Q2 2025 Newmark Group Inc Earnings Call

July 30, 2025

Please go ahead Sir.

Operator: McGruder, Head of Investor Relations. Please go ahead, sir.

Thank you operator, and good morning, Nu Mark issued its second quarter 2025 financial results press release. This morning, unless otherwise stated the results provided on today's call compare only the three months ending June 32025, with the year earlier period.

Jason McGruder: Thank you, operator, and good morning. Newmark issued its Q2 2025 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the 3 months ending 30 June 2025 with the year earlier period. Except as otherwise specified, we will be referring to results only on a non-GAAP basis, including the terms adjusted earnings and adjusted EBITDA. Unless otherwise stated, any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities, excluding the impact of GSE FHA loan origination and sales. We may also use the term cash generated by the business, which is the same operating cash flow measure before the impact of cash used for employee loans.

Jason McGruder: Thank you, Operator, and good morning. Newmark issued its Q2 2025 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the three months ending 30 June 2025 with the year earlier period. Except as otherwise specified, we will be referring to results only on a non-GAAP basis, including the terms adjusted earnings and Adjusted EBITDA.

Except as otherwise specified we will be referring to results only on a non-GAAP basis, including the terms adjusted earnings and adjusted EBITDA.

Unless otherwise stated any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities, excluding the impact of GST FHA loan origination and sales.

Jason McGruder: Unless otherwise stated, any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities, excluding the impact of GSE/FHA loan origination and sales. We may also use the term cash generated by the business, which is the same operating cash flow measure before the impact of cash used for employee loans.

We may also use the term cash generated by the business, which is the same operating cash flow measure before the impact of cash used for employee loans. Please refer to today's press release, the supplemental tables and quarterly results presentation on our website for complete updated definitions of any GAAP terms reconciliations of these terms to the corresponding GAAP results and win.

Jason McGruder: Please refer to today's press release, the supplemental tables and quarterly results presentation on our website for complete updated definitions of any GAAP terms, reconciliations of these terms to the corresponding GAAP results, and when and why and how management uses them for additional information on our cash flow measures, as well as relevant industry or economic statistics. The outlook discussed today assumes no material acquisitions or meaningful changes in our stock price. Our expectations are subject to change based on various macroeconomic, social, political, and other factors. None of our targets or goals beyond 2025 should be considered formal guidance. Also remind you that the information on this call contains forward-looking statements, including, without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and uncertainties which could cause our actual results to differ from expectations.

And why and how management uses them for additional information on our cash flow measures as well as a relevant industry or economic statistics.

The outlook discussed today assumes no material acquisitions or meaningful changes in our stock price.

Our expectations are subject to change based on various macroeconomic social political and other factors none of our targets or goals beyond 2025 should be considered formal guidance also remind you that the information on this call contains forward looking statements, including without limitation statements concerning our economic outlook and business.

Jason McGruder: Our expectations are subject to change based on various macroeconomic, social, political, and other factors. None of our targets or goals beyond 2025 should be considered formal guidance. Also remind you that the information on this call contains forward-looking statements, including, without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and uncertainties which could cause our actual results to differ from expectations.

Such statements are subject to risks and uncertainties, which could cause our actual results to differ from expectations, except as required by law. We undertake no obligation to update any forward looking statements for complete discussion of the risks and other factors that may impact. These forward looking statements see our SEC filings, including but not limited to the risk factors and disclosures regarding forward looking information on our most recent SEC filings.

Jason McGruder: Except as required by law, we undertake no obligation to update any forward-looking statements. For complete discussion of the risks and other factors that may impact these forward-looking statements, see our SEC filings, including but not limited to the risk factors and disclosures regarding forward-looking information on our most recent SEC filings, which are incorporated by reference. I'm now happy to turn the call over to our host, Chief Executive Officer, Barry Gosin.

Which are incorporated by reference and now happy to turn the call over to our host.

Chief Executive Officer, Barry <unk>.

Good morning, and thank you for joining us.

Barry Gosin: Good morning. Thank you for joining us. Before we begin today's call, on behalf of everyone at Newmark, I want to take a moment to acknowledge Monday's tragic shooting in New York City. Our thoughts are with the families of the individuals who lost their lives, some of whom we know personally, as well as with our clients, friends, and everyone impacted. In moments like these, we are reminded of the importance of community and unity throughout our cities. Now on to our results. We are pleased to report another outstanding quarter. Newmark delivered strong revenue and earnings growth, validating our strategic vision and commitment to creating value for our clients and stakeholders. The company increased total revenues by 20%, which again reflected double-digit gains across every major business line. Our adjusted EPS increased by 41%, demonstrating strong operating leverage.

Before we begin today's call.

On behalf of everyone at Nu Mark I want to take a moment to acknowledge Mondays tragic shooting in New York City.

As our thoughts are with the families of the individuals who lost their lives.

Some of whom we know personally.

As well as with our clients and friends and everyone impacted.

In moments like these we are reminded of the importance of community.

In unity throughout our cities.

Now onto our results were.

We are pleased to report another outstanding quarter.

Barry Gosin: We are pleased to report another outstanding quarter. Newmark delivered strong revenue and earnings growth, validating our strategic vision and commitment to creating value for our clients and stakeholders. The company increased total revenues by 20%, which again reflected double-digit gains across every major business line. Our adjusted EPS increased by 41%, demonstrating strong operating leverage.

<unk> delivered strong revenue and earnings growth validating, our strategic vision and commitment to creating value for our clients and stakeholders.

The company increased total revenues by 20%, which again reflected double digit gains across every major business line.

Our adjusted EPS increased by 41% demonstrating strong operating leverage.

During the quarter, New Mark advisors, some of the largest office and retail leases signed year to date in New York City, and San Francisco Bay area.

Barry Gosin: During the quarter, Newmark advised on some of the largest office and retail leases signed year to date in New York City and San Francisco Bay Area. We continue to expand our occupier solutions and leasing footprint, providing corporations with comprehensive real estate solutions on a global scale in nearly 100 countries. Newmark gained further market share in capital markets during the quarter and year to date. We increased our total debt volumes by 135%. In comparison, US commercial and multifamily originators were up by 38%. In investment sales, Newmark was ranked as the number 1 office broker in the US in H1 2025 by both MSCI and Real Estate Alert. On a global basis across all property types, we improved to number 3 among sales brokers for H1 2025 based on preliminary figures from MSCI.

We continue to expand our occupier solutions and leasing footprint.

Providing corporations with comprehensive real estate solutions on a global scale and nearly 100 countries.

Newmark gained further market share in capital markets during the quarter and year to date.

We increased our total debt volumes by 135%.

Comparison U S commercial and multifamily originators were up by 38%.

Barry Gosin: In comparison, US commercial and multifamily originators were up by 38%. In investment sales, Newmark was ranked as the number 1 office broker in the US in H1 2025 by both MSCI and Real Estate Alert. On a global basis across all property types, we improved to number 3 among sales brokers for H1 2025 based on preliminary figures from MSCI.

And investment sales Newmark was ranked as the number one office broker in the U S.

In the first half of 2025 by both MSCI and real estate alert.

On a global basis across all property types, we improve.

To number three among sales brokers for the first half of 2025 based on preliminary figures from MSCI.

This is noteworthy as we are in the early stages of building out our international platform.

Barry Gosin: This is noteworthy as we are in the early stages of building out our international platform. Given our strong H1 results and robust pipeline, we have raised our full year outlook. With that, I am happy to turn the call over to our CFO, Mike Rispoli.

Given our strong first half results and robust pipeline, we have raised our full year outlook.

With that I'm happy to turn the call over to our CFO microscope.

Thank you Barry and good morning.

Our strong start to the year continued through the second quarter with revenue growth of 19, 9% and adjusted EPS improvement of 49%.

Michael Rispoli: Thank you, Barry, and good morning. Our strong start to the year continued through the second quarter with revenue growth of 19.9% and adjusted EPS improvement of 40.9%. As a result, we are increasing our full year outlook for both revenues and earnings, which I will discuss later in more detail. Total revenues were $759.1 million, up 19.9%, compared with $633.4 million. We increased management services, servicing and other by 13.6%, which reflected approximately 30% growth from our valuation and advisory business, as well as continued improvement in our high margin servicing and asset management platform. Leasing revenues were up by 13.8%, led by double-digit growth in our retail volumes and improving office activity in key gateway markets. capital markets revenues increased by 37.9%, which reflected an approximately 135% improvement in our total debt volumes as compared to US commercial multifamily originations, which were up by 38%.

Mike Rispoli: Thank you, Barry, and good morning. Our strong start to the year continued through the second quarter with revenue growth of 19.9% and adjusted EPS improvement of 40.9%. As a result, we are increasing our full year outlook for both revenues and earnings, which I will discuss later in more detail. Total revenues were $759.1 million, up 19.9%, compared with $633.4 million.

As a result, we are increasing our full year outlook for both revenues and earnings which I will discuss later in more detail.

Total revenues were $759 1 million up 19, 9% compared with $633 4 million.

We increased management services servicing and other by 13, 6%, which reflected approximately 30% growth from our valuation and advisory business as well as continued improvement in our high margin servicing and asset management platform.

Mike Rispoli: We increased management services, servicing and other by 13.6%, which reflected approximately 30% growth from our valuation and advisory business, as well as continued improvement in our high margin servicing and asset management platform. Leasing revenues were up by 13.8%, led by double-digit growth in our retail volumes and improving office activity in key gateway markets.

Leasing revenues were up by 13, 8% led by double digit growth in our retail volumes and improving office activity in key gateway markets.

Capital markets revenues increased by 37, 9%, which reflected an approximately 135% improvement in our total debt volumes as compared to U S commercial and multifamily originations, which were up by 38%.

Mike Rispoli: capital markets revenues increased by 37.9%, which reflected an approximately 135% improvement in our total debt volumes as compared to US commercial multifamily originations, which were up by 38%.Our investment sales volumes were up 26% as compared to US industry investment sales volumes, which were up by approximately 11%. Our continued market share gains were led by significant data center growth as well as higher office and multifamily activity.

Our investment sales volumes were up 26% as compared to U S industry investment sales volumes, which were up by approximately 11%.

Michael Rispoli: Our investment sales volumes were up 26% as compared to US industry investment sales volumes, which were up by approximately 11%. Our continued market share gains were led by significant data center growth as well as higher office and multifamily activity. Turning to expenses. Total expenses for adjusted earnings increased by 18.4%, which reflected 26% improvement in our commission-based revenues, costs related to Newmark's growth initiatives, and higher pass-through costs. The company's tax rate for adjusted earnings was 14%, in line with full year guidance. Moving to earnings. We increased adjusted EPS by 40.9% to $0.31 compared with $0.22. Adjusted EBITDA was $114 million, up 32.1% versus $86.3 million. Our adjusted EBITDA margin improved by 139 basis points to 15%. With respect to share count, our fully diluted weighted average share count was down 1.2% to 252.6 million.

Our continued market share gains were led by significant datacenter growth as well as higher office and multifamily activity.

Turning to expenses.

Mike Rispoli: Turning to expenses. Total expenses for adjusted earnings increased by 18.4%, which reflected 26% improvement in our commission-based revenues, costs related to Newmark's growth initiatives, and higher pass-through costs. The company's tax rate for adjusted earnings was 14%, in line with full year guidance. Moving to earnings. We increased adjusted EPS by 40.9% to $0.31 compared with $0.22. Adjusted EBITDA was $114 million, up 32.1% versus $86.3 million.

Total expenses for adjusted earnings increased by 18, 4%, which reflected 26% improvement in our commission based revenues costs related to new marks growth initiatives.

And higher pass through costs.

The company's tax rate for adjusted earnings was 14% in line with full year guidance.

Moving to earnings we.

We increase increased adjusted EPS by 49% to 31 cents compared with 22.

Adjusted EBITDA was $114 million up 32, 1% versus $86 3 million.

Our adjusted EBITDA margin improved by 139 basis points to 15%.

Mike Rispoli: Our Adjusted EBITDA margin improved by 139 basis points to 15%. With respect to share count, our fully diluted weighted average share count was down 1.2% to 252.6 million.During the quarter, we repurchased approximately 10.8 million shares for $125.5 million at $11.58 per share. Turning to the balance sheet. We ended the quarter with $195.8 million of cash and cash equivalents and 1.4 times net leverage.

With respect to share count.

Our fully diluted weighted average share count was down one 2% to $252 6 million.

During the quarter, we repurchased approximately $10 8 million shares for $125 $5 million at $11 58 per share.

Michael Rispoli: During the quarter, we repurchased approximately 10.8 million shares for $125.5 million at $11.58 per share. Turning to the balance sheet. We ended the quarter with $195.8 million of cash and cash equivalents and 1.4 times net leverage. The balance sheet changes from year-end 2024 reflected cash generated by the business of $133.9 million and $200 million of incremental borrowing under Newmark's revolving credit facility. This was offset by $167.9 million of cash used with respect to the hiring of revenue-generating professionals, share repurchases, and normal seasonal movements in working capital. This quarter, we introduced a new reporting metric, adjusted free cash flow, which can be found in today's earnings materials. Adjusted free cash flow takes our GAAP cash flow from operations minus capital expenditures and the impact of GSE FHA loan originations and sales.

Turning to the balance sheet.

We ended the quarter with $195 $8 million of cash and cash equivalents and one four times net leverage.

The balance sheet changes from year end 2024 reflected cash generated by the business of $133 $9 million and $200 million of incremental borrowing under new marks revolving credit facility.

Mike Rispoli: The balance sheet changes from year-end 2024 reflected cash generated by the business of $133.9 million and $200 million of incremental borrowing under Newmark's revolving credit facility. This was offset by $167.9 million of cash used with respect to the hiring of revenue-generating professionals, share repurchases, and normal seasonal movements in working capital. This quarter, we introduced a new reporting metric, adjusted free cash flow, which can be found in today's earnings materials.

This was offset by $157 $9 million of cash used with respect to the hiring of revenue generating professionals.

Share repurchases and normal seasonal movements in working capital.

This quarter, we introduced a new reporting metric adjusted free cash flow, which can be found in today's earnings materials adjusted.

Adjusted free cash flow takes our GAAP cash flow from operations minus capital expenditures.

Mike Rispoli: Adjusted free cash flow takes our GAAP cash flow from operations minus capital expenditures and the impact of GSE FHA loan originations and sales.We believe this new metric will provide further insight into the company's strong cash generation and allow for easier comparability versus other companies. While our adjusted free cash flow significantly improved year on year, both in the quarter and year to date, we believe it is best to view this metric on an annual basis.

And the impact of GSE FHA loan originations and sales.

We believe this new metric, we will provide further insight into the company's strong cash generation and allow for easier comparability versus other companies.

Michael Rispoli: We believe this new metric will provide further insight into the company's strong cash generation and allow for easier comparability versus other companies. While our adjusted free cash flow significantly improved year on year, both in the quarter and year to date, we believe it is best to view this metric on an annual basis. For the 12 months ended June 2025, Newmark's adjusted free cash flow was $228 million, a 121.4% improvement year over year. Moving to guidance. We are raising our outlook for 2025 as follows. We now expect total revenues of between $3.05 billion and $3.25 billion, an increase of approximately 15% at the midpoint. We anticipate adjusted EPS between $1.47 and $1.57, up 20% to 28%. We continue to expect our adjusted earnings tax rate to be between 14% and 16%.

While our adjusted free cash flow significantly improved year on year, both in the quarter and year to date.

We believe it is best to view this metric on an annual basis.

For the 12 months ended June 2025.

Mike Rispoli: For the 12 months ended June 2025, Newmark's adjusted free cash flow was $228 million, a 121.4% improvement year over year. Moving to guidance. We are raising our outlook for 2025 as follows. We now expect total revenues of between $3.05 billion and $3.25 billion, an increase of approximately 15% at the midpoint.

<unk> adjusted free cash flow was $228 million.

121, 4% improvement year over year.

Moving to guidance.

We are raising our outlook for 2025 as follows.

We now expect total revenues of between 3.05 billion and $3 two 5 billion.

An increase of approximately 15% at the midpoint.

We anticipate adjusted EPS between $1 47 and.

Mike Rispoli: We anticipate adjusted EPS between $1.47 and $1.57, up 20% to 28%. We continue to expect our adjusted earnings tax rate to be between 14% and 16%.We anticipate Adjusted EBITDA in the range of $523 to 573 million, an increase of 17% to 29%. With that, I would now like to open the call for questions.

And $1 57.

Up 20% to 28%.

We continue to expect our adjusted earnings tax rate to be between 14 and 16%.

And we anticipate adjusted EBITDA in the range of 523 million to $573 million, an increase of 17% to 29%.

Michael Rispoli: We anticipate adjusted EBITDA in the range of $523 to 573 million, an increase of 17% to 29%. With that, I would now like to open the call for questions.

With that I will now.

Now I'd like to open the call for questions.

And if you would like to ask a question you may signal by pressing star one on your telephone keypad.

Operator: If you would like to ask a question, you may signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow our signal to reach our equipment. Once again, that is star one if you would like to ask a question. We'll now take our first question from Mitch Germain with Citizens.

We are using a speaker phone. Please make sure your mute function is turned off to allow your signal to reach our equipment.

Once again that is star one if you would like to ask a question.

We will now take our first question from Mitchell Germain with citizens.

Thank you and congrats on the quarter.

Barry obviously, you referenced the global investment sales number three and obviously youre, making investments outside the U S. I'm curious how.

Mitch Germain: Thank you, congrats on the quarter. Barry, obviously, you referenced the global investment sales number 3, obviously you're making investments outside the US. I'm curious how the opportunity in Germany has been transpiring to date.

Mitchell Germain: Thank you, congrats on the quarter. Barry, obviously, you referenced the global investment sales number 3, obviously you're making investments outside the US. I'm curious how the opportunity in Germany has been transpiring to date.

The opportunity in Germany has been transpiring to date.

Well, we launched about a year ago actually.

Barry Gosin: Well, we launched about 1 year ago, actually, at just about the time of EXPO REAL in Munich. Since that time, we've signed 70 brokers, many of whom are on garden leave, generally how it's done in Europe. Our real launch of that business is actually this EXPO REAL, which is in October. There seems to be a clamoring of people who want to come to Newmark. They like our model, they like the platform, they like what we've done in France, UK, and other parts of Europe. I think it all bodes well for us there. We're excited.

Just about the time of Expo real in Munich.

Since that time, we've signed.

70 brokers, many of whom are on garden leave.

Generally how its done in Europe.

<unk>.

Our real launch of that business is actually this export rail which.

As in October.

So there seems to be a clamoring of people who want to come to newmark.

Like our model they like the platform they have.

Like what we've done in France, and UK and other parts of Europe.

And then it all bodes well for US here we're excited.

Great. Thanks for that do you think the capital markets activity is sustainable or are you seeing maybe a little bit of a pull forward given some of the future uncertainty.

Mitch Germain: Great. Thanks for that. Do you think the capital markets activity is sustainable, or are you seeing maybe a little bit of a pull forward given some of the future uncertainty?

Mitchell Germain: Great. Thanks for that. Do you think the capital markets activity is sustainable, or are you seeing maybe a little bit of a pull forward given some of the future uncertainty?

Yes, let me just so you understand that we've hired leasing people appraisal people. We're in all we are a fully integrated platform. So in all of our markets we hire.

Barry Gosin: Yeah. Just so you understand, we've hired leasing people, appraisal people. We're a fully integrated platform. In all of our markets, we hire a full boat of services for clients as we have in Germany. It's a pretty diversified mix of people. That includes the UK, includes France, includes what we're doing in Asia as well. We have, for the moment, a decided advantage. We have a lot of white space. We have enormous runway. A couple of years ago, we did virtually zero business in Europe. It's now a 13% plus of our volume.

Full boat of services for our clients as we have in Germany. So.

So it's a pretty diversified mix of people that includes the UK includes France includes what we're doing in Asia as well.

<unk>.

We have for the moment aside at advantage.

We have a lot of white space, we have enormous runway.

We couple of years ago, we did virtually zero business in Europe, It's now at 13% plus of our of our volume.

Barry Gosin: It's now a 13% plus of our volume.We're building in Asia as well, and we think it's a great opportunity to build a completely diversified, integrated platform. It'll serve our corporate clients well to be in all of those markets, so we could be able to serve our corporate leasing clients on consulting and other aspects of our business.

We have we're building in Asia as well.

Barry Gosin: We're building in Asia as well, and we think it's a great opportunity to build a completely diversified, integrated platform. It'll serve our corporate clients well to be in all of those markets, so we could be able to serve our corporate leasing clients on consulting and other aspects of our business. Not only capital markets, but we think there's always going to be capital markets. We think the runway's pretty good in Europe, and some people think that Europe is a better opportunity right now. We're pretty bullish on our direction and where we go.

And we think it's.

It's a great opportunity to build a completely diversified integrated platform that will serve our corporate clients well to be in all of those markets. So we can be able to serve our corporate leasing clients on consulting and other aspects of our business not only capital markets, but but we think there is.

Barry Gosin: Not only capital markets, but we think there's always going to be capital markets. We think the runway's pretty good in Europe, and some people think that Europe is a better opportunity right now. We're pretty bullish on our direction and where we go.

There is there is always going to be capital markets. We think the runway is pretty good in Europe. In some case. Some people think that Europe is a better and a better opportunity right now but.

We're pretty we're pretty bullish on our direction and where we go.

Great. Thanks for that and then just some thoughts on capital allocation, Mike you talked about some of the free cash flow growth.

Mitch Germain: Great. Thanks for that. Just some thoughts on capital allocation. Mike, you talked about some of the free cash flow growth. You bought back shares. We've obviously seen a rally, so 25% plus since you did that. Where is investment US dollars? Obviously, they're going to new broker acquisitions. Could we potentially see you guys consider some M&A here? Is buyback still on the table? Some thoughts around that, please.

Mitchell Germain: Great. Thanks for that. Just some thoughts on capital allocation. Mike, you talked about some of the free cash flow growth. You bought back shares. We've obviously seen a rally, so 25% plus since you did that. Where is investment US dollars? Obviously, they're going to new broker acquisitions. Could we potentially see you guys consider some M&A here? Is buyback still on the table? Some thoughts around that, please.

You bought back shares, but we've obviously seen a rallies, 25% plus since you did that so.

Where were his investment dollars, obviously theyre going to two new broker acquisitions, but could.

Could we potentially see you guys consider some M&A here is buyback still on the table some thoughts around that please.

Sure.

I would say buybacks are certainly still on the table as.

Michael Rispoli: Sure. I would say buybacks are certainly still on the table. As I said, we did a pretty significant buyback in Q2. I would expect us to pivot to M&A in H2 of the year. We have a lot of interesting opportunities, particularly on the Management Services side that we're looking at, that we think we can add a lot to those companies, and they can add a lot to our platform. I would say for H2 of the year, you'll see us pivot to growth capital versus buybacks. Longer term, we still think the stock is undervalued. If you look at our adjusted free cash flow, even relative to the current market cap, it's probably around 6% yield, versus the S&P 500, which is 2.8%, our peer group, which is around 4.2%.

Mike Rispoli: Sure. I would say buybacks are certainly still on the table. As I said, we did a pretty significant buyback in Q2. I would expect us to pivot to M&A in H2 of the year. We have a lot of interesting opportunities, particularly on the Management Services side that we're looking at, that we think we can add a lot to those companies, and they can add a lot to our platform. I would say for H2 of the year, you'll see us pivot to growth capital versus buybacks. Longer term, we still think the stock is undervalued.

As I said, we did a pretty significant buyback in the second quarter.

So I would see us I would expect us to pivot to do M&A in the back half of the year we.

We have a lot of interesting opportunities.

Particularly on the management services side that we're looking at that we think are very we can add a lot to those companies.

They can add a lot to our platform. So I would say for the back half of the year Youll see us pivot to growth capital versus buybacks.

But longer term, we still think the stock is undervalued.

You look at our adjusted free cash flow, even relative to the current market cap.

Mike Rispoli: If you look at our adjusted free cash flow, even relative to the current market cap, it's probably around 6% yield, versus the S&P 500, which is 2.8%, our peer group, which is around 4.2%.We still think there's a lot of upside to our stock, and that's why we'll continue to look at buybacks as well.

It's probably around 6% yield.

Versus the S&P 500, which is two 8% our peer group, which is around four 2%. So.

We still think there's a lot of upside to our stock and that's why we.

Michael Rispoli: We still think there's a lot of upside to our stock, and that's why we'll continue to look at buybacks as well.

We'll continue to look at buybacks as well you should also it's important to note.

At 100% of our growth is organic.

Barry Gosin: You should also, it's important to note that 100% of our growth is organic.

Thank you I appreciate it and great quarter.

Mitch Germain: Thank you.

Mitchell Germain: Thank you.

Thanks.

Barry Gosin: Great.

Mitch Germain: I appreciate it, and great quarter.

Mitchell Germain: I appreciate it, and great quarter.

We will now take our next question from Alexander Goldfarb with Piper Sandler.

Michael Rispoli: Thanks.

Mike Rispoli: Thanks.

Operator: We'll now take our next question from Alexander Goldfarb with Piper Sandler.

Hey, good morning, good morning down there.

Alexander Goldfarb: Hey, good morning. Morning down there. Barry, thanks for the opening comments. Just obviously tragic. Mike, appreciate the free cash flow emphasis in the slide. I think it's very helpful to help understand the economics of the business, which this quarter, just really impressive. Along those lines, data centers have been huge in the news. Clearly, Barry, you've spoken before that it's been a focus of the company. I think in prior comments, you talked about keeping it restrained, like using the example, I think it was you or one of your colleagues, used the example of life science, which boomed and then cooled off dramatically.

And Barry Thanks for the opening comments.

Just obviously tragic.

Mike.

Appreciate the free cash flow emphasis in the slide.

I think it's very helpful to help us.

Understand the economics of the business, which this quarter just really impressive.

Along those lines data centers have been huge in.

In the news clearly Barry.

Broken before that it's been a focus of the company, but I think in prior comments you talked about keeping it restrained like using the example, I think it was you or what are your colleagues use. The example of like life Science, which boomed and then cooled off dramatically. So as you look at data centers today is the view still that it's it's.

Alexander Goldfarb: I think in prior comments, you talked about keeping it restrained, like using the example, I think it was you or one of your colleagues, used the example of life science, which boomed and then cooled off dramatically.

Alexander Goldfarb: As you look at data centers today, is the view still that it's akin to life science in the sense that right now that area is booming, but you want to keep your personnel appropriately staffed, versus it's more enduring, in which case there's room to expand and invest further in your data center offering?

Akin to life science in the sense that right now that area is booming, but you want to keep your personnel.

Appropriately staffed versus it's more enduring in which case there is room to expand and invest further in your data center.

Offering.

Well, we believe we are appropriately staff, it's a center of excellence.

Barry Gosin: Well, we believe we're appropriately staffed. It's a center of excellence. There's a lot of reach with a small amount of people if you are the best at it, and we think we are the best at it. There are two aspects of the business. There's the powered land play, which is at some point there will be less of the powered land play, but our big emphasis has been on equity and finance, and those are the areas which we're the strongest. We think there's an enormous runway. There's a big runway in Europe. There's a big runway in Asia. AI is so relatively new. It's only really 2 years old, and a lot of people want to get into the game, and the question for everyone is really, what do you think about AI and the future of AI?

There is.

There's a lot of reach with a small amount of people. If you are the best at it and we think we are the best at it. We also there are two aspects of the business. There is empowered land play which.

Which is at some point there will be less of empower land play, but our big our big emphasis has been on equity and finance.

And those are the areas, which were the strongest we think there is an enormous runway as a big runway in Europe is a big runway in Asia.

AI is so relatively new its only.

Barry Gosin: There's a big runway in Asia. AI is so relatively new. It's only really 2 years old, and a lot of people want to get into the game, and the question for everyone is really, what do you think about AI and the future of AI?If you believe in the future of AI, then you have to believe there is a long runway. Life science is a more mature business that was just faced overbuilding, oversupply. It's kind of like multifamily is a business that has enormous demand in the country and will continue.

Really two years old.

And.

A lot of people want to get into the game and the question for everyone is really what what do you think about AI in the future of AI and if you believe in the future of AI. Then you have to believe there is a long runway.

Barry Gosin: If you believe in the future of AI, then you have to believe there is a long runway. Life science is a more mature business that was just faced overbuilding, oversupply. It's kind of like multifamily is a business that has enormous demand in the country and will continue. We're underserved for housing, but there are markets where you just have too much supply. Life science is just a moment in time where there's just too much supply to be absorbed. A lot of these transactions haven't come online. It's all coming online. It'll be 3, 4 years before we could see whether there is an oversupply, and it is pretty early.

Life Science has been.

A more mature business that was just faced overbuilding oversupply, it's kind of like multifamily is a business that has enormous demand in the country and we will continue we are underserved for housing, but there are markets, where you just have too much supply.

Barry Gosin: We're underserved for housing, but there are markets where you just have too much supply. Life science is just a moment in time where there's just too much supply to be absorbed. A lot of these transactions haven't come online. It's all coming online. It'll be 3, 4 years before we could see whether there is an oversupply, and it is pretty early.

Life Sciences, just a moment in time, where there's just too much supply to be absorbed.

A lot of these <unk>.

Transactions haven't come online, it's all coming online so it will be there'll be three or four years before we can see.

Whether whether there is an oversupply in it is it is pretty early.

Okay.

Alex I would add one thing to that which is that there is also tremendous opportunity in data center outside of the transactions.

Alexander Goldfarb: Okay. Second question is.

Michael Rispoli: I would add to that. Alex, I would add one thing to that, which is that there's also tremendous opportunity in data center outside of the transactions on the management side, both project management and facilities management. Those are areas we really haven't touched to date, but certainly see an opportunity.

Mike Rispoli: I would add to that. Alex, I would add one thing to that, which is that there's also tremendous opportunity in data center outside of the transactions on the management side, both project management and facilities management. Those are areas we really haven't touched to date, but certainly see an opportunity.

The management side.

Both project management and facilities management and those are areas, we really haven't touched to date.

But certainly some leasing opportunity in leasing people there won't I mean, not everything is going to be just a handful of.

Barry Gosin: Leasing. Not everything's going to be just a handful of Hyperscalers. You're going to still see the co-location facilities. Not everything is going to be in the cloud. We're also involved and very active in digital infrastructure as well, which includes chip manufacturing and things like that, which are proliferating. There's a host of things.

Hyperscale is youre going to still see the co location facilities not everything is going to be in the cloud. So it's going to be and we're also we're also involved in very active in digital infrastructure as.

As well, which includes chip manufacturing and things like that which are.

Are proliferating.

There are a host of things.

Okay. The second question is in your leasing stats San Francisco led.

Alexander Goldfarb: Okay. The second question is, in your leasing stats, San Francisco led more so than New York. Just want to get some more perspective on that. Our sense of market visits is that AI is a small part, but growing, but the larger tech companies still have too much space. Curious what's driving your business. Is it that you're advising tech in resizing their business, or is AI just booming a lot more than we anticipated? Just want to understand better the drivers of the dramatic boom in your San Francisco leasing growth.

Yes, more so than New York and just wanted to get some more perspective on that is that.

Our sense of market visits is that AI is a small part, but growing but the larger tech companies still have too much space. So curious what's driving your business is it that you are advising tech and resizing their business or is AI, just booming a lot more than we anticipated just want to understand better.

The drivers of the dramatic boom in in your San Francisco leasing growth.

And we were told that San Francisco and the Bay entire Bay area that has opened up.

Barry Gosin: We're told that San Francisco and the entire Bay Area that has opened up, that there is activity coming from every direction. Now that's based on what our brokers tell us and what we have in the pipeline. It's coming from all different places. Some of that's AI, but there's other tech companies as well that are growing. One thing about the ecosystem in the Bay Area is there's a company born every 5 minutes in the Bay Area. It's part of the ecosystem.

That there is activity coming from every direction.

Now thats.

Based on what our brokers tell us and what we have in the pipeline.

It's coming from all different places a lot of that some of Thats AI, but.

Theres other tech tech companies as well that are growing as always one thing about the ecosystem in the Bay area.

There is a company born every five minutes in the Bay area, it's part of the ecosystem.

Thank you.

Alexander Goldfarb: Thank you.

I will now take our next question from Jade Rahmani with BW.

Operator: We'll now take our next question from Jade Rahmani with KBW.

Hi, This is actually Jason snapshot on for Jade first I just wanted to say congrats on the strong quarter.

Jason Sapshon: Hi, this is actually Jason Sapshon on for Jade. First, I just want to say congrats on the strong quarter. In your presentation, you provided a revenue target for Management Services for 2029. We applaud the long-term view. Are there any other 2029 targets that you're thinking about in terms of total revenue, Capital Markets, leasing, or adjusted free cash flow? Thanks.

Jason Sabshon: Hi, this is actually Jason Sabshon on for Jade. First, I just want to say congrats on the strong quarter. In your presentation, you provided a revenue target for Management Services for 2029. We applaud the long-term view. Are there any other 2029 targets that you're thinking about in terms of total revenue, Capital Markets, leasing, or adjusted free cash flow? Thanks.

In your presentation, you provided a revenue target for management services for 2029.

We applaud the long term view.

Are there any other 2029 targets that youre thinking about in terms of total revenue capital markets leasing our adjusted free cash flow.

Thanks.

Yes, hi.

The target on the management business is about $2 billion.

Michael Rispoli: Hi. The target on the management business is about $2 billion. We put out, I think, a few quarters ago, and we continue to believe in the strong opportunity across all of our management and servicing businesses. We don't have similar targets out there for capital markets or leasing, but we do have targets out there for 2026 in terms of the adjusted EBITDA of $630 million and adjusted EPS of $1.75, and we feel that those are very achievable.

Mike Rispoli: Hi. The target on the management business is about $2 billion. We put out, I think, a few quarters ago, and we continue to believe in the strong opportunity across all of our management and servicing businesses. We don't have similar targets out there for capital markets or leasing, but we do have targets out there for 2026 in terms of the Adjusted EBITDA of $630 million and adjusted EPS of $1.75, and we feel that those are very achievable.

We put out I think a few quarters ago, and we continue to believe in the strong opportunity across all of our management and servicing businesses.

We don't have similar targets out there for capital markets or leasing, but we do have.

Targets out there for 2026 in terms of the adjusted EBITDA of $630 million.

And adjusted EPS of $1 75, and.

We feel that those are very achievable when last quarter, we pointed to a couple of metrics in 2014, we were one 1% of the market is irrespective.

Barry Gosin: Last quarter, we pointed to a couple of metrics. In 2014, we were 1.1% of the market in respect of the sales, and now we're close to 10%.

Sales and.

And now we are close to 10%.

And that one five and one 8% in <unk>.

Michael Rispoli: In debt.

Mike Rispoli: In debt.

Michael Rispoli: In debt.

Barry Gosin: In debt.

Michael Rispoli: 1.5.

Mike Rispoli: 1.5.

And sales and now we're close to 10.

Barry Gosin: 1.8% in sales, and now we're close to 10 and 9.5 respectively. We're 1% of the property management business. There's an enormous runway to connect with the relationships and the things we are doing. We are very focused on things that will provide us with recurring revenue. We're looking for the smart ways to do it. We're looking at things that fit in with how our brand works, and we are getting really good traction in many of those areas.

<unk> 95, respectively.

1% of the property management business.

So there is an enormous runway to connect with the relationships.

The things we were doing we are very focused on things that will provide us with recurring revenue. We're looking for this far ways to do it we're looking at things that fit in with how our brand works and we're getting really good traction.

And many of those areas.

Great. Thank you.

To touch on data centers first could you provide more color on your view on what your deal flow looks like and as well as fee ranges on those deals.

Jason Sapshon: Great. Thank you. To touch on data centers first, could you provide more color on what your deal flow looks like and as well as fee ranges on those deals? Specifically, if you broker a new development capitalization, what are fees earned, and are those negotiated in dollars or as a commission rate?

Jason Sabshon: Great. Thank you. To touch on data centers first, could you provide more color on what your deal flow looks like and as well as fee ranges on those deals? Specifically, if you broker a new development capitalization, what are fees earned, and are those negotiated in dollars or as a commission rate?

Specifically, if you broker in new development capitalization water fees earned in our Theres negotiated in dollars or as a commission rate.

The fees are no different than the average fees that you see across the rest of our business. So.

Michael Rispoli: The fees are no different than the average fees that you see across the rest of our business. Typically, on average, it's based on deal size. Our average sales has been around 70 basis points, and our average debt fee has been in the 40 to 50 basis point range. As deals get larger, those basis points go down. As deals get smaller, they go up. On average, that's where we've seen our fees, and data centers really are no different.

Mike Rispoli: The fees are no different than the average fees that you see across the rest of our business. Typically, on average, it's based on deal size. Our average sales has been around 70 basis points, and our average debt fee has been in the 40 to 50 basis point range. As deals get larger, those basis points go down. As deals get smaller, they go up. On average, that's where we've seen our fees, and data centers really are no different.

Typically on average.

Based on deal size, but our average sales has been around 70 basis points and our average debt P has been in the 40% to 50 basis point range as deals get larger.

Those basis points go down as deals get smaller they go up but on average that's where you've seen our fees and data centers really are no different.

Great. Thank you.

And then to pivot to capital markets and leasing.

Jason Sapshon: Great. Thank you. To pivot to Capital Markets and leasing, what growth rates do you expect are reasonable to see in H2?

Jason Sabshon: Great. Thank you. To pivot to Capital Markets and leasing, what growth rates do you expect are reasonable to see in H2?

What growth rates do you expect a reasonable to see in the second half.

So.

If you look at the midpoint of our guidance, let's just start there.

Michael Rispoli: If you look at the midpoint of our guidance, let's just start there. We would expect the management and the leasing businesses to grow, say, high single digits to low double digits in H2, and the Capital Markets business probably mid to high teens. Which would suggest maybe there's a slowdown from H1, but I think really we put the range out there because there could be some macro events that affect the market and affect the activity. We have a really good pipeline into Q3, very strong, and if things continue along the path they're going now, I would certainly expect us to perform above the midpoint of the range towards the higher end.

Mike Rispoli: If you look at the midpoint of our guidance, let's just start there. We would expect the management and the leasing businesses to grow, say, high single digits to low double digits in H2, and the Capital Markets business probably mid to high teens. Which would suggest maybe there's a slowdown from H1, but I think really we put the range out there because there could be some macro events that affect the market and affect the activity.

We would expect the management and the leasing businesses to grow say high single digits to low double digits in the back half of the year in the capital markets business.

Probably mid to high teens.

<unk>.

Which would suggest maybe there is a slowdown from the first half, but I think <unk>.

Really we put the range out there because there could be some macro events that.

The market and affect the activity, but if.

We have a really good pipeline into the third quarter very strong and if things continue along the path, they're going now I would certainly expect us to perform above the midpoint of the range towards the higher end.

Mike Rispoli: We have a really good pipeline into Q3, very strong, and if things continue along the path they're going now, I would certainly expect us to perform above the midpoint of the range towards the higher end.

Great. Thank you.

Jason Sapshon: Great. Thank you.

Jason Sabshon: Great. Thank you.

We will now take our next question from Julian <unk> with Goldman Sachs.

Operator: We'll now take our next question from Julien Blouin with Goldman Sachs.

Thank you for the question and congrats on another strong quarter.

Julien Blouin: Thank you for the question and congrats on another strong quarter. I guess digging a little bit more into those comments around the pipeline. I guess, as we look into July, does it feel like there was sort of a re-acceleration in activity relative to what seemed to be a slower May and June for the industry?

I guess digging into a little bit more into those comments around the pipeline.

I guess as we look into July does it feel like there was sort of a reacceleration in activity relative to.

What seemed to be a slower may and June for the industry.

Yes.

It's interesting our pipelines have been pretty strong.

Michael Rispoli: It's interesting. Our pipelines have been pretty strong throughout the year. We didn't see any significant slowdowns as we moved through the year. If anything, our pipelines continue to grow and get stronger. We certainly don't have full visibility into Q4 at this point. It's still a little bit early, but everything at the moment looks pretty good.

Mike Rispoli: It's interesting. Our pipelines have been pretty strong throughout the year. We didn't see any significant slowdowns as we moved through the year. If anything, our pipelines continue to grow and get stronger. We certainly don't have full visibility into Q4 at this point. It's still a little bit early, but everything at the moment looks pretty good.

Throughout the year.

We didn't see any significant slowdowns as we move through the year.

If anything our pipelines continue to grow and get stronger.

We certainly don't have full visibility into the fourth quarter at this point.

A little bit early but.

The thing at the moment looks pretty good.

Got it Thats helpful.

And it sounds like there wasn't any change to sort of how youre thinking about the 2026 targets.

Julien Blouin: Got it. That's helpful. It sounds like there wasn't any change to how you're thinking about the 2026 targets. I guess, is it just that you feel even more confident that they're what you've put out there of $1.75 and $630 million of adjusted EBITDA are achievable? Or was there any temptation to maybe increase those targets?

Julien Blouin: Got it. That's helpful. It sounds like there wasn't any change to how you're thinking about the 2026 targets. I guess, is it just that you feel even more confident that they're what you've put out there of $1.75 and $630 million of Adjusted EBITDA are achievable? Or was there any temptation to maybe increase those targets?

I guess.

Do you is it just that you feel even more confident that they are sort of what you've put out there of $1 75, and $630 million of adjusted EBITDA are achievable or was there any temptation to maybe increase.

Increased those targets.

Probably a little early to increase the targets I think we put those targets out more than a year ago, and we felt pretty confident about the targets when we put them out based on the people we hired in the businesses that we're building.

Michael Rispoli: Probably a little early to increase the targets. I think we put those targets out more than a year ago, and we felt pretty confident about the targets when we put them out based on the people we hired and the businesses that we're building. I would say we certainly feel more confident today as we get closer and closer to those targets. If you just take the midpoint of our guidance for the rest of this year, for 2025 full year, it suggests probably high single-digit revenue growth and mid-teens earnings growth, which seems very achievable for 2026 at this point.

Mike Rispoli: Probably a little early to increase the targets. I think we put those targets out more than a year ago, and we felt pretty confident about the targets when we put them out based on the people we hired and the businesses that we're building.

And I would say, we certainly feel more confident today as we get closer and closer to.

Mike Rispoli: I would say we certainly feel more confident today as we get closer and closer to those targets. If you just take the midpoint of our guidance for the rest of this year, for 2025 full year, it suggests probably high single-digit revenue growth and mid-teens earnings growth, which seems very achievable for 2026 at this point.

To those targets.

You just take the midpoint of our guidance for the rest of this year or for 2025 full year.

It suggests probably high single digit revenue growth and mid teens earnings growth.

It seems very achievable for 2026 at this point.

Got it that makes sense and maybe one last one.

Julien Blouin: Got it. That makes sense. Maybe one last one. Just in New York City, I'm wondering if you're sort of expecting or seeing any impacts from the mayoral race there. When you talk to your teams or your clients, are you seeing any signs of caution from buyers in Manhattan? It looked like New York City property sales volumes were maybe a little subdued in June. Wondering if there's anything to read into there.

Just in New York City.

I'm wondering if you're sort of expecting or seeing any impacts from the mayoral race. There. When you talk to your teams and your clients are you seeing any signs of caution from buyers.

In Manhattan, It looked like New York City property sales volumes for May be a little subdued in June wondering if theres anything to read into there.

It's too early to tell.

Barry Gosin: It's too early to tell. Mondale hasn't been elected yet. There's a lot of noise. Fortunately, I think we have a firewall in our governor, if people are concerned. The mayor has a limited amount of power to do stuff. You still have the city council. The city council has moved more moderate over the last couple of years. Very few Democratic socialists. New York is incredibly resilient. I don't believe it will have an impact. For certain people, it may annoy them, but New York is New York. The pool of talent in New York is unparalleled. The level of excitement in New York City being here is unparalleled. I'm pretty sanguine about it.

<unk> hasnt been elected yet there is a lot of noise. Unfortunately, I think we have a firewall and our governor.

People are concerned the mayor has a limited amount of power to do stuff.

Still have the city Council with City Council is pretty.

Has moved more moderate.

Over the last couple of years.

Very few Democratic Socialists.

So it's not.

So.

New York is incredibly resilient.

I don't believe it will have an impact.

For certain people may annoy them.

But it's New York is New York.

Barry Gosin: For certain people, it may annoy them, but New York is New York. The pool of talent in New York is unparalleled. The level of excitement in New York City being here is unparalleled. I'm pretty sanguine about it.

Paul a talent in New York is.

Unparalleled.

The level of excitement and New York City being here is unparalleled.

I am not.

I am pretty sanguine about it.

Okay, great. Thank you.

Yes.

Julien Blouin: Okay, great. Thank you.

And as a final reminder, that is star one if you would like to ask a question. We will now take our next question from Patrick O'shaughnessy from Raymond James.

Operator: As a final reminder, that is star one if you would like to ask any question. We'll now take our next question from Patrick O'Shaughnessy from Raymond James.

Hey, good morning, so with the new disclosures your adjusted free cash flow do you.

Patrick O'Shaughnessy: Hey, good morning. With the new disclosure of your adjusted free cash flow, what are your expectations in terms of adjusted free cash flow in 2025? I guess bigger picture or longer term, do you have a framework in terms of targeted conversion ratio, what that free cash flow should look like as compared to your adjusted net income?

What are your expectations in terms of adjusted free cash flow in 2025, and I guess bigger picture or longer term youre going to have.

A framework in terms of like targeted conversion ratio what that free cash flow should look like as compared to your adjusted net income.

Sure. Thanks, Thanks for the question Patrick So on a trailing 12 month basis compared to.

Michael Rispoli: Sure. Thanks for the question, Patrick. On a trailing 12-month basis compared to our post-tax adjusted earnings, it's about 65% conversion. Remember, in that metric or taken out of the cash flow from operations is all the money we invest in brokers for growth. That on a trailing 12-month basis was about $184 million. It's hard to put a target precisely on what the conversion ratio will be because you have to know how much we're going to be investing into the business and how much of that investment will go towards talent versus go towards companies. As you know, if you just buy a company, it goes through cash outflow from investing versus hiring a broker, which comes out of operations. Certainly, 65% to 85%, depending on how much we invest in the business at any given time.

Mike Rispoli: Sure. Thanks for the question, Patrick. On a trailing 12-month basis compared to our post-tax adjusted earnings, it's about 65% conversion. Remember, in that metric or taken out of the cash flow from operations is all the money we invest in brokers for growth. That on a trailing 12-month basis was about $184 million.

Our post tax adjusted earnings its about 65% conversion.

Remember.

In that metric or taken out of the cash flow from operations.

Is all the money, we invest in brokers for for growth.

So that on a trailing 12 month basis was about $184 million.

So it's hard to put a target precisely on what the conversion ratio will be because you have to know how much we're going to be investing into the business and how much of that investment will go towards <unk>.

Mike Rispoli: It's hard to put a target precisely on what the conversion ratio will be because you have to know how much we're going to be investing into the business and how much of that investment will go towards talent versus go towards companies. As you know, if you just buy a company, it goes through cash outflow from investing versus hiring a broker, which comes out of operations. Certainly, 65% to 85%, depending on how much we invest in the business at any given time.

Talent versus go towards companies and as you know if you just buy a company that goes through cash outflow from investing versus hiring a broker which comes out of operations, but certainly.

65% to 85% depending on how much we invest in the business at any given time.

Got it that's very helpful.

Speaking of hiring talent with industry brokerage revenues generally trending better is it getting any harder to poach top talent away from competitors.

Patrick O'Shaughnessy: Yeah, that's very helpful. Speaking of hiring talent, with industry brokerage revenues generally trending better, is it getting any harder to poach top talent away from competitors?

Well, it's never easy.

But no I think that.

Barry Gosin: Well, it's never easy. No, I think that we seem to have struck a chord in the industry in terms of what the industry needs in respect of talent. I think we fit the bill for many people that are high production, high revenue professionals. That we don't think that's going away. It's always been hard in some respects, but we don't see it changing.

We seem to be we seem to have struck a chord in the industry in terms of what what.

What the industry needs.

In respect of talent.

And I think we fit the bill for many people that are high production.

High revenue.

Professionals.

We don't we don't think that's going away.

It doesn't it's always been hard.

In some respects.

We don't we don't we don't see it changing.

Got it. Thank you and then lastly from me.

Patrick O'Shaughnessy: Got it. Thank you. Lastly from me, you spoke about the likelihood of doing some M&A in the back half of the year. Can you remind us both strategically and financially what your criteria is for M&A?

You spoke about the likelihood of doing some M&A in the back half of the year can you remind us both strategically and financially what your criteria is for M&A.

So generally we've done mostly bolt ons tuck ins.

Barry Gosin: Generally, we've done mostly bolt-ons, tuck-ins. We think that strategy works really well for us. Less friction, less disturbance, and less disruption. You never know what you get when something is too big, the amount of change, people leaving, et cetera. It's more targeted towards the talent and the needs, and how we fit and curate the entire platform together as a puzzle. That seems to be going well. That's generally how we've done it. We think we'll do some more of that going forward, because there are certain areas that we want to focus on, and that we're looking at companies.

We think that strategy works really well for us.

Less friction less disturbance less disruption.

You never know what you get when something is too big.

The amount of change you, believing et cetera.

And it's more targeted towards that towards the talent and the needs.

How we fit and curate the entire platform together as a puzzle.

That seems to be going well.

That's generally.

Really how we've done it and we think we'll do.

Barry Gosin: That's generally how we've done it. We think we'll do some more of that going forward, because there are certain areas that we want to focus on, and that we're looking at companies.

Some more of that.

Going forward because there are certain areas that we want to focus on and that we have.

We are looking at companies we have been.

We've been focusing on our Super power, which is hiring great talent and we're also have turned our attention to.

Barry Gosin: We've been focusing on our superpower, which is hiring great talent, and we also have turned our attention to Management Services and things that will provide more recurring revenue that don't consistently conflict with the brand, things that work very well and are synergistic with both our Capital Markets and our leasing business.

Management services and things that will provide more recurring revenue that don't consistently conflict with the brand things that worked very well and are synergistic with both our capital markets on our leasing business.

Alright, thank you.

And it appears there are no further telephone questions I would like to turn the conference back to our presenters for any additional or closing comments.

Patrick O'Shaughnessy: All right. Thank you.

Operator: It appears there are no further telephone questions. I'd like to turn the conference back to our presenters for any additional or closing comments.

Okay.

Well I'd like to thank everybody for joining us today, and we look forward to updating you on our next quarterly call. Thank you.

Barry Gosin: Well, I'd like to thank everybody for joining us today, and we look forward to updating you on our next quarterly call. Thank you.

And once again that does conclude today's conference. We thank you all for your participation you may now disconnect.

Operator: Once again, that does conclude today's conference. We thank you all for your participation. You may now disconnect.

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