Newmark : Q4 2020 Supplemental Tables

Table of Contents

Newmark Group, Inc. - Quarterly Financial Data Supplement - as recast on February 18, 2021 (1)	4Q20
Table of Contents
Page
Consolidated Results
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Operations	3
Condensed Consolidated Statements of Cash Flows	4
Revenue Detail	5
GAAP and Adjusted Earnings Expense and Other Income Detail(1)	6
Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS(1)	7
Historical Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS(1)	8
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1)	9
Historical Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1)	10
Fully Diluted Weighted-Average Share Count for GAAP and Adjusted Earnings	11
Equity-based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs(2)	12
Debt and Capital Markets Volumes	13
(1) Beginning in the fourth quarter of 2020, the OMSR revenue adjustment is no longer be included in non-compensation expenses for Adjusted Earnings but instead as a separate line item in the Company's non-GAAP reconciliations. There is no impact to Adjusted Earnings or Adjusted EBITDA. Also beginning this quarter, the Company excludes compensation charges related to non-cash GAAP gains attributable to originated mortgage servicing rights (which Newmark refers to as "OMSRs") because these gains are also excluded from Adjusted Earnings and Adjusted EBITDA. Newmark has recast its historical results to be consistent with this new presentation in the comparative periods presented in this supplement.
(2) On November 11, 2019, Newmark revised the Equity-based Compensation tab of the Financial Supplement to include additional historical data. 2Q 2019 was revised due to a reclassification of the individual
components of equity-based compensation. "Exchangeability expense" has been renamed "Issuance of common stock and exchangeability expenses."
Note: certain tables throughout this document may not reconcile due to rounding.

US GAAP Bal Sheet PR

NEWMARK GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
December 31, 2020	December 31, 2019
Assets
Current Assets:
Cash and cash equivalents	$ 191,448	$ 163,564
Restricted cash	66,951	58,308
Marketable securities	33,283	36,795
Loans held for sale, at fair value	1,086,805	215,290
Receivables, net	376,795	508,379
Receivables from related parties	- 0	- 0
Other current assets	63,790	91,194
Total current assets	1,819,072	1,073,530
Goodwill	560,332	557,914
Mortgage servicing rights, net	494,729	413,644
Loans, forgivable loans and other receivables from employees and partners	454,270	403,710
Right-of-use assets	190,469	201,661
Fixed assets, net	96,367	98,016
Other intangible assets, net	44,289	45,226
Other assets	322,922	407,898
Total assets	$ 3,982,450	$ 3,201,599
Liabilities, Redeemable Partnership Interest, and Equity:
Current Liabilities:
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises	$ 1,061,202	$ 209,648
Accrued compensation	279,872	343,845
Current portion of accounts payable, accrued expenses and other liabilities	326,548	417,069
Securities loaned	33,278	36,735
Current portion of payables to related parties	4,392	38,090
Total current liabilities	1,705,292	1,045,387
Long-term debt	680,385	589,294
Right-of-use liabilities	218,629	227,942
Other long-term liabilities	436,952	376,834
Total liabilities	3,041,258	2,239,457
Equity:
Total equity (1)	941,192	962,142
Total liabilities, redeemable partnership interest, and equity	$ 3,982,450	$ 3,201,599
(1) Includes "redeemable partnership interests," "noncontrolling interests" and "total stockholders' equity."
- 0	(0)

US GAAP P&L PR

NEWMARK GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31,	Year Ended December 31,	Nine Months Ended September 30,
Revenues:	2020	2019	2020	2019	2020	2019
Leasing and other commissions	$ 138,377	$ 251,686		$ 513,842	$ 854,780	$ 375,465	$ 603,094
Capital Markets	190,268	165,042	454,106	541,255	263,838	376,213
Commissions	328,645	416,728	967,948	1,396,035	639,303	979,307
Gains from mortgage banking activities/origination, net	100,228	49,316	310,914	198,085	210,686	148,769
Management services, servicing fees and other	172,553	166,320	626,136	624,012	453,583	457,692
Total revenues	601,426	632,364	1,904,998	2,218,132	1,303,572	1,585,768
Expenses:
Compensation and employee benefits	362,676	354,862	1,147,360	1,275,988	784,684	921,126
Equity-based compensation and allocations of net income to limited partnership units and FPUs	56,215	148,965	130,759	258,836	74,544	109,871
Total compensation and employee benefits	418,891	503,827	1,278,119	1,534,824	859,228	1,030,997
Operating, administrative and other	79,322	85,918	294,405	361,857	215,083	275,939
Fees to related parties	5,447	3,990	22,573	25,025	17,126	21,035
Depreciation and amortization	36,580	32,634	141,193	131,144	104,613	98,510
Total non-compensation expenses	121,349	122,542	458,171	518,026	336,822	395,484
Total operating expenses	540,240	626,369	1,736,290	2,052,850	1,196,050	1,426,481
Other income, net:
Other income (loss), net	(58,367)	(14,313)	15,290	80,954	73,657	95,267
Total other income (loss), net	(58,367)	(14,313)	15,290	80,954	73,657	95,267
Income from operations	2,819	(8,318)	183,998	246,236	181,179	254,554
Interest expense, net	(9,111)	(8,141)	(37,728)	(32,088)	(28,617)	(23,947)
Income (loss) before income taxes and noncontrolling interests	(6,292)	(16,459)	146,270	214,148	152,562	230,607
Provision (benefit) for income taxes	(1,165)	(132)	36,993	52,436	38,158	52,568
Consolidated net (loss) income	(5,127)	(16,327)	109,277	161,712	114,404	178,039
Less: Net income (loss) attributable to noncontrolling interests	(1,346)	(5,362)	29,217	44,407	30,563	49,769
Net income (loss) available to common stockholders	$ (3,781)	$ (10,965)	$ 80,060	$ 117,305	$ 83,841	$ 128,270
Per share data:
Basic earnings per share
Net income (loss) available to common stockholders (1)	$ (5,422)	$ (14,193)	$ 70,281	$ 104,406	$ 75,703	$ 118,599
Basic earnings (loss) per share	$ (0.03)	$ (0.08)	$ 0.39	$ 0.59	$ 0.42	$ 0.67
Basic weighted-average shares of common stock outstanding	180,830	176,741	179,106	177,774	178,527	178,122
Fully diluted earnings per share
Net income (loss) for fully diluted shares (1)	$ (5,422)	$ (14,193)	$ 70,281	$ 108,160	$ 110,422	$ 122,379
Fully diluted earnings(loss) per share	$ (0.03)	$ (0.08)	$ 0.39	$ 0.58	$ 0.42	$ 0.66
Fully diluted weighted-average shares of common stock outstanding	180,830	176,741	179,690	185,016	265,104	185,413
Dividends declared per share of common stock	$ 0.01	$ 0.10	$ 0.13	$ 0.40	$ 0.12	$ 0.30
Dividends paid per share of common stock	$ 0.01	$ 0.10	$ 0.13	$ 0.39	$ 0.12	$ 0.29
(1) Includes a reduction for dividends on preferred stock or exchangeable preferred partnership units of $1.6 million and $9.8 million for the three months and the year ended December 30, 2020, respectively, and $3.2 million and $12.9 million for the three and twelve months ended December 30, 2019, respectively. (see Note 1 - "Organization and Basis of Presentation" in the Company's most recently filed Form 10-Q or Form 10-K.)

Summary Cash Flow

NEWMARK GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended	Nine Months Ended September 30,
2020	2019	2018	2020	2019
Net cash (used in) provided by operating activities	$ (777,694)	$ 986,760	$ (332,367)	$ (1,341,050)	$ 393,415
Net cash (used in) provided by investing activities	(3,602)	(56,788)	7,742	12,506	(30,605)
Net cash provided by (used in) financing activities	817,823	(895,506)	338,657	1,443,334	(375,900)
Net increase in cash and cash equivalents and restricted cash	36,527	34,466	14,032	114,790	(13,090)
Cash and cash equivalents and restricted cash at beginning of period	221,872	187,406	173,374	221,872	187,406
Cash and cash equivalents and restricted cash at end of period	$ 258,399	$ 221,872	$ 187,406	$ 336,662	$ 174,316
Net cash provided by operating activities excluding loan originations and sales (1)	$ 93,821	$ 211,186	$ 295,862	$ (18,605)	$ 106,908
(1) Includes payments for new hires and producers in the amount of $5.2 million and $72.7 million for the three months and year ended December 31, 2020, respectively and $54.0 million and $157.0 million for the three months and year ended December 31, 2019, 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-K for the twelve months ended December 31, 2020, to be filed with the Securities and Exchange Commission in the near future.

Revenue Detail

NEWMARK GROUP, INC.
REVENUE DETAIL
(in thousands)
(unaudited)
2020	2019	2018
Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Detail of revenues as presented in the Statement of Operations:
Leasing and other commissions	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	127,923	52,959	82,956	190,268	454,106	102,797	128,750	144,666	165,042	541,255	101,364	101,691	115,436	150,414	468,904
Commissions	$ 268,362	$ 173,038	$ 197,903	$ 328,645	$ 967,948	$ 275,268	$ 346,131	$ 357,908	$ 416,728	$ 1,396,035	$ 260,735	$ 279,833	$ 319,340	$ 426,431	$ 1,286,338
OMSR revenue (1) (2)	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	21,075	26,944	30,245	37,836	116,100	14,968	20,236	34,909	18,724	88,837	17,817	17,182	23,287	20,776	79,062
Gains from mortgage banking activities/origination, net	50,422	69,071	91,192	100,228	310,914	31,346	45,091	72,332	49,316	198,085	38,914	41,877	51,972	49,501	182,264
Management services fee revenue (3)	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
Non-fee management services revenue (2) (4)	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)	39,575	36,512	39,331	43,207	158,625	42,953	42,783	52,210	39,701	230,585	33,879	37,681	45,529	47,441	164,530
Management services, servicing fees and other	165,146	141,609	146,828	172,553	626,136	141,042	160,256	156,394	166,320	676,950	130,811	144,909	147,497	155,760	578,977
Total revenues	$ 483,930	$ 383,718	$ 435,923	$ 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
Detail of revenues as presented in the investor presentations:
Commission-based revenues (6)	$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 revenue (7)	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 revenue (2) (4)	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 Revenue	$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
Non-fee revenue detail (2) (4):
OMSR revenue	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
Non-fee management services revenue	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 revenue	$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) 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.
(2) Non-fee (or "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.
(3) Management services fee revenue includes Facilities Management, Property Management, Project Management, Consulting, Valuation & Advisory, and Underwriting.
(4) Non-fee management services revenue represent fully reimbursable compensation and non-compensation expenses recorded as part of Newmark's management services business.
(5) Servicing fees include mortgage servicing 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, Capital markets, Loan originations related fees and sales premiums, net, and Valuation and Advisory.
(7) Includes fees from management services, mortgage servicing, and interest income on loans held for sale.

Expense and Other Income Detail

NEWMARK GROUP, INC.
GAAP AND ADJUSTED EARNINGS EXPENSE AND OTHER INCOME DETAIL
(in thousands)
(unaudited)
2020	2019	2018
Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
GAAP expense summary:
Total compensation and employee benefits	$ 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	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	$ 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)	$ 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)	$ 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	$ 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	$ 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 (1)	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	$ 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 the investor presentations:
Commission-based compensation	$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	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	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	$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 (2)	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	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 (2)	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 (2)	$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)	$ (2,075)	$ (3,878)	$ 94,462	$ (5,118)	$ 83,391	$ 4,142	$ 7,919	$ 86,692	$ 8,272	$ 107,025	$ 5,608	$ 2,432	$ 84,924	$ (2,340)	$ 90,624
Tax provision/(benefit)	$ 4,158	$ 4,571	$ 20,932	$ 19,096	$ 48,757	$ 9,266	$ 15,608	$ 28,242	$ 22,394	$ 75,510	$ 7,254	$ 10,234	$ 23,418	$ 26,787	$ 67,693
Net income (loss) attributable to noncontrolling interests	$ 455	$ 213	$ (9)	$ 544	$ 1,203	$ (137)	$ 342	$ 584	$ 378	$ 1,167	$ 803	$ 245	$ 415	$ 259	$ 1,722
(1) Beginning in the fourth quarter of 2020, the OMSR revenue adjustment will no longer be included in non-compensation expenses for Adjusted Earnings but instead as a separate line item in the Company's non-GAAP reconciliations. Historical expense amounts have been recast to reflect this change. There is no impact to Adjusted Earnings or Adjusted EBITDA.
(2) Non-fee (or "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 December 31,	Year Ended December 31,
2020	2019	2020	2019
GAAP net income available to common stockholders	$ (3,781)	$ (10,965)	$ 80,060	$ 117,305
Provision (benefit) for income taxes (1)	(1,165)	(132)	36,993	52,436
Net income (loss) attributable to noncontrolling interests(2)	(1,346)	(5,362)	29,217	44,407
GAAP income (loss) before income taxes and noncontrolling interests	$ (6,292)	$ (16,459)	$ 146,270	$ 214,148
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation and allocations of net income to limited partnership units and FPUs (3)	56,215	148,965	130,759	258,836
Other compensation adjustments(4)	6,727	4,471	14,282	3,010
Total Compensation adjustments	62,942	153,436	145,041	261,846
Non-Compensation expense adjustments:
Amortization of intangibles (5)	1,958	1,526	7,012	6,920
MSR amortization(6)	25,315	22,128	111,252	101,530
Other non-compensation adjustments (7)	13,060	8,601	3,701	8,601
Total Non-Compensation expense adjustments	40,333	32,255	121,965	117,051
Non-cash adjustment for OMSR revenue(8)	(62,392)	(30,592)	(194,814)	(109,248)
Other (income) loss:
Other non-cash, non-dilutive, and /or non-economic items (9)	63,486	22,585	78,337	26,367
Total Other (income) loss	63,486	22,585	78,337	26,367
Total pre-tax adjustments	104,369	177,684	150,529	296,016
Adjusted Earnings before noncontrolling interests and taxes	$ 98,077	$ 161,225	$ 296,799	$ 510,164
GAAP Net income available to common stockholders:	$ (3,781)	$ (10,965)	$ 80,060	$ 117,305
Allocation of net income to noncontrolling interests (10)	(1,890)	(5,740)	28,014	43,240
Total pre-tax adjustments (from above)	104,369	177,684	150,529	296,016
Income tax adjustment to reflect adjusted earnings taxes (1)	(20,260)	(22,558)	(11,759)	(23,072)
Post-tax Adjusted Earnings to fully diluted shareholders	$ 78,438	$ 138,421	$ 246,844	$ 433,489
Per Share Data:
GAAP fully diluted earnings per share(11)	$ (0.03)	$ (0.08)	$ 0.39	$ 0.58
Allocation of net income (loss) to noncontrolling interests	- 0	- 0	- 0	- 0
Exchangeable preferred limited partnership units non-cash preferred dividends	0.01	0.01	0.05	0.05
Total pre-tax adjustments (from above)	0.39	0.67	0.57	1.12
Income tax adjustment to reflect adjusted earnings taxes	(0.08)	(0.09)	(0.04)	(0.09)
Other	0.01	0.01	(0.04)	(0.05)
Post-tax adjusted earnings per share	$ 0.30	$ 0.52	$ 0.93	$ 1.61
Pre-tax adjusted earnings per share	$ 0.37	$ 0.61	$ 1.12	$ 1.90
Fully diluted weighted-average shares of common stock outstanding	264,868	264,548	264,851	268,860
(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 December 31,	Year Ended December 31,
2020	2019	2020	2019
GAAP provision for income taxes	$ (1.2)	$ (0.1)	$ 37.0	$ 52.4
Income tax adjustment to reflect Adjusted Earnings	20.3	22.6	11.8	23.1
Provision for income taxes for Adjusted Earnings	$ 19.1	$ 22.5	$ 48.8	$ 75.5
(2)	Primarily represents Cantor and/or BGC's pro-rata portion of Newmark's net income and the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned.
(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 December 31,	Year Ended December 31,
2020	2019	2020	2019
Issuance of common stock and exchangeability expenses	$ 47.4	$ 142.0	$ 69.0	$ 181.7
Allocations of net income	(0.3)	- 0	30.5	50.4
Limited partnership units amortization	5.9	5.0	18.7	21.5
RSU Amortization Expense	3.3	2.0	12.6	5.2
Equity-based compensation and allocations of net income to limited partnership units and FPUs	$ 56.3	$ 149.0	$ 130.8	$ 258.8
(4)	Includes compensation expenses related to severance charges as a result of the cost savings initiatives of $4.7 million and $4.7 million for the three months ended December 31, 2020 and 2019, respectively and $8.8 million and $4.7 million for the year ended December 31, 2020 and 2019, respectively. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $2.0 million and ($0.2) million for the three months ended December 31, 2020 and 2019, respectively and $5.5 million and ($1.7) million for the year ended December 31, 2020 and 2019, 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 revenue 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)	Primarily includes asset impairments the Company does not consider a part of its ongoing operations of $12.4 million and $5.0 million for the three months ended December 31, 2020 and 2019, respectively, and $15.8 million and $5.0 million for the year ended December 31, 2020 and 2019, respectively, of asset impairments the Company does not consider a part of its ongoing operations. Also, iIncludes $12.8 million of acquisition earnout reversals for the year ended December 31, 2020. Additionally includes $0.7 million and $3.0 million of legal settlements for three months and year ended December 31, 2020 and 2019, respectively.
(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 December 31,	Year Ended December 31,
2020	2019	2020	2019
Unrealized mark-to-market (gains)/losses for the Nasdaq forward and other Nasdaq adjustments, net	$ 6.6	$ 14.0	$ (6.2)	$ 36.3
Mark-to-market (gains)/losses on non-marketable investments, net	57.3	8.3	84.2	(12.1)
Contingent consideration and other expenses	(0.5)	0.3	0.3	2.1
$ 63.4	$ 22.6	$ 78.3	$ 26.3
(10)	Excludes the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned.
(11)	Includes a reduction for dividends on preferred stock or exchangeable preferred partnership units of $1.6 million and $9.8 million for the three months and year ended December 31, 2020, respectively, and $3.2 million and $12.9 million for the three and year ended December 31, 2019, respectively. (see Note 1 - and Basis of Presentation" in the Company's most recently filed Form 10-Q or Form 10-K.)

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)
2020	2019	2018
Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD
Net income (loss) available to common stockholders	$ 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	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	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	$ 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 and allocations of net income to limited partnership units and FPUs	12,914	10,860	50,770	56,215	130,759	13,871	39,353	56,647	148,965	258,836	17,416	67,367	40,777	99,083	224,643
Reserves on employee loans	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other compensation adjustments	564	1,843	5,147	6,727	14,281	14,282	(537)	(303)	(621)	4,471	3,010	(709)	(512)	(673)	(893)	(2,787)
Total Compensation adjustments	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	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	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	(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	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	(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, non-economic items	(3,514)	32,511	(14,146)	63,486	78,337	13,861	11,940	(22,019)	22,585	26,367	168	3,085	(8,479)	(23,618)	(28,844)
Total Other (income) losses:	(3,514)	32,511	(14,146)	63,486	78,337	13,861	11,940	(22,019)	22,585	26,367	168	3,085	(8,479)	(23,618)	(28,844)
Total pre-tax adjustments	9,251	30,153	6,755	104,369	150,528	34,219	55,164	28,949	177,684	296,016	15,115	62,228	25,189	71,330	173,862
Adjusted Earnings before noncontrolling interests and taxes	$ 28,283	$ 30,885	$ 139,553	$ 98,077	$ 296,798	$ 64,312	$ 96,349	$ 188,278	$ 161,225	$ 510,164	$ 54,535	$ 77,344	$ 176,617	$ 147,751	$ 456,247
GAAP net income (loss) available to common stockholders	$ 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	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)	9,251	30,153	6,755	104,369	150,528	34,219	55,164	28,949	177,684	296,016	15,115	62,228	25,189	71,330	173,862
Income tax adjustment to reflect adjusted earnings taxes	638	(4,478)	12,341	(20,260)	(11,759)	(2,578)	(6,486)	8,518	(22,526)	(23,072)	(321)	588	12,452	10,082	22,801
Post-tax Adjusted Earnings	$ 23,669	$ 26,107	$ 118,629	$ 78,438	$ 246,843	$ 55,184	$ 80,400	$ 159,452	$ 138,453	$ 433,489	$ 46,478	$ 66,866	$ 152,784	$ 120,713	$ 386,841
Per Share Data:
GAAP fully diluted earnings per share	0.03	(0.01)	0.39	(0.03)	0.39	$ 0.08	$ 0.11	$ 0.48	$ (0.08)	$ 0.59	$ 0.12	$ 0.00	$ 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	0.01	(0.01)	0.00	0.01	0.01
Exchangeable preferred limited partnership units non-cash preferred dividends	0.01	0.01	0.00	0.01	0.03	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)	0.03	0.11	0.01	0.39	0.54	0.13	0.20	0.11	0.67	1.11	0.07	0.24	0.10	0.27	0.68
Income tax adjustment to reflect adjusted earnings taxes	0.00	(0.02)	0.05	(0.08)	(0.05)	(0.01)	(0.02)	0.03	(0.09)	(0.09)	(0.01)	0.00	0.05	0.04	0.08
Other	0.02	0.01	(0.01)	0.01	0.02	0.00	0.00	(0.04)	0.01	(0.03)	0.00	0.03	(0.01)	0.03	0.07
Post-tax adjusted earnings per share as restated (1)	$ 0.09	$ 0.10	$ 0.44	$ 0.30	$ 0.93	$ 0.21	$ 0.30	$ 0.59	$ 0.52	$ 1.63	$ 0.19	$ 0.26	$ 0.58	$ 0.45	$ 1.51
Fully diluted weighted-average shares of common stock outstanding	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	$ 0.10	$ 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	$ 0.10	$ 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
(1) Historical quarterly Adjusted EPS for 2017-2018 have been revised to due an immaterial rounding error. Three quarters were impacted by the correction of this immaterial error: Q1 2017 was amended from $0.16 to $0.15; Q3 2017 was amended from $0.53 to $0.54, and Q3 2018 was amended from $0.59 to $0.58. Full year amounts are unchanged.

EBITDA-PR

NEWMARK GROUP, INC.
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA(1)
(in thousands)
(unaudited)
Three Months Ended December 31,	Year Ended December 31,
2020	2019	2020	2019
GAAP net income (loss) available to common stockholders	$ (3,781)	$ (10,965)	$ 80,060	$ 117,305
Adjustments:
Net income attributable to noncontrolling interests(1)	(1,346)	(5,362)	29,217	44,407
Provision for income taxes	(1,165)	(132)	36,993	52,436
OMSR revenue(2)	(62,392)	(30,592)	(194,814)	(109,248)
MSR amortization(3)	25,315	22,128	111,252	101,530
Other depreciation and amortization(4)	11,265	10,507	29,941	29,614
Equity-based compensation and allocations of net income to limited partnership units and FPUs (5)	56,215	148,965	130,759	258,836
Other adjustments (6)	14,209	4,471	11,017	3,010.00
Other non-cash, non-dilutive, non-economic items(7)	63,855	22,585	78,706	26,367
Interest expense	10,696	10,070	44,600	39,902
Adjusted EBITDA	$ 112,871	$ 171,675	$ 357,731	$ 564,159
(1)	Primarily represents Cantor and/or BGC's pro-rata portion of Newmark's net income and the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned.
(2)	Non-cash gains attributable to originated mortgage servicing rights.
(3)	Non-cash amortization of mortgage servicing rights in proportion to the net servicing revenue expected to be earned.
(4)	Includes fixed asset depreciation of $9.3 million and $9.0 million for the three months ended December 31, 2020 and 2019, respectively, and $22.9 million and $22.7 million for the year ended December 31, 2020 and 2019, respectively. Also includes intangible asset amortization and impairments related to acquisitions of $1.7 million and $1.5 million for the three months ended December 31, 2020 and 2019, respectively, and $6.7 million and $6.9 million for the year ended December 31, 2020 and 2019, respectively. Included in fixed asset depreciation is an asset impairment as a result of the cost savings initiatives of $4.6 million and $5.0 million for the three months ended December 31, 2020 and 2019, respectively, and $5.9 million and $5.0 million for the year ended December 31, 2020 and 2019, 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)	Includes compensation expenses related to severance charges as a result of the cost savings initiatives of $4.7 million and $4.7 million for the three months ended December 31, 2020 and 2019, respectively and $8.8 million and $4.7 million for the year ended December 31, 2020 and 2019, respectively. Additionally, includes the impairment of assets of $7.5 million and $9.7 million for the three months and year ended December 31, 2020, the Company does not consider this a part of its ongoing operations. And includes acquisition earnout reversals of $12.8 million for the year ended December 31, 2020. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $2.0 million and ($0.2) million for the three months ended December 31, 2020 and 2019, respectively and $5.5 million and ($1.7) million for the year ended December 31, 2020 and 2019, respectively
(7)	Please refer to Footnote 9 under Reconciliation of GAAP Net Income 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 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)
2020	2019	2018
Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	FY
2020	2020	2020	2020	2020	2019	2019	2019	2019	2019	2018	2018	2018	2018	2018
GAAP net income (loss) available to common stockholders	$ 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	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	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	(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	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	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 and allocations of net income to limited partnership units	12,914	10,861	50,769	56,215	130,759	13,871	39,353	56,647	148,965	258,836	17,416	67,367	40,777	99,083	224,643
Other adjustments	(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	(3,514)	32,512	(14,146)	63,855	78,707	13,861	11,940	(22,019)	22,585	26,367	(1)	3,083	(8,479)	(30,572)	(35,969)
Interest expense	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	$ 43,802	$ 46,071	$ 154,986	$ 112,871	$ 357,730	$ 78,781	$ 110,833	$ 202,871	$ 171,675	$ 564,160	$ 72,361	$ 93,475	$ 194,505	$ 161,270	$ 521,611

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 December 31,	Year Ended December 31,	Nine Months Ended September 30,
2020	2019	2020	2019	2020	2019
Common stock outstanding	180,830	176,741	179,106	177,774	178,527	178,122
Limited partnership units	- 0	- 0	- 0	- 0	57,972	- 0
Cantor units	- 0	- 0	- 0	- 0	22,807	- 0
Founding partner units	- 0	- 0	- 0	5,583	5,314	5,661
RSUs	- 0	- 0	355	1,290	254	1,231
Newmark exchange shares	- 0	- 0	229	369	231	399
Fully diluted weighted-average share count for GAAP	180,830	176,741	179,690	185,016	265,104	185,413
Adjusted Earnings Adjustments:
Common stock outstanding	- 0	- 0	- 0	- 0	- 0	- 0
Limited partnership units	54,550	57,871	57,112	60,772	- 0	61,750
Cantor units	22,736	22,748	22,789	23,072	- 0	23,182
Founding partner units	5,099	5,354	5,260	- 0	- 0	- 0
RSUs	1,428	1,555	- 0	- 0	- 0	- 0
Other	225	279	- 0	- 0	- 0	- 0
Fully diluted weighted-average share count for Adjusted Earnings	264,868	264,548	264,850	268,860	265,104	270,345

Equity-based Compensation

NEWMARK GROUP, INC.
Equity-based compensation and allocations of net income to limited partnership units and FPUs
(in thousands)
(unaudited)
2020	2019	2018
Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	Q4	YTD
2020	2020	2020	2020	2020	2019	2019	2019	2019	2019	2018	2018	2018	2018	2018
Issuance of common stock and exchangeability expenses	$ 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
Allocation of net income	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
Limited partnership units amortization	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	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
Equity based compensation and allocations of net income to limited partnership units and FPUs	$ 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
Note 1: On November 11, 2019, Newmark revised the Equity-based Compensation tab of the Financial Supplement to include additional historical data. 2Q 2019 was revised due to a reclassification of the individual components of equity-based compensation. "Exchangeability expense" has been renamed "Issuance of common stock and exchangeability expenses."
Note 2: In March 2020, Newmark revised the "Equity-based compensation" caption of the Financial Supplement to stratify "Limited partnership units amortization" and "RSU amortization."

Volumes

Newmark Group, Inc. Quarterly and TTM Volumes
(in $ millions)
2014	2015	2016	Q1 17	Q2 17	Q3 17	Q4 17	2017	Q1 18	Q2 18	Q3 18	Q4 18	2018	Q1 19	Q2 19	Q3 19	Q4 19	2019	Q1 20	Q2 20	Q3 20	Q4 20	2020	Q4 20 vs Q4 19	Change %	YTD Y/Y	Change %
Investment Sales (1)	8,340	19,215	28,306	6,899	8,303	8,329	11,497	- 0	35,028	8,472	8,633	9,965	15,200	42,269	9,710	11,259	13,015	16,691	50,675	13,108	4,744	7,456	22,849	48,157	(2,518)	-5%	8,406	20%
Mortgage Brokerage (2)	907	4,147	6,190	1,222	3,358	2,238	1,969	- 0	8,787	2,521	3,060	3,177	5,268	14,025	3,617	4,879	4,997	7,206	20,699	4,315	1,296	2,045	4,640	12,296	(8,403)	-41%	6,674	48%
Total Capital Markets	9,248	23,363	34,496	8,121	11,660	10,567	13,466	- 0	43,815	10,993	11,693	13,141	20,467	56,294	13,327	16,138	18,012	23,897	71,374	17,423	6,040	9,501	27,489	60,453	(10,921)	-15%	15,080	27%
Fannie Mae	2,138	2,700	4,443	1,272	982	784	830	- 0	3,869	629	1,254	1,435	1,250	4,567	493	887	942	880	3,202	953	955	1,621	1,892	5,421	2,219	69%	(1,365)	-30%
Freddie Mac	1,969	2,004	2,941	560	2,933	600	632	- 0	4,726	899	574	1,274	1,235	3,982	1,426	1,080	2,917	1,300	6,723	690	1,463	1,515	2,024	5,692	(1,031)	-15%	2,741	69%
FHA/Other	123	108	179	21	129	94	19	- 0	264	77	20	- 0	68	165	- 0	12	2	- 0	14	- 0	6	79	107	192	178	1271%	(151)	-92%
Total Origination Volume	4,230	4,812	7,564	1,854	4,045	1,479	1,481	- 0	8,858	1,605	1,849	2,709	2,553	8,715	1,919	1,979	3,861	2,180	9,939	1,643	2,424	3,215	4,023	11,305	1,366	14%	1,225	14%
Total Debt and Capital Markets Volume	13,477	28,175	42,060	9,975	15,705	12,046	14,947	- 0	52,673	12,598	13,542	15,850	23,020	65,010	15,247	18,117	21,873	26,077	81,314	19,066	8,464	12,716	31,512	71,758	(9,556)	-12%	16,305	25%
(1) Includes all equity advisory transactions
(2) Includes all non-originated debt placement transactions