 10,860 50,770 56,215 130,759 13,871 39,353 56,647 148,965 258,836 17,416 67,367 40,776 99,085 224,644
Total compensation and employee benefits $ 379,638 $ 403,009 $ 782,647 $ 363,999 $ 366,539 $ 400,798 $ 497,548 $ 1,628,884 $ 399,483 $ 468,605 $ 432,991 $ 392,018 $ 1,693,097 $ 303,322 $ 808,929 $ 478,371 $ 594,609 $ 2,185,232 $ 313,172 $ 241,378 $ 304,678 $ 418,891 $ 1,278,119 $ 277,274 $ 356,090 $ 397,683 $ 503,827 $ 1,534,874 $ 278,502 $ 334,006 $ 332,158 $ 441,960 $ 1,386,626
Total non compensation expense 189,459 195,284 384,743 165,604 195,687 188,637 180,194 730,122 180,175 182,302 173,042 193,642 729,161 134,478 171,658 186,910 206,095 699,141 144,133 95,163 97,526 121,349 458,171 122,895 142,396 130,166 122,542 517,999 104,832 106,550 117,431 126,819 455,632
Total expenses for GAAP $ 569,097 $ 598,293 $ 1,167,390 $ 529,603 $ 562,226 $ 589,435 $ 677,742 $ 2,359,006 $ 579,658 $ 650,907 $ 606,033 $ 585,660 $ 2,422,258 $ 437,800 $ 980,587 $ 665,281 $ 800,704 $ 2,884,373 $ 457,305 $ 336,541 $ 402,204 $ 540,240 $ 1,736,290 $ 400,169 $ 498,486 $ 527,849 $ 626,369 $ 2,052,873 $ 383,334 $ 440,556 $ 449,589 $ 568,779 $ 1,842,258
GAAP other income/(loss) and other expenses:
Other income/(loss) $ (14) $ 5,637 $ 5,623 $ (3,010) $ 3,925 $ 3,203 $ 9,735 $ 13,853 $ (86,001) $ (15,303) $ (128) $ 3,730 $ (97,701) $ (2,210) $ 1,086,812 $ 102,720 $ 45,173 $ 1,232,495 $ 1,438 $ (36,389) $ 108,608 $ (58,367) $ 15,290 $ (9,718) $ (3,726) $ 108,711 $ (14,313) $ 80,954 $ 5,707 $ (365) $ 93,717 $ 28,234 $ 127,293
Tax provision/(benefit) $ (3,516) $ 9,046 $ 5,530 $ (3,056) $ 6,719 $ 8,356 $ 29,084 $ 41,103 $ 4,004 $ 18,426 $ 13,294 $ 6,330 $ 42,053 $ 10,579 $ 142,182 $ 53,811 $ 36,386 $ 242,958 $ 4,797 $ 88 $ 33,273 $ (1,165) $ 36,993 $ 6,687 $ 9,121 $ 36,760 $ (132) $ 52,436 $ 6,933 $ 10,822 $ 35,870 $ 36,862 $ 90,487
Net income (loss) attributable to noncontrolling interests $ (10,062) $ 9,135 $ (927) $ (5,999) $ 4,800 $ 4,206 $ 16,793 $ 19,800 $ 352 $ 13,273 $ 9,946 $ 5,699 $ 29,270 $ 11,473 $ 145,447 $ 34,707 $ 35,779 $ 227,406 $ 6,056 $ 330 $ 24,177 $ (1,346) $ 29,217 $ 6,502 $ 9,396 $ 33,871 $ (5,362) $ 44,407 $ 12,490 $ 3,555 $ 47,321 $ 21,800 $ 85,166
Adjusted earnings expense summary:
Total compensation and employee benefits $ 327,264 $ 377,293 $ 704,557 $ 327,492 $ 346,892 $ 368,347 $ 441,286 $ 1,484,017 $ 381,303 $ 425,872 $ 388,435 $ 357,085 $ 1,552,695 $ 288,147 $ 351,662 $ 427,909 $ 551,386 $ 1,619,104 $ 299,693 $ 228,675 $ 248,762 $355,944 $ 1,133,074 $ 263,891 $ 317,040 $ 341,656 $350,389 $ 1,272,976 $ 261,796 $ 267,151 $ 292,055 $343,770 $ 1,164,772
Total non compensation expense 152,961 159,390 312,351 134,410 161,021 147,274 151,195 593,900 149,499 148,243 135,939 140,044 573,725 116,622 138,137 158,935 169,009 582,703 115,493 68,110 71,593 81,013 336,209 99,517 113,071 97,787 90,281 400,656 85,282 89,213 94,850 101,385 370,730
Total expenses for adjusted earnings $ 480,225 $ 536,683 $ 1,016,908 $ 461,902 $ 507,913 $ 515,621 $ 592,481 $ 2,077,917 $ 530,802 $ 574,115 $ 524,374 $ 497,129 $ 2,126,420 $ 404,769 $ 489,799 $ 586,844 $ 720,395 $ 2,201,807 $ 415,186 $ 296,785 $ 320,355 $ 436,957 $ 1,469,283 $ 363,408 $ 430,111 $ 439,443 $ 440,670 $ 1,673,632 $ 347,078 $ 356,364 $ 386,905 $ 445,155 $ 1,535,502
Detail of expenses as presented in certain investor presentations:
Commission-based compensation $ 150,160 $ 193,078 $ 343,238 $ 166,921 $ 175,164 $ 188,655 $ 252,029 $ 782,769 $ 234,521 $ 275,739 $ 234,025 $ 208,263 $ 952,548 $ 162,376 $ 217,225 $ 282,966 $ 370,342 $ 1,032,909 $ 157,166 $ 110,993 $ 126,240 $ 204,231 $ 598,630 $ 148,930 $ 194,470 $ 210,804 $ 236,138 $ 790,342 $ 146,844 $ 159,248 $ 181,938 $ 235,305 $ 723,335
Support and operational expenses - comp 136,141 144,094 280,235 122,472 136,158 141,787 145,266 545,683 109,013 114,319 117,089 108,335 448,756 93,012 101,050 112,502 142,258 448,822 96,687 77,898 77,948 97,997 350,530 83,326 88,242 94,354 74,468 340,390 76,080 72,738 79,533 77,226 305,577
Pass-through fees related to management services revenues - comp 40,963 40,121 81,084 38,099 35,570 37,905 43,990 155,564 37,769 35,814 37,321 40,487 151,391 32,759 33,387 32,441 38,786 137,373 45,840 39,784 44,574 53,716 183,914 31,635 34,328 36,498 39,783 142,244 38,872 35,165 30,584 31,239 135,860
Total compensation and employee benefits $ 327,264 $ 377,293 $ 704,557 $ 327,492 $ 346,892 $ 368,347 $ 441,286 $ 1,484,017 $ 381,303 $ 425,872 $ 388,435 $ 357,085 $ 1,552,695 $ 288,147 $ 351,662 $ 427,909 $ 551,386 $ 1,619,104 $ 299,693 $ 228,675 $ 248,762 $ 355,944 $ 1,133,074 $ 263,891 $ 317,040 $ 341,656 $ 350,389 $ 1,272,976 $ 261,796 $ 267,151 $ 292,055 $ 343,770 $ 1,164,772
Support and operational expenses - non-comp (1) 119,747 122,138 241,885 109,162 129,022 111,230 118,544 467,958 109,475 111,982 110,017 117,692 449,166 61,741 75,862 90,533 111,483 339,619 94,814 51,210 56,014 59,817 261,855 79,409 81,609 82,802 68,495 312,315 64,715 63,704 73,539 78,545 280,503
Pass-through fees related to management services revenues - non-comp 33,214 37,252 70,466 25,248 31,999 36,044 32,651 125,942 40,024 36,261 25,922 22,352 124,559 54,881 62,275 68,402 57,526 243,084 20,679 16,900 15,579 21,196 74,354 20,108 31,462 14,985 21,786 88,341 20,567 25,509 21,311 22,840 90,227
Total non compensation expense (1) 152,961 159,390 312,351 134,410 161,021 147,274 151,195 593,900 149,499 148,243 135,939 140,044 573,725 116,622 138,137 158,935 169,009 582,703 115,493 68,110 71,593 81,013 336,209 99,517 113,071 97,787 90,281 400,656 85,282 89,213 94,850 101,385 370,730
Total expenses for adjusted earnings (1) $ 480,225 $ 536,683 $ 1,016,908 $ 461,902 $ 507,913 $ 515,621 $ 592,481 $ 2,077,917 $ 530,802 $ 574,115 $ 524,374 $ 497,129 $ 2,126,420 $ 404,769 $ 489,799 $ 586,844 $ 720,395 $ 2,201,807 $ 415,186 $ 296,785 $ 320,355 $ 436,957 $ 1,469,283 $ 363,408 $ 430,111 $ 439,443 $ 440,670 $ 1,673,632 $ 347,078 $ 356,364 $ 386,905 $ 445,155 $ 1,535,502
Adjusted earnings other income/(loss) and other expenses:
Other income (loss) $ (1) $ - $ (1) $ 3,628 $ 5,005 $ 5,664 $ (85) $ 14,212 $ 22 $ 170 $ 156 $ 2,886 $ 3,234 $ 3,392 $ (3,406) $ 1,475 $ 1,382 $ 2,843 $ 15 $ (3,878) $ (7,527) $ (9) $ (11,399) $ 13 $ 4,742 $ 1,257 $ 1,249 $ 7,260 $ 3,175 $ 1,845 $ 17 $ (2,276) $ 2,761
Tax provision (benefit) $ 6,436 $ 9,756 $ 16,192 $ (6,170) $ 7,595 $ 12,186 $ 19,848 $ 45,799 $ 20,264 $ 27,448 $ 20,108 $ 7,843 $ 75,663 $ 11,249 $ 17,291 $ 30,481 $ 42,721 $ 101,746 $ 5,839 $ 4,571 $ 5,634 $ 16,797 $ 32,840 $ 8,671 $ 15,093 $ 15,427 $ 21,419 $ 60,610 $ 6,930 $ 10,156 $ 12,159 $ 25,406 $ 54,652
Net income (loss) attributable to noncontrolling interests $ (949) $ (507) $ (1,456) $ (689) $ (439) $ (292) $ (327) $ (1,747) $ 34 $ (111) $ 638 $ 237 $ 798 $ 659 $ 746 $ 959 $ 1,114 $ 3,478 $ 455 $ 213 $ (9) $ 544 $ 1,203 $ (137) $ 342 $ 584 $ 378 $ 1,167 $ 803 $ 245 $ 415 $ 259 $ 1,722
(1) Pass through management services revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization.

Recon of GAAP to AE PR

NEWMARK GROUP, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO COMMON STOCKHOLDERS TO ADJUSTED EARNINGS BEFORE NONCONTROLLING INTERESTS AND TAXES AND
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
GAAP net loss available to common stockholders $ 14,280 $ 6,429 $ (1,973) $ (3,921)
Benefit for income taxes (1) 9,046 6,719 5,530 3,663
Net income attributable to noncontrolling interests (2) 9,135 4,800 (927) (1,199)
GAAP loss before income taxes and noncontrolling interests $ 32,461 $ 17,948 $ 2,630 $ (1,457)
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation and allocations of net income to limited partnership units and FPU's (3) 25,486 19,609 76,929 55,258
Other compensation adjustments (4) 229 39 1,159 910
Total Compensation adjustments 25,715 19,648 78,088 56,168
Non-Compensation expense adjustments:
Amortization of intangibles (5) 4,430 4,589 8,867 8,037
MSR amortization(6) 27,218 27,885 55,366 54,089
Other non-compensation adjustments (7) 4,247 2,192 8,158 3,717
Total Non-Compensation expense adjustments 35,895 34,666 72,391 65,843
Non-cash adjustment for OMSR revenues (8) (23,395) (23,046) (39,539) (37,145)
Other (income) loss, net:
Other non-cash, non-dilutive, and /or non-economic items and Nasdaq (9) (5,636) 1,076 (5,623) 7,714
Total Other (income) loss, net (5,636) 1,076 (5,623) 7,714
Total pre-tax adjustments 32,579 32,344 105,317 92,580
Adjusted Earnings before noncontrolling interests and taxes ("Pre-tax Adjusted Earnings") $ 65,040 $ 50,292 $ 107,947 $ 91,123
GAAP Net loss available to common stockholders: $ 14,280 $ 6,429 $ (1,973) $ (3,921)
Allocation of net loss to noncontrolling interests (10) 9,642 5,239 529 (71)
Total pre-tax adjustments (from above) 32,579 32,344 105,317 92,580
Income tax adjustment to reflect adjusted earnings taxes (1) (709) (875) (10,661) (10,097)
Post-tax Adjusted Earnings to fully diluted shareholders ("Post-tax Adjusted Earnings") $ 55,792 $ 43,137 $ 93,212 $ 78,490
Per Share Data:
GAAP fully diluted earnings per share $ 0.08 $ 0.04 $ (0.01) $ (0.02)
Allocation of net income to noncontrolling interests 0.00 0.00 0.01 0.00
Total pre-tax adjustments (from above) 0.13 0.00 0.41 0.38
Income tax adjustment to reflect adjusted earnings taxes - 0 0.13 (0.04) (0.04)
Other 0.01 0.01 (0.00) 0.00
Post-tax Adjusted Earnings per share ("Adjusted Earnings EPS") $ 0.22 $ 0.18 $ 0.37 $ 0.32
Pre-tax adjusted earnings per share $ 0.25 $ 0.21 $ 0.42 $ 0.38
Fully diluted weighted-average shares of common stock outstanding 255,604 244,954 255,195 242,378
(1) Newmark's GAAP provision (benefit) for income taxes is calculated based on an annualized methodology. Newmark includes additional tax-deductible items when calculating the provision (benefit) for taxes with respect to Adjusted Earnings using an annualized methodology. These include tax-deductions related to equity-based compensation, and certain net-operating loss carryforwards. The adjustment in the tax provision to reflect Adjusted Earnings is shown below (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
GAAP provision (benefit) for income taxes $ 9.0 $ 6.7 $ 5.5 $ 3.7
Income tax adjustment to reflect Adjusted Earnings 0.7 0.9 10.7 10.1
Provision for income taxes for Adjusted Earnings $ 9.7 $ 7.6 $ 16.2 $ 13.8
(2) Primarily represents portion of Newmark's net income pro-rated for Cantor and BGC's employees ownership percentage and the noncontrolling portion of Newmark's net income in subsidiaries.
(3) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Issuance of common stock and exchangeability expenses $ 11.9 $ 9.9 $ 52.0 $ 34.5
Limited partnership units amortization 7.2 3.4 10.5 8.2
RSU amortization Expense 5.9 6.2 13.6 12.2
Total equity-based compensation $ 25.0 $ 19.5 $ 76.1 $ 54.9
Allocations of net income 0.5 0.1 0.8 0.4
Equity-based compensation and allocations of net income to limited partnership units and FPUs $ 25.5 $ 19.6 $ 76.9 $ 55.3
(4) Includes compensation expenses related to severance charges as a result of the cost savings initiatives of $0.7 million and $0.3 million for the three months ended June 30, 2024 and 2023, respectively, and $2.0 million and $1.5 million for the six months ended June 30, 2024 and 2023, respectively. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $(0.5) million and $(0.3) million for the three months ended June 30, 2024 and 2023, respectively, and $(0.9) million and $(0.6) million for the six months ended June 30, 2024 and 2023, respectively.
(5) Includes Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions.
(6) Adjusted Earnings calculations exclude non-cash GAAP amortization of mortgage servicing rights (which Newmark refers to as "MSRs"). Subsequent to the initial recognition at fair value, MSRs are carried at the lower of amortized cost or fair value and amortized in proportion to the net servicing revenues expected to be earned. However, it is expected that any cash received with respect to these servicing rights, net of associated expenses, will increase Adjusted Earnings in future periods.
(7) The components of other non-compensation adjustments are as follows (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Lease expense (credits) related to liquidating entities $ 2.6 $ 2.9 $ (0.9) $ 2.9
Asset impairments 0.3 2.0 3.6 2.9
Unaffiliated third party professional fees and expenses related to legal matters 2.5 - 3.8 -
Proceeds from legal settlements - (4.5) (0.1) (4.5)
Acceleration of debt issuance costs - - 2.6 -
Acquisition costs - 1.8 - 2.0
Fair value adjustments related to acquisition earnouts (1.2) - (0.8) 0.4
$ 4.2 $ 2.2 $ 8.2 $ 3.7
(8) Adjusted Earnings calculations exclude non-cash GAAP gains attributable to originated mortgage servicing rights (which Newmark refers to as "OMSRs"). Under GAAP, Newmark recognizes OMSRs equal to the fair value of servicing rights retained on mortgage loans originated and sold.
(9) The components of non-cash, non-dilutive, non-economic items are as follows (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Loss from the disposition of assets - (0.1) - 6.3
Unrealized (gain)/loss on marketable securities (i) - 0.1 - 0.1
(Gains)/losses on non-marketable securities (ii) - 1.0 - 1.3
Other recoveries and various other GAAP items (5.5) - (5.5) -
$ (5.6) $ 1.0 $ (5.6) $ 7.7
(i) Includes $49 thousand and $36 thousand of unrealized gain on marketable securities for the three and six months ended June 30, 2024.
(ii) Includes $48 thousand of gain on non-marketable investments for the three and six months ended June 30, 2024
(10) Excludes the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned.

Hist. Recon GAAP to AE Detail

NEWMARK GROUP, INC.
RECONCILIATION OF GAAP INCOME (LOSS) TO ADJUSTED EARNINGS AND
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
(unaudited)
2024 2023 2022 2021 2020 2019 2018
Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD
Net income (loss) available to common stockholders $ (16,254) $ 14,280 $ (1,974) $ (10,350) $ 6,429 $ 9,947 $ 36,548 $ 42,574 $ 362 $ 48,519 $ 27,964 $ 6,427 $ 83,276 $ 33,105 $ 439,744 $ 128,549 $ 149,331 $ 750,728 $ 8,179 $ 314 $ 75,348 $ (3,781) $ 80,060 $ 16,904 $ 22,668 $ 88,698 $ (10,965) $ 117,305 $ 19,997 $ 739 $ 68,237 $ 17,759 $ 106,732
Provision (benefit) for income taxes (3,516) 9,046 5,530 (3,056) 6,719 8,356 29,084 41,103 4,004 18,426 13,294 6,330 42,053 10,579 142,182 53,811 36,386 242,958 4,797 88 33,273 (1,165) 36,993 6,687 9,121 36,760 (132) 52,436 6,933 10,822 35,870 36,862 90,487
Net income (loss) attributable to noncontrolling interest in subsidiaries (10,062) 9,135 (927) (5,999) 4,800 4,206 16,793 19,800 352 13,273 9,946 5,699 29,270 11,473 145,447 34,707 35,779 227,406 6,056 330 24,177 (1,346) 29,217 6,502 9,396 33,871 (5,362) 44,407 12,490 3,555 47,321 21,800 85,166
GAAP income (loss) before income taxes and noncontrolling interests $ (29,832) $ 32,461 $ 2,629 $ (19,405) $ 17,948 $ 22,509 $ 82,425 $ 103,477 $ 4,718 $ 80,218 $ 51,204 $ 18,456 $ 154,599 $ 55,157 $ 727,373 $ 217,067 $ 221,496 $ 1,221,092 $ 19,032 $ 732 $ 132,798 $ (6,292) $ 146,270 $ 30,093 $ 41,185 $ 159,329 $ (16,459) $ 214,148 $ 39,420 $ 15,116 $ 151,428 $ 76,421 $ 282,385
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation $ 51,211 $ 24,941 $ 76,152 $ 35,407 $ 19,487 $ 26,472 $ 43,384 $ 124,750 $ 16,751 $ 34,201 $ 39,213 $ 32,271 $ 122,436 $ 3,615 $ 253,239 $ 20,797 $ 23,511 $ 301,162 $ 12,365 $ 9,877 $ 21,549 $ 56,507 $ 100,298 $ 7,558 $ 27,752 $ 24,151 $ 148,965 $ 208,426 $ 13,356 $ 62,675 $ 11,952 $ 85,199 $ 173,182
Allocations of net income to limited partnership units and FPUs 231 545 776 241 122 3,076 11,503 14,942 147 7,787 4,875 3,067 15,876 10,633 14,293 13,166 17,090 55,182 549 983 29,221 (292) 30,461 6,313 11,601 32,496 - 50,410 4,060 4,692 28,824 13,886 51,462
Reserves on employee loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Other compensation adjustments 930 229 1,159 872 39 2,953 1,321 5,185 1,279 744 469 (406) 2,086 917 189,734 16,491 2,618 209,760 564 1,843 5,147 6,727 14,281 (537) (303) (621) 4,471 3,010 (709) (512) (673) (893) (2,787)
Total Compensation adjustments $ 52,372 $ 25,715 $ 78,087 $ 36,520 $ 19,648 $ 32,501 $ 56,208 $ 144,877 $ 18,178 $ 42,732 $ 44,557 $ 34,932 $ 140,399 $ 15,165 $ 457,266 $ 50,454 $ 43,219 $ 566,104 $ 13,478 $ 12,703 $ 55,917 $ 62,942 $ 145,040 $ 13,334 $ 39,050 $ 56,026 $ 153,436 $ 261,846 $ 16,707 $ 66,855 $ 40,104 $ 98,190 $ 221,856
Non-Compensation expense adjustments:
Amortization of intangibles $ 4,439 $ 4,430 $ 8,869 $ 3,448 $ 4,589 $ 4,590 $ 4,472 $ 17,099 $ 2,594 $ 4,846 $ 3,471 $ 3,402 $ 14,313 $ 1,666 $ 2,420 $ 2,416 $ 2,361 $ 8,863 $ 1,643 $ 1,667 $ 1,744 $ 1,958 $ 7,012 $ 1,276 $ 1,299 $ 2,819 $ 1,526 $ 6,920 $ 1,513 $ 1,257 $ 1,238 $ 1,621 $ 5,629
MSR amortization 28,147 27,218 55,365 26,204 27,885 26,706 29,082 109,877 26,216 25,580 28,703 28,577 109,076 15,067 22,684 20,103 31,937 89,791 39,471 23,864 22,602 25,315 111,252 22,126 27,730 29,546 22,128 101,530 17,824 15,726 21,011 23,862 78,423
Other non-compensation adjustments 3,911 4,247 8,158 1,525 2,192 10,016 (4,555) 9,178 1,865 3,631 4,929 21,621 32,046 1,132 8,420 5,461 2,793 17,806 (12,480) 1,536 1,585 13,060 3,701 - 0 - 0 - 0 8,601 8,601 - 0 - 0 - 0 - 0 - 0
Total Non-Compensation expense adjustments $ 36,497 $ 35,895 $ 72,392 $ 31,177 $ 34,666 $ 41,312 $ 28,999 $ 136,154 $ 30,675 $ 34,057 $ 37,103 $ 53,600 $ 155,435 $ 17,865 $ 33,524 $ 27,980 $ 37,091 $ 116,460 $ 28,634 $ 27,067 $ 25,931 $ 40,333 $ 121,965 $ 23,402 $ 29,029 $ 32,365 $ 32,255 $ 117,051 $ 19,337 $ 16,983 $ 22,249 $ 25,483 $ 84,052
Non-cash adjustment for OMSR Revenue (16,144) (23,395) (39,539) (14,099) (23,046) (20,997) (23,940) (82,082) (29,472) (31,499) (27,386) (21,570) (109,927) (28,716) (25,815) (33,644) (48,230) (136,405) (29,347) (42,128) (60,947) (62,392) (194,814) (16,378) (24,855) (37,423) (30,592) (109,248) (21,097) (24,695) (28,685) (28,725) (103,202)
Other (income) losses
Other non-cash, non-dilutive, and /or non-economic items and Nasdaq (1) 13 (5,636) (5,623) 6,638 1,076 2,460 (9,820) 354 86,023 15,473 284 (845) 100,935 5,602 (1,090,192) (101,245) (43,791) (1,229,626) (1,310) 32,511 (116,135) 58,482 (26,452) 9,952 8,928 (107,337) 15,727 (72,730) (2,265) 2,580 (93,340) (23,290) (116,315)
Total Other (income) losses 13 (5,636) (5,623) 6,638 1,076 2,460 (9,820) 354 86,023 15,473 284 (845) 100,935 5,602 (1,090,192) (101,245) (43,791) (1,229,626) (1,310) 32,511 (116,135) 58,482 (26,452) 9,952 8,928 (107,337) 15,727 (72,730) (2,265) 2,580 (93,340) (23,290) (116,315)
Total pre-tax adjustments 72,738 32,579 105,317 60,236 32,344 55,276 51,447 199,303 105,404 60,763 54,558 66,117 286,842 9,916 (625,217) (56,455) (11,711) (683,467) 11,455 30,153 (95,234) 99,365 45,739 30,310 52,152 (56,369) 170,826 196,919 12,682 61,723 (59,672) 71,658 86,391
Adjusted Earnings before noncontrolling interests and taxes $ 42,906 $ 65,040 $ 107,946 $ 40,831 $ 50,292 $ 77,785 $ 133,872 $ 302,780 $ 110,122 $ 140,981 $ 105,762 $ 84,573 $ 441,441 $ 65,073 $ 102,156 $ 160,612 $ 209,785 $ 537,625 $ 30,487 $ 30,885 $ 37,564 $ 93,073 $ 192,009 $ 60,403 $ 93,337 $ 102,961 $ 154,367 $ 411,067 $ 52,102 $ 76,839 $ 91,756 $ 148,079 $ 368,776
GAAP net income (loss) available to common stockholders $ (16,254) $ 14,280 $ (1,974) $ (10,350) $ 6,429 $ 9,947 $ 36,548 $ 42,574 $ 362 $ 48,519 $ 27,964 $ 6,427 $ 83,276 $ 33,105 $ 439,744 $ 128,549 $ 149,331 $ 750,728 $ 8,179 $ 314 $ 75,348 $ (3,781) $ 80,060 $ 16,904 $ 22,668 $ 88,698 $ (10,965) $ 117,305 $ 19,997 $ 739 $ 68,237 $ 17,759 $ 106,732
Allocation of net income (loss) to noncontrolling interest in subsidiaries (9,113) 9,642 529 (5,310) 5,239 4,498 17,120 21,546 318 13,384 9,308 5,462 28,472 10,814 144,703 33,748 34,665 223,929 5,601 118 24,185 (1,890) 28,014 6,639 9,054 33,287 (5,740) 43,240 11,687 3,311 46,906 21,542 83,446
Total pre-tax adjustments (from above) 72,738 32,579 105,317 60,236 32,344 55,276 51,447 199,303 105,404 60,763 54,558 66,117 286,842 9,916 (625,217) (56,455) (11,711) (683,467) 11,455 30,153 (95,234) 99,365 45,739 30,310 52,152 (56,369) 170,826 196,919 12,682 61,723 (59,672) 71,658 86,391
Income tax adjustment to reflect adjusted earnings taxes (9,953) (709) (10,662) (9,223) (875) (3,830) 9,236 (4,691) (16,259) (9,023) (6,815) (1,513) (33,610) (673) 124,891 23,330 (6,333) 141,215 (1,759) (4,478) 27,639 (17,961) 5,497 (1,983) (5,971) 21,333 (21,551) (8,172) 3 666 23,711 11,463 35,842
Post-tax Adjusted Earnings to fully diluted shareholders $ 37,419 $ 55,792 $ 93,210 $ 35,353 $ 43,137 $ 65,891 $ 114,351 $ 258,733 $ 89,825 $ 113,643 $ 85,015 $ 76,493 $ 364,981 $ 53,162 $ 84,121 $ 129,172 $ 165,952 $ 432,405 $ 23,477 $ 26,107 $ 31,939 $ 75,733 $ 159,310 $ 51,870 $ 77,902 $ 86,950 $ 132,571 $ 349,292 $ 44,369 $ 66,439 $ 79,182 $ 122,422 $ 312,411
Per Share Data:
GAAP fully diluted earnings per share $ (0.09) $ 0.08 $ (0.01) $ (0.06) $ 0.04 $ 0.06 $ 0.21 $ 0.25 $ - 0 $ 0.26 $ 0.15 $ 0.04 $ 0.46 $ 0.16 $ 2.13 $ 0.63 $ 0.74 $ 3.80 $ 0.03 $ (0.01) $ 0.39 $ (0.03) $ 0.39 $ 0.08 $ 0.11 $ 0.48 $ (0.08) $ 0.58 $ 0.12 $ - 0 $ 0.43 $ 0.09 $ 0.65
Less: Allocations of net income to limited partnership units and FPUs, net of tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.01) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 (0.01) 0.00 0.01 0.01
Exchangeable preferred limited partnership units non-cash preferred dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.02 0.01 0.01 0.00 0.01 0.02 0.01 0.01 0.01 0.01 0.05 0.00 0.00 0.01 0.01 0.02
Total pre-tax adjustments (from above) 0.28 0.13 0.41 0.25 0.13 0.22 0.21 0.81 0.42 0.25 0.22 0.28 1.17 0.04 (2.29) (0.22) (0.05) (2.59) 0.04 0.11 (0.36) 0.38 0.17 0.11 0.19 (0.21) 0.65 0.73 0.05 0.24 (0.23) 0.27 0.33
Income tax adjustment to reflect adjusted earnings taxes (0.04) (0.00) (0.04) (0.04) (0.00) (0.02) 0.04 (0.02) (0.06) (0.04) (0.03) (0.01) (0.14) (0.00) 0.46 0.09 (0.02) 0.53 (0.01) (0.02) 0.10 (0.07) 0.02 (0.01) (0.02) 0.08 (0.08) (0.03) 0.00 0.00 0.09 0.04 0.14
Other (0.01) 0.01 0.00 (0.01) 0.01 (0.00) 0.00 0.01 0.00 (0.01) 0.00 0.01 0.00 (0.01) 0.01 (0.00) (0.02) (0.12) 0.01 0.00 (0.02) 0.00 (0.00) 0.00 0.00 (0.04) 0.00 (0.04) 0.00 0.03 (0.00) 0.04 0.07
Post-tax Adjusted Earnings per share $ 0.15 $ 0.22 $ 0.37 $ 0.15 $ 0.18 $ 0.27 $ 0.46 $ 1.05 $ 0.36 $ 0.46 $ 0.35 $ 0.32 $ 1.49 $ 0.20 $ 0.31 $ 0.50 $ 0.65 $ 1.64 $ 0.09 $ 0.10 $ 0.12 $ 0.29 $ 0.60 $ 0.20 $ 0.29 $ 0.32 $ 0.50 $ 1.30 $ 0.18 $ 0.26 $ 0.30 $ 0.46 $ 1.22
Pre-tax adjusted earnings per share $ 0.17 $ 0.25 $ 0.42 $ 0.17 $ 0.21 $ 0.31 $ 0.54 $ 1.23 $ 0.44 $ 0.57 $ 0.43 $ 0.36 $ 1.80 $ 0.24 $ 0.37 $ 0.62 $ 0.82 $ 2.04 $ 0.12 $ 0.12 $ 0.14 $ 0.35 $ 0.72 $ 0.22 $ 0.34 $ 0.38 $ 0.58 $ 1.53 $ 0.21 $ 0.30 $ 0.35 $ 0.55 $ 1.42
Fully diluted weighted-average shares of common stock outstanding 255,424 255,604 244,954 239,886 244,954 247,240 249,795 246,343 252,815 247,985 243,469 236,304 245,177 271,194 273,555 257,791 254,318 263,954 263,646 265,640 266,793 264,868 264,851 269,057 270,966 268,350 264,548 268,860 246,834 258,703 262,532 267,626 258,997
Dividends declared per share of common stock $ 0.03 $ 0.03 $ 0.06 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.04 $ 0.10 $ 0.01 $ 0.01 $ 0.01 $ 0.13 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.40 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.36
Dividends paid per share of common stock $ 0.03 $ 0.03 $ 0.06 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 $ 0.01 $ 0.03 $ 0.03 $ 0.03 $ 0.10 $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.04 $ 0.10 $ 0.01 $ 0.01 $ 0.01 $ 0.13 $ 0.09 $ 0.10 $ 0.10 $ 0.10 $ 0.39 $ 0.00 $ 0.09 $ 0.09 $ 0.09 $ 0.27

EBITDA-PR

NEWMARK GROUP, INC.
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA
(in thousands)
(unaudited)
Three Months Ended June 30, Three Months Ended June 30,
2024 2023 2024 2023
GAAP net income (loss) available to common stockholders $ 14,280 $ 6,429 $ (1,973) $ (3,921)
Adjustments:
Net loss attributable to noncontrolling interests(1) 9,135 4,800 (927) (1,199)
Provision for income taxes 9,046 6,719 5,530 3,663
OMSR revenue(2) (23,395) (23,046) (39,539) (37,145)
MSR amortization(3) 27,218 27,885 55,366 54,089
Other depreciation and amortization(4) 13,660 14,149 29,478 26,775
Equity-based compensation and allocations of net income to limited partnership units and FPUs (5) 25,486 19,609 76,926 55,258
Other adjustments (6) 1,693 1,528 3,492 5,714
Other non-cash, non-dilutive, non-economic items and Nasdaq for Adjusted EBITDA (7) (5,636) 1,076 (5,623) 7,714
Interest expense 14,785 13,749 27,023 24,873
Adjusted EBITDA ("AEBITDA") $ 86,272 $ 72,898 $ 149,753 $ 135,821
(1) Primarily represents portion of Newmark's net income (loss) pro-rated for Cantor and BGC employees ownership percentage and the noncontrolling portion of Newmark's net income in subsidiaries.
(2) Non-cash gains attributable to originated mortgage servicing rights.
(3) Non-cash amortization of mortgage servicing rights in proportion to the net servicing revenues expected to be earned.
(4) Includes fixed asset depreciation and impairment of $9.2 million and $9.6 million for the three months ended June 30, 2024 and 2023, respectively, and $20.6 million and $18.7 million for the six months ended June 30, 2024 and 2023, respectively. Also, includes intangible asset amortization related to acquisitions of $4.4 million and $4.6 million for the three months ended June 30, 2024 and 2023, respectively, and $8.9 million and $8.0 million for the six months ended June 30, 2024 and 2023, respectively.
(5) Please refer to Footnote 3 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of "Equity-based compensation and allocations of net income to limited partnership units and FPUs".
(6) The components of other adjustments are as follows (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Severance charges $ 0.7 $ 0.3 $ 2.0 $ 1.5
Assets impairment not considered a part of ongoing operations -0 -0 1.5 -0
Commission charges related to non-GAAP gains attributable to OMSR revenues and others (0.4) (0.3) (0.9) (0.6)
Fair value adjustments related to acquisition earnouts (1.2) -0 (0.8) -0
Lease expense (credits) related to liquidating entities 2.6 1.5 (0.9) 4.8
Acceleration of debt issuance costs -0 -0 2.6 -0
$ 1.7 $ 1.5 $ 3.5 $ 5.7
(7) Please refer to Footnote 9 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and Taxes and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of Other non-cash, non-dilutive, non-economic items.

Historical EBITDA Trend Detail

NEWMARK GROUP, INC.
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA
(in thousands)
(unaudited)
2024 2023 2022 2021 2020 2019 2018
Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 FY
GAAP net income (loss) available to common stockholders $ (16,254) $ 14,280 $ (1,974) $ (10,350) $ 6,429 $ 9,947 $ 36,548 $ 42,574 $ 362 $ 48,519 $ 27,964 $ 6,427 $ 83,276 $ 33,105 $ 439,744 $ 128,549 $ 149,331 $ 750,728 $ 8,182 $ 310 $ 75,349 $ (3,781) $ 80,060 $ 16,904 $ 22,668 $ 88,698 $ (10,965) $ 117,305 $ 19,997 $ 739 $ 68,237 $ 17,759 $ 106,732
Adjustments:
Net income (loss) attributable to noncontrolling interest in subsidiaries (10,062) 9,135 (927) (5,999) 4,800 4,206 16,793 19,800 352 13,273 9,946 5,699 29,270 11,473 145,447 34,707 35,779 227,406 6,056 331 24,176 (1,346) 29,217 6,502 9,396 33,871 (5,362) 44,407 12,490 3,555 47,321 21,800 85,166
Provision (benefit) for income taxes (3,516) 9,046 5,530 (3,056) 6,719 8,356 29,084 41,103 4,004 18,426 13,294 6,330 42,054 10,579 142,182 53,811 36,386 242,958 4,797 89 33,272 (1,165) 36,993 6,687 9,121 36,760 (132) 52,436 6,933 10,822 35,870 36,862 90,487
OMSR Revenue (16,144) (23,395) (39,539) (14,099) (23,046) (20,997) (23,940) (82,082) (29,472) (31,499) (27,386) (21,570) (109,927) (28,716) (25,815) (33,644) (48,230) (136,405) (29,347) (42,129) (60,947) (62,392) (194,815) (16,378) (24,855) (37,423) (30,592) (109,248) (21,097) (24,695) (28,685) (28,725) (103,202)
MSR Amortization 28,147 27,218 55,365 26,204 27,885 26,706 29,082 109,877 26,216 25,580 28,703 28,577 109,076 15,067 22,684 20,103 31,937 89,791 39,471 23,865 22,601 25,315 111,252 22,126 27,730 29,546 22,128 101,530 17,824 15,726 21,011 23,862 78,423
Other Depreciation and Amortization 15,819 13,660 29,479 12,626 14,149 14,757 14,812 56,344 9,259 13,345 15,655 18,480 56,739 5,986 8,184 8,780 8,987 31,937 6,568 5,082 7,026 11,265 29,941 6,178 5,695 7,235 10,507 29,615 4,688 4,475 4,862 5,286 19,311
Equity-based compensation 51,212 24,941 76,153 35,407 19,487 26,472 43,383 124,749 16,752 34,201 39,213 32,271 122,437 3,615 253,239 20,797 23,511 301,162 12,365 9,877 21,549 56,507 100,298 7,557 27,752 24,150 148,965 208,424 13,356 62,675 11,953 85,199 173,183
Allocations of net income to limited partnership units 231 545 776 241 122 3,076 11,503 14,942 147 7,787 4,875 3,067 15,876 10,633 14,293 13,166 17,090 55,182 549 983 29,221 (292) 30,461 6,314 11,602 32,497 - 0 50,413 4,060 4,692 28,824 13,884 51,460
Other adjustments 1,799 1,693 3,492 4,186 1,528 9,150 (5,385) 9,479 3,363 4,048 81 13,642 21,134 1,582 10,420 3,262 5,380 20,645 (12,229) 3,394 5,642 14,209 11,016 (537) (303) (621) 4,471 3,010 (709) (512) (673) (893) (2,787)
Other non-cash, non-dilutive, non-economic items and Nasdaq (1) 13 (5,636) (5,623) 6,638 1,076 2,460 2,930 13,105 86,023 15,161 284 (845) 100,623 3,252 (900,030) (85,271) (43,791) (1,025,840) (1,310) 32,512 (116,135) 58,851 (26,082) 9,952 8,928 (107,337) 15,727 (72,730) (2,434) 2,578 (93,340) (30,244) (123,440)
Interest expense 12,238 14,785 27,023 11,124 13,749 12,156 11,389 48,418 9,491 10,626 9,877 10,126 40,120 10,344 10,271 10,276 9,007 39,898 10,904 11,756 11,244 10,696 44,600 9,567 10,088 10,177 10,070 39,902 14,820 12,915 14,264 16,808 58,807
Adjusted EBITDA ("AEBITDA") $ 63,483 $ 86,272 $ 149,755 $ 62,922 $ 72,898 $ 96,289 $ 166,199 $ 398,309 $ 126,497 $ 159,467 $ 122,506 $ 102,204 $ 510,678 $ 76,920 $ 120,619 $ 174,536 $ 225,387 $ 597,462 $ 46,006 $ 46,070 $ 52,998 $ 107,867 $ 252,941 $ 74,872 $ 107,822 $ 117,554 $ 164,817 $ 465,064 $ 69,928 $ 92,970 $ 109,644 $ 161,598 $ 434,140
(1) In the detailed reconciliation tables contained within this document and in the Company's most recent financial results press release, the "Impact of Nasdaq" is included as part of the line item "Other non-cash, non-dilutive, non-economic items and Nasdaq for Adjusted EBITDA."

FD WACSO GAAP & AE PR

NEWMARK GROUP, INC.
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT
FOR GAAP AND ADJUSTED EARNINGS
(in thousands)
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Common stock outstanding 173,469 173,939 174,121 173,254
Limited partnership units 50,037 41,675 - 0 - 0
Cantor units 24,906 24,775 - 0 - 0
Founding partner units 3,013 3,183 - 0 - 0
RSUs 3,789 879 - 0 - 0
Newmark exchange shares 391 503 - 0 - 0
Fully diluted weighted-average share count for GAAP 255,604 244,954 174,121 173,254
Adjusted Earnings Adjustments:
Common stock outstanding - 0 - 0 - 0 - 0
Limited partnership units - 0 - 0 49,090 39,377
Cantor units - 0 - 0 24,887 24,692
Founding partner units - 0 - 0 3,015 3,335
RSUs - 0 - 0 3,639 1,260
Newmark exchange shares - 0 - 0 443 461
Fully diluted weighted-average share count for Adjusted Earnings 255,604 244,954 255,195 242,378

Historical Equity-based Comp

NEWMARK GROUP, INC.
Equity-based compensation and allocations of net income to limited partnership units and FPUs
(in thousands)
(unaudited)
2024 2023 2022 2021 2020 2019 2018
Q1 Q2 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD
Issuance of common stock and exchangeability expenses $ 36,106 $ 11,852 $ 47,958 $ 21,873 $ 5,832 $ 15,056 $ 28,252 $ 71,014 $ 8,983 $ 26,875 $ 33,330 $ 23,120 $ 92,308 $ 1,218 $ 282,569 $ 14,414 $ 14,517 $ 312,718 $ 8,119 $ 306 $ 13,243 $ 47,373 $ 69,041 $ 661 $ 21,511 $ 17,499 $ 142,043 $ 181,714 $ 21,749 $ 60,334 $ 12,238 $ 85,012 $ 179,333
Limited partnership units amortization 7,347 7,169 $ 14,516 7,571 7,434 5,597 8,570 29,171 3,274 1,760 181 3,108 8,323 (600) (33,779) 2,323 3,705 (28,351) 1,895 6,011 4,902 5,885 18,693 6,335 5,044 5,239 4,891 21,509 (8,727) 1,805 (800) (217) (7,939)
RSU amortization 7,759 5,920 $ 13,679 5,963 6,221 5,819 6,616 24,619 4,496 5,566 5,702 6,043 21,807 2,997 4,449 4,059 5,289 16,794 2,351 3,560 3,404 3,250 12,565 562 1,197 1,413 2,031 5,203 334 536 514 404 1,788
Total equity-based compensation 51,212 24,941 76,153 35,407 19,487 26,472 43,438 124,804 16,753 34,201 39,213 32,271 122,438 3,615 253,239 20,796 23,511 301,161 12,365 9,877 21,549 56,508 100,299 7,558 27,752 24,151 148,965 208,426 13,356 62,675 11,952 85,199 173,182
Allocation of net income to limited partnership units and FPUs 231 545 776 241 122 3,076 11,503 14,942 147 7,787 4,875 3,067 15,876 10,633 14,293 13,166 17,090 55,183 549 983 29,221 (293) 30,460 6,313 11,601 32,496 - 0 50,410 4,060 4,692 28,824 13,886 51,462
Equity-based compensation and allocations of net income to limited partnership units and FPUs $ 51,443 $ 25,486 $ 76,929 $ 35,648 $ 19,609 $ 29,548 $ 54,941 $ 139,746 $ 16,900 $ 41,988 $ 44,088 $ 35,338 $ 138,314 $ 14,248 $ 267,532 $ 33,962 $ 40,601 $ 356,344 $ 12,914 $ 10,860 $ 50,770 $ 56,215 $ 130,759 $ 13,871 $ 39,353 $ 56,647 $ 148,965 $ 258,836 $ 17,416 $ 67,367 $ 40,776 $ 99,085 $ 224,644

Volumes

Newmark Group, Inc. Quarterly and TTM Volumes
(in $ millions)
QTD YTD
2018 2019 2020 2021 Q1 22 Q2 22 Q3 22 Q4 22 2022 Q1 23 Q2 23 Q3 23 Q4 23 2023 Q1 24 Q2 24 YTD 2024 Q2 24 vs Q2 23 Change % Q2 24 vs Q2 23 Change %
Fannie Mae $ 4,567 $ 3,202 $ 5,421 $ 4,168 $ 1,028 $ 1,358 $ 1,261 $ 429 $ 4,076 $ 616 $ 661 $ 714 $ 1,054 $ 3,045 $ 835 $ 918 $ 1,753 $ 257 38.9% $ 476 37.3%
Freddie Mac 3,982 6,723 5,692 4,731 767 575 808 1,440 3,590 377 2,063 931 633 4,004 556 895 1,451 (1,168) -56.6% (989) -40.5%
FHA/Other 165 14 191 126 48 - 0 52 23 123 - 0 16 - 0 - 0 16 - 0 - 0 - 0 (16) -100.0% (16) -100.0%
Total Origination Volume $ 8,715 $ 9,939 $ 11,304 $ 9,024 $ 1,843 $ 1,933 $ 2,121 $ 1,892 $ 7,789 $ 993 $ 2,740 $ 1,645 $ 1,687 $ 7,065 $ 1,391 $ 1,813 $ 3,204 $ (927) -33.8% $ (529) -14.2%
Mortage Brokerage and Debt Placement (1) 14,025 20,699 12,296 41,323 10,194 11,559 9,614 6,648 38,015 2,889 5,152 4,998 22,640 35,679 6,050 6,329 12,379 1,177 22.8% 4,338 53.9%
Total Debt $ 22,740 $ 30,638 $ 23,600 $ 50,347 $ 12,037 $ 13,492 $ 11,735 $ 8,540 $ 45,804 $ 3,882 $ 7,892 $ 6,643 $ 24,327 $ 42,744 $ 7,441 $ 8,142 $ 15,583 $ 250 3.2% $ 3,809 32.4%
Investment Sales (2) 42,269 50,675 48,157 88,010 18,958 26,066 14,745 11,815 71,584 7,396 7,217 11,431 31,642 57,686 6,668 8,478 15,146 1,261 17.5% 533 3.6%
Total Capital Markets $ 65,009 $ 81,313 $ 71,757 $ 138,357 $ 30,995 $ 39,558 $ 26,480 $ 20,355 $ 117,388 $ 11,278 $ 15,109 $ 18,074 $ 55,969 $ 100,430 $ 14,109 $ 16,620 $ 30,729 $ 1,511 10.0% $ 4,342 16.5%
Multifamily Debt (3) $ 11,898 $ 16,138 $ 15,643 $ 30,133 $ 7,445 $ 8,139 $ 6,689 $ 3,378 $ 25,650 $ 1,842 $ 5,257 $ 3,925 $ 3,772 $ 14,796 $ 3,445 $ 4,600 $ 8,045 $ (657) -12.5% $ 946 13.3%
Other Debt 10,842 14,500 7,957 20,214 4,592 5,353 5,046 5,162 20,154 2,040 2,635 2,718 20,555 27,948 3,996 3,542 7,538 907 34.4% 2,863 61.2%
Total Debt (4) $ 22,740 $ 30,638 $ 23,600 $ 50,347 $ 12,037 $ 13,492 $ 11,735 $ 8,540 $ 45,804 $ 3,882 $ 7,892 $ 6,643 $ 24,327 $ 42,744 $ 7,441 $ 8,142 $ 15,583 $ 250 3.2% $ 3,809 32.4%
(1) Includes all non-originated debt placement transactions. Also, includes $17.8 billion for the three months and year ended December 31, 2023 of FDIC related volume.
(2) Includes all equity advisory transactions. Also, includes $21.7 billion for the three months and year ended December 31, 2023 of FDIC related volume.
(3) Includes multi-family related Mortgage Brokerage, Fannie Mae, Freddie Mac, and FHA volumes
(4) Includes all Mortgage Brokerage, Fannie Mae, Freddie Mac, and FHA volumes
Note: Unless otherwise stated, the above Q4 2023 and YTD 2023 volumes in the table include FDIC-related volume. In addition, over 90% of Newmark's 2023 investment sales volumes were generated in the U.S., (which included the Signature transactions), while approximately 93% were from the U.S. in the six months ending June 30, 2024, and June 30, 2023. Most of this international volume was from the Company's U.K. operations. Essentially all of Newmark's total debt volumes were generated in the U.S. in these periods.

Summary Cash Flow

NEWMARK GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Net cash provided by (used in) operating activities $ (258,486) $ (500,638) $ (327,269) $ (899,478)
Net cash provided by (used in) investing activities (9,266) (15,460) (16,620) (133,519)
Net cash provided by (used in) financing activities 307,242 473,098 363,382 971,749
Net increase (decrease) in cash and cash equivalents and restricted cash 39,490 (43,000) 19,493 (61,248)
Cash and cash equivalents and restricted cash at beginning of period 238,709 294,704 258,706 312,952
Cash and cash equivalents and restricted cash at end of period $ 278,199 $ 251,704 $ 278,199 $ 251,704
Net cash provided by (used in) operating activity excluding loan originations and sales (1) $ 47,986 $ 12,155 $ (53,277) $ (96,366)
(1) Includes loans, forgivable loans and other receivables from employees and partners in the amount of $24.7 million and $47.4 million for the three months ended June 30, 2024 and 2023, respectively, and $185.7 million and $177.8 million for the six months ended June 30, 2024 and 2023, respectively. Excluding these loans, net cash provided by (used in) operating activities excluding loan originations and sales would be $72.7 million and $59.5 million for the three months ended June 30, 2024 and 2023, respectively, and $132.5 million and $81.5 million for the six months ended June 30, 2024 and 2023, respectively.
The Condensed Consolidated Statements of Cash Flows are presented in summarized form. For complete Condensed Consolidated Statements of Cash Flows, please refer to Newmark's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, to be filed with the Securities and Exchange Commission in the near future.

EBITDA to OCF

NEWMARK GROUP, INC.
Analysis of Operating Cash Flow (Excluding Activity from Loan Originations and Sales) Compared with Adjusted EBITDA
(in millions)
(unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30, For the Year Ended December 31,
2024 2023 2024 2023 2023 2022 2021 2020 2019 2018
Adjusted EBITDA $ 86.3 $ 72.9 $ 149.8 $ 135.8 $ 398.3 $ 511 $ 597.5 $ 252.9 $ 465.1 $ 434.1
Cash paid for interest (2.0) (21.7) (4.8) (22.1) (45.4) (38) (36.3) (39.9) (33.9) (59.0)
Loans, forgivable loans and other receivables from employees and partners (1) (24.7) (39.1) (185.7) (168.1) (243.3) (132) (78.5) (127.9) (161.9) (109.6)
Other, working capital (0.2) 29.8 4.2 (3.5) 47.0 19.8 38.1 89.0 37.0 30.5
Corporate Tax payments (11.4) (29.7) (16.7) (38.5) (58.6) (99.6) (99.4) (80.3) (95.1) -0
Net cash provided by (used in) operations excluding activities from loan originations and sales (2) $ 48.0 $ 12.2 $ (53.2) $ (96.4) $ 98.0 $ 261.5 $ 421.4 $ 93.8 $ 211.2 $ 296.0
(1) Primarily includes employee loans and advances for new hires, therefore amounts may differ from "Loans, forgivable loans and other receivables from employees and partners" in the consolidated statements of cash flows.
(2) Includes loans, forgivable loans and other receivables from employees and partners in the amount of $24.7 million and $47.4 million for the three months ended June 30, 2024 and 2023, respectively, and $185.7 million and $177.8 million for the six months ended June 30, 2024 and 2023, respectively. Excluding these loans, net cash provided by (used in) operating activities excluding loan originations and sales would be $72.7 million and $59.5 million for the three months ended June 30, 2024 and 2023, respectively, and $132.5 million and $81.5 million for the six months ended June 30, 2024 and 2023, respectively.

Details of CFFO

NEWMARK GROUP, INC.
DETAILS OF CERTAIN COMPONENTS OF "NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES"
(in millions)
(unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30,
For the Year Ended December 31,
2024 2023 2024 2023 2023 2022 2021 2020 2019 2018
Cash generated by the business 72.7 59.5 132.5 81.5 341.2 393.1 499.9 221.7 373.1 405.6
Cash used with respect to the 2021 Equity Event - 0 - 0 - 0 - 0 - 0 - 0 (484.4) - 0 - 0 - 0
Loans, forgivable loans and other receivables from employees and partners (24.7) (47.4) (185.7) (177.8) (243.3) (131.6) (78.5) (127.9) (161.9) (109.6)
Net cash provided by (used in) operating activities excluding activity from loan originations and sales 48.0 12.2 (53.3) (96.4) 98.0 261.5 (63.0) 93.8 211.2 296.0
Less:
Loan originations - loans held for sale 1,631.2 2,976.9 3,198.3 3,779.1 6,913.1 7,823.2 9,142.1 12,374.2 8,783.2 8,612.7
Loan sales - loan held for sale (1,324.7) (2,464.1) (2,924.3) (2,976.0) (6,549.1) (8,758.0) (9,177.7) (11,527.0) (9,564.0) (8,002.9)
Unrealized gains on loans held for sale (1) - 0 - 0 - 0 - 0 - 0 - 0 21.3 24.3 5.2 18.3
Net activity from loan originations and sales 306.5 512.8 274.0 803.1 363.9 (934.8) (14.3) 871.5 (775.6) 628.1
Net cash provided by (used in) operating activities (258.5) (500.6) (327.3) (899.5) (266.0) 1,196.3 (48.7) (777.7) 986.8 (332.2)
(1) Starting with the 3rd quarter of 2022, we no longer included "Unrealized gains on loans held for sale" as part of the "Net activity from loan originations and sales" addback as this item had a relatively immaterial impact on the cash flow figures reflected above.