Core Viewpoint - Cushman & Wakefield reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.2 per share a year ago, indicating a strong earnings surprise of +36.36% [1][2] Financial Performance - The company achieved revenues of $2.48 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.18%, compared to $2.29 billion in the same quarter last year [2] - Over the last four quarters, Cushman & Wakefield has exceeded consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance and Outlook - Cushman & Wakefield shares have declined approximately 5.8% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $2.45 billion, and for the current fiscal year, it is $1.11 on revenues of $9.88 billion [7] Industry Context - The Real Estate - Operations industry, to which Cushman & Wakefield belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q2 2025 Financial Performance - Fee revenue for Q2 2025 reached $1.7 billion, a 7% increase compared to Q2 2024[18] - Leasing fee revenue increased by 8%, primarily driven by growth in the Americas and EMEA regions[18] - Capital markets fee revenue saw a significant increase of 26%, with double-digit growth in both the Americas and EMEA[18] - Adjusted EBITDA reached $162 million, a 15% increase compared to the previous year[18] - The adjusted EBITDA margin improved to 9.5%, a 75 bps increase compared to Q2 2024[18] - Adjusted EPS increased by 50% to $0.30, marking four consecutive quarters of year-over-year growth[18] Liquidity and Debt Management - The company repaid an additional $25 million in term loan debt[18] - Subsequent to quarter end, the company repriced approximately $950 million of term loan debt maturing in 2030, reducing the applicable interest rate by 50 bps, and paid down an additional $150 million of term loan debt maturing in 2030[18] - Liquidity at the end of Q2 2025 was $1.7 billion, comprising $0.6 billion in cash and $1.1 billion in undrawn revolving credit facility availability[18] - Net debt to LTM Adjusted EBITDA was 3.7x[44, 50] Segment Performance - Americas fee revenue was $1.205 billion in Q2 2025, a 7% increase compared to Q2 2024[24, 27] - EMEA fee revenue was $224 million in Q2 2025, a 9% increase compared to Q2 2024[24, 34] - APAC fee revenue was $270 million in Q2 2025, a 3% increase compared to Q2 2024[24, 38] 2025 Outlook - Leasing revenue growth is projected to be between 6% and 8%[48] - Capital Markets revenue growth is expected to be in the mid-teens, improved growth vs 2024's +4%[48] - Organic Services revenue growth is anticipated to be in the mid-single digits[48] - Adjusted EPS growth is projected to be between 25% and 35%[48]

[Financial Highlights and Executive Summary](index=1&type=section&id=Financial%20Highlights%20and%20Executive%20Summary) Cushman & Wakefield reported strong Q2 and H1 2025 results, driven by Capital Markets and Leasing, leading to a raised full-year outlook and strengthened balance sheet [Executive Summary](index=1&type=section&id=Executive%20Summary) Cushman & Wakefield reported strong second quarter 2025 results, highlighting significant growth in Capital Markets and Leasing revenues, achieving 95% adjusted earnings per share growth in the first half, and increasing its full-year outlook - The CEO highlighted the success of the company's growth engine, with strong performance in **Capital Markets** and **Leasing**, leading to a raised **full-year earnings per share outlook**[2](index=2&type=chunk) - The company announced an additional **$150.0 million** term loan debt repayment, reinforcing its focus on fortifying the balance sheet[1](index=1&type=chunk)[2](index=2&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) In the second quarter of 2025, the company demonstrated robust growth with a 9% increase in total revenue to $2.5 billion, a substantial rise in net income to $57.3 million, driven by a 27% surge in Capital Markets revenue and an 8% increase in Leasing revenue Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $2.5 billion | $2.3 billion | +9% | | **Service Line Fee Revenue** | $1.7 billion | $1.6 billion | +7% | | **Net Income** | $57.3 million | $13.5 million | +324% | | **Diluted EPS** | $0.25 | $0.06 | +317% | | **Adjusted EBITDA** | $161.7 million | $138.9 million | +16% | | **Adjusted Diluted EPS** | $0.30 | $0.20 | +50% | - Capital markets revenue grew **27%** (**26%** in local currency), marking the third consecutive quarter of double-digit year-over-year growth[1](index=1&type=chunk)[5](index=5&type=chunk) - Leasing revenue increased by **8%**, showing strength across all major asset classes[1](index=1&type=chunk)[5](index=5&type=chunk) [Year-to-Date 2025 Highlights](index=1&type=section&id=Year-to-Date%202025%20Highlights) For the first half of 2025, revenue increased by 7% to $4.8 billion, with a significant turnaround in profitability to a net income of $59.2 million, Adjusted EBITDA growth of 19% to $257.9 million, and strong liquidity at $1.7 billion YTD 2025 Key Financial Metrics | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $4.8 billion | $4.5 billion | +7% | | **Net Income (Loss)** | $59.2 million | ($15.3 million) | +$74.5 million | | **Diluted EPS (Loss)** | $0.25 | ($0.07) | +$0.32 | | **Adjusted EBITDA** | $257.9 million | $217.0 million | +19% | | **Adjusted Diluted EPS** | $0.39 | $0.20 | +95% | - Liquidity as of June 30, 2025 was strong at **$1.7 billion**, comprising **$1.1 billion** in undrawn revolving credit and **$0.6 billion** in cash[5](index=5&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) The company achieved broad-based revenue growth and significant profitability improvements in Q2 and H1 2025, reversing prior-year losses [Consolidated Results Table](index=2&type=section&id=Consolidated%20Results%20Table) The consolidated results show broad-based revenue growth across all service lines for both the second quarter and first half of 2025, notably a 27% surge in Capital Markets revenue in Q2, driving significant improvements in operating income, net income, and Adjusted EBITDA Consolidated Financial Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $2,483.9 | $2,288.0 | 9% | $4,768.5 | $4,472.8 | 7% | | **Operating Income** | $122.8 | $70.4 | 74% | $168.1 | $89.2 | 88% | | **Net Income (Loss)** | $57.3 | $13.5 | n.m. | $59.2 | ($15.3) | n.m. | | **Adjusted EBITDA** | $161.7 | $138.9 | 16% | $257.9 | $217.0 | 19% | | **Diluted EPS (Loss)** | $0.25 | $0.06 | 317% | $0.25 | ($0.07) | n.m. | | **Adjusted Diluted EPS** | $0.30 | $0.20 | 50% | $0.39 | $0.20 | 95% | [Detailed Financial Performance Analysis](index=3&type=section&id=Detailed%20Financial%20Performance%20Analysis) Q2 and H1 2025 performance was marked by robust revenue growth in Capital Markets and Leasing, coupled with cost savings and reduced interest expense, driving substantial profit increases [Second Quarter 2025 Performance Analysis](index=3&type=section&id=Second%20Quarter%202025%20Performance%20Analysis) Q2 2025 revenue grew 9% to $2.5 billion, propelled by a 27% increase in Capital Markets and 8% in Leasing, particularly in the Americas, with net income surging to $57.3 million due to revenue growth, cost savings, and a 13% reduction in interest expense, leading to a 16% rise in Adjusted EBITDA - Total revenue increased by **$195.9 million** (**9%**), driven by a **27%** rise in Capital markets revenue and an **8%** increase in Leasing revenue[7](index=7&type=chunk) - Interest expense decreased by **13%** to **$53.2 million** due to lower outstanding principal on term loans from prepayments and favorable repricings[11](index=11&type=chunk) - Net income increased by **$43.8 million**, driven by growth in Services, Leasing, and Capital markets, cost savings, and lower interest and depreciation expenses[14](index=14&type=chunk) - Adjusted EBITDA increased **16%** to **$161.7 million**, and the Adjusted EBITDA margin improved by **75 basis points** to **9.5%**[15](index=15&type=chunk) [Year-to-Date 2025 Performance Analysis](index=4&type=section&id=Year-to-Date%202025%20Performance%20Analysis) For the first half of 2025, revenue increased 7% to $4.8 billion, led by 20% growth in Capital Markets and 8% in Leasing, achieving a net income of $59.2 million, a $74.5 million improvement from a net loss in the prior year, supported by lower interest expense, reduced restructuring charges, and cost savings, with Adjusted EBITDA growing 19% to $257.9 million - Year-to-date revenue grew by **$295.7 million** (**7%**), primarily driven by Capital markets and Leasing revenue growth of **20%** and **8%**, respectively[16](index=16&type=chunk) - Total costs of services as a percentage of total revenue improved, decreasing from **83%** in H1 2024 to **82%** in H1 2025[17](index=17&type=chunk) - The company shifted from a net loss of **$15.3 million** in H1 2024 to a net income of **$59.2 million** in H1 2025, an improvement of **$74.5 million**[23](index=23&type=chunk) - Adjusted EBITDA for the first half increased by **19%** to **$257.9 million**, with the margin expanding by **92 basis points** to **8.0%**[24](index=24&type=chunk) [Balance Sheet and Liquidity](index=5&type=section&id=Balance%20Sheet%20and%20Liquidity) Cushman & Wakefield maintained strong liquidity and actively managed its debt profile through prepayments and repricing, reinforcing financial stability [Liquidity and Debt Management](index=5&type=section&id=Liquidity%20and%20Debt%20Management) As of June 30, 2025, Cushman & Wakefield maintained a strong liquidity position of $1.7 billion and net debt of $2.3 billion, actively managing its debt profile through $200 million in principal prepayments year-to-date and repricing nearly $950 million of its term loans to lower interest costs by 50 basis points - Total liquidity was **$1.7 billion** at the end of Q2, consisting of a **$1.1 billion** undrawn revolving credit facility and **$0.6 billion** in cash and cash equivalents[25](index=25&type=chunk) - Net debt stood at **$2.3 billion** as of June 30, 2025[26](index=26&type=chunk) - The company repriced **$947.5 million** of its term loans, reducing the interest rate by **50 basis points**, and prepaid an additional **$150.0 million** in principal, bringing year-to-date prepayments to **$200.0 million**[27](index=27&type=chunk) [Financial Statements (Unaudited)](index=8&type=section&id=Financial%20Statements%20(Unaudited)) Unaudited statements for Q2 and H1 2025 demonstrate consistent revenue growth, improved operating income, and a positive shift in net income, alongside a stable balance sheet and managed cash flows [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited statements of operations detail the company's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, showing clear revenue growth leading to significant improvements in operating income and a shift from a net loss to net income year-to-date Statement of Operations Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,483.9 | $2,288.0 | $4,768.5 | $4,472.8 | | **Operating Income** | $122.8 | $70.4 | $168.1 | $89.2 | | **Earnings (Loss) Before Taxes** | $76.2 | $17.2 | $81.2 | ($9.3) | | **Net Income (Loss)** | $57.3 | $13.5 | $59.2 | ($15.3) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of $7.56 billion, remaining stable compared to year-end 2024, with total liabilities decreasing to $5.65 billion from $5.79 billion primarily due to reduced long-term debt, consequently increasing total shareholders' equity from $1.76 billion to $1.90 billion Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,637.1 | $2,690.4 | | **Total Assets** | $7,555.4 | $7,549.2 | | **Total Current Liabilities** | $2,325.5 | $2,329.9 | | **Long-term debt, net** | $2,820.4 | $2,939.6 | | **Total Liabilities** | $5,651.3 | $5,793.8 | | **Total Equity** | $1,904.1 | $1,755.4 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash used in operating activities was $152.4 million, an increase from $103.3 million in the prior year, mainly due to changes in working capital, with net cash provided by investing activities at $31.1 million and net cash used in financing activities at $77.6 million, ending the period with a cash balance of $646.0 million Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | ($152.4) | ($103.3) | | **Net Cash Provided by Investing Activities** | $31.1 | $56.9 | | **Net Cash Used in Financing Activities** | ($77.6) | ($140.5) | | **Effect of Exchange Rate** | $30.3 | ($9.4) | | **Net Change in Cash** | ($198.9) | ($186.9) | | **Cash at End of Period** | $646.0 | $604.9 | [Segment Results](index=11&type=section&id=Segment%20Results) All geographical segments, Americas, EMEA, and APAC, contributed to overall revenue growth in Q2 2025, with EMEA showing significant Adjusted EBITDA improvement [Americas](index=11&type=section&id=Americas) The Americas segment, the company's largest, reported a 5% increase in total revenue to $1.8 billion for Q2 2025, driven by a 29% surge in Capital Markets revenue and a 9% increase in Leasing, with Adjusted EBITDA growing 3% to $112.2 million Americas Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (USD) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,804.1 | $1,713.4 | 5% | | **Capital Markets Revenue** | $170.9 | $132.3 | 29% | | **Leasing Revenue** | $382.5 | $352.2 | 9% | | **Adjusted EBITDA** | $112.2 | $109.0 | 3% | [EMEA](index=12&type=section&id=EMEA) The EMEA segment delivered strong Q2 2025 results with a 17% increase in total revenue to $259.8 million, showing growth across all service lines, including a 23% rise in Capital Markets, and dramatically improving profitability with Adjusted EBITDA more than doubling to $32.3 million EMEA Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (USD) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $259.8 | $221.9 | 17% | | **Net Income (Loss)** | $15.0 | ($4.5) | n.m. | | **Adjusted EBITDA** | $32.3 | $13.2 | 145% | [APAC](index=12&type=section&id=APAC) The APAC segment's total revenue for Q2 2025 grew 19% to $420.0 million, primarily driven by a 63% increase in Gross contract reimbursables, while service line fee revenue saw a more modest 4% increase, and Adjusted EBITDA grew 3% to $17.2 million APAC Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (USD) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $420.0 | $352.7 | 19% | | **Service Line Fee Revenue** | $269.8 | $260.3 | 4% | | **Adjusted EBITDA** | $17.2 | $16.7 | 3% | [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section clarifies the company's use of non-GAAP metrics like Adjusted EBITDA and Net Income, providing detailed reconciliations to GAAP figures for enhanced transparency and operational insight [Use of Non-GAAP Financial Measures](index=13&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the non-GAAP financial measures used by management, such as Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, which the company believes provide a better understanding of ongoing operations and enhance comparability by excluding certain items like acquisition costs, restructuring charges, and other non-recurring events - Management uses non-GAAP measures like **Adjusted EBITDA**, **Adjusted Net Income**, and **Free Cash Flow** to evaluate operating performance, develop budgets, and improve comparability of results[44](index=44&type=chunk)[50](index=50&type=chunk) - **Adjusted EBITDA** is the primary measure of segment profitability and excludes items such as unrealized investment gains/losses, acquisition costs, and non-cash depreciation and amortization[46](index=46&type=chunk) - **Adjusted Net Income** and **Adjusted EPS** are used to assess profitability, excluding similar items to Adjusted EBITDA and applying an adjusted long-term effective tax rate[48](index=48&type=chunk) [Reconciliations of Non-GAAP Measures](index=15&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of the company's non-GAAP financial measures to their most directly comparable GAAP figures, including tables that bridge Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income, as well as a reconciliation of net cash from operations to Free Cash Flow, offering transparency into the adjustments made Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $57.3 | $13.5 | $59.2 | ($15.3) | | **Adjustments** | $104.4 | $125.4 | $198.7 | $232.3 | | **Adjusted EBITDA** | $161.7 | $138.9 | $257.9 | $217.0 | Reconciliation of Net Income to Adjusted Net Income (in millions) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $57.3 | $13.5 | $59.2 | ($15.3) | | **Adjustments** | $16.4 | $45.4 | $38.8 | $72.7 | | **Tax impact of adjustments** | ($4.2) | ($13.2) | ($8.0) | ($11.1) | | **Adjusted net income** | $69.5 | $45.7 | $90.0 | $46.3 | Reconciliation to Free Cash Flow - H1 (in millions) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($152.4) | ($103.3) | | **Payment for property and equipment** | ($13.9) | ($22.3) | | **Free cash flow** | ($166.3) | ($125.6) |

Core Viewpoint - The article emphasizes the importance of value investing and highlights Cushman & Wakefield (CWK) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6]. Company Analysis - Cushman & Wakefield (CWK) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for undervaluation [4]. - The stock has a Price-to-Earnings (P/E) ratio of 9.41, significantly lower than the industry average P/E of 16.83, suggesting it may be undervalued [4]. - CWK's Forward P/E has fluctuated between 6.57 and 14.27 over the past year, with a median of 10.81, indicating variability in market perception [4]. - The Price-to-Cash Flow (P/CF) ratio for CWK is 7.24, which is attractive compared to the industry average of 7.40, further supporting the notion of undervaluation [5]. - Over the past year, CWK's P/CF has ranged from 4.93 to 12.32, with a median of 9.08, reflecting its cash flow strength [5]. - The combination of these metrics suggests that CWK is likely undervalued and presents an impressive value opportunity at the moment [6].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Cushman & Wakefield (CWK) Analysis - CWK has shown a price increase of 8.1% over the past four weeks, indicating growing investor interest [3] - The stock gained 35.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - CWK has a beta of 1.43, suggesting it moves 43% higher than the market in either direction [4] - CWK has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - CWK is trading at a Price-to-Sales ratio of 0.27, meaning investors pay 27 cents for each dollar of sales, indicating a reasonable valuation [6] Group 3: Investment Opportunities - CWK appears to have significant potential for growth at a fast pace [7] - There are other stocks that also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting additional investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Contains the company's unaudited interim financial statements and management's discussion of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements and accompanying notes for the period ended March 31, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's assets, liabilities, and shareholders' equity as of March 31, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $623.2 | $793.3 | | Total current assets | $2,604.8 | $2,690.4 | | Goodwill | $2,020.8 | $1,998.3 | | Total assets | $7,407.5 | $7,549.2 | | **Liabilities and Shareholders' Equity** | | | | Total current liabilities | $2,203.2 | $2,329.9 | | Long-term debt, net | $2,910.5 | $2,939.6 | | Total liabilities | $5,630.6 | $5,793.8 | | Total equity | $1,776.9 | $1,755.4 | | Total liabilities and shareholders' equity | $7,407.5 | $7,549.2 | - Total assets decreased by **$141.7 million** from December 31, 2024, to March 31, 2025, primarily due to a decrease in cash and cash equivalents[11](index=11&type=chunk) - Total liabilities decreased by **$163.2 million**, mainly driven by a reduction in accrued compensation and long-term debt[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Summarizes revenues, expenses, and net income for the three months ended March 31, 2025, compared to the prior-year period Condensed Consolidated Statements of Operations | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $2,284.6 | $2,184.8 | | Total costs and expenses | $2,239.3 | $2,166.0 | | Operating income | $45.3 | $18.8 | | Net income (loss) | $1.9 | $(28.8) | | Basic earnings (loss) per share | $0.01 | $(0.13) | | Diluted earnings (loss) per share | $0.01 | $(0.13) | - Revenue increased by **4.6%** year-over-year, from $2,184.8 million in Q1 2024 to $2,284.6 million in Q1 2025[13](index=13&type=chunk) - The company reported a **net income of $1.9 million** in Q1 2025, a significant improvement from a net loss of $28.8 million in Q1 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Details the components of comprehensive income, including net income and other comprehensive income items like currency translation adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $1.9 | $(28.8) | | Other comprehensive income (loss), net of tax: | | | | Designated hedge (loss) gain | $(9.4) | $10.7 | | Defined benefit plan actuarial (loss) gain | $(1.4) | $0.9 | | Foreign currency translation | $24.5 | $(32.9) | | Total other comprehensive income (loss) | $13.7 | $(21.3) | | Total comprehensive income (loss) | $15.6 | $(50.1) | - Total comprehensive income improved significantly to **$15.6 million** in Q1 2025 from a loss of $50.1 million in Q1 2024, primarily driven by positive foreign currency translation effects[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Reconciles the beginning and ending balances of shareholders' equity, detailing the impact of net income, stock compensation, and other equity transactions Condensed Consolidated Statements of Changes in Equity | (in millions) | Balance as of Dec 31, 2024 | Net Income | Stock-based Compensation | Vesting of Shares | Unrealized Loss on Hedging Instruments | Amounts Reclassified from AOCI | Foreign Currency Translation | Defined Benefit Plans Actuarial Loss | Balance as of Mar 31, 2025 | | :-------------------------------- | :------------------------- | :--------- | :----------------------- | :---------------- | :------------------------------------- | :---------------------------- | :--------------------------- | :--------------------------------- | :------------------------- | | Total Equity Attributable to the Company | $1,754.9 | $1.9 | $15.9 | $(10.0) | $(4.0) | $(5.4) | $24.5 | $(1.4) | $1,776.4 | - Total equity attributable to the company increased from **$1,754.9 million** at December 31, 2024, to **$1,776.4 million** at March 31, 2025, primarily due to net income and foreign currency translation gains, partially offset by stock-based compensation adjustments and hedging losses[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the quarter Condensed Consolidated Statements of Cash Flows | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(162.0) | $(125.1) | | Net cash provided by (used in) investing activities | $20.6 | $(10.8) | | Net cash used in financing activities | $(41.3) | $(72.9) | | Change in cash, cash equivalents and restricted cash | $(182.7) | $(208.8) | | Cash, cash equivalents and restricted cash, end of period | $640.2 | $585.8 | - Net cash used in operating activities increased to **$162.0 million** in Q1 2025 from $125.1 million in Q1 2024, primarily due to higher net working capital used for operations[24](index=24&type=chunk)[183](index=183&type=chunk) - Net cash provided by investing activities improved significantly to **$20.6 million** in Q1 2025 from a use of $10.8 million in Q1 2024, driven by increased net capital funding from the A/R Securitization and lower capital expenditures[24](index=24&type=chunk)[184](index=184&type=chunk) - Net cash used in financing activities decreased to **$41.3 million** in Q1 2025 from $72.9 million in Q1 2024, mainly due to a $30.0 million decrease in principal repayments under the 2018 Credit Agreement[24](index=24&type=chunk)[185](index=185&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of the accounting policies and financial data presented in the statements [Note 1: Basis of Presentation](index=8&type=section&id=Note%201%3A%20Basis%20of%20Presentation) The unaudited financial statements are prepared under U.S. GAAP for interim reporting and are subject to normal recurring adjustments - Financial statements are unaudited and prepared in conformity with **U.S. GAAP** for quarterly reports[27](index=27&type=chunk) - Results for the three months ended March 31, 2025, are not necessarily indicative of the full year due to **seasonality**[29](index=29&type=chunk) [Note 2: New Accounting Pronouncements](index=8&type=section&id=Note%202%3A%20New%20Accounting%20Pronouncements) Details the adoption and potential impact of new accounting standards on the company's financial statements - Adopted ASU 2023-05 (Business Combinations – Joint Ventures) effective January 1, 2025, with **no impact** on financial position or results[31](index=31&type=chunk) - Will adopt ASU 2023-09 (Income Taxes) prospectively for annual periods beginning after December 15, 2024, resulting in **expanded disclosures** but no impact on financial position or results[32](index=32&type=chunk) - Evaluating ASU 2024-03 (Income Statement – Expense Disaggregation), effective for annual periods after December 15, 2026, which will **expand expense disclosures** but not impact financial position or results[34](index=34&type=chunk) [Note 3: Segment Data](index=9&type=section&id=Note%203%3A%20Segment%20Data) Presents financial data for the company's reportable segments: Americas, EMEA, and APAC - Reportable segments are **Americas**, **Europe, Middle East and Africa (EMEA)**, and **Asia Pacific (APAC)**[35](index=35&type=chunk) - **Adjusted EBITDA** is the primary profitability metric for segment performance and resource allocation[36](index=36&type=chunk) Segment Revenue and Adjusted EBITDA | (in millions) | Americas (2025) | EMEA (2025) | APAC (2025) | Total (2025) | Americas (2024) | EMEA (2024) | APAC (2024) | Total (2024) | | :-------------------- | :-------------- | :---------- | :---------- | :----------- | :-------------- | :---------- | :---------- | :----------- | | Revenue | $1,688.3 | $205.0 | $391.3 | $2,284.6 | $1,621.0 | $222.4 | $341.4 | $2,184.8 | | Adjusted EBITDA | $79.3 | $2.0 | $14.9 | $96.2 | $64.4 | $9.0 | $4.7 | $78.1 | - Total Adjusted EBITDA increased by **23%** from $78.1 million in Q1 2024 to $96.2 million in Q1 2025[38](index=38&type=chunk) [Note 4: Earnings Per Share](index=11&type=section&id=Note%204%3A%20Earnings%20Per%20Share) Provides the calculation of basic and diluted earnings per share for the reported periods Earnings Per Share Calculation | (in millions, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $1.9 | $(28.8) | | Weighted average shares outstanding for basic EPS | 230.4 | 227.9 | | Basic earnings (loss) per share | $0.01 | $(0.13) | | Weighted average shares outstanding for diluted EPS | 232.3 | 227.9 | | Diluted earnings (loss) per share | $0.01 | $(0.13) | - Diluted EPS improved to **$0.01** in Q1 2025 from a loss of $0.13 in Q1 2024[41](index=41&type=chunk) - Approximately **3.3 million** potentially dilutive shares were excluded from diluted EPS calculation in Q1 2024 as they were anti-dilutive[40](index=40&type=chunk) [Note 5: Revenue](index=11&type=section&id=Note%205%3A%20Revenue) Disaggregates revenue by service line and segment and details contract-related balances Revenue by Service Line and Segment | (in millions) | Americas (2025) | EMEA (2025) | APAC (2025) | Total (2025) | Americas (2024) | EMEA (2024) | APAC (2024) | Total (2024) | | :-------------------- | :-------------- | :---------- | :---------- | :----------- | :-------------- | :---------- | :---------- | :----------- | | Services | $1,186.7 | $105.0 | $311.9 | $1,603.6 | $1,167.8 | $109.1 | $273.8 | $1,550.7 | | Leasing | $346.3 | $39.4 | $32.7 | $418.4 | $305.5 | $53.7 | $28.5 | $387.7 | | Capital markets | $115.9 | $18.0 | $24.0 | $157.9 | $111.6 | $15.6 | $14.9 | $142.1 | | Valuation and other | $39.4 | $42.6 | $22.7 | $104.7 | $36.1 | $44.0 | $24.2 | $104.3 | | Total revenue | $1,688.3 | $205.0 | $391.3 | $2,284.6 | $1,621.0 | $222.4 | $341.4 | $2,184.8 | - Total revenue increased by **$99.8 million (5%)** year-over-year, with Leasing revenue up **8%** and Capital markets revenue up **11%**[42](index=42&type=chunk)[151](index=151&type=chunk) Contract Balances | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Short-term contract assets, net | $303.8 | $301.4 | | Non-current contract assets, net | $67.0 | $66.8 | | Total contract assets, net | $370.8 | $368.2 | | Contract liabilities | $74.0 | $68.0 | [Note 6: Goodwill and Other Intangible Assets](index=12&type=section&id=Note%206%3A%20Goodwill%20and%20Other%20Intangible%20Assets) Details changes in goodwill and the carrying amounts of other intangible assets, such as trade names and customer relationships Goodwill Rollforward | (in millions) | Americas | EMEA | APAC | Total | | :-------------------------- | :------- | :--- | :--- | :---- | | Balance as of Dec 31, 2024 | $1,469.2 | $309.4 | $219.7 | $1,998.3 | | Acquisitions | — | $8.8 | — | $8.8 | | Effect of exchange rates | — | $11.6 | $2.1 | $13.7 | | Balance as of Mar 31, 2025 | $1,469.2 | $329.8 | $221.8 | $2,020.8 | - Goodwill increased by **$22.5 million** from December 31, 2024, to March 31, 2025, driven by acquisitions ($8.8 million) and foreign exchange movements ($13.7 million)[47](index=47&type=chunk) Intangible Assets, Net | (in millions) | March 31, 2025 Net Value | December 31, 2024 Net Value | | :-------------------- | :----------------------- | :------------------------ | | C&W trade name | $546.0 | $546.0 | | Customer relationships | $136.4 | $144.1 | | Total intangible assets | $682.4 | $690.1 | - Amortization expense for intangible assets was **$9.9 million** in Q1 2025, down from $13.3 million in Q1 2024[49](index=49&type=chunk) [Note 7: Equity Method Investments](index=13&type=section&id=Note%207%3A%20Equity%20Method%20Investments) Discloses information about the company's investments in joint ventures accounted for using the equity method - Material equity method investments are **Greystone JV (40% interest)** and **Onewo JV (35% interest)**[51](index=51&type=chunk) Equity Method Investment Balances | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Greystone JV | $591.6 | $585.2 | | Onewo JV | $131.6 | $126.8 | | Total Equity method investments | $735.4 | $723.6 | Earnings from Equity Method Investments | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Greystone JV | $6.3 | $9.3 | | Onewo JV | $4.1 | $1.0 | | Total Earnings from equity method investments | $11.1 | $11.7 | - Royalty fee income from Onewo JV increased to **$2.3 million** in Q1 2025 from $1.6 million in Q1 2024[51](index=51&type=chunk) [Note 8: Derivative Financial Instruments and Hedging Activities](index=14&type=section&id=Note%208%3A%20Derivative%20Financial%20Instruments%20and%20Hedging%20Activities) Describes the company's use of derivatives to manage interest rate and foreign currency risks - Interest rate hedging instruments consisted of twelve interest rate swap agreements with a notional amount of **$1.97 billion** as of March 31, 2025[55](index=55&type=chunk)[61](index=61&type=chunk) - Entered into three forward-starting interest rate swap agreements for **$200.0 million** in March 2025, effective August 21, 2025, expiring August 21, 2027[55](index=55&type=chunk) - Foreign currency forward contracts outstanding covered a notional amount of **$554.0 million** as of March 31, 2025[60](index=60&type=chunk)[61](index=61&type=chunk) - Gains of **$5.4 million** related to interest rate hedges were reclassified into earnings and recognized in Interest expense, net of interest income, in Q1 2025[62](index=62&type=chunk) [Note 9: Long-Term Debt and Other Borrowings](index=15&type=section&id=Note%209%3A%20Long-Term%20Debt%20and%20Other%20Borrowings) Details the components of the company's long-term debt, recent financing activities, and covenant compliance Long-Term Debt, Net | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Term Loan, due January 2030 Tranche-1 | $980.5 | $980.5 | | Term Loan, due January 2030 Tranche-2 | $955.6 | $979.7 | | 6.750% Senior Secured Notes, due May 2028 | $645.5 | $645.1 | | 8.875% Senior Secured Notes, due September 2031 | $394.4 | $394.2 | | Total Long-term debt, net | $2,910.5 | $2,939.6 | - Repriced the 2030 Tranche-1 Term Loan in January 2025, reducing the interest rate from 1-month Term SOFR plus 3.00% to **1-month Term SOFR plus 2.75%**[67](index=67&type=chunk) - Prepaid **$25.0 million** in principal outstanding under the 2030 Tranche-2 in March 2025[68](index=68&type=chunk) - Revolver capacity was **$1.1 billion** and was undrawn as of March 31, 2025[71](index=71&type=chunk) - The company was in **compliance with all debt covenants** as of March 31, 2025[75](index=75&type=chunk) [Note 10: Commitments and Contingencies](index=17&type=section&id=Note%2010%3A%20Commitments%20and%20Contingencies) Discloses potential liabilities from litigation, claims, and other contingent obligations Contingent Liabilities | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Contingent liabilities (current) | $99.8 | $81.4 | | Contingent liabilities (non-current) | $61.1 | $59.9 | | E&O and other litigation claims | $57.9 | $56.7 | | General liability, workers' compensation, medical claims | $103.0 | $84.6 | - Estimated range of reasonably possible loss for non-U.S. payroll tax claims, in excess of accrued amounts, is up to **$43.0 million**, net of tax benefit[82](index=82&type=chunk) - The company is a defendant in a DOJ civil lawsuit regarding RealPage's revenue management software, but does **not expect a material impact** on its business, financial condition, or results of operations[84](index=84&type=chunk) - Maximum potential future payments for guarantees are approximately **$111.0 million**, with the probability of future payment considered remote[85](index=85&type=chunk) [Note 11: Related Party Transactions](index=19&type=section&id=Note%2011%3A%20Related%20Party%20Transactions) Details transactions with related parties, including equity method investments and employee receivables - Recognized royalty fee income from equity method investments (see Note 7)[90](index=90&type=chunk) Receivables from Brokers and Other Employees | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Receivables from brokers and other employees (current) | $57.5 | $47.5 | | Receivables from brokers and other employees (non-current) | $402.5 | $364.5 | [Note 12: Fair Value Measurements](index=19&type=section&id=Note%2012%3A%20Fair%20Value%20Measurements) Provides information on how the company measures assets and liabilities at fair value using a three-level hierarchy - Fair value hierarchy levels: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than quoted prices), **Level 3** (unobservable inputs)[96](index=96&type=chunk) Fair Value of Financial Instruments | (in millions) | March 31, 2025 Total | March 31, 2025 Level 1 | March 31, 2025 Level 2 | March 31, 2025 Level 3 | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | **Assets** | | | | | | Cash equivalents - money market funds | $1.1 | $1.1 | — | — | | Deferred compensation plan assets | $28.1 | $28.1 | — | — | | Interest rate swap agreements | $4.2 | — | $4.2 | — | | Foreign currency forward contracts | $1.0 | — | $1.0 | — | | **Liabilities** | | | | | | Deferred compensation plan liabilities | $22.1 | $22.1 | — | — | | Interest rate swap agreements | $1.6 | — | $1.6 | — | | Foreign currency forward contracts | $1.8 | — | $1.8 | — | | Earn-out liabilities | $16.7 | — | — | $16.7 | - Earn-out liabilities, classified as **Level 3**, increased to **$16.7 million** as of March 31, 2025, with a maximum potential payment of $19.1 million[97](index=97&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) - Unrealized loss of **$0.7 million** recognized on real estate investments in Q1 2025[109](index=109&type=chunk) [Note 13: Accounts Receivable Securitization](index=22&type=section&id=Note%2013%3A%20Accounts%20Receivable%20Securitization) Describes the company's program for selling eligible trade receivables to an unaffiliated financial institution - Receivables sold under the A/R Securitization were **$676.6 million** in Q1 2025, with cash collections of $701.3 million reinvested[113](index=113&type=chunk) A/R Securitization Details | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | DPP receivable | $250.3 | $310.9 | | Outstanding principal on receivables sold | $412.9 | $437.6 | | Aggregate capital outstanding under facility | $130.0 | $100.0 | | Unused portion of facility limit | $36.6 | $100.0 | - The A/R Securitization facility has a maximum limit of **$200.0 million** and expires on June 19, 2026[114](index=114&type=chunk) [Note 14: Supplemental Cash Flow Information](index=23&type=section&id=Note%2014%3A%20Supplemental%20Cash%20Flow%20Information) Provides a reconciliation of cash balances and details on non-cash activities and cash paid for interest and taxes Reconciliation of Cash, Cash Equivalents and Restricted Cash | (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $623.2 | $793.3 | | Restricted cash | $17.0 | $21.3 | | Total cash, cash equivalents and restricted cash | $640.2 | $814.6 | Supplemental Cash Flow Data | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Cash paid for: Interest | $54.5 | $61.6 | | Cash paid for: Income taxes | $16.1 | $12.5 | | Non-cash investing/financing: Property and equipment additions through finance leases | $2.6 | $4.7 | [Note 15: Subsequent Events](index=23&type=section&id=Note%2015%3A%20Subsequent%20Events) Confirms the evaluation of events occurring after the balance sheet date for potential disclosure - **No material subsequent events** were identified through April 29, 2025[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of financial condition, results of operations, liquidity, and capital resources for the quarter [Cautionary Note Regarding Forward-Looking Statements](index=24&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Highlights that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties, covered by the safe harbor provisions of the **Private Securities Litigation Reform Act of 1995**[119](index=119&type=chunk) - Key risk factors include macroeconomic conditions, ability to attract/retain talent, brand value, IT strategies, cybersecurity, competition, acquisitions, goodwill impairment, regulatory compliance, and international operations[120](index=120&type=chunk)[125](index=125&type=chunk) [Overview](index=25&type=section&id=Overview) Provides a high-level summary of the company's business, global presence, and core service offerings - Cushman & Wakefield is a leading global commercial real estate services firm with approximately **52,000 employees** in nearly 400 offices across 60 countries[124](index=124&type=chunk) - The firm manages approximately **6.0 billion square feet** of commercial real estate space globally[124](index=124&type=chunk) - Core service offerings include **Services, Leasing, Capital markets, and Valuation and other services**[124](index=124&type=chunk) [Recent Developments and Outlook](index=26&type=section&id=Recent%20Developments%20and%20Outlook) Discusses recent performance highlights, key financial results, and strategic initiatives like the proposed redomicile - First quarter 2025 revenue increased **5% to $2.3 billion**, with Leasing revenue up **8%** and Capital markets revenue up **11%**[133](index=133&type=chunk) - Net income for Q1 2025 was **$1.9 million**, a **$30.7 million improvement** from a net loss of $28.8 million in Q1 2024[133](index=133&type=chunk) - Adjusted EBITDA increased **23% to $96.2 million** in Q1 2025[133](index=133&type=chunk) - The company is seeking to **redomicile its parent company to Bermuda**, subject to shareholder and court approvals[128](index=128&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms that financial statements are prepared under U.S. GAAP and notes no material changes to critical accounting policies - Unaudited interim Condensed Consolidated Financial Statements are prepared in accordance with **U.S. GAAP**, requiring estimates and assumptions[130](index=130&type=chunk) - **No material changes** to critical accounting policies or estimates as of March 31, 2025[130](index=130&type=chunk) [Recently Issued Accounting Pronouncements](index=26&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Refers readers to Note 2 for details on new accounting standards - Refer to **Note 2: New Accounting Pronouncements** for details on recently issued accounting pronouncements[131](index=131&type=chunk) [Items Affecting Comparability](index=26&type=section&id=Items%20Affecting%20Comparability) Explains factors that can impact year-over-year comparisons, including macroeconomic conditions, acquisitions, and seasonality - Results are significantly impacted by **macroeconomic conditions**, including economic activity, financial market volatility, interest rates, inflation, and demand for commercial real estate[134](index=134&type=chunk) - **Acquisitions and dispositions** can affect year-over-year comparability due to incremental revenues, expenses, and transaction-related costs[136](index=136&type=chunk) - International operations expose the company to global economic trends, foreign government policies, and **foreign currency fluctuations** (e.g., Australian dollar, Singapore dollar, euro, British pound sterling)[137](index=137&type=chunk)[138](index=138&type=chunk) - A significant portion of revenue, especially from Leasing and Capital markets, is **seasonal**, with the first quarter typically being the lowest and the fourth quarter the highest[140](index=140&type=chunk) [Use of Non-GAAP Financial Measures](index=29&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Defines and explains the rationale for using non-GAAP measures like Adjusted EBITDA and local currency metrics - Non-GAAP financial measures used include **Adjusted EBITDA, Adjusted EBITDA margin, Segment operating expenses, Fee-based operating expenses, and Local currency**[141](index=141&type=chunk)[148](index=148&type=chunk) - **Adjusted EBITDA** is the primary measure of segment profitability, excluding unrealized loss on investments, impairment, acquisition costs, cost savings initiatives, and other non-recurring items[143](index=143&type=chunk) - **Local currency** metrics are calculated by holding foreign currency exchange rates constant to provide greater visibility into business performance without currency fluctuations[145](index=145&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Provides a consolidated overview of the company's operating results, comparing the current quarter to the prior-year period Consolidated Results of Operations | (in millions) | Q1 2025 (USD) | Q1 2024 (USD) | % Change (USD) | % Change (Local Currency) | | :-------------------------- | :------------ | :------------ | :------------- | :------------------------ | | Revenue | $2,284.6 | $2,184.8 | 5% | 6% | | Services | $866.6 | $871.2 | (1)% | 1% | | Leasing | $412.5 | $381.7 | 8% | 9% | | Capital markets | $157.4 | $141.6 | 11% | 11% | | Valuation and other | $104.2 | $103.1 | 1% | 3% | | Total service line fee revenue | $1,540.7 | $1,497.6 | 3% | 4% | | Gross contract reimbursables | $743.9 | $687.2 | 8% | 9% | | Total costs and expenses | $2,239.3 | $2,166.0 | 3% | 4% | | Operating income | $45.3 | $18.8 | n.m. | n.m. | | Net income (loss) | $1.9 | $(28.8) | n.m. | n.m. | | Adjusted EBITDA | $96.2 | $78.1 | 23% | 24% | - Total revenue increased by **$99.8 million (5% in USD, 6% in local currency)** year-over-year, driven by Leasing (up 8%) and Capital markets (up 11%)[151](index=151&type=chunk) - Net income improved by **$30.7 million to $1.9 million** in Q1 2025, primarily due to growth in Leasing and Capital markets, cost savings, lower interest expense, and lower depreciation/amortization[157](index=157&type=chunk) - Adjusted EBITDA increased by **$18.1 million (23%) to $96.2 million**, with Adjusted EBITDA margin rising to 6.2% from 5.2%[158](index=158&type=chunk) [Segment Results](index=34&type=section&id=Segment%20Results) Analyzes the financial performance of each geographic segment: Americas, EMEA, and APAC [Americas Results](index=35&type=section&id=Americas%20Results) Americas revenue increased 4%, driven by strong growth in Leasing, while Adjusted EBITDA rose 23% Americas Segment Results | (in millions) | Q1 2025 (USD) | Q1 2024 (USD) | % Change (USD) | % Change (Local Currency) | | :-------------------------- | :------------ | :------------ | :------------- | :------------------------ | | Total revenue | $1,688.3 | $1,621.0 | 4% | 5% | | Services | $603.2 | $599.4 | 1% | 1% | | Leasing | $341.1 | $299.5 | 14% | 14% | | Capital markets | $115.4 | $111.1 | 4% | 4% | | Valuation and other | $39.1 | $35.4 | 10% | 12% | | Adjusted EBITDA | $79.3 | $64.4 | 23% | 24% | - Americas Leasing revenue increased **14%** due to higher tenant representation in office and industrial sectors and a higher number of large deals[164](index=164&type=chunk) - Adjusted EBITDA increased by **$14.9 million (23%)**, driven by growth across service lines, partially offset by higher employment costs and lower earnings from Greystone JV[166](index=166&type=chunk) [EMEA Results](index=36&type=section&id=EMEA%20Results) EMEA revenue decreased 8% due to lower Leasing and Services activity, causing a 78% decline in Adjusted EBITDA EMEA Segment Results | (in millions) | Q1 2025 (USD) | Q1 2024 (USD) | % Change (USD) | % Change (Local Currency) | | :-------------------------- | :------------ | :------------ | :------------- | :------------------------ | | Total revenue | $205.0 | $222.4 | (8)% | (6)% | | Services | $72.7 | $81.0 | (10)% | (8)% | | Leasing | $39.4 | $53.7 | (27)% | (26)% | | Capital markets | $18.0 | $15.6 | 15% | 17% | | Adjusted EBITDA | $2.0 | $9.0 | (78)% | (85)% | - EMEA Leasing revenue declined **26% (local currency)** due to lower volumes and timing of large contracts[168](index=168&type=chunk) - EMEA Capital markets revenue increased **17% (local currency)**, driven by rate stability and built-up demand, particularly in the U.K. and Netherlands[168](index=168&type=chunk) - Adjusted EBITDA decreased by **$7.0 million (78%)**, primarily due to declines in Services and Leasing, and cost inflation[170](index=170&type=chunk) [APAC Results](index=37&type=section&id=APAC%20Results) APAC revenue grew 15%, led by strong performance in Capital markets and Leasing, resulting in a significant improvement in Adjusted EBITDA APAC Segment Results | (in millions) | Q1 2025 (USD) | Q1 2024 (USD) | % Change (USD) | % Change (Local Currency) | | :-------------------------- | :------------ | :------------ | :------------- | :------------------------ | | Total revenue | $391.3 | $341.4 | 15% | 18% | | Services | $190.7 | $190.8 | 0% | 3% | | Leasing | $32.0 | $28.5 | 12% | 16% | | Capital markets | $24.0 | $14.9 | 61% | 59% | | Adjusted EBITDA | $14.9 | $4.7 | n.m. | n.m. | - APAC Leasing revenue increased **16% (local currency)** due to strength in Australia and China[172](index=172&type=chunk) - APAC Capital markets revenue surged **59% (local currency)**, primarily driven by large deals in Japan[172](index=172&type=chunk) - Adjusted EBITDA increased by **$10.2 million**, driven by growth in Leasing and Capital markets and higher earnings from Onewo JV[174](index=174&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's sources of liquidity, debt management activities, and overall capital structure - Primary liquidity sources are cash flows from operations, available cash reserves, debt capacity under the **Revolver**, and funding from the **A/R Securitization**[175](index=175&type=chunk) - As of March 31, 2025, liquidity was **$1.7 billion**, comprising $0.6 billion in cash and cash equivalents and $1.1 billion availability on the undrawn Revolver[180](index=180&type=chunk) - The company repriced the 2030 Tranche-1 Term Loan and prepaid **$25.0 million** of the 2030 Tranche-2 in Q1 2025, reducing leverage[179](index=179&type=chunk) - Operating cash flow is **seasonal**, typically lowest in Q1 and highest in Q4, managed with cash on hand and Revolver/A/R Securitization funding[177](index=177&type=chunk) [Off-Balance Sheet Arrangements](index=38&type=section&id=Off-Balance%20Sheet%20Arrangements) Describes the off-balance sheet accounts receivable securitization program - The company is party to an off-balance sheet revolving **A/R Securitization program**, selling eligible trade receivables to an unaffiliated financial institution[181](index=181&type=chunk) - As of March 31, 2025, **$130.0 million** in capital was outstanding under this facility, with $36.6 million unused capacity[181](index=181&type=chunk) [Cash Flow Summary](index=39&type=section&id=Cash%20Flow%20Summary) Provides a summary and detailed analysis of cash flows from operating, investing, and financing activities Summary of Cash Flows | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(162.0) | $(125.1) | | Net cash provided by (used in) investing activities | $20.6 | $(10.8) | | Net cash used in financing activities | $(41.3) | $(72.9) | | Total change in cash, cash equivalents and restricted cash | $(174.4) | $(215.4) | [Operating Activities](index=39&type=section&id=Operating%20Activities) Net cash used in operating activities increased due to higher net working capital usage - Net cash used in operating activities increased by **$36.9 million to $162.0 million** in Q1 2025[183](index=183&type=chunk) - Increased use of net working capital for operations by **$99.7 million**, driven by higher cash payments for prepaid expenses and bonuses, and lower collections of trade receivables[183](index=183&type=chunk) [Investing Activities](index=39&type=section&id=Investing%20Activities) Net cash from investing activities improved, driven by increased funding from the A/R Securitization - Net cash generated from investing activities was **$20.6 million**, an improvement of $31.4 million year-over-year[184](index=184&type=chunk) - Improvement driven by a **$30.0 million increase** in net capital funding from the A/R Securitization and lower capital expenditures, partially offset by a $4.9 million increase in cash paid for business acquisitions[184](index=184&type=chunk) [Financing Activities](index=39&type=section&id=Financing%20Activities) Net cash used in financing activities decreased due to lower principal repayments on debt - Net cash used in financing activities decreased by **$31.6 million to $41.3 million**[185](index=185&type=chunk) - Decrease primarily due to a **$30.0 million reduction** in principal repayments under the 2018 Credit Agreement[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines the company's exposure to market risks, primarily interest rate and foreign exchange risk, and its management strategies [Market Risk](index=39&type=section&id=Market%20Risk) Identifies principal market risks and the strategies used to mitigate them - Principal market risks are **interest rates** on debt obligations and **foreign exchange risk**[186](index=186&type=chunk)[189](index=189&type=chunk) - Risks are managed by controlling debt funding, using **derivative financial instruments** (interest rate swaps, foreign currency contracts), and diversifying counterparties[186](index=186&type=chunk) [Interest Rate Risk](index=39&type=section&id=Interest%20Rate%20Risk) Details the company's exposure to interest rate volatility on its variable-rate debt - Exposed to interest rate volatility on **Term Loans and Revolver borrowings**[187](index=187&type=chunk) - Term Loans bear variable interest rates (**1-month Term SOFR plus 2.75%** for 2030 Tranche-1, **1-month Term SOFR plus 3.25%** for 2030 Tranche-2)[188](index=188&type=chunk) - A hypothetical **100 basis point increase** in variable interest rates would result in approximately **$2.0 million** in incremental annualized interest expense[191](index=191&type=chunk) [Foreign Exchange Risk](index=40&type=section&id=Foreign%20Exchange%20Risk) Discusses the impact of foreign currency fluctuations on revenue and the methods used to manage this risk - Approximately **30%** of Q1 2025 revenue was transacted in currencies other than USD[192](index=192&type=chunk) Revenue by Currency | (in millions) | Q1 2025 Revenue | % of Total Revenue | | :------------------ | :-------------- | :----------------- | | United States dollar | $1,608.0 | 70% | | Singapore dollar | $104.7 | 5% | | Euro | $99.6 | 4% | | Australian dollar | $94.3 | 4% | | Other | $378.0 | 17% | | Total revenue | $2,284.6 | 100% | - A hypothetical **10% increase in USD value** against Singapore dollar, euro, and Australian dollar would decrease revenue by approximately $9.5 million, $9.1 million, and $8.6 million, respectively[192](index=192&type=chunk) - Foreign exchange risk is managed by establishing local operations, invoicing in local currencies, and using **foreign currency forward contracts**[193](index=193&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Reports on the effectiveness of the company's disclosure controls and any changes in internal control over financial reporting [Disclosure Controls and Procedures](index=41&type=section&id=Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls as of the end of the reporting period - CEO and CFO concluded that disclosure controls and procedures were **effective** as of March 31, 2025[196](index=196&type=chunk) [Changes in Internal Control Over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) States whether any material changes to internal controls occurred during the quarter - **No material changes** in internal control over financial reporting occurred during the quarter ended March 31, 2025[197](index=197&type=chunk) [PART II - OTHER INFORMATION](index=42&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Contains other required disclosures, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Discloses that the company is not involved in any legal proceedings expected to have a material adverse effect - No current legal proceedings are expected to have a **material adverse effect** on the company's business, financial condition, results of operations, or liquidity[199](index=199&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Notes no material changes to previously disclosed risks, except for a new risk related to the proposed redomicile to Bermuda - **No material changes** to risk factors previously disclosed in the 2024 Annual Report, except for an additional risk factor[200](index=200&type=chunk) - New risk factor: No guarantee the **Proposed Redomicile to Bermuda** will be completed or result in anticipated benefits; failure or delay could negatively impact share price and divert management attention[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Confirms no unregistered sales of equity securities occurred during the period - None[202](index=202&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults upon senior securities occurred during the period - None[203](index=203&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that this disclosure requirement is not applicable to the company - Not applicable[204](index=204&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) Provides information on information dissemination practices and insider trading arrangements - Material information is disseminated via the company's **website, press releases, and SEC filings**[205](index=205&type=chunk) - No directors or officers adopted or terminated **Rule 10b5-1(c) trading arrangements** during Q1 2025[206](index=206&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including agreements, certifications, and XBRL documents - Includes Form of 2025 Performance-Vested RSU Agreement, Offer Letter, Compensation Update Letters, and Amendment No. 10 to the Credit Agreement[208](index=208&type=chunk) - Certifications by CEO and CFO pursuant to Rule 13a-14(a) or Rule 15d-14(a) and Section 302/906 of **Sarbanes-Oxley Act of 2002** are filed/furnished[208](index=208&type=chunk) - **Inline XBRL documents** (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents, and Cover Page Interactive Data File) are included[208](index=208&type=chunk)

Financial Data and Key Metrics Changes - The company achieved fee revenue of $1,500,000,000, an increase of 4%, with organic fee revenue growing by 6% [13] - Adjusted EBITDA rose by 24% to $96,000,000, with adjusted EBITDA margin expanding by 100 basis points year over year [13] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [13][18] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1, marking the third consecutive quarter of double-digit growth [14] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [14][15] - The services business achieved organic revenue growth of 4%, with The Americas organic services fee revenue growing by 6% [16] Market Data and Key Metrics Changes - In The Americas, the pipeline of large capital markets deals is now two times the size it was one year ago [8] - RFPs in Americas Leasing and the Multi Market Occupier Group are up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [9] - The APAC Services business demonstrated strong retention rates and five new sizable contracts coming online in the first half of the year [10] Company Strategy and Development Direction - The company is focused on building strength for long-term growth, with disciplined investments unlocking new areas of organic growth [5] - A flat organizational culture allows the company to adapt swiftly to client needs and market shifts, fostering a culture of problem-solving and trust [6][7] - The management believes they are at the beginning of a multi-year recovery in commercial real estate, positioning the company for compelling value opportunities for investors [22] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has not materially impacted the sector, with strong demand for high-quality products continuing [28] - The company expects leasing growth in the mid-single digits for the full year, with capital markets growth anticipated to exceed the previous year's mid-single-digit growth rate [19] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [20] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [17] - The company completed a repricing of $1,000,000,000 of terminal debt, lowering the applicable interest rate by 25 basis points [18] - The balance sheet remains strong, with $1,700,000,000 in liquidity and no funded debt maturities until 2028 [18] Q&A Session Summary Question: Margin improvement and its drivers - Management indicated that the margin improvement was driven primarily by top-line strength, with stronger than expected leasing and services contributing to the results [25] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with 90-95% of clients moving forward with decisions [28] Question: Outlook for office leasing in a potential recession - Demand for office leasing remains strong, with long-term leases being signed and lease terms averaging 77 months [34] Question: Recruiting and retention efforts - The company has strengthened its talent pool significantly, hiring multiple capital markets and leasing teams over the past year [36] Question: Trends in industrial leasing amid trade discussions - The company has been outperforming in industrial leasing, with positive trends continuing despite tariff discussions [41] Question: Capital markets sensitivity to interest rates - Management noted that large investors have alternative borrowing methods, and many clients are closing deals regardless of financing market conditions [44] Question: EMEA market performance - EMEA is currently the weakest economy for the company, but there are signs of recovery, particularly in capital markets in the UK [50] Question: Balancing growth and deleveraging - The capital allocation strategy remains focused on growth while continuing to deleverage, with a higher percentage of capital allocated to growth investments [51]

For the quarter ended March 2025, Cushman & Wakefield (CWK) reported revenue of $2.28 billion, up 4.6% over the same period last year. EPS came in at $0.09, compared to $0.00 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.23 billion, representing a surprise of +2.23%. The company delivered an EPS surprise of +350.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

Financial Performance - Q1 2025 - Fee revenue reached $1.5 billion, a 4% increase compared to Q1 2024[15] - Adjusted EBITDA increased by 24% to $96 million[15] - Adjusted EBITDA margin improved by 103 bps to 6.2%[15] - Adjusted EPS (Diluted) was $0.09, a significant increase from $0.00 in Q1 2024[17] Revenue Breakdown by Service Line - Leasing fee revenue increased by 9%, driven by growth in the Americas and APAC regions[15] - Capital Markets fee revenue increased by 11%, with growth across all regions[15] - Services fee revenue increased by 1%, with organic Services fee revenue up by 4%[15] Regional Performance - Americas fee revenue increased by 6%[21] - EMEA fee revenue decreased by 9%[21] - APAC fee revenue increased by 7%[21] Capital Structure - The company repaid an additional $25 million in debt and repriced $1.0 billion of term loan debt maturing in 2030, reducing the interest rate by 25 bps[15] - Liquidity at the end of Q1 2025 was $1.7 billion, including $0.6 billion in cash and $1.1 billion available from the revolving credit facility[15]

分组1 - Cushman & Wakefield reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, representing an earnings surprise of 350% compared to break-even earnings per share a year ago [1] - The company posted revenues of $2.28 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.23% and showing an increase from $2.18 billion in the same quarter last year [2] - The stock has underperformed, losing about 31.1% since the beginning of the year, while the S&P 500 has declined by 6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $2.38 billion, and for the current fiscal year, it is $1.05 on revenues of $9.79 billion [7] - The Real Estate - Operations industry, to which Cushman & Wakefield belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]