뉴마크(NMRK) 2026년 3분기 실적 발표 컨퍼런스 콜: 사상 최대 매출, 전망치 수정

주요 내용

• 뉴마크 그룹(NMRK)이 3분기 매출 9억 7,320만 달러를 기록해 전년 동기 대비 12.7% 증가하며 역대 최고치를 달성했다고 발표했다. 조정 EBITDA는 1억 6,640만 달러로 14.6% 증가했으며, 조정 EPS는 0.48달러로 14.3% 상승했다.
• 자산관리 서비스, 서비싱 및 기타 매출은 18.3% 성장해 5분기 연속 역대 최대 분기 실적을 경신했다. 임대 매출은 26.5% 증가하며 역대 3분기 기준 최고치를 기록했다.
• 자본시장 매출은 4.4% 감소했다. 투자 매각 규모가 33.4% 증가했지만, 대출 실행 감소와 3분기 정부지원기업(GSE) 관련 업계 활동이 약 30% 위축되면서 상쇄되었다.
• 뉴마크는 거시경제적 변동성과 거래 종결 관련 불확실성을 이유로 2026년 전망치를 수정했다. 현재 매출은 37억~38억 달러, 조정 EPS는 1.80~1.90달러로 예상된다.
• 경영진은 경상적 사업 부문이 2027년에도 두 자릿수 성장을 유지할 것으로 예상하지만, 자본시장 활동은 적어도 상반기까지 약세를 보일 수 있다고 밝혔다. 신규 인수를 제외한 2027년 예비 실적은 2026년 실적 대비 ±10% 범위 내에 있을 수 있다.
• 배리 고신 CEO는 2026년 말 퇴임할 예정이다. 뉴마크는 내부 및 외부 후보를 검토 중이며 올해 말까지 후임자를 확정할 것으로 기대하고 있다.

주요 재무 데이터

뉴마크는 분기 말 5,940만 달러에 자사주 390만 주를 매입했다. 2026년 10월 28일 이사회는 4억 달러 규모의 자사주 매입 프로그램을 재승인했으며, 경영진은 추가 자사주 매입을 예상한다고 밝혔다.

사업 및 영업 실적

자산관리 서비스, 서비싱 및 기타 매출이 주요 성장 동력이었다. 18.3%의 증가는 뉴마크 아웃소싱 사업 전반의 자체적인 확장, 가치평가 및 자문 부문의 동일 점포 기준 매출 증가, 그리고 2025년 3분기 이후 완료된 6건의 인수 합병 기여를 반영한다.

경상적 사업은 연초 대비 매출의 약 40%를 차지하며 2017년의 24%에서 상승했다. 경영진은 자산관리 및 서비싱 부문이 2029년까지 연간 20억 달러 이상의 매출을 창출해 두 자릿수 성장을 이어갈 수 있을 것으로 자신하고 있다.

주요 서부 연안 시장과 텍사스의 산업용 및 오피스 거래 활성화에 힘입어 임대 매출은 26.5% 증가했다. 수요는 인공지능, 데이터 센터, 기술, 제조업, 법률 서비스, 항공우주, 방위산업 및 의료 분야 고객으로부터 발생했다. 경영진은 2026년의 강력한 확장에 이어 2027년에도 임대 매출이 계속 성장하겠지만, 성장률은 한 자릿수에 머물 것으로 예상한다.

투자 매각 규모가 33.4% 증가했음에도 불구하고 자본시장 매출은 4.4% 감소했다. 시니어 하우징, 서민 주택, 산업용 및 리테일 자산이 투자 매각 성장에 기여했으나, 2025년 3분기 총부채 규모가 129.1% 급증했던 데 따른 기저효과로 대출 실행 실적은 역성장을 겪었다.

뉴마크는 최근 12개월 동안 패니메이(Fannie Mae) 및 프레디맥(Freddie Mac) 합산 점유율이 70bp 이상 증가했다고 밝혔다. 그러나 경영진은 GSE 활동이 2026년에 연간 한도에 도달하지 못할 것으로 예상하며, 4분기 시황 역시 약세를 유지했다고 덧붙였다.

해외 매출은 현재 뉴마크 전체 매출의 약 13%를 차지한다. 경영진은 향후 18~24개월에 걸쳐 거의 모든 서비스 분야로 확장하여 더 많은 글로벌 임차인 및 아웃소싱 위탁 계약을 수주하는 것을 목표로 하고 있다.

경영진 가이던스

경영진은 이 수정 범위가 여전히 뉴마크 역대 최고 연간 매출, 조정 EBITDA 및 조정 EPS 실적에 해당할 것이라고 밝혔다. 이 전망치는 향후 인수 건을 제외하며 2026년 10월 28일 종가 기준 뉴마크 주가에 유의미한 변화가 없음을 전제로 한다.

회사는 공식 2027년 가이던스를 발표하지 않았다. 예비 견해에 따르면 경상적 사업은 두 자릿수 성장을 유지하고, 임대 부문은 한 자릿수 이익 증가를 기록할 것으로 예상된다. 신규 인수를 제외할 경우 경영진은 현재 2027년 이익이 2026년 최고 실적 대비 ±10% 범위 내에 있을 것으로 보고 있다.

위험 요소 및 관전 포인트

• 경영진은 거래 시점 및 완결성에 대한 불확실성을 강조하며 2026년 전망을 수정한 주요 원인으로 거시경제적 변동성을 꼽았다.
• 금리 상승과 변동성 확대는 거래 종결을 지연시키고 가격 재협상을 유발하며 환산수익률(캡레이트) 상승 압력을 가해 자산 가치를 하락시킬 수 있다.
• 뉴마크는 업계 자본시장 거래량이 적어도 2027년 상반기까지 압박을 받을 것으로 예상한다.
• 경영진의 하방 시나리오에 따르면 금리 변동성의 지속과 미국 10년물 국채 금리의 추가 상승으로 인해 2027년 자본시장 활동이 20%에서 30% 감소할 수 있다.
• 경영진에 따르면 주요 시장에서 프라임(Class A) 오피스 공실률은 이미 한 자릿수에 불과하며, 이는 임차 수요가 견조하더라도 임대 매출 성장을 제약할 수 있다.
• 데이터 센터 프로젝트는 지역사회의 반대와 정치적 불확실성에 직면해 있으나, 경영진은 고객사들이 프로젝트를 취소하기보다는 연기한 것이며 파이프라인은 여전히 견조하다고 설명했다.

애널리스트 Q&A 주요 내용

자본시장 전망: 최근의 금리 인상이 거래 기간을 연장시키고 매수자나 매도자가 거래 가격을 재조정할 기회를 만들었다고 경영진은 설명했습니다. 기본 시나리오는 여건 개선을 가정하지만, 하방 시나리오는 2027년까지 지속적인 금리 변동성을 반영합니다.

데이터 센터: 뉴마크는 데이터 센터 임대 활동 증가와 전력 공급 부지에 대한 지속적인 수요를 보고했습니다. 경영진은 3분기 기여도를 구체적 수치로 밝히지는 않았으나 데이터 센터 사업이 본격화되고 있다고 밝혔습니다.

투자 전략: 뉴마크는 자본시장 환경 약화 가능성에도 불구하고 자산관리 서비스, 해외 확장 및 교차 판매에 대한 투자를 지속할 계획입니다. 경영진은 기존 고정비 대비 매출이 확대됨에 따라 자산관리 서비스의 마진이 개선될 것으로 기대하고 있습니다.

자본 배분: 회사는 미국 자본시장 플랫폼의 대부분을 구축한 후 인수 합병, 특히 경상 매출이 발생하는 자산관리 및 서비싱 사업에 더 많은 자본을 배분했습니다. 2026년 첫 9개월 동안 직원 대출 실행은 36.9% 감소했습니다.

잉여현금흐름: 전년 동기의 약 4,200만 달러 규모 합의금 수혜를 제외하면, 3분기 조정 잉여현금흐름은 시기적 요인으로 인해 약 10% 감소했습니다. 경영진은 최근 12개월 실적이 더욱 견조하다는 점을 강조했습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good 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

Operator, 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 3 months ended September 30, 2026, with the earlier period. Except as otherwise stated, we will only refer to results on a non-GAAP basis, including terms of 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 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. Except as required by law, we undertake no obligation to update any forward-looking statements.

For a 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 required regarding forward-looking information in our most recent SEC filings, which are incorporated by reference.

I'm now happy 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, Luis 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 health care.

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 and 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 #10 in U.S. investment sales in 2014 to #2 for the first 9 months of 2026.

Our success stems from our relentless focus on talent and from our professionals being innovative and entrepreneurial in everything they do. You have seen the same focus and market share gains across all of our businesses, including our recent strong growth in leasing and valuation and advisory. Over the last few years, we have used the sturdy foundation laid by these service lines to build out a 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 to 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 have 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 -- our new CEO by the end of the year. I'm confident in Newmark's senior leadership who collectively have decades of experience.

And with that, I'm happy to turn the call over to Mike.

Michael 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 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 and advisory. Management services fees also reflect 6 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 9 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% to 15%. We anticipate Adjusted EBITDA in the range of $629 million to $667 million, an increase of 12% to 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% to 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 plus or minus 10% as compared with our record 2026 results.

With that, I would now like to open the call for any questions.

Operator

[Operator Instructions] And the first question will come from Alexander Goldfarb with Piper Sandler.

질의응답

Alexander Goldfarb

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. And in the next certainly by 60 days, choice will be made.

Alexander Goldfarb

Okay. The next question is on the data center front, it 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 development agreements, data centers deploying additional power to the grid in local communities, dealing with creating more jobs. I mean, things are just being pushed.

Our pipeline is incredibly robust. I mean the pipeline is there. We -- obviously, we -- the macro environment is a little confusing. So we're just being conservative about what the certainty is. But nothing has been -- nobody has walked from the table. They've just moved the table.

Alexander Goldfarb

Okay. And then finally, Mike, on the free cash flow, I may have -- 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?

Michael Rispoli

Yes. In the third quarter alone, the -- if you remember last year, we had the settlement, which is about $42 million that was a positive impact last year. We're down about 10% if you take that out, and that's really just timing. There's nothing specific going on, on a trailing 12-month basis. We're up almost 36% free cash flow, and we always look at that metric on an annual basis. So there'll be quarters where it might be down a little or it might be up a little. But when you look at it on a trailing 12 basis, it's performing better than our earnings performance.

Operator

And our next question will come from Jade Rahmani with KBW.

Jade Rahmani

Just wanted to ask about the 2027 comments. I mean, what scenarios would push earnings to be down 10% because you've got 40% of the business management services and about 30% leasing. So that's the preponderance of it. And capital markets could be down, you said in the first half, but maybe it stabilizes and then grows in the second half. So I guess what's the -- are we in a much worse scenario that gets earnings to be down by that magnitude?

Michael Rispoli

Sure, Jade. It's all about the capital markets business because as you rightfully noted, we have a management business, the servicing business that will continue to grow double digits. The leasing business, we think will be -- will grow, it will just grow at a little bit of a slower pace than this year. And 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 treasuries and volatility in that rate that sustains through the balance of next year, that could drive capital markets down probably in the 20% to 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, fourth quarter is usually the largest capital markets quarter. So 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% to 30%, that seems quite stark when you look at office has gone through a multiyear cycle and fundamentals are improving. Industrial is seeing a secondary use case with data center storage of all the components, advanced manufacturing, retail doing quite well, hospitality as well. So multifamily seems to be the main challenge, about 35% of the market. So I think your capital markets comments seem a bit severe.

Michael Rispoli

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

Jade Rahmani

Good luck to you, Barry. Hope to still be in touch, too.

Operator

And the next question will come from Julien Blouin with Goldman Sachs.

Julien Blouin

Yes, 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've heard sort of differing takes across your peer set in terms of how much of an impact we should expect?

Lou Alvarado

Yes, Julien, this is Lou. Look, we definitely saw deals taking longer to close. I think when -- there are attack -- 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'll continue to advise our clients that I think we're living in the rate level that it's going to be, and therefore, this is a good -- is as good a time as anything if you're 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's primarily where we're looking at. We're 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's the exit cap rate going to be if I make this loan, right? So those are really what's driving a lot of the decision making.

Julien Blouin

That makes sense. And as we enter sort of a more choppy period potentially for capital markets, does that change at all how you're thinking about reinvesting into the business? And 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

Yes. I mean, look, I don't think it changes our -- how we invest in the business. We've said that we're going to continue to invest in growing our managed 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. As we drive that business more, that margin improved significantly because there's -- 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 will further enhance the margin. Capital markets is not going away. It will still be a driver, and there will still be a way of how we get in front of the folks. And leasing will continue to help drive the cross-selling of our managed service platform, whether it be facilities, lease admin, workplace and so forth.

So 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. And 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. Feel better, Barry.

Barry Gosin

Thank you.

Operator

And we'll take a question from Brendan Lynch with Barclays.

Annabelle Ayer

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 subsectors as availability in office and industrial start to tighten, but you start winning more data center leasing deals?

Lou Alvarado

Yes. I mean I think we have been doing more data center leasing deals. I still think there's a lot of running room still for powered land and so forth. As far as leasing, we've been driving our leasing has continued to grow, and that's also helped grow our managed services, 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's really more of a, where is the product that we can put people in. There's 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's really where we see the potential slowdown, not slowdown, but just bump in the leasing and why we think it won't grow as fast as it has in the past.

Annabelle Ayer

Okay. Great. And then 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?

Michael Rispoli

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

Operator

And the next question will come from Patrick O'Shaughnessy with Raymond James.

Patrick O'Shaughnessy

How would you compare kind of the current market impact from the move higher in interest rates versus what the industry saw in 2022?

Lou Alvarado

Yes. I mean I think in 2022, everybody was saying stay alive until '25, I think today, we're looking at a market where this is what it's going to be, here it move 50 basis points here and there, but there's no -- unless you have a really well-leased building that's got long-term and you want to hold, I think everybody is 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? So there's -- it's very different than it was in '23.

Patrick O'Shaughnessy

Got it. That's helpful. And then can you remind us why the capital allocation philosophy has kind of shifted away from hiring and lift-outs and towards M&A?

Michael Rispoli

Sure. We probably started talking about this 18 to 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 on the capital market 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 and M&A mainly has been in the recurring revenue businesses.

As we mentioned, we've acquired 6 companies in the past almost year, and all of them, I believe, have been in the management and servicing business. So 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.

Operator

[Operator Instructions] Our next question comes from Mitch Germain with Citizens Bank.

Mitch Germain

I'm curious, I think, Mike, you might have mentioned that GSE has seen 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'm curious how you think that plays out.

Michael Rispoli

Yes, we're not seeing that. It's interesting. If you look at our volumes in multifamily debt, in particular, our volumes overall were up. It's just that the activity shifted from GSE to non-GSE debt. So I don't really see the GSEs getting to their caps this year. And the market seems to be -- continue to be a little bit down in the fourth quarter. We'll see what happens next year. I know they have a mandate to push more volumes through the GSEs. But hopefully, that will pick up as we move into '27.

Mitch Germain

Great. And obviously, you've got this dynamic playing out in -- within the investment sales market, given what's happened in the interest rate environment. But I'm curious, like, 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

I mean, we are incredibly ensconced in the large institutional size portfolios, M&A and deals. And that's probably one of the -- some of those deals just take longer. And in a volatile time, they're not -- they're going. They continue to go forward. And that side of the business is a little lumpy, but it's hard exactly to predict when they close. And -- but nothing has left the field.

Operator

Thank you. And that does conclude the question-and-answer session. I'll now turn the conference back over to Barry Gosin, CEO.

Barry Gosin

So thank you for joining us, and 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.