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]

Core Insights - Cushman & Wakefield reported revenue of $2.28 billion for Q1 2025, reflecting a 4.6% increase year-over-year and exceeding the Zacks Consensus Estimate of $2.23 billion by 2.23% [1] - The company achieved an EPS of $0.09, a significant increase from $0.00 in the same quarter last year, resulting in an EPS surprise of 350% compared to the consensus estimate of $0.02 [1] Financial Performance - Total service line fee revenue for Cushman & Wakefield was $1.54 billion, matching the average estimate from four analysts [4] - Revenue breakdown by region showed: - Americas: $1.10 billion, below the average estimate of $1.26 billion [4] - APAC: $269.30 million, below the average estimate of $292.68 million [4] - EMEA: $172.60 million, below the average estimate of $206.64 million [4] - Specific service line revenues included: - Leasing: $412.50 million, slightly above the average estimate of $400.87 million [4] - Valuation and other: $104.20 million, below the average estimate of $107.83 million [4] - Services: $866.60 million, close to the average estimate of $866.96 million [4] - Capital markets: $157.40 million, slightly below the average estimate of $159.72 million [4] Stock Performance - Shares of Cushman & Wakefield have declined by 11.8% over the past month, contrasting with a 0.8% decline in the Zacks S&P 500 composite [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]

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% [14] - Adjusted EBITDA rose by 24% to $96,000,000, with an adjusted EBITDA margin improvement of 100 basis points year over year [14] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [14][20] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1 [15] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [15][16] - Services revenue on an organic basis increased by 4%, with The Americas organic services fee revenue growing by 6% [17][18] Market Data and Key Metrics Changes - The Americas experienced a significant increase in RFPs, up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [10] - The APAC Services business showed strong retention rates and five new sizable contracts coming online in the first half of the year [11] - EMEA is considered the weakest economy among the three segments, but there are signs of recovery, particularly in capital markets [51] Company Strategy and Development Direction - The company is focused on long-term growth, having repaid $230,000,000 in debt since the new CEO took over and successfully refinancing and repricing debt multiple times [6][20] - The management emphasizes a disciplined investment approach to stabilize the business and unlock new areas of organic growth [6][11] - The company believes it is at the beginning of a multi-year recovery in commercial real estate, positioning itself to capitalize on market opportunities [24] 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 [31] - 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 [21] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [22] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [19] - The company closed the quarter with $1,700,000,000 in liquidity and has no funded debt maturities until 2028 [20] Q&A Session Summary Question: Margin improvement and outperformance 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 [28] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with most clients continuing to make decisions on their existing timelines [31] Question: Outlook for office leasing in a potential recession - Management noted that demand for office leasing remains strong, with long-term leases being signed and lease terms increasing [37] Question: Recruiting and retention efforts - Management highlighted significant recruitment efforts, having hired multiple capital markets and leasing teams in the past year [38][39] Question: Trends in industrial leasing amid trade discussions - Management expressed confidence in the industrial leasing sector, noting positive trends and ongoing demand despite tariff discussions [43] Question: Rate outlook and its impact on capital markets - Management indicated that clients are still closing deals and financings, with many able to facilitate transactions through alternative means if necessary [46]

For Immediate Release Cushman & Wakefield Reports Financial Results for the First Quarter 2025 CHICAGO (BUSINESS WIRE), April 29, 2025 — Cushman & Wakefield (NYSE: CWK) today reported financial results for the first quarter of 2025. "We drove excellent first quarter results, increasing organic revenue in each of our service lines and achieving mid-single digit organic growth in our Services business two quarters ahead of target. We realized over 100 basis points of margin improvement while continuing to red ...

Core Insights - Greystone and Cushman & Wakefield facilitated the acquisition financing and sale of Country Place Apartments, a 312-unit multifamily property in Burtonsville, Maryland, for $62.5 million [1][2]. Group 1: Transaction Details - The transaction involved a $62.5 million sale price, with Greystone providing a $40.7 million, 7-year Freddie Mac Optigo® loan for financing [2]. - The property features amenities such as an outdoor pool, fitness center, landscaped exercise paths, on-site dog park, playground, Tech Bar, and car care center [3]. Group 2: Strategic Insights - The purchase utilized a buy-right PILOT structure to maintain affordability for residents, demonstrating effective sales execution in a changing investor landscape [4]. - The collaboration between Greystone and Cushman & Wakefield offers clients comprehensive solutions for property investment needs [5]. Group 3: Company Profiles - Cushman & Wakefield is a global commercial real estate services firm with approximately 52,000 employees and reported revenue of $9.5 billion in 2023 [6]. - Greystone is recognized as a leader in multifamily and healthcare finance, ranking as a top lender with various government-backed entities [7].

Financial Performance - The company's revenue for the year ended December 31, 2024, was $9,446.5 million, a decrease of 0.5% compared to $9,493.7 million in 2023 [292]. - Operating income increased to $338.9 million in 2024 from $205.6 million in 2023, reflecting a significant improvement in operational efficiency [292]. - Net income for 2024 was $131.3 million, compared to a net loss of $35.4 million in 2023, indicating a strong recovery in profitability [292]. - The company's total assets decreased to $7,549.2 million in 2024 from $7,774.0 million in 2023, primarily due to a reduction in goodwill and intangible assets [290]. - Goodwill decreased from $2,080.9 million in 2023 to $1,998.3 million in 2024, reflecting the company's ongoing assessment of its asset values [290]. - The total liabilities decreased to $5,793.8 million in 2024 from $6,096.0 million in 2023, indicating improved financial stability [290]. - Basic earnings per share improved to $0.57 in 2024 from a loss of $0.16 in 2023, showcasing enhanced shareholder value [292]. - The company reported a total comprehensive income of $48.1 million for 2024, compared to a loss of $29.8 million in 2023, highlighting a positive shift in overall financial performance [294]. Employee and Operational Insights - The company operates with approximately 52,000 employees across nearly 400 offices in about 60 countries, enhancing operational leverage and profitability [37]. - Approximately 44% of employee costs are fully reimbursed by clients, indicating a strong client relationship model [52]. - The company relies heavily on attracting and retaining qualified revenue-producing employees, with significant competition in the industry for such personnel [80]. - The Company has approximately 52,000 employees focused on comprehensive service offerings including Services, Leasing, Capital markets, and Valuation [306]. Market and Industry Trends - The commercial real estate industry is showing signs of improvement in 2024 despite ongoing macroeconomic challenges, with increased capital ready for deployment [32]. - Sustainability considerations are increasingly influencing investor and occupier decisions, with the company developing solutions to meet stricter environmental regulations [36]. - The company’s business is significantly impacted by macroeconomic conditions and global demand for commercial real estate, which could adversely affect financial performance [77]. - The company is experiencing ongoing volatility in global capital and credit markets due to elevated inflation and increased interest rate volatility, impacting real estate transaction decisions [78]. - In 2024, clients are facing challenges in procuring credit or financing, leading to delays in real estate transactions, which could reduce commissions and fees earned [79]. Sustainability and Environmental Goals - The company aims to achieve a 50% reduction in absolute Scope 1 and 2 GHG emissions by 2030 from a 2019 base year [61]. - The company plans to engage clients representing 70% of emissions at managed properties to set their own science-based targets by 2025 [62]. - The company has been recognized as one of the World's Most Sustainable Companies of 2024 by TIME [39]. - Climate change poses risks to operations, including increased operating costs and potential declines in demand for commercial real estate in certain regions [110]. - The company has set voluntary greenhouse gas emissions targets, but failure to achieve these goals could lead to reputational damage and reduced revenue [111]. Risk Management and Compliance - Compliance with regulations is crucial, as failures could lead to fines, license suspensions, or other adverse actions affecting business operations [67]. - The company is exposed to various litigation risks that could materially damage its reputation and financial condition [130]. - The company faces risks related to compliance with numerous laws and regulations across different jurisdictions, which could adversely impact its operations [118]. - The company has experienced cybersecurity attacks in the past and anticipates additional attacks in the future, which could lead to disruptions in critical systems and potential revenue loss [93]. - Non-compliance with cybersecurity and data privacy regulations could result in significant liabilities, fines, or penalties, damaging the company's reputation and operating results [95]. Financial Strategy and Debt Management - The company has a total indebtedness of approximately $3.0 billion as of December 31, 2024, which includes finance lease liabilities [125]. - The company repaid over $200 million in aggregate principal outstanding under its Term Loans in 2024, most of which was ahead of schedule [125]. - The company is subject to a credit agreement governing $2.0 billion in term loans and a $1.1 billion revolving credit facility, with no funds currently drawn from the latter [119]. - The company does not intend to pay cash dividends on its ordinary shares for the foreseeable future, focusing instead on retaining earnings for operations and debt repayment [129]. - The company has implemented interest rate hedges and refinanced debt in response to interest rate increases by the U.S. Federal Reserve [127]. Corporate Governance and Shareholder Relations - The company has a classified Board with staggered three-year terms, which may delay or prevent hostile takeovers [141]. - The company has received authority from shareholders to allot additional shares for a period of five years from May 11, 2023 [144]. - The company obtained shareholder authority to repurchase shares up to $300 million, valid for five years from September 2022 [146]. - The company’s articles of association provide that the courts of England and Wales will be the exclusive forum for resolving shareholder complaints [147]. Technology and Innovation - The company is investing in new information technology and AI technologies to maintain competitive advantages, but may face challenges in successful deployment [88]. - Disruptions to information technology and communication systems could materially harm the company's ability to provide services effectively [90]. - The company collects and stores sensitive data, making the secure processing and maintenance of this information critical to operations [92]. - The reliance on third-party service providers for information technology networks increases vulnerability to security breaches, potentially adversely affecting operations and reputation [94].