CBRE GROUP, INC.
For the period ended Sep 30, 2025. Filed Oct 23, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 23, 2025
CBRE$135.51-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001138118-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-23.
0001138118-25-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 216 previous paragraphs and 233 current paragraphs.
132 unchanged; 75 reworded; 25 added; 9 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
Current report
Pass-through costs increased 13.3% during the quarter as compared to the same period in 2024 primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a 1.8% negative impact on pass-through costs.
Current report
We recorded equity income from unconsolidated subsidiaries of approximately $53 million, compared to equity loss of $4 million in the third quarter 2024, primarily due to positive co-investment returns and sales in the current quarter.
Current report
Foreign currency translation had a 0.4% positive impact on total revenue during the nine months ended September 30, 2025, primarily driven by strength in the British pound sterling and euro, partially offset by weakness in the Canadian dollar, Australian dollar, Indian rupee and Mexican peso.
Current report
Pass-through costs increased 13.8% during the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a 0.4% negative impact on pass-through costs.
Current report
Gain on disposition of real estate increased by $43 million during the nine months ended September 30, 2025, driven by monetization of real estate development assets in the REI segment.
Current report
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
Current report
Foreign currency translation had a 1.0% positive impact on total revenue during the quarter, primarily driven by strength in the euro and British pound sterling partially offset by weakness in the Australian dollar and Indian rupee.
Current report
Revenue increased 15.0% for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Property sales revenue increased 20.8%, led by office, industrial, land and data centers in the U.S., APAC and Europe. Global leasing revenue rose 16.2%, led by data centers, office and industrial leasing driven by Americas which grew 17.8%, including 18.1% in the United States and the United Kingdom, which grew 15.3%.
Current report
Foreign currency translation had a 0.1% positive impact on total revenue during the nine months ended September 30, 2025, primarily driven by strength in the British pound sterling and euro, partially offset by weakness in the Australian dollar and Canadian dollar.
Current report
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
Current report
(3)In the third quarter of 2025, management made the decision to wind down certain businesses within the BOE Segment.
Current report
Pass-through costs increased 10.0% during the quarter as compared to the same period in 2024 primarily due to revenue growth in the BOE segment. Foreign currency translation had a 1.9% negative impact on pass-through costs.
Current report
Operating, administrative and other expenses increased 23.4%, primarily due to higher employee compensation and benefit expenses and an increase in bad debt expense. Foreign currency translation had a 2.1% negative impact on total operating expenses during the quarter.
Current report
Pass-through costs increased 12.7% during the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to revenue growth in the BOE segment. Foreign currency translation had a 0.4% negative impact on pass-through costs.
Current report
Cost of revenue, excluding pass-through costs increased 18.0%, driven by higher professional compensation and indirect managed spend, due to revenue growth, as well as an increase driven by acquisitions. Foreign currency translation had a 0.4% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs was 36.0% of total revenue, an increase from 35.1% for the nine months ended September 30, 2024.
Current report
Operating, administrative and other expenses increased 11.1%, primarily due to higher employee compensation and benefit expenses and an increase in bad debt, business promotion, advertising and travel expenses. Foreign currency translation had a 0.6% negative impact on total operating expenses during the nine months ended September 30, 2025.
Current report
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
Current report
Revenue increased 20.4% due to strong business activity in the United Kingdom, the Middle East and North America and increased revenue from pass-through costs. Foreign currency translation had a 1.9% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling and euro.
Current report
Pass-through costs increased 24.1% during the quarter as compared to the same period in 2024 primarily due to revenue growth in the Project Management segment. Foreign currency translation had a 1.5% negative impact on pass-through costs.
Current report
Depreciation and amortization expense increased 7.7%, reflecting higher depreciation expense.
Current report
Pass-through costs increased 17.7% during the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to revenue growth in the Project Management segment. Foreign currency translation had a 0.3% negative impact on pass-through costs.
Current report
We recorded equity income from unconsolidated subsidiaries of approximately $49 million versus equity income of $14 million in the third quarter 2024, primarily due to positive co-investment returns and sales in the current quarter.
Current report
We recorded equity income from unconsolidated subsidiaries of approximately $40 million versus equity income of $29 million during the same period in 2024, primarily due to positive co-investment returns and sales in the current quarter.
Current report
•provision associated with Telford’s fire safety remediation efforts.
Removed paragraphs (9)
Previous report
Foreign currency translation had a 0.4% negative impact on total revenue during the six months ended June 30, 2025, primarily driven by weakness in the Canadian dollar and Mexican peso, partially offset by strength in the British pound sterling.
Previous report
Gain on disposition of real estate increased by $6 million during the six months ended June 30, 2025, driven by monetization of real estate development assets in the REI segment.
Previous report
Revenue increased 14.0% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Global leasing revenue rose 15.5%, driven by Americas which grew 17.0%, including 18.2% in the United States and the United Kingdom, which grew 22.1%. Property sales revenue increased 15.5%. Foreign currency translation had a 0.4% negative impact on total revenue during the six months ended June 30, 2025, primarily driven by weakness in the Canadian dollar and Australian dollar, partially offset by strength in the British pound sterling.
Previous report
Operating, administrative and other expenses increased 8.0%, primarily due to an increase in bad debt expense. Foreign currency translation had a 1.3% negative impact on total operating expenses during the quarter.
Previous report
Cost of revenue increased 16.1%, driven by higher pass-through costs. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue was 90.3% of total revenue, a slight decrease from 90.5% for the six months ended June 30, 2024.
Previous report
Operating, administrative and other expenses increased 5.1%, primarily due to increase in bad debt expense, higher business promotion, advertising and travel expenses partially offset by lower acquisition and transaction related costs. Foreign currency translation had a 0.2% positive impact on total operating expenses during the six months ended June 30, 2025.
Previous report
Depreciation and amortization expense increased 28.4%, reflecting higher amortization expense related to intangibles from recent acquisitions such as Industrious.
Previous report
Revenue increased 14.3% due to continued strong performance from the legacy Turner & Townsend business. Foreign currency translation had a 1.4% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling.
Previous report
Adjusted net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients and is passed through to the client generally with no margin. Segment operating profit on revenue margin is computed by dividing segment operating profit by revenue and provides a comparable profitability measure against our peers. Segment operating profit on adjusted net revenue margin is computed by dividing segment operating profit by adjusted net revenue and is a better indicator of the segment’s margin since it does not include the diluting effect of pass-through revenue which generally has no margin.
Reworded paragraphs (75)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the three and six months ended June 30, 2025 should be read in conjunction with our consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K (2024 Annual Report) as well as the unaudited financial statements included elsewhere in this Quarterly Report.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the three and nine months ended September 30, 2025 should be read in conjunction with our consolidated financial statements and related notes included in our 2024 Annual Report on Form 10-K (2024 Annual Report) as well as the unaudited financial statements included elsewhere in this Quarterly Report.
Previous wording
The operating environment for commercial real estate continued to recover in the first half of 2025. This was evident in notably strong occupier demand for office space in most parts of the world, particularly in the U.S. Real estate sales and financing activity also continued to rebound strongly. Demand for facilities and project management services remained underpinned by large occupiers’ growing appetite for outsourcing real estate services. Concerns over rapidly changing U.S. trade policy and higher tariffs have not yet materially affected real estate transaction activity. However, we continue to monitor their potential impacts on investor and occupier sentiment as well as capital deployment and real estate occupancy decisions.
Current wording
The operating environment for commercial real estate has improved considerably in 2025. This is evident in notably strong occupier demand for office, data center and industrial leases, particularly in the U.S., as well as increased real estate sales activity. Large occupiers’ growing appetite for outsourcing services underpins demand for facilities management and project management work. We continue to monitor the potential impact of U.S. trade policy, including higher tariffs, but to date, have not seen a material effect on capital deployment or real estate occupancy decisions.
Previous wording
We repurchased approximately $256 million worth of shares in the second quarter and $663 million through June 30, 2025, while maintaining substantial liquidity to finance future growth.
Current wording
We did not repurchase any shares during the third quarter of 2025. We repurchased approximately $663 million worth of shares through the nine months ended September 30, 2025, while maintaining substantial liquidity to finance future growth.
Previous wording
The following table sets forth items derived from our consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Current wording
The following table sets forth items derived from our consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024 (dollars in millions):
Previous wording
We reported consolidated net income of $215 million for the quarter, on revenue of $9.8 billion as compared to consolidated net income of $130 million on revenue of $8.4 billion in the prior year.
Current wording
We reported consolidated net income of $363 million for the quarter, on revenue of $10.3 billion as compared to consolidated net income of $225 million on revenue of $9.0 billion in the prior year.
Previous wording
The revenue increase of 16.2% reflected growth in leasing activity, particularly for office space, commercial mortgage origination and property sales in the Advisory segment and continued growth in the Business Operations & Experience (BOE) segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased driven by continued strong performance from the legacy Turner & Townsend business. Revenue decreased in the Real Estate Investments (REI) segment, driven by lower carried interest.
Current wording
The revenue increase of 13.5% reflected growth in leasing activity, particularly for office space, industrial and data centers, along with increased revenue from commercial mortgage origination and property sales inthe Advisory segment and continued growth in the Business Operations & Experience (BOE) segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased, driven by strength in the United Kingdom, the Middle East and North America. Revenue decreased in the Real Estate Investments (REI) segment, driven by incentive fees recognized in the prior year quarter.
Previous wording
Foreign currency translation had a 1.1% positive impact on revenue, reflecting strength in the British pound sterling and the euro partially offset by the Mexican peso.
Current wording
Foreign currency translation had a 1.7% positive impact on revenue, reflecting strength in the euro and British pound sterling partially offset by weakness in the Indian rupee.
Previous wording
Cost of revenue increased 16.9% during the quarter as compared to the same period in 2024 primarily due to revenue growth consisting of higher pass-through costs, higher commission expense, and higher indirect reimbursed costs. Foreign currency translation had a 1.1% negative impact on total cost of revenue. Cost of revenue increased slightly to 81.4% of total revenue from 81.0% driven by higher costs to support growth in revenues.
Current wording
Cost of revenue, excluding pass-through costs increased 15.8% during the quarter as compared to the same period in 2024 primarily due to revenue growth consisting of higher commission expense and employee compensation, as well as higher indirect reimbursed costs. Foreign currency translation had a 1.6% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs increased slightly to 39.9% of total revenue from 39.1% driven by higher costs to support growth in revenues.
Previous wording
Operating, administrative and other expenses increased 7.1% during the quarter as compared to the same period in 2024. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in bad debt expense. Foreign currency translation had a 1.2% negative impact on total operating expenses during the quarter. Operating expenses as a percentage of revenue decreased to 13.1% in the second quarter 2025 from 14.2% in the second quarter 2024, as operating expenses grew slower than revenue.
Current wording
Operating, administrative and other expenses increased 7.4% during the quarter as compared to the same period in 2024. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in employee compensation, driven by revenue growth. Foreign currency translation had a 1.7% negative impact on total operating expenses during the quarter. Operating, administrative and other expenses as a percentage of revenue decreased to 12.9% in the third quarter 2025 from 13.7% in the third quarter 2024, as operating expenses grew slower than revenue.
Previous wording
Depreciation and amortization expense increased by 13.0% during the quarter, as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions such as Industrious.
Current wording
Depreciation and amortization expense increased by 1.7% during the quarter, as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions, such as Industrious.
Previous wording
Gain on disposition of real estate increased by $19 million during the quarter, driven by monetization of real estate development assets in the REI segment.
Current wording
Gain on disposition of real estate increased by $36 million during the quarter, driven by monetization of real estate development assets in the REI segment.
Previous wording
Interest expense, net of interest income, decreased by 6.3%, compared with the second quarter 2024. This decrease was primarily attributable to increased net investment hedging activity, offset by the impact of increased commercial paper borrowings and the issuance of senior term loans and new senior unsecured notes.
Current wording
Interest expense, net of interest income, decreased by 21.9%, compared with the third quarter 2024. This decrease was primarily attributable to increased net investment hedging activity, offset by the impact of increased commercial paper borrowings and the issuance of senior term loans and new senior unsecured notes.
Previous wording
Our provision for income taxes on a consolidated basis was $61 million for the three months ended June 30, 2025 as compared to a provision for income taxes of $32 million for the three months ended June 30, 2024. The increase of $29 million is primarily related to an increase in current year earnings. Our effective tax rate increased to 20.3% for the three months ended June 30, 2025 from 18.5% for the three months ended June 30, 2024. Our effective tax rate for the three months ended June 30, 2025 is different than the U.S. federal statutory tax rate of 21.0%, primarily due to U.S. state taxes and favorable permanent book tax differences.
Current wording
Our provision for income taxes on a consolidated basis was $91 million for the three months ended September 30, 2025 as compared to a provision for income taxes of $67 million for the three months ended September 30, 2024. The increase of $24 million is primarily related to an increase in current year earnings and favorable permanent book tax differences. Our effective tax rate decreased to 18.7% for the three months ended September 30, 2025 from 21.5% for the three months ended September 30, 2024. Our effective tax rate for the three months ended September 30, 2025 is different than the U.S. federal statutory tax rate of 21.0%, primarily due to U.S. state taxes and favorable permanent book tax differences.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA), a budget reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017, was signed into law. The Company is evaluating the impact of the legislation and forthcoming administrative guidance and regulations to our financial statements and results of operations.
Current wording
On July 4, 2025, the U.S. Government enacted, H.R.1, the One Big Beautiful Bill Act ("OBBBA"), a budget reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017. The 2025 impacts of the OBBBA are insignificant based on our current operations.
Previous wording
We reported consolidated net income of $378 million for the six months ended June 30, 2025 on revenue of $18.7 billion as compared to consolidated net income of $256 million on revenue of $16.3 billion for the six months ended June 30, 2024.
Current wording
We reported consolidated net income of $741 million for the nine months ended September 30, 2025 on revenue of $28.9 billion as compared to consolidated net income of $481 million on revenue of $25.4 billion for the nine months ended September 30, 2024.
Previous wording
The revenue increase of 14.3% reflected growth in leasing activity, particularly for office space, commercial mortgage origination and property sales in the Advisory segment and continued growth in the BOE segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased, driven by continued strong performance from the legacy Turner & Townsend business. Revenue decreased in the REI segment, driven by lower carried interest.
Current wording
The revenue increase of 14.0% reflected growth in leasing activity, particularly for office space, industrial and data centers, along with increased revenue from commercial mortgage origination and property sales in the Advisory segment and continued growth in the BOE segment, which benefited from strong new business activity, contract expansions and acquisitions. Revenue from our Project Management segment increased, driven by continued strong performance from the United Kingdom, North America and the Middle East. Revenue decreased in the REI segment, driven by lower carried interest andincentive fees recognized in the prior year.
Previous wording
Cost of revenue increased 14.6% during the six months ended June 30, 2025 as compared to the same period in 2024 primarily due to revenue growth consisting of higher pass-through costs, higher commission expense and higher indirect reimbursed costs. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue increased slightly to 81.5% of total revenue from 81.3%.
Current wording
Cost of revenue, excluding pass-through costs increased 15.4% during the nine months ended September 30, 2025 as compared to the same period in 2024 primarily due to revenue growth consisting of higher commission expense and employee compensation, as well as higher indirect reimbursed costs. Foreign currency translation had a 0.3% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs increased slightly to 39.5% of total revenue from 39.0%.
Previous wording
Operating, administrative and other expenses increased 7.2% as compared to the same period last year. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in bad debt expenses. Foreign currency translation had a 0.2% positive impact on total operating expenses during the six months ended June 30, 2025. Operating expenses as a percentage of revenue decreased to 13.2% from 14.1%, as operating expenses grew slower than revenue.
Current wording
Operating, administrative and other expenses increased 7.2% as compared to the same period last year. The increase was driven by an increase in third-party fees related to acquisitions and integration activities, along with an increase in bad debt expenses andemployee compensation, driven by revenue growth. Foreign currency translation had a 0.3% negative impact on total operating expenses during the nine months ended September 30, 2025. Operating, administrative and other expenses as a percentage of revenue decreased to 13.1% from 13.9%, as operating expenses grew slower than revenue.
Previous wording
Depreciation and amortization expense increased by 12.5% during the six months ended June 30, 2025 as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions such as Industrious.
Current wording
Depreciation and amortization expense increased by 8.7% during the nine months ended September 30, 2025 as compared to the same period in 2024, reflecting higher depreciation and amortization expense related to assets acquired from recent acquisitions, such as Industrious.
Previous wording
We reported equity loss of $2 million during the six months ended June 30, 2025 compared to equity loss of $73 million in the same period in 2024. The decrease was primarily driven by higher unrealized equity losses in the prior period, driven by a fair value adjustment related to our non-core strategic equity investment in Altus.
Current wording
We reported equity income of $50 million during the nine months ended September 30, 2025 compared to equity loss of $77 million in the same period in 2024. This was primarily driven by positive co-investment returns and sales in the current period, compared to higher unrealized equity losses in the prior period, driven by a fair value adjustment related to our non-core strategic equity investment in Altus.
Previous wording
Interest expense, net of interest income, increased by 9.1% for the six months ended June 30, 2025 as compared to the same period in 2024. This increase was primarily due to the impact of increased commercial paper borrowings and the issuance of senior term loans and new senior unsecured notes, partially offset by the impact of net investment hedging activity.
Current wording
Interest expense, net of interest income, decreased by 2.5% for the nine months ended September 30, 2025, compared to the same period in 2024. This decrease was primarily due to the impact of net investment hedging activity, partially offset by the impact of increased comm ercial paper borrowings and the issuance of senior term loans and new senior unsecured notes.
Previous wording
Our provision for income taxes on a consolidated basis was $113 million for the six months ended June 30, 2025 as compared to a provision for income taxes of $3 million for the six months ended June 30, 2024. The increase of $110 million is primarily related to an increase in current year earnings and a prior year benefit for the reversal of unrecognized tax positions. Our effective tax rate increased to 20.8% for the six months ended June 30, 2025 from 1.1% for the six months ended June 30, 2024. Our effective tax rate for the six months ended June 30, 2025 is different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and favorable permanent book tax differences.
Current wording
Our provision for income taxes on a consolidated basis was $203 million for the nine months ended September 30, 2025 as compared to a provision for income taxes of $70 million for the nine months ended September 30, 2024. The increase of $133 million is primarily related to an increase in earnings, favorable permanent book tax differences, and a prior year benefit for the reversal of unrecognized tax positions. Our effective tax rate increased to 19.7% for the nine months ended September 30, 2025 from 11.6% for the nine months ended September 30, 2024. Our effective tax rate for the nine months ended September 30, 2025 is different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and favorable permanent book tax differences.
Previous wording
The following table summarizes our results of operations for our Advisory Services operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Advisory Services operating segment for the three and nine months ended September 30, 2025 and 2024 (dollars in millions):
Previous wording
Revenue increased 14.4% during the quarter compared to the same period in 2024. Property sales revenue grew 19.8%, led by data centers, office and retail sales in the U.S. Global leasing revenue rose 13.7%, led by office and industrial leasing, and driven by Americas which grew 13.2%, including 13.5% in the United States and the United Kingdom, which grew 30.8%. Foreign currency translation had a 0.6% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling and euro partially offset by weakness in the Australian dollar.
Current wording
Revenue increased 16.8% during the quarter compared to the same period in 2024. Property sales revenue grew 29.5%, led by office, industrial, land and data centers in the U.S., APAC and Europe. Globally, sales grew double-digits across office, industrial and multifamily. Global leasing revenue rose 17.6%, led by data centers, office and industrial leasing driven by Americas which grew 19.1%, including 17.9% in the United States and APAC which grew 21.6%.
Previous wording
Cost of revenue increased 14.6%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 0.7% negative impact on total cost of revenue. Cost of revenue of total revenue remained flat at 58.3% for both periods, as costs of revenue increased proportionately with the increase in revenue.
Current wording
Cost of revenue, excluding pass-through costs increased 17.5%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 0.9% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs as a percentage of total revenue increased slightly to 58.1% compared to the same period in 2024, as costs of revenue increased proportionately with the increase in revenue.
Previous wording
Operating, administrative and other expenses increased by 3.4%, as compared to the same period in 2024, primarily due to higher business promotion, advertising and travel expenses and employee compensation, driven by the growth in the business. Foreign currency translation had a 0.7% negative impact on total operating expenses.
Current wording
Operating, administrative and other expenses increased by 7.6%, as compared to the same period in 2024, primarily due to higher employee compensation and business promotion, advertising and travel expenses driven by the growth in the business. Foreign currency translation had a 1.3% negative impact on total operating expenses.
Previous wording
For the three months ended June 30, 2025, MSRs contributed $32 million to operating income, offset by $37 million of amortization of related intangible assets. The MSR contribution to second quarter 2024 operating income was $23 million and amortization totaled $34 million. The increase was associated with higher origination activity given an increase in financing activities.
Current wording
For the three months ended September 30, 2025, MSRs contributed $41 million to operating income, offset by $36 million of amortization of related intangible assets. The MSR contribution to third quarter 2024 operating income was $38 million and amortization totaled $36 million. The increase was associated with higher origination activity given an increase in financing activities and strong performance in both agency and non-agency lending.
Previous wording
Depreciation and amortization expense increased 11.7% primarily due to higher amortization of mortgage servicing rights as described above.
Current wording
Depreciation and amortization expense increased 3.0% primarily due to higher amortization of mortgage servicing rights as described above.
Previous wording
Cost of revenue increased 14.4%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a 0.4% positive impact on total cost of revenue. Cost of revenue slightly increased to 57.8% of total revenue from 57.5% for the same period in 2024 primarily due to escalating commission payouts driven by strong revenue growth.
Current wording
Cost of revenue, excluding pass-through costs increased 15.7%, primarily reflecting business growth and higher commission expense. Foreign currency translation had a negligible impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs slightly increased to 57.4% of total revenue from 57.1% for the same period in 2024 primarily due to escalating commission payouts driven by strong revenue growth.
Previous wording
Operating, administrative and other expenses increased by 3.2% for the six months ended June 30, 2025 as compared to the same period in 2024, driven by higher business promotion, advertising and travel expense and higher software expense. Foreign currency translation had a 0.8% positive impact on total operating expenses.
Current wording
Operating, administrative and other expenses increased by 4.6% for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to higher employee compensation, higher business promotion, advertising and travel expense, driven by growth in the business. Foreign currency translation had a 0.1% positive impact on total operating expenses.
Previous wording
For the six months ended June 30, 2025, MSRs contributed $55 million to operating income, offset by $72 million of amortization of related intangible assets. For the six months ended June 30, 2024, MSRs contributed $36 million to operating income, offset by $68 million of amortization of related intangible assets. The increase was associated with higher origination activity given an increase in financing activities.
Current wording
For the nine months ended September 30, 2025, MSRs contributed $96 million to operating income, offset by $108 million of amortization of related intangible assets. For the nine months ended September 30, 2024, MSRs contributed $74 million to operating income, offset by $104 million of amortization of related intangible assets. The increase was associated with higher origination activity given an increase in financing activities.
Previous wording
Depreciation and amortization expense increased 6.3% primarily due to higher amortization of mortgage servicing rights as described above.
Current wording
Depreciation and amortization expense increased 5.7% primarily due to higher amortization of mortgage servicing rights as described above.
Previous wording
The following table summarizes our results of operations for our Building Operations & Experience (BOE) operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Building Operations & Experience (BOE) operating segment for the three and nine months ended September 30, 2025 and 2024 (dollars in millions):
Previous wording
Revenue increased 18.7%, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees and reimbursements as well as the impact from acquisitions. Foreign currency translation had a 1.2% positive impact on total revenue during the quarter, primarily driven by strength in the British pound sterling partially offset by weakness in the Mexican peso.
Current wording
Revenue increased 12.6%, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees and reimbursements as well as the impact from acquisitions. Foreign currency translation had a 1.9% positive impact on total revenue during the quarter, primarily driven by strength in the euro and British pound sterling, partially offset by weakness in the Indian rupee.
Previous wording
Cost of revenue increased 18.7%, driven primarily by higher pass-through costs. Foreign currency translation had a 1.1% negative impact on total cost of revenue. Cost of revenue was 90.1% of total revenue, and remained flat compared to 90.1% in the second quarter 2024.
Current wording
Cost of revenue, excluding pass-through costs increased 15.8%, driven primarily by higher professional compensation and indirect managed spend, due to revenue growth, as well as an increase driven by acquisitions. Foreign currency translation had a 1.8% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs was 36.6% of total revenue, and increased compared to 35.6% in the third quarter 2024.
Previous wording
Depreciation and amortization expense fell 7.1%, reflecting lower amortization expense due to intangible assets being fully amortized in 2024.
Current wording
Depreciation and amortization expense decreased 3.0%, reflecting lower amortization expense related to intangibles assets, which became fully-amortized.
Previous wording
Revenue increased 16.4% for the six months ended June 30, 2025 as compared to the same period in 2024, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees well as the impact from acquisitions. Foreign currency translation had a 0.3% negative impact on total revenue, primarily driven by weakness in the Canadian dollar and Mexican peso, partially offset by strength in the British pound sterling.
Current wording
Revenue increased 15.1% for the nine months ended September 30, 2025 as compared to the same period in 2024, reflecting a double-digit increase in property management and facilities management, primarily due to growth in clients driving increased management fees well as the impact from acquisitions. Foreign currency translation had a 0.5% positive impact on total revenue, primarily driven by strength in the British pound sterling and euro, partially offset by weakness in the Canadian dollar, Indian rupee and Mexican peso.
Previous wording
Depreciation and amortization expense increased 8.9%, reflecting higher amortization expense related to intangibles from recent acquisitions such as Industrious.
Current wording
Depreciation and amortization expense increased 16.0%, reflecting higher expense related to intangibles from recent acquisitions such as Industrious.
Previous wording
The following table summarizes our results of operations for our Project Management operating segment for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Current wording
The following table summarizes our results of operations for our Project Management operating segment for the three and nine months ended September 30, 2025 and 2024 (dollars in millions):
Previous wording
Cost of revenue increased 14.9%, driven by higher pass-through costs and increased professional compensation. Foreign currency translation had a 1.3% negative impact on total cost of revenue. Cost of revenue was 86.5% of total revenue, slightly up from 86.1% in the second quarter 2024.
Current wording
Cost of revenue, excluding pass-through costs increased 18.1%, driven by increased professional compensation. Foreign currency translation had a 2.2% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs was 31.5% of total revenue, slightly down from 32.1% in the third quarter 2024.
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Current report — wording carried from elsewhere
(1)Calculated as a percentage of Total Revenue