Executive Summary

Q2 2025 delivered broad-based growth: revenue rose 9% to $2.484B, Adjusted EBITDA increased 16% to $161.7M, and diluted EPS reached $0.25; adjusted diluted EPS was $0.30, with margins expanding 75 bps to 9.5% .
Strength was led by Capital Markets (+27% YoY) and Leasing (+8% YoY), with organic Services growth at 6% despite the prior-year non-core divestiture headwind .
Management raised full‑year outlook for EPS and upgraded service-line revenue growth ranges (Leasing 6–8%; Capital Markets mid‑to‑high teens; Services mid‑single-digit organic) while further de‑leveraging (additional $150M term loan prepay; 50 bps term loan repricing) .
Results were above S&P Global consensus on revenue and EPS; EBITDA was also above consensus. Narrative catalysts: accelerating broker hiring, margin discipline in Services/EMEA, and debt cost reductions supporting EPS trajectory .

What Went Well and What Went Wrong

What Went Well
- Capital Markets momentum: +27% YoY (26% LC), third straight double‑digit quarter; early success from expanded recruiting and improving financing availability . Quote: “Capital markets revenue growth of 26%… underscores our solid market positioning and the early success of our expanded recruiting efforts” — CEO Michelle MacKay .
- Leasing strength across asset classes and regions: +8% YoY with robust office and industrial in the Americas and improvement in EMEA .
- Services turnaround: organic Services +6% YoY; GOS retention reached 96% YTD, indicating improved stickiness and profitability potential .
What Went Wrong
- Greystone JV drag: equity method earnings fell ~$4.1M YoY in Q2, reflecting lower MSR values and higher credit loss provisions; the company now excludes certain non‑operating Greystone items from Adjusted metrics starting Q2 .
- Higher operating expense intensity: operating, administrative and other rose 8% YoY on employment costs, stock‑based comp, and strategic investments, partially offsetting leverage .
- Free cash flow usage in 1H: FCF was $(166.3)M vs $(125.6)M last year, reflecting working capital and compensation timing; management expects conversion to improve exiting the year .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$2.288B	$2.285B	$2.484B
Net Income ($USD Millions)	$13.5	$1.9	$57.3
Diluted EPS ($USD)	$0.06	$0.01	$0.25
Adjusted EBITDA ($USD Millions)	$138.9	$96.2	$161.7
Adjusted Diluted EPS ($USD)	$0.20	$0.09	$0.30
Net Income Margin %	0.6%	0.1%	2.3%
Adjusted EBITDA Margin % (vs fee revenue)	8.8%	6.2%	9.5%

Segment breakdown – service lines (fee revenue):

Service Line Fee Revenue ($USD Millions)	Q2 2024	Q2 2025	YoY %
Services	$864.5	$890.2	3%
Leasing	$450.3	$486.9	8%
Capital Markets	$163.2	$207.0	27%
Valuation & Other	$105.7	$114.2	8%
Total Service Line Fee Revenue	$1,583.7	$1,698.3	7%

Segment breakdown – region totals:

Region Total Revenue ($USD Millions)	Q2 2024	Q2 2025	YoY %
Americas	$1,713.4	$1,804.1	5% (USD)
EMEA	$221.9	$259.8	17% (USD)
APAC	$352.7	$420.0	19% (USD)

KPIs and balance sheet:

KPI	Q1 2025	Q2 2025
Liquidity ($USD Billions)	$1.7	$1.7
Cash & Cash Equivalents ($USD Billions)	$0.6	$0.6
Net Debt ($USD Billions)	$2.4	$2.3
Term Loan Repricing (bps)	25 bps (Jan)	Additional 50 bps (Jul)
Additional Debt Prepayment	$25M (Jun)	$150M (Aug 5)
GOS Retention (annualized)	n/a	96% YTD

Results vs S&P Global consensus (Q2 2025):

Metric	Consensus	Actual
Revenue ($USD Billions)	$2.377B*	$2.484B
EPS (Primary / Company adj. diluted, $)	$0.219*	$0.30 (adjusted diluted)
EBITDA ($USD Millions)	$141.9M*	$161.7M (Adjusted EBITDA)
Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Leasing revenue growth	FY 2025	Not disclosed (prior forecast)	6%–8%	Raised
Capital Markets revenue growth	FY 2025	Not disclosed (prior forecast)	Mid–high teens	Raised
Services (organic) revenue growth	FY 2025	Mid‑single‑digit (updated last quarter)	Mid‑single‑digit	Maintained
Adjusted EPS outlook	FY 2025	Not disclosed numerically	Raised (range discussed on call)	Raised
Interest expense run-rate	FY 2025	n/a	Downward from repricings and prepayments	Improved

Earnings Call Themes & Trends

Topic	Q4 2024 (Q‑2)	Q1 2025 (Q‑1)	Q2 2025 (Current)	Trend
Capital Markets	Strongest growth since Q1’22; +35% YoY globally	Double‑digit YoY growth; APAC strong	+27% YoY; early impact from talent expansion	Accelerating
Leasing	Fifth consecutive YoY growth; office-led	+8% YoY; Americas office/industrial strong	+8% YoY; office/industrial in Americas; EMEA improved	Sustained strength
Services	Restructuring/portfolio pruning; margin focus	Organic growth resumed; mid‑single-digit target	Organic +6%; 96% GOS retention	Improving growth/margins
Macro/Rates	Rate clarity aided transactions	Stability aided APAC CM activity	EMEA rate cuts; investor confidence improving	Supportive
Tariffs/macro uncertainty	n/a	n/a	Disruptive but not derailing activity; pipelines strong	Watchful
Industrial dynamics	n/a	Strong multi‑sector demand	Net absorption ~30M sq ft; flight to quality	Positive surprise
Legal/compliance items	One‑time legal costs; antitrust matter	Redomicile consulting costs begin	Release of compliance reserve; ongoing redomicile costs	Normalizing one‑offs
Debt & capital structure	Deleveraging; repricing started	Prepaid $25M; liquidity $1.7B	Repriced $948M (-50 bps); prepaid $150M	Improving costs/leverage

Management Commentary

“Through the first half of 2025, we achieved 95% adjusted earnings per share growth and are raising our earnings per share outlook for the full year… we have the right talent, right structure and right vision… to drive sustainable long‑term growth” — CEO Michelle MacKay .
“Adjusted EBITDA margin expanded 75 bps to 9.5%, reflecting our ability to drive operating leverage while effectively managing expenses” — CFO Neil Johnston .
“We have recruited capital markets brokers with annual average revenue that is 200% higher than we recruited in all of 2024” — CEO Michelle MacKay .
“We repriced approximately $950M of term loan debt, lowering our applicable interest rate by 50 bps… and prepaid an additional $150M” — CFO Neil Johnston ; see also company release .

Q&A Highlights

EMEA inflection: Activity improved with notable wins (largest EU single‑asset office lease since 2020 in Ireland; largest ever office lease in Barcelona); macro tailwinds from rate cuts and stable labor markets .
Industrial leasing: Demand remains solid; ~30M sq ft net absorption in Q2, higher transaction value on rollovers with rents up ~50% in key U.S. markets; flight to quality facilities .
Services profitability: Restructuring and efficiency investments (esp. EMEA PM) driving margin expansion; continued focus on operating leverage .
Margin cadence: Slightly lower margin in 2H vs 1H due to investment spend, but full‑year margin expansion expected .
Tariffs: Disruptive noise but not yet disrupting capital flows; July trends remained compelling .
Talent expansion: Broad-based hiring across Capital Markets and Leasing; productivity per existing brokers improving .

Estimates Context

S&P Global consensus pointed to beats in Q2: revenue above ($2.484B actual vs $2.377B consensus), EPS above ($0.30 adjusted diluted vs $0.219 consensus), and EBITDA above ($161.7M adj. vs $141.9M consensus). Values retrieved from S&P Global.
Given the company reports adjusted diluted EPS and Adjusted EBITDA as primary performance metrics, expect upward estimate revisions concentrated in Capital Markets and Leasing on sustained volume/mix, with some offset from Greystone JV normalization and incremental investment spend .

Key Takeaways for Investors

Momentum intact: Broad-based revenue growth with mix shift to higher-margin Brokerage (Leasing/Capital Markets) and expanding Adjusted EBITDA margin to 9.5% positions CWK for continued EPS growth .
Share gain strategy: Early returns from aggressive broker recruiting suggest further upside as new teams ramp across product types, particularly in the Americas .
Services durability: Organic growth and 96% GOS retention enhance visibility and margin leverage potential, especially as EMEA PM restructuring benefits flow through .
De‑leveraging as an EPS tailwind: $150M prepay and 50 bps repricing reduce interest expense, supporting guidance; liquidity remains strong at $1.7B .
Watch items: Greystone JV earnings volatility (MSR fair value and credit loss provisions) and incremental investment spend temper near-term margin cadence .
Near-term trading: Positive reaction catalysts include guidance raises, continued double‑digit Capital Markets prints, and visible deleveraging; any macro/rate or tariff shocks are risks to brokerage volumes .
Medium-term thesis: Structural share gains, disciplined cost base, and improved capital structure support multi‑year profitability normalization toward cycle averages, with incremental upside from EMEA growth and Services efficiency .

Additional relevant press releases (Q2 period):

Term loan repricing announced July 21, 2025 (SOFR +2.75%, -50 bps), following $25M prepayment on June 30 .
Q2 earnings press release reiterating headline results and balance sheet actions (Aug 5) .

Notes: Service-line and segment figures exclude “gross contract reimbursables” which carry substantially no margin ; Adjusted metrics reflect exclusions detailed in non‑GAAP reconciliations .

Cushman & Wakefield plc (CWK)·Q2 2025 Earnings Summary