Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for assessing momentum in stocks [2] Group 2: Cushman & Wakefield (CWK) Performance - Cushman & Wakefield currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, CWK shares increased by 5.41%, significantly outperforming the Zacks Real Estate - Operations industry, which rose by 1.08% [6] - In a longer timeframe, CWK shares have surged by 55.6% over the past quarter and 23.08% over the last year, compared to the S&P 500's gains of 10.77% and 17.6%, respectively [7] Group 3: Trading Volume and Earnings Outlook - CWK's average 20-day trading volume is 2,657,449 shares, indicating a bullish trend when combined with rising stock prices [8] - In the last two months, four earnings estimates for CWK have been revised upward, increasing the consensus estimate from $1.11 to $1.17 [10] - The positive earnings outlook, along with strong price performance, supports CWK's status as a 2 (Buy) stock with a Momentum Score of A [12]

Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and selling high [1] - Investing in fast-moving stocks can be risky if valuations exceed future growth potential [2] - A strategy that combines momentum with bargain stocks can be more effective [3] Company Analysis: Cushman & Wakefield (CWK) - CWK has shown significant price momentum with a four-week price change of 29.9% [4] - The stock has gained 55.6% over the past 12 weeks, indicating strong long-term momentum [5] - CWK has a beta of 1.5, suggesting it moves 50% more than the market in either direction [5] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [6] - CWK has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - The stock is trading at a low Price-to-Sales ratio of 0.38, suggesting it is undervalued [7] Investment Strategy - CWK is identified as a strong candidate for investment due to its combination of momentum and reasonable valuation [8] - There are additional stocks that meet the criteria of "Fast-Paced Momentum at a Bargain" that investors may consider [8] - Zacks offers over 45 Premium Screens to help identify potential winning stocks based on various investing styles [9]

Group 1 - The article focuses on value investing opportunities in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - The investment strategy emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates to assist investors in identifying potential investment opportunities [1]

Financial Performance - Revenue for Q2 2025 was $2.5 billion, a 9% increase from Q2 2024, with leasing revenue up 8% and capital markets revenue up 27%[137] - Net income for Q2 2025 was $57.3 million, an increase of $43.8 million compared to Q2 2024, with diluted earnings per share rising to $0.25 from $0.06[137] - Adjusted EBITDA for Q2 2025 was $161.7 million, reflecting a 16% increase from Q2 2024[137] - Revenue for the first half of 2025 was $4.8 billion, a 7% increase from the first half of 2024, with capital markets revenue up 20%[137] - Net income for the first half of 2025 improved to $59.2 million from a net loss of $15.3 million in the first half of 2024[137] - Total revenue for Q2 2025 was $2,483.9 million, representing a 9% increase compared to $2,288.0 million in Q2 2024[160] - Adjusted EBITDA for Q2 2025 was $161.7 million, a 16% increase from $138.9 million in Q2 2024[161] - Net income for Q2 2025 was $57.3 million, compared to $13.5 million in Q2 2024, indicating significant growth[160] - Operating income for Q2 2025 was $122.8 million, a 74% increase compared to $70.4 million in Q2 2024[160] - Net income for the three months ended June 30, 2025, was $57.3 million, an increase of $43.8 million compared to the same period in 2024, resulting in a net income margin of 2.3%[172] - Adjusted EBITDA for the three months ended June 30, 2025, was $161.7 million, an increase of $22.8 million or 16% compared to the same period in 2024, with an adjusted EBITDA margin of 9.5%[173] - Net income for the six months ended June 30, 2025, was $59.2 million, compared to a net loss of $15.3 million for the same period in 2024, resulting in a net income margin of 1.2%[181] - Adjusted EBITDA for the six months ended June 30, 2025, was $257.9 million, an increase of $40.9 million or 19% compared to the same period in 2024, with an adjusted EBITDA margin of 8.0%[182] Revenue Breakdown - Revenue from the Capital Markets segment increased by 27% to $207.0 million in Q2 2025, up from $163.2 million in Q2 2024[160] - Total service line fee revenue for the first half of 2025 was $3,239.0 million, a 5% increase from $3,081.3 million in the first half of 2024[160] - Americas revenue for Q2 2025 was $1.8 billion, a 5% increase from Q2 2024, driven by a 29% growth in Capital markets revenue[186] - Leasing revenue in the Americas grew by 9% in Q2 2025, attributed to higher tenant representation revenue in office and industrial sectors[186] - EMEA revenue for Q2 2025 was $259.8 million, a 17% increase from Q2 2024, with Services revenue up 11% on a local currency basis[194] - EMEA revenue for the first half of 2025 was $464.7 million, a 5% increase from the first half of 2024, with Capital markets revenue up 17% on a local currency basis[197] - APAC revenue for Q2 2025 was $420.0 million, a 19% increase from Q2 2024, with a 20% increase on a local currency basis[202] - Total revenue for the first half of 2025 reached $811.3 million, a 17% increase from the first half of 2024, with a 19% increase on a local currency basis[204] - Capital markets revenue increased by 35% in the first half of 2025, primarily due to several large transactions in Japan[204] Costs and Expenses - Costs and expenses for Q2 2025 totaled $2,361.1 million, a 6% increase from $2,217.6 million in Q2 2024[160] - Costs of services for the three months ended June 30, 2025, were $2.0 billion, an increase of $141.8 million or 8% compared to the same period in 2024, primarily due to higher employment costs[166] - Fee-based operating expenses in the Americas for Q2 2025 were $1.1 billion, a 7% increase due to higher commissions and cost inflation[187] - EMEA Fee-based operating expenses for Q2 2025 were $199.2 million, a 10% increase, primarily due to higher third-party consumables and sub-contractor costs[195] - Fee-based operating expenses for Q2 2025 were $256.5 million, a 3% increase, mainly due to higher employment costs[203] Liquidity and Financial Position - Liquidity as of June 30, 2025, was $1.7 billion, comprising $1.1 billion in undrawn revolving credit and $0.6 billion in cash[137] - As of June 30, 2025, the company had $1.7 billion in liquidity, including $0.6 billion in cash and cash equivalents[213] - The company prepaid a total of $200.0 million in principal under its Term Loans in 2025, reducing leverage[212] - Net cash used in operating activities for the first half of 2025 was $152.4 million, an increase of $49.1 million compared to the same period in 2024[216] Macroeconomic Factors - Macroeconomic uncertainty continues to impact demand for services, influenced by global trade policies and economic conditions[136] Foreign Exchange and Interest Rate Management - Approximately 31% of revenue for the three months ended June 30, 2025, was transacted in currencies other than USD, compared to 29% for the same period in 2024[225] - A hypothetical 10% increase in the value of the USD against the Singapore dollar, euro, and Australian dollar would have resulted in a revenue decrease of approximately $8.8 million, $12.7 million, and $11.9 million, respectively, for the three months ended June 30, 2025[225] - The foreign exchange risk management strategy includes establishing local operations, invoicing in local currencies, and using derivative financial instruments such as foreign currency forward contracts[226] - The company utilizes derivative activities to manage interest rate and foreign currency risks, as detailed in the financial statements[227]

Core Insights - Cushman & Wakefield reported $2.48 billion in revenue for Q2 2025, an 8.6% year-over-year increase, with EPS of $0.30 compared to $0.20 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company achieved a revenue surprise of +4.18% and an EPS surprise of +36.36% compared to analyst expectations [1] Financial Performance - Total service line fee revenue reached $1.7 billion, surpassing the average estimate of $1.63 billion from four analysts [4] - Geographical fee revenue breakdown includes: - Americas: $1.2 billion vs. $1.16 billion estimated [4] - APAC: $269.8 million vs. $275.24 million estimated [4] - EMEA: $223.7 million vs. $202.02 million estimated [4] - Specific service line revenue includes: - Leasing: $486.9 million vs. $472.02 million estimated [4] - Valuation and other: $114.2 million vs. $109.33 million estimated [4] - Services: $890.2 million vs. $878.56 million estimated [4] - Capital markets: $207 million vs. $173.12 million estimated [4] Stock Performance - Shares of Cushman & Wakefield have returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a 7% increase in fee revenue for the second quarter, reaching $1.7 billion, with organic revenue growth of 8% [13] - Adjusted EBITDA rose by 15% to $162 million, and the adjusted EBITDA margin expanded by 75 basis points to 9.5% [13] - Adjusted earnings per share (EPS) increased by 50% to $0.30 from $0.20 a year ago [13] Business Line Data and Key Metrics Changes - The capital markets business experienced a 26% revenue growth in the second quarter, marking a significant acceleration [8] - Leasing revenue grew by 8% in the second quarter, with a 9% increase in The Americas [14] - The services segment achieved 6% fully organic growth in the quarter, an acceleration from the first quarter [10] Market Data and Key Metrics Changes - In The Americas, capital markets revenue grew by 30%, driven by strong fundamentals and increased activity in multifamily and office transactions [16] - EMEA capital markets revenue increased by 16%, with notable strength in Spain and Germany [17] - APAC capital markets grew by 4%, supported by performance in India and Australia [17] Company Strategy and Development Direction - The company is focused on three pillars: protecting core strengths, operating with discipline, and cultivating growth avenues [6] - A significant emphasis is placed on talent expansion, with new hires in capital markets brokers showing 200% higher average revenue than in 2024 [8][63] - The company aims to reduce debt while investing in growth, with a commitment to achieving a net leverage target of two to three times [20] Management's Comments on Operating Environment and Future Outlook - Management noted that leaders are making long-term strategic decisions despite macroeconomic uncertainties, with a positive outlook for global leasing markets and capital markets activity [11][50] - The company raised its full-year EPS guidance, expecting adjusted EPS growth of 30% to 35% [21] - Management expressed confidence in the operational performance and market share gains, anticipating continued momentum into 2026 and beyond [23] Other Important Information - The company prepaid an additional $150 million in debt, reducing gross debt from $3.2 billion to $2.8 billion [10] - The company achieved a 96% annualized retention rate in its Global Occupier Services (GOS) business year to date, indicating strong client retention [10][32] - The company ended the quarter with net leverage of 3.7 times and a trailing twelve months free cash flow of $126 million [18][19] Q&A Session Summary Question: How much of the EMEA improvement is due to operational changes versus market conditions? - Management indicated that while operational improvements are starting to show results, there is also a general improvement in market conditions across several countries in EMEA [28][29] Question: Will services return to mid-single-digit growth in Q3 and Q4? - Management confirmed that guidance assumes a return to mid-single-digit growth in the services segment for the latter half of the year [30] Question: How does the retention rate in GOS compare historically? - Management noted that the current retention rate of 96% is a significant improvement over historical figures, indicating a more stable client environment [31][32] Question: What is the outlook for leasing growth in the back half of the year? - Management expressed optimism about leasing growth, particularly in the industrial sector, despite facing tough comparisons from the previous year [36][59] Question: What are the trends in capital markets for July? - Management reported that capital markets activity in July remained strong, with no significant disruptions from tariffs observed [47][50] Question: How is the company addressing profitability in the services segment? - Management highlighted a focus on improving margins through operational efficiency and restructuring, particularly in project management [41][42] Question: What is the company's approach to talent expansion? - Management described a broad-based hiring strategy across various business lines, emphasizing the recruitment of high-performing brokers [62][63]

Financial Data and Key Metrics Changes - The company achieved a 95% increase in adjusted earnings per share to $0.39, marking the strongest first half earnings growth since going public in 2018 [6][19] - Adjusted EBITDA margin improved by over 90 basis points year-to-date compared to the previous year [6] - Fee revenue for the second quarter reached $1.7 billion, growing by 7%, with organic revenue up 8% [12] Business Line Data and Key Metrics Changes - Capital markets revenue grew by 26% in the second quarter, with a significant increase in talent recruitment [7][12] - Leasing revenue increased by 8% in the second quarter, with strong demand across all asset classes, particularly in The Americas [8][13] - Services segment achieved 6% fully organic growth in the quarter, with a 96% annualized retention rate in the Global Occupier Services (GOS) business [9][15] Market Data and Key Metrics Changes - The Americas capital markets experienced a 30% growth, driven by strong fundamentals and increased deal sizes [14] - EMEA leasing revenue grew by 8%, with notable strength in Germany and Ireland [13] - APAC region saw a 3% decline in revenue, but growth in India and Australia helped offset challenges in Greater China [14] Company Strategy and Development Direction - The company is focused on protecting core strengths, operating with discipline, and cultivating growth avenues, achieving most of its three-year targets ahead of schedule [5] - There is an intensified focus on client retention and leveraging the full suite of capabilities of the Cushman platform [9] - The company aims to continue reducing debt while investing in growth, targeting a net leverage of two to three times [18] Management's Comments on Operating Environment and Future Outlook - Management noted that leaders are making long-term strategic decisions despite market volatility, with expectations of continued growth in global leasing and capital markets [10][49] - The company raised its full-year EPS guidance, expecting adjusted EPS growth of 25% to 35% [19] - Management expressed confidence in the operational performance and market share gains, anticipating further momentum into 2026 and beyond [21] Other Important Information - The company prepaid an additional $150 million in debt, reducing gross debt from $3.2 billion to $2.8 billion [9][18] - The company has a strong liquidity position of $1.7 billion, with no material debt maturities until 2028 [18] Q&A Session Summary Question: How much of the EMEA improvement is due to operational changes versus market conditions? - Management indicated that both operational improvements and favorable market conditions contributed to the growth, with notable activity in Ireland, Netherlands, Germany, and Spain [27][28] Question: Will services return to mid-single-digit growth in Q3 and Q4? - Management confirmed that guidance assumes a return to mid-single-digit growth in the services segment for the latter half of the year [29] Question: How does the 96% retention rate in GOS compare historically? - Management noted that the current retention rate is a significant improvement over historical figures, indicating a more stable client environment [30] Question: What is the outlook for leasing growth in the back half of the year? - Management expressed optimism for continued growth in leasing, particularly in the industrial sector, despite facing tough comparisons from the previous year [36][57] Question: How are investments impacting margins and growth? - Management acknowledged that while investments may slightly impact margins in the short term, they expect overall margin expansion for the full year [45][46] Question: What are clients considering regarding leasing needs amid macro uncertainty? - Management reported that clients are still making leasing and capital markets deals, indicating strong pipelines heading into the second half of the year [48][50] Question: How is the turnaround in EMEA services progressing? - Management highlighted improvements in project management and overall services in EMEA, with a focus on growth and efficiency [53][54]

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) |