Newmark Group, Inc. NMRK Allowance for Doubtful Accounts Receivable (Current)

Newmark has accrued commissions receivable from real estate brokerage transactions, Management Services and other receivables from contractual management assignments. Receivables are presented net of the CECL allowance as discussed above and are included in “Receivables, net” on the accompanying unaudited condensed consolidated balance sheets. For its CECL reserve, Newmark segregated its receivables into certain pools based on similar risk characteristics and further defined a range of potential loss rates for each pool based on aging. Newmark designed its methodology to allow for a range of loss rates in each pool such that changes in forward-looking conditions can be incorporated into the estimate. Each pool is assigned a loss rate that incorporates management’s view of current conditions and forward-looking conditions that inform the level of expected credit losses in each pool. The credit loss estimate includes specifically identified amounts for which payment has become unlikely. During the three and six months ended June 30, 2026, there was an increase (decrease) in the CECL related provision of $(1.4) million and $(1.5) million, respectively. During the three and six months ended June 30, 2025, there was an increase (decrease) in the CECL related provision of $1.2 million and $(0.8) million, respectively. The balance of the reserve was $5.9 million and $7.4 million as of June 30, 2026 and December 31, 2025, respectively, and is included in “Receivables, net” on the accompanying unaudited condensed consolidated balance sheets.