Newmark (NMRK) Q3 2026 Earnings Call Transcript

DATE

Thursday, Oct. 29, 2026

CALL PARTICIPANTS

• Head of Investor Relations - Jason McGruder
• Chief Executive Officer - Barry Gosin
• Chief Financial Officer - Mike Rispoli
• Chief Operating Officer - Lou Alvarado

TAKEAWAYS

• Total Revenues -- $973.2 million, representing a 12.7% increase driven by record results in leasing and recurring management services.
• Management Services, Servicing Fees, and Other -- $376.3 million, up 18.3% reflecting organic growth in outsourcing businesses and six acquisitions completed since last year.
• Leasing and Other Commissions -- $308.6 million, growing 26.5% to its best third quarter ever due to high demand in data centers, artificial intelligence, and healthcare sectors.
• Capital Markets Revenues -- $288.2 million, a 4.4% decline as a 33.4% rise in investment sales volumes was offset by lower origination activity.
• Adjusted EPS -- $0.48, a 14.3% increase compared with $0.42 in the year-earlier period.
• Adjusted EBITDA -- $166.4 million, up 14.6% from $145.2 million in the prior year.
• Revised Full-Year 2026 Revenue Guidance -- $3.7 billion to $3.8 billion, representing 12% to 15% growth, updated to reflect macroeconomic volatility and its impact on deal timing.
• Revised Full-Year 2026 Adjusted EBITDA Guidance -- $629 million to $667 million, a projected increase of 12% to 19%.
• Revised Full-Year 2026 Adjusted EPS Guidance -- $1.80 to $1.90, representing a growth range of 11% to 17%.
• Share Repurchases -- 3.9 million shares for $59.4 million in the third quarter, with total year-to-date repurchases reaching 14.3 million shares for $210.5 million.
• Board Buyback Authorization -- $400 million, reauthorized on Oct. 28, 2026, to support further share repurchases.
• Net Leverage -- 1.0x, with total corporate debt ending the quarter at $877.5 million.
• Trailing 12-Month Adjusted Free Cash Flow -- $336.8 million, a 16% increase reflecting improved cash flow metrics and a reduced focus on employee loans.
• Recurring Revenue Mix -- 40% of year-to-date total revenue, increasing from 24% in 2017 as the company expands its management and servicing business.
• International Revenue Contribution -- 13% of the top line, with management identifying expansion in Berlin, London, and Seoul as key long-term opportunities.
• Employee Loan Issuance -- 36.9% decrease in the first nine months of the year, as the company shifts capital allocation toward M&A.
• Investment Sales Ranking -- second in U.S. investment sales for the first nine months of 2026, up from 10th in 2014.
• GSE Market Share -- gained over 70 basis points of combined Fannie Mae and Freddie Mac market share over the trailing 12 months.
• Total Servicing and Asset Management Portfolio -- 23.2% year-over-year expansion, expected to drive future high-margin revenue growth.
• 2027 Earnings Outlook -- +/- 10% compared with record 2026 results, depending on the volatility of capital markets.

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RISKS

• Gosin stated, "the volatility in the macroeconomic environment creates challenges with regard to the timing and certainty of deal closings," resulting in a downward revision of the 2026 financial outlook.
• Rispoli warned that in a downside scenario involving sustained interest rate volatility, the company could see Capital Markets volumes decline "probably in the 20% to 30% range" during 2027.
• Alvarado noted that leasing growth may face constraints because "vacancy rates at the Class A level are in the single digits across all the major markets," limiting the availability of premium product for tenants.

SUMMARY

Newmark Group, Inc. (NASDAQ:NMRK) reported record third quarter revenues supported by significant gains in leasing and recurring service lines. Management revised its full-year 2026 guidance to reflect the impact of macroeconomic volatility on the timing of capital markets transactions, though the company continues to anticipate its best annual results to date. Strategic priorities remain focused on international expansion and the scaling of management services, which now account for 40% of year-to-date revenue. CEO Barry Gosin announced he will step down at the end of the year, with the board evaluating internal and external candidates to identify a successor by December 31.

• CEO Gosin stated, "Newmark had a simple plan, elevate our brand by recruiting the industry's best talent, provide them with a differentiated platform, build credibility, and earn our way into the rooms where decisions are made."
• The company expects its management and servicing businesses to produce more than $2 billion of annual revenue by 2029, implying sustained double-digit growth.
• Management noted that data center leasing is ramping up, driven by increased demand across technology, artificial intelligence, and manufacturing sectors.
• The company was awarded a long-term assignment by 601W Companies to manage over 21 million square feet of premier U.S. office assets.
• S&P Global Ratings upgraded Newmark's issuer credit rating to 'BBB-' from 'BB+' during the quarter, citing the company's strong financial position.
• CFO Rispoli reported that employee loan issuance has dropped significantly as the company prioritizes M&A for recurring revenue businesses over producer lift-outs.

INDUSTRY GLOSSARY

• GSE: Government-Sponsored Enterprises, specifically Fannie Mae and Freddie Mac, which provide liquidity to the multifamily mortgage market.
• OMSR: Originated Mortgage Servicing Rights, representing the fair value of future cash flows from servicing recognized at the time of a loan commitment.
• Net Leverage: A ratio calculated as total corporate debt minus cash, divided by trailing 12-month Adjusted EBITDA.
• Adjusted EBITDA: A non-GAAP measure that excludes certain non-cash and non-recurring items to evaluate core operating performance.
• MSR Amortization: The non-cash expense associated with the decreasing value of mortgage servicing rights over time.

Full Conference Call Transcript

Operator: Day, and welcome to the Newmark 3Q 2026 public financial results call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jason McGruder, Head of Investor Relations. Please go ahead.

Jason McGruder: Thank you, operator, and good morning. Newmark issued its third quarter 2026 financial results press release earlier today. Unless otherwise stated, the results provided on today's call compare only the three months ending September 30th, 2026, with the year earlier period. Except as otherwise stated, we will only refer to results on a non-GAAP basis, including terms such as adjusted EBITDA, adjusted earnings, and adjusted free cash flow. 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 originations, 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. Please refer to today's press release, the supplemental tables, and the quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results, and when, how, and why management uses them for additional information on our cash flow measures as well as relevant industry or economic statistics. The outlook discussed today excludes the potential impact of any future acquisitions and assumes no meaningful changes in Newmark's stock price compared with yesterday's close.

Our expectations are subject to change based on various macroeconomic, social, political, and other factors. None of our targets or goals beyond 2026 should be considered formal guidance. Also remind you that information in 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. 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 in our most recent SEC filings, which are incorporated by reference. I now have to turn the call over to our host and Chief Executive Officer, Barry Gosin.

Barry Gosin: Good morning. In advance, I'll apologize. I'm a little bit under the weather, but I'm happy to be here. Good morning, and thank you for joining us. With me today are Newmark's Chief Financial Officer, Mike Rispoli, and our Chief Operating Officer, Lou Alvarado. Newmark once again generated strong top and bottom-line improvement, including record third quarter revenues. Our growth was led by management and servicing, which increased 18%, leading to the company's fifth consecutive record quarter for these resilient businesses. We increased Leasing by 26%, resulting in its all-time best third quarter. This was led by higher demand across artificial intelligence, data centers, and other technology sectors, as well as manufacturing, legal services, aerospace, defense, and healthcare.

Our transaction pipelines remain active and robust. We continue to expect double-digit growth in revenues, adjusted EBITDA, and adjusted earnings per share, and anticipating achieving the best annual results for each of these metrics. However, the volatility in the macroeconomic environment creates challenges with regard to the timing and certainty of deal closings, and as a result, we are revising our 2026 outlook. We remain confident that our investments in resilient service lines, ongoing international expansion, the strength of the company's brand, and the continuing collaboration between our industry-leading professionals will together drive Newmark's long-term growth and market share gains. I want to take a moment to talk about our accomplishments over the past 15 years.

Newmark had a simple plan, elevate our brand by recruiting the industry's best talent, provide them with a differentiated platform, build credibility, and earn our way into the rooms where decisions are made. Starting in 2014, we chose to lead with Capital Markets because when you are advising a client on capitalizing the most important asset in portfolios, you are helping key decision-makers fully realize their business plans, and our strategy has worked. Newmark took its share of U.S. commercial and multifamily originations from under 2% then to around 10% now. We also moved up from number 10 in U.S. investment sales in 2014 to number two for the first nine months of 2026.

Our success stemmed from our relentless focus on talent and from our professionals being innovative and entrepreneurial in everything they do. You have seen the same focus in market share gains across all of our businesses, including our recent strong growth in Leasing and Valuation & Advisory. Over the last few years, we have used the sturdy foundation laid by these service lines to build out our growing suite of recurring revenue businesses. As a result, we have successfully driven growth in the following areas: property, project and facility management, loan servicing and asset management, consulting, technology advisory, and lease administration. And most recently, our fast-growing managed services solution for real estate lenders and investors.

That is why recurring businesses increased from 24% of our total revenue in 2017 to around 40% year-to-date. We remain confident that management and servicing will produce more than $2 billion of annual revenue in 2029, which implies double-digit growth. Our next chapter involves additional international growth. Over the coming 18-24 months, we anticipate further expansion of our global footprint across nearly all service lines. Today, we derive approximately 13% of our top line from outside the U.S., while our large full-service peers generate more than double or triple that percentage internationally. We view that gap as an opportunity.

As we expand our geographic footprint, we also make Newmark a more credible alternative to win outsourcing assignments from large global occupiers. This has led to our Occupier Solutions teams competing in more pitches and being awarded more mandates. Over time, our goal is for Newmark to be invited into every room with key decision-makers across nearly all of our service lines globally. Not only in New York and San Francisco, but in Berlin, and London, and Milan, and Paris, and Seoul, and Sydney, and Toronto, and dozens of other major markets around the world. Based on our track record, I would not bet against us.

Before I turn the call over to Mike, I want to briefly address Newmark's leadership. As previously announced, after 47 years, I am stepping down as CEO at the end of this year. I love this company. I will continue to be here to help through the transition. Both internal and external candidates are being evaluated, and we currently still expect to identify a new CEO by the end of the year. I'm confident in Newmark's senior leadership, who collectively have decades of experience. With that, I'm happy to turn the call over to Mike.

Mike Rispoli: Thank you, Barry, and good morning. Total revenues were up 12.7% to an all-time third quarter best of $973.2 million, compared with $863.5 million. We increased Management Services, Servicing Fees, and Other by 18.3%. This was led by robust organic growth from Newmark's expanding suite of outsourcing businesses, as well as strong same-store improvement for Valuation & Advisory. Management services fees also reflect six acquisitions completed since the third quarter of last year. Leasing was up 26.5%. This reflected higher fees from industrial and office across several key West Coast markets and Texas. Capital Markets revenues declined by 4.4% as Newmark's 33.4% rise in investment sales volumes was offset by lower origination activity.

Our investment sales growth was led by senior housing and affordable housing, as well as higher industrial and retail volumes. Our origination business faced a difficult comparison due to the 129.1% rise in our total debt volumes in the third quarter of last year. In addition, GSE industry activity declined by approximately 30% in the third quarter. Over the trailing 12 months, Newmark gained over 70 basis points of combined Fannie Mae and Freddie Mac market share year-on-year. Moving on to expenses. Total expenses were up 13.5%. Without pass-through items, total expenses would have increased 10.8%, with a large majority tied to the increase in commission-based revenues and our global growth initiatives.

Regarding taxes, the company's tax rate for adjusted earnings was 12.9%, compared with 12.1% last year. Turning to earnings. We increased adjusted EPS by 14.3% to $0.48 compared with $0.42. Adjusted EBITDA was $166.4 million, up 14.6%, versus $145.2 million. With respect to share count, our fully diluted weighted average share count was 252.7 million, up 0.4% year-on-year. We repurchased 3.9 million shares for $59.4 million towards the end of the quarter. on October 28, 2026, Newmark's board reauthorized the company's $400 million buyback program. Given our strong financial position and recent share price, we anticipate further share repurchases. Turning to the balance sheet.

We ended the quarter with $240 million of cash and cash equivalents, $877.5 million of total corporate debt, and 1x net leverage. On a trailing 12-month basis, the company increased adjusted free cash flow by 16% to $336.8 million. A key reason we have improved our cash flow metrics has been our increased focus on M&A. In the first nine months of this year, our employee loan issuance dropped 36.9% compared with a year earlier. We expect this trend to continue for the foreseeable future. Turning to guidance. We have revised our outlook due to the challenging macroeconomic environment and its anticipated impact on transaction volumes. Our full-year guidance for 2026 compared with a year earlier is now as follows.

We expect total revenues between $3.7 billion and $3.8 billion, an increase of 12%-15%. We anticipate adjusted EBITDA in the range of $629 million-$667 million, an increase of 12%-19%. We continue to expect our adjusted earnings tax rate to be between 13% and 15% versus 11.4%. And we anticipate adjusted EPS between $1.80 and $1.90, up 11%-17%. These results would be Newmark's best ever full-year revenue, adjusted EBITDA, and adjusted EPS performance. While it is too early to discuss guidance for 2027, we wanted to provide some additional color on how we view the market moving forward. We expect the fundamentals of our recurring businesses to remain strong and continue to expect double-digit growth.

We also expect Leasing volumes to improve, albeit with single-digit gains as compared to this year's strong double-digit improvement. We expect industry Capital Markets volumes to be down through at least the first half of next year, given the recent rise in the level and volatility of rates. Given that market view, there could be a wide range of outcomes in terms of Newmark's 2027 results. Excluding any new acquisitions, we currently believe our 2027 earnings will be ±10% as compared with our record 2026 results. With that, I would now like to open the call for any questions.

Operator: Thank you. If you would like to signal with questions, please press star one on your touchtone telephone. If you are joining us today using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is star one if you would like to signal with questions. The first question will come from Alexander Goldfarb with Piper Sandler.

Alexander Goldfarb: Thank you, and good morning down there. Barry, obviously wishing you the best in, I don't want to say retirement because I know you're going to stay busy and you love the business. But your comment about the firm looking outside and inside, obviously, we've gotten to know a number of the inside folks, but you guys have a particular culture, very competitive, but very collegiate. How does the board think about trying to bring in an outsider who would be new to Newmark versus promoting from within in terms of keeping that robust culture and the tightness intact?

Barry Gosin: We're basically evaluating all those things at the moment. In the next, certainly by 60 days, a choice will be made.

Alexander Goldfarb: Okay. The next question is on the data center front, continues to be a hot topic. As you guys speak with your clients, and we've seen more pushback politically across the country, how is this tangibly manifesting into deal flow? Are you seeing projects being pulled, or is this more about future deals that aren't even near coming to fruition being pulled back? I'm just trying to understand the practical implication on the field versus what all the headlines are.

Barry Gosin: I mean, the fact that the election is next week has some impact on what's happening. The NIMBYism that is occurring around the country, I believe will be temporary. Whether it's community benefit agreements, data centers deploying additional power to the grid in local communities, dealing with creating more jobs. Things are just being pushed. Our pipeline is incredibly robust. The pipeline is there. Obviously, the macro environment is a little confusing, so we're just being conservative about what the certainty is. But nothing has been. Nobody's walked from the table. They've just moved the table.

Alexander Goldfarb: Okay, then finally, Mike, on the free cash flow, you talked about broker loans, I think, or something of that sort, but can you just walk back through ex-settlement, why the adjusted free cash flow declined in the third quarter year-over-year?

Mike Rispoli: Yeah, in the third quarter alone, if you remember last year, we had the settlement which was about $42 million net.

Alexander Goldfarb: Right.

Mike Rispoli: It was a positive impact last year. We are down about 10% if you take that out, and that is really just timing. There is nothing specific going on a trailing 12-month basis. We are up almost 36% free cash flow. And we always look at that metric on an annual basis. So there will be quarters where it might be down a little or might be up a little. But when you look at it on a trailing 12 basis, it is performing better than our earnings performance.

Alexander Goldfarb: Okay. Thank you, Mike. Thank you, Barry.

Operator: Our next question will come from Jade Rahmani with KBW.

Jade Rahmani: Thank you very much. Just wanted to ask about the 2027 comments. What scenarios would push earnings to be down 10%? Because you've got 40% of the Business Management Services and about 30% Leasing. That's the preponderance of it. Capital Markets could be down, you said in the first half, but maybe it stabilizes and then grows in the second half. I guess, are we in a much worse scenario that gets earnings to be down by that magnitude?

Mike Rispoli: Sure, Jade. It's all about the Capital Markets business because as you rightly noted, the Management business, the Servicing business, that will continue to grow double-digits. The Leasing business we think will grow. It'll just grow at a little bit of a slower pace than this year. It's really all about Capital Markets. So a downside scenario would be a sustained interest rate, volatile environment, continued increase in the 10-year treasury, and volatility in that rate that sustains through the balance of next year. That could drive Capital Markets down probably in the 20%-30% range. That's a downside scenario.

An upside scenario is there's some pain in the first half of the year and things get better in the second half. As you know, the fourth quarter is usually the largest Capital Markets quarter. If things improve in the second half of the year, we could perform towards the higher end of our range.

Jade Rahmani: Wow, down 20%-30%. That seems quite stark when you look at office has gone through a multi-year cycle and fundamentals are improving. Industrial is seeing a secondary use case with data center storage of all the components and advanced manufacturing. Retail doing quite well, hospitality as well. So multi-family seems to be the main challenge, about 35% of the market. So I think your Capital Markets comments seem a bit severe.

Mike Rispoli: Again, we gave a pretty wide range because I think there's a pretty wide range of outcomes that could happen in the market. The base case is that things get better and we have a pretty good year next year.

Jade Rahmani: Great. Thanks so much for taking the questions and good luck to you, Barry. Hope to still be in touch with you and hope you feel better as well.

Operator: The next question will come from Julien Blouin with Goldman Sachs.

Julien Blouin: Thank you for taking my question. I wanted to go back to the Capital Markets comment. I guess, what are you seeing on the ground so far in October that sort of maybe informs this view of sort of a wide range of potential outcomes, certainly to the downside. Are you seeing real signs of pause in activity levels? Because I do feel like we have heard sort of differing takes across your peer set in terms of how much of an impact we should expect.

Lou Alvarado: Julien, this is Lou. Look, we definitely saw deals taking longer to close. I think when rates moved up another 50 basis points and the 10-year went up, it gives people either an opportunity to retrade deals or to wonder whether they should go to the market. We do believe that, and we will continue to advise our clients that I think we are living in the rate level that it is going to be, and therefore, this is as good a time as anything if you are going to go to the market, to go to the market. But definitely, the spike in rates has also had a spike on cap rates, right?

Which then also on top of everything, the values go down. So that is primarily where we are looking at. We are looking at probably a little slower first and second quarter, depending on how the elections go and how the rates go. And then also, that continued pressure on cap rates because everybody is looking now on even the lenders on, hey, what is the exit cap rate going to be if I make this loan, right? So those are really is what is driving a lot of the decision making.

Julien Blouin: Thank you. That makes sense. As we enter sort of a more choppy period potentially for Capital Markets, does that change at all how you are thinking about reinvesting into the business? If not, how should we think about the potential for decremental margins sort of on the way down if we do sort of hit more severe scenarios in Capital Markets?

Lou Alvarado: Look, I don't think it changes how we invest in the business. We've said that we're going to continue to invest in growing our Management Services, which work hand-in-hand, frankly, with Capital Markets and Leasing, right? It's primarily about driving that cross-selling of the services that we provide and driving our platform that way. As we drive that business more, that margin improves significantly because we've spent a fair amount of money, so there's some fixed costs related to that business that as we continue to grow the revenue, we'll further enhance the margin. Capital Markets is not going away. It'll still be a driver and it'll still be a way of how we get in front of folks.

Leasing will continue to help drive the cross-selling of our Management Services platform, whether it be facilities, Lease Administration, workplace and so forth. I'm not really as concerned about that overall for the plan, and I'm not really worried that we're going to change our investment. We're going to continue to invest, we're going to continue to grow the platform, we're going to continue to grow globally. I think we're in a really good path, and sometimes these things create tremendous opportunities for us to invest and grow the business.

Julien Blouin: All right, great. Thank you, Lou. Feel better, Barry.

Barry Gosin: Thank you.

Operator: We will take a question from Brendan Lynch with Barclays.

Annabelle Ayer: Hi, thank you for taking the question. This is Annabelle on for Brendan. Thank you for your commentary on Leasing expectations for 2027. How do you think about the contribution from different sub-sectors as availability in office and industrial start to tighten, but you start winning more data center leasing deals?

Lou Alvarado: Yeah, I think we have been doing more data center leasing deals. I still think there is a lot of running room still for powered land and so forth. As far as Leasing, we have been driving our Leasing and it is continuing to grow, and that has also helped grow our Management Services, Servicing Fees, and Other, right? The support that goes with it. The challenge for Leasing, frankly, is going to be that the demand is still at the Class A level, and the vacancy rates at the Class A level are in the single digits across all the major markets.

So it is really more of a, "Hey, where is the product that we can put people in?" There is certainly a lot more investment going in and taking B buildings to A level so that they can become an attractive option for tenants. But that is really where we see the potential slowdown. Not slowdown, but just bump in the Leasing and why we think it will not grow as fast as it has in the past.

Annabelle Ayer: Okay, great. Can you just quantify how much data centers contributed to the Leasing volume in the third quarter, given that they can be a bit lumpy?

Lou Alvarado: Yeah. Yeah, we had some nice data center leases in the quarter. That part of the business for us seems to be ramping up. We haven't put any specific numbers around it at this point.

Annabelle Ayer: Okay, great. Thank you.

Operator: The next question will come from Patrick O'Shaughnessy with Raymond James.

Patrick O'Shaughnessy: Hey, good morning. How would you compare the current market impact from the move higher in interest rates versus what the industry saw in 2022?

Barry Gosin: Yeah, I think in 2022, everybody was saying stay alive till 2025, right? I think today we're looking at a market where this is what it's going to be, and yeah, they'll move 50 basis points here and there. But unless you have a really well-leased building that's got long term and you want to hold, I think everybody's going to have to play in this arena. It's just getting the price discovery between where the sellers and the buyers are to kind of meet, right? It's very different than it was in 2023.

Patrick O'Shaughnessy: Got it. That's helpful. Thank you. Can you remind us why the capital allocation philosophy has kind of shifted away from hiring and lift-outs and towards M&A?

Mike Rispoli: Sure. We probably started talking about this 18-24 months ago. The main reason is we spent a lot of time building out our U.S. platform in particular and filling a lot of the major gaps that we had, particularly on the Capital Markets side. When we got to the end of that, and we're never completely done, but when we got towards the end of that and we had enough talent to execute business in all major asset classes, we shifted more towards M&A. M&A mainly has been in the recurring revenue businesses.

As we mentioned, we've acquired six companies in the past almost year, and all of them, I believe, have been in the Management Services, Servicing Fees, and Other business.

Barry Gosin: Yeah. Mm-hmm.

Mike Rispoli: That shift started. It doesn't mean we're not hiring talent. It just means that the majority of our capital will go towards M&A and the recurring businesses.

Patrick O'Shaughnessy: All right. Thank you very much.

Operator: Once again, if you would like to signal with questions, please press star one. Again, that is star one for questions. Our next question comes from Mitch Germain with Citizens Bank.

Mitch Germain: Thank you, guys. I am curious, I think, Mike, you might have mentioned the GSEs seeing a reduction there. Do you expect a bit of a pickup in 4Q? I know that there are certain levels that they have each year, so I am curious how you think that plays out.

Mike Rispoli: Yeah, we are not seeing that. It is interesting, if you look at our volumes in multi-family debt in particular, our volumes overall were up. It is just that the activity shifted from GSE to non-GSE debt. So I do not really see the GSEs getting to their caps this year. The market seems to continue to be a little bit down in the fourth quarter. We will see what happens next year. I know they have a mandate to push more volumes through the GSEs, so hopefully that will pick up as we move into 2027.

Mitch Germain: Great. Obviously, you have got this dynamic playing out within the investment sales market given what is happening in the interest rate environment. I am curious, when you look at some of the M&A deals that you guys are in the midst of negotiating, does this sort of backdrop create an opportunity, or does it create a repricing and maybe delay deals there as well?

Barry Gosin: We are incredibly ensconced in the large institutional size portfolios, M&A, and deals. That is probably one of the reason. Some of those deals just take longer, and in a volatile time, they are going, they continue to go forward. That side of the business is a little lumpy, but it is hard exactly to predict when they close, but nothing has left the field.

Mitch Germain: Thank you.

Operator: Thank you. That does conclude the question-and-answer session. I will now turn the conference back over to Barry Gosin, CEO.

Barry Gosin: Thank you for joining us. I really look forward to seeing all of you next quarter.

Operator: Thank you. That does conclude today's conference. We do thank you for your participation, and have an excellent day.

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