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Compensation | 12 Months Ended
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Dec. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Compensation | Compensation Newmark’s Compensation Committee may grant various equity-based awards to employees of Newmark, including RSUs, restricted stock, limited partnership units and shares of Newmark Class A common stock upon exchange or redemption of Newmark Holdings limited partnership units (see Note 2 — “Limited Partnership Interests in Newmark Holdings and BGC Holdings”). On December 13, 2017, as part of the Separation, the Equity Plan was approved by Newmark’s then sole stockholder, BGC, for Newmark to issue up to 400.0 million shares of Newmark Class A common stock, which have been registered on Forms S-8. On October 17, 2024, at the annual meeting of stockholders, the stockholders approved amending and restating the Equity Plan to, among other things, increase from 400.0 million to 500.0 million the aggregate number of shares of Newmark Class A common stock that may be delivered or cash-settled pursuant to awards granted during the life of the Equity Plan. On October 18, 2024, Newmark registered an additional 100.0 million shares on Form S-8. As of December 31, 2025, an aggregate of 500.0 million shares were registered on Forms S-8. As of December 31, 2025, awards with respect to 126.1 million shares had been granted and 373.9 million shares were available for future awards under the Equity Plan. Upon vesting of RSUs, issuance of restricted stock and exchange or redemption of limited partnership units, Newmark generally issues new shares of its Class A common stock. Prior to the Separation, BGC’s Compensation Committee granted various equity-based awards to employees of Newmark, including RSUs, restricted stock, limited partnership units and exchange rights for shares of BGC Class A common stock upon exchange of BGC Holdings limited partnership units (see Note 2 — “Limited Partnership Interests in Newmark Holdings and BGC Holdings”). As a result of the Separation, limited partnership interests in Newmark Holdings were distributed to the holders of limited partnership interests in BGC Holdings. Each holder of BGC Holdings limited partnership interests at that time held a BGC Holdings limited partnership interest and 0.4545 of a corresponding Newmark Holdings limited partnership interest. The Exchange Ratio is the number of shares of Newmark Common Stock that a holder will receive upon exchange of one Newmark Holdings exchangeable unit. The Exchange Ratio was initially one, but is subject to adjustment as set forth in the Separation and Distribution Agreement and was 0.9264 as of December 31, 2025. As a result of a series of transactions prior to and in anticipation of the Corporate Conversion, all BGC Holdings units held by Newmark employees were redeemed or exchanged, in each case, for shares of BGC Class A common stock. Newmark incurred compensation expense related to Newmark Class A common stock, limited partnership units and RSUs held by Newmark employees as follows (in thousands):
|  |  |  | Year Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023 |  |
Issuance of common stock and exchangeability expenses |  |  |  |  |  | $ | 165,797 |  |  | $ | 110,973 |  |  | $ | 85,918 |  |  |
Limited partnership units amortization |  |  |  |  |  | 34,307 |  |  | 23,203 |  |  | 14,267 |  |  |
RSU amortization |  |  |  |  |  | 51,084 |  |  | 29,568 |  |  | 24,620 |  |  |
Total compensation expense |  |  |  |  |  | 251,188 |  |  | 163,744 |  |  | 124,805 |  |  |
Allocations of net income to limited partnership units and FPUs (1) |  |  |  |  |  | 30,857 |  |  | 21,654 |  |  | 14,942 |  |  |
Equity-based compensation and allocations of net income to limited partnership units and FPUs |  |  |  |  |  | $ | 282,045 |  |  | $ | 185,398 |  |  | $ | 139,747 |  |  |
(1) Certain limited partnership units receive quarterly allocations of net income and are generally contingent upon services being provided by the unit holders, including the Preferred Distribution. (a) Limited Partnership Units A summary of the activity associated with limited partnership units held by Newmark employees is as follows:
| Newmark Holdings Units |  |
Balance, January 1, 2024 | 42,376,966 |  |  |
Issued | 16,440,711 |  |  |
Redeemed/exchanged units | (6,166,506) |  |  |
Forfeited units/other | (854,717) |  |  |
Balance, December 31, 2024(1) | 51,796,454 |  |  |
Issued | 10,735,416 |  |  |
Redeemed/exchanged units | (11,541,874) |  |  |
Forfeited units/other | (1,149,640) |  |  |
Balance, December 31, 2025(2) | 49,840,356 |  |  |
Total exchangeable units outstanding(1): |  |  |
December 31, 2024 | 13,906,798 |  |  |
December 31, 2025 | 12,378,576 |  |  |
(1)The Limited Partnership Units table above also includes partnership units issued as consideration for acquisitions. As of December 31, 2025, there were 2.2 million such partnership units in Newmark Holdings outstanding, of which 1.4 million units were exchangeable. There were no partnership units in BGC Holdings outstanding. As of December 31, 2024, there were 2.7 million such partnership units in Newmark Holdings outstanding, of which 1.8 million units were exchangeable. (2)As of December 31, 2025, the total Limited Partnership Units included 2.2 million Newmark Preferred Units. The Limited Partnership Units table above includes both regular and Preferred Units. The Preferred Units are not entitled to participate in partnership distributions other than with respect to the Preferred Distribution (see Note 2 — “Limited Partnership Interests in Newmark Holdings and BGC Holdings” for further information on Preferred Units). Subsequent to the Spin-Off, there are remaining partners who hold limited partnership interests in Newmark Holdings who are BGC employees. Subsequent to the Spin-Off but prior to the closing of the Corporate Conversion, there were remaining partners who held limited partnership interests in BGC Holdings who are Newmark employees. These limited partnership interests represented interests that were held prior to the Newmark IPO or were distributed in connection with the Separation. Following the Newmark IPO, employees of Newmark and BGC received limited partnership interests in Newmark Holdings and BGC Holdings, respectively. As a result of the Spin-Off, as the existing limited partnership interests in Newmark Holdings held by BGC employees and the existing limited partnership interests in BGC Holdings held by Newmark employees were exchanged/redeemed, the related capital could be contributed to and from Cantor, respectively. The compensation expenses under GAAP related to the limited partnership interests are based on the company where the partner is employed. Therefore, compensation expenses related to the limited partnership interests of both Newmark and BGC but held by a Newmark employee are recognized by Newmark. The Newmark Holdings limited partnership interests held by BGC employees are included in the Newmark share count. The BGC Holdings limited partnership interests held by Newmark employees were included in the BGC share count until the Corporate Conversion. A summary of units held by Newmark employees redeemed in connection with the issuance of Newmark Class A common stock (at the current Exchange Ratio) or granted exchangeability for Newmark Class A common stock is as follows:
|  |  |  | Year Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Newmark Holdings Units |  |  |  |  |  | 13,118,692 |  |  | 9,835,548 |  |  | 11,232,651
Compensation expense related to the issuance of Newmark Class A common stock and grants of exchangeability on Newmark Holdings limited partnership units to Newmark employees is as follows (in thousands):
|  |  |  | Year Ended December 31, |
|  |  |  |  |  | 2025 |  | 2024 |  | 2023 |
Issuance of common stock and exchangeability expenses |  |  |  |  |  | $ | 165,797 |  |  | $ | 110,973 |  |  | $ | 85,918 |  |
Limited partnership units with a post-termination payout held by Newmark employees are as follows (dollars in thousands):
| December 31, 2025 |  | December 31, 2024
Notional Value | $ | 153,976 |  |  | $ | 161,861 |
Estimated fair value of the post-termination payout(1) | $ | 61,406 |  |  | $ | 56,210 |
Outstanding limited partnership units in Newmark Holdings | 15,082,749 |  |  | 17,249,585 |
Outstanding limited partnership units in Newmark Holdings - unvested | 3,959,532 |  |  | 5,570,815 |
(1)Included in “Other long-term liabilities” on the accompanying consolidated balance sheets. Compensation expense related to limited partnership units held by Newmark employees with a post-termination pay-out amount is recognized over the service period. These units can vest for periods up to seven years from the grant date. There are also certain limited partnership units in Newmark Holdings with a stated vesting schedule that vest over approximately seven years from the grant date. The compensation expense related to these limited partnership units is recognized over the required service period. These limited partnership units with a stated vesting schedule consisted of 4.6 million distribution earning limited partnership units and 3.0 million N Units as of December 31, 2025. The aggregate estimated grant date fair value of these awards was $22.3 million as of December 31, 2025. As of December 31, 2025, there was $10.1 million of unrecognized compensation expense related to these unvested limited partnership units that is expected to be recognized over 2.1 years. Newmark recognized compensation expense related to these limited partnership units that were not redeemed as follows (in thousands):
|  |  | Year Ended December 31, |
|  |  |  |  | 2025 |  | 2024 |  | 2023 |  |  |  |
Limited partnership units amortization |  |  |  |  | $ | 34,307 |  |  | $ | 23,203 |  |  | $ | 14,267 |  |  |  |  |
The grants of exchange rights to HDUs of Newmark employees are as follows (in thousands):
| December 31, 2025 |  | December 31, 2024
Notional Value | $ | 512 |  |  | $ | 512 |
Estimated fair value of limited partnership units (1) | $ | 261 |  |  | $ | 261 |
(1)Included in “Other long-term liabilities” on the accompanying consolidated balance sheets. During the years ended December 31, 2025 and 2023, there was no compensation expense (benefit) related to these limited partnership units held by Newmark employees. During the year ended December 31, 2024, there was $(0.7) million compensation expense (benefit) related to these limited partnership units held by Newmark employees.
During the years ended December 31, 2025, 2024 and 2023, Newmark employees were granted 10.6 million, 12.3 million and 24.3 million N Units, respectively. These units are not considered share-equivalent limited partnership units and are not included in the fully diluted share count. The N Units do not receive quarterly allocations of net income while they remain unvested. Upon vesting, which occurs if certain revenue thresholds are met, the N Units are subsequently converted to equivalent limited partnership units that receive quarterly certain income distributions and can be granted exchange rights or redeemed at a later date, at which time these N Units would be reflected as share-equivalent grants. During the years ended December 31, 2025, 2024 and 2023, 7.9 million, 10.4 million and 11.6 million N Units, respectively, were converted into distribution earning limited partnership units. (b) Restricted Stock Units A summary of the activity associated with Newmark and BGC RSUs held by Newmark employees is as follows (fair value amount in thousands):
| Newmark RSUs(1) |  | BGC RSUs(2)
| Restricted Stock Units | Weighted- Average Grant Date Fair Value Per Share | Fair Value Amount | Total Fair Value of Shares Settled |  | Restricted Stock Units | Weighted- Average Grant Date Fair Value Per Share | Fair Value Amount | Total Fair Value of Shares Settled
Balance, January 1, 2024 | 12,133,105 |  | $ | 8.59 |  | $ | 104,251 |  |  |  | 4,883 |  | $ | 4.22 |  | $ | 21 |  |
Granted | 2,838,998 |  | 9.92 |  | 28,159 |  |  |  | 19,425 |  | 6.87 |  | 133 |  |
Settled units (delivered shares) | (3,118,150) |  | 8.61 |  | (26,850) |  | $ | 36,992 |  |  | (1,243) |  | 4.28 |  | (5) |  | $ | 10 |
Forfeited units | (876,228) |  | 8.89 |  | (7,789) |  |  |  | (19,479) |  | 6.88 |  | (134) |  |
Balance, December 31, 2024 | 10,977,725 |  | $ | 8.91 |  | $ | 97,771 |  |  |  | 3,586 |  | $ | 4.08 |  | $ | 15 |  |
Granted | 3,023,455 |  | 11.84 |  | 35,802 |  |  |  | — |  | — |  | — |  |
Settled units (delivered shares) | (3,994,549) |  | 8.80 |  | (35,147) |  | $ | 57,886 |  |  | (1,316) |  | 4.28 |  | (6) |  | $ | 12 |
Forfeited units | (329,858) |  | 9.86 |  | (3,253) |  |  |  | — |  | — |  | — |  |
Balance, December 31, 2025 | 9,676,773 |  | $ | 9.84 |  | $ | 95,173 |  |  |  | 2,270 |  | $ | 3.96 |  | $ | 9 |  |
(1)Newmark issues RSUs to Newmark employees with the awards vesting ratably over the three- to eight-year vesting period into shares of Newmark Class A common stock. (2) BGC RSUs historically vested over a two to three year period. The fair value of Newmark and BGC RSUs held by Newmark employees is determined on the date of grant based on the market value (adjusted if appropriate based upon the award’s eligibility to receive dividends), and is recognized, net of the effect of estimated forfeitures, ratably over the vesting period. Newmark uses historical data, including historical forfeitures and turnover rates, to estimate expected forfeiture rates for RSUs. Each RSU is settled for one share of BGC or Newmark Class A common stock, as applicable, upon completion of the vesting period. The compensation expenses under GAAP related to the RSUs are based on the company where the employee is employed. Therefore, compensation expenses related to RSUs of both Newmark and BGC but held by a Newmark employee are recognized by Newmark. Compensation expense related to Newmark and BGC RSUs are as follows (in thousands):
|  |  |  | Year Ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
RSU amortization |  |  |  |  |  | $ | 51,084 |  |  | $ | 29,568 |  |  | $ | 24,620 |
As of December 31, 2025, there was $59.7 million of total unrecognized compensation expense related to unvested Newmark RSUs, which is expected to be recognized over a weighted average period of approximately 4.0 years. During the year ended December 31, 2025, the company recognized $7.9 million of expense included in “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in our accompanying consolidated statements of operations due to a change in estimates related to RSUs. The change in estimate resulted in a decrease of $0.02 of earnings per basic and fully diluted share for the year ended December 31, 2025.

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