Jones Lang LaSalle Inc.

07/30/2026 | Press release | Distributed by Public on 07/30/2026 11:46

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements, including the notes thereto, for the six months ended June 30, 2026, and our audited Consolidated Financial Statements, including the notes thereto, for the fiscal year ended December 31, 2025, which are included in our 2025 Annual Report on Form 10-K, filed with the SEC and also available on our website (www.jll.com). You should also refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our 2025 Annual Report on Form 10-K.
The following discussion and analysis contains certain forward-looking statements generally identified by the words anticipates, believes, estimates, expects, forecasts, plans, intends and other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause JLL's actual results, performance, achievements, plans and objectives to be materially different from any future results, performance, achievements, plans and objectives expressed or implied by such forward-looking statements. See the Cautionary Note Regarding Forward-Looking Statements included within this section for further information.
We present our quarterly Management's Discussion and Analysis in the following sections:
(1)A summary of our critical accounting policies and estimates;
(2)Certain items affecting the comparability of results and certain market and other risks we face;
(3)The results of our operations, first on a consolidated basis and then for each of our business segments; and
(4)Liquidity and capital resources.
SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES
An understanding of our accounting policies is necessary for a complete analysis of our results, financial position, liquidity and trends. See Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for a complete summary of our significant accounting policies.
The preparation of our financial statements requires management to make certain critical accounting estimates and judgments that impact (i) the stated amount of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements and (iii) the reported amount of revenue and expenses during the reporting periods. These accounting estimates are based on management's judgment. We consider them to be critical because of their significance to the financial statements and the possibility that future events may differ from current judgments or that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness. Although actual amounts likely differ from such estimated amounts, we believe such differences are not likely to be material.
A discussion of our critical accounting policies and estimates used in the preparation of our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q can be found in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to these critical accounting policies and estimates during the six months ended June 30, 2026.
ITEMS AFFECTING COMPARABILITY
Macroeconomic Conditions
Our results of operations and the variability of these results are significantly influenced by (i) macroeconomic trends, (ii) the geopolitical environment, (iii) the global and regional real estate markets and (iv) the financial and credit markets. These macroeconomic and other conditions have had, and we expect will continue to have, a significant impact on the variability of our results of operations.
Acquisitions and Dispositions
The timing of acquisitions and dispositions may impact the comparability of our results on a year-over-year basis. Our results include incremental revenues and expenses following the completion date of an acquisition. Relating to dispositions, comparable results will include the revenues and expenses of recent dispositions and results may also include gains (losses) on the disposition. In addition, there is generally an initial adverse impact on net income from an acquisition as a result of pre-acquisition due diligence expenditures, transaction/deal costs and post-acquisition integration costs, such as fees from third-party advisors engaged to assist with onboarding and process alignment, retention and severance expense, early lease termination costs and other integration expenses. For dispositions, we may also incur such incremental costs during the disposition process and these costs could have an adverse impact on net income.
Transaction-Based Revenues and Equity Earnings
Transaction-based revenues are impacted by the size and timing of our clients' transactions. Such revenues include investment sales and other capital markets activities, agency and tenant representation leasing transactions, incentive fees, and other services/offerings, which increase the variability of the revenue we earn. Specifically for Investment Management, the magnitude and timing of recognition of incentive fees are driven by one or a combination of the following: changes in valuations of the underlying investments, dispositions of managed assets and the contractual measurement periods with clients. The timing and the magnitude of transaction-based revenues can vary significantly from year to year and quarter to quarter and also vary geographically.
Equity earnings may vary substantially from period to period for a variety of reasons, including as a result of (i) valuation increases (decreases) on investments reported at fair value, (ii) gains (losses) on asset dispositions and (iii) impairment charges. The timing of recognition of these items may impact comparability between quarters, in any one year or compared to a prior year.
The comparability of these items can be seen in Note 4, Business Segments, of the Notes to Consolidated Financial Statements and is discussed further in Segment Operating Results included herein.
Foreign Currency
We conduct business using a variety of currencies, but we report our results in U.S. dollars. As a result, the volatility of currencies against the U.S. dollar may positively or negatively impact our results. This volatility can make it more difficult to perform period-to-period comparisons of the reported U.S. dollar results of operations, because such results may indicate a growth or decline rate that might not have been consistent with the real underlying growth or decline rates in the local operations. Consequently, we provide information about the impact of foreign currencies in the period-to-period comparisons of the reported results of operations in our discussion and analysis of financial condition in the Results of Operations section below.
Seasonality
Historically, we have reported a relatively smaller revenue and profit in the first quarter with both measures increasing each of the following three quarters. This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year end and the fact that certain expenses are constant through the year. Our seasonality excludes the recognition of investment-generated performance fees and realized and unrealized investment equity earnings and losses. Specifically, we recognize incentive fees when assets are sold or as a result of valuation increases in the portfolio, the timing of which may not be predictable or recurring. In addition, investment equity gains and losses are primarily dependent on valuations of underlying investments, and the direction and magnitude of changes to such valuations are not predictable. Non-variable operating expenses, which we treat as expenses when incurred during the year, are relatively constant on a quarterly basis.
A significant portion of our Compensation and benefits expense is from incentive compensation plans, which we generally accrue throughout the year based on progress toward annual performance targets. This quarterly estimation can result in significant fluctuations in quarterly Compensation and benefits expense from period to period. Consequently, the results for the periods ended June 30, 2026, and 2025, are not fully indicative of the results we expect to realize for the full fiscal year.
RESULTS OF OPERATIONS
Definitions
•Assets under management data for Investment Management is primarily reported on a one-quarter lag.
•n.m.: not meaningful, typically represented by a percentage change of greater than 1,000%, favorable or unfavorable.
•We define "Resilient" revenue as (i) Workplace Management, Project Management, Property Management and Software and Technology Solutions, within Real Estate Management Services, (ii) Value and Risk Advisory, and Loan Servicing, within Capital Markets Services and (iii) Advisory fees, within Investment Management. In addition, we define "Advisory" revenue (previously referred to as "Transactional") as (i) Portfolio Services and Other, within Real Estate Management Services, (ii) Leasing Advisory, (iii) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets Services and (iv) Incentive and transaction fees, within Investment Management.
•Gross contract costs represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses (with the corresponding fees in Revenue).
Consolidated Operating Results
Three Months Ended June 30, Change in % Change in Local Currency
($ in millions) 2026 2025 U.S. dollars
Real Estate Management Services $ 5,368.4 4,949.9 418.5 8 % 8 %
Leasing Advisory 836.9 676.8 160.1 24 24
Capital Markets Services 620.2 520.3 99.9 19 19
Investment Management 102.4 103.1 (0.7) (1) 1
Revenue $ 6,927.9 6,250.1 677.8 11 % 10 %
Platform compensation and benefits $ 1,633.4 1,427.2 206.2 14 % 14 %
Platform operating, administrative and other expenses 346.4 349.7 (3.3) (1) (1)
Depreciation and amortization 57.2 67.7 (10.5) (16) (16)
Total platform operating expenses 2,037.0 1,844.6 192.4 10 10
Gross contract costs 4,574.3 4,186.8 387.5 9 9
Restructuring and acquisition charges 25.7 21.3 4.4 21 20
Total operating expenses $ 6,637.0 6,052.7 584.3 10 % 9 %
Operating income $ 290.9 197.4 93.5 47 % 49 %
Equity losses $ (2.2) (27.4) 25.2 92 % 92 %
Net non-cash MSR and mortgage banking derivative activity $ (10.3) (4.2) (6.1) (145) % (143) %
Adjusted EBITDA $ 386.3 291.7 94.6 32 % 33 %
Consolidated Operating Results (continued)
Six Months Ended June 30, Change in % Change in Local Currency
($ in millions) 2026 2025 U.S. dollars
Real Estate Management Services $ 10,434.1 9,576.4 857.7 9 % 8 %
Leasing Advisory 1,523.2 1,262.9 260.3 21 20
Capital Markets Services 1,155.4 955.6 199.8 21 19
Investment Management 201.7 201.6 0.1 - -
Revenue $ 13,314.4 11,996.5 1,317.9 11 % 10 %
Platform compensation and benefits $ 3,087.7 2,718.9 368.8 14 % 12 %
Platform operating, administrative and other expenses 668.2 650.8 17.4 3 1
Depreciation and amortization 115.0 139.3 (24.3) (17) (19)
Total platform operating expenses 3,870.9 3,509.0 361.9 10 9
Gross contract costs 8,917.0 8,129.1 787.9 10 8
Restructuring and acquisition charges 31.0 41.0 (10.0) (24) (25)
Total operating expenses $ 12,818.9 11,679.1 1,139.8 10 % 8 %
Operating income $ 495.5 317.4 178.1 56 % 59 %
Equity earnings (losses) $ 5.3 (53.0) 58.3 n.m. n.m.
Net non-cash MSR and mortgage banking derivative activity $ (15.8) (17.1) 1.3 8 % 8 %
Adjusted EBITDA $ 659.9 516.5 143.4 28 % 29 %
Non-GAAP Financial Measures
Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:
•Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA") and
•Percentage changes against prior periods, presented on a local currency basis.
However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. GAAP. Any measure that eliminates components of a company's capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers U.S. GAAP financial measures and does not rely solely on non-GAAP financial measures. Because our non-GAAP financial measures are not calculated in accordance with U.S. GAAP, they may not be comparable to similarly titled measures used by other companies.
Adjustments to U.S. GAAP Financial Measures Used to Calculate non-GAAP Financial Measures
Net non-cash MSR and mortgage banking derivative activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated net cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets Services segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how we manage and evaluate performance because the excluded activity is non-cash in nature.
Restructuring and acquisition charges primarily consist of (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) other restructuring, including lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore not a line item in the segments' reconciliation to Adjusted EBITDA.
Gain or loss on disposition reflects the gain or loss recognized on the sale of businesses. Given the low frequency of business disposals by the company historically, the gain or loss directly associated with such activity is excluded as it is not considered indicative of core operating performance. In 2026, the $0.6 million net gain included a $1.0 million gain related to a business disposition within Real Estate Management Services, partially offset by a $0.4 million loss related to a disposition within Capital Markets Services, both during the second quarter.
Interest on employee loans, net of forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in Leasing Advisory and Capital Markets Services) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.
Equity earnings/losses (Investment Management and Proptech Investments) primarily reflects valuation changes on investments reported at fair value, which are increased or decreased each reporting period as fair value changes. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes. Such activity is excluded as the amounts are generally non-cash in nature and not indicative of core operating performance.
Note: Equity earnings/losses for segments other than Investment Management represent the results of unconsolidated operating ventures (not investments), and therefore, the amounts are included in Adjusted EBITDA on both a segment and consolidated basis.
Credit losses on convertible note investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises. Such losses are similar to the equity investment-related losses included in equity earnings/losses for Proptech Investments and are therefore consistently excluded from adjusted measures.
Reconciliation of Non-GAAP Financial Measures
Below is a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA.
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Net income attributable to common shareholders $ 215.6 112.3 $ 374.6 167.6
Add:
Interest expense, net of interest income 26.4 35.3 43.4 59.9
Income tax provision 51.3 26.7 89.4 40.7
Depreciation and amortization(1)
56.2 66.7 113.1 137.4
Adjustments:
Restructuring and acquisition charges 25.7 21.3 31.0 41.0
Net gain on disposition (0.6) - (0.6) -
Net non-cash MSR and mortgage banking derivative activity 10.3 4.2 15.8 17.1
Interest on employee loans, net of forgiveness (1.7) (2.0) (4.2) (3.6)
Equity losses (earnings) - Investment Management and Proptech Investments(1)
3.0 27.0 (3.0) 55.7
Credit losses on convertible note investments 0.1 0.2 0.4 0.7
Adjusted EBITDA $ 386.3 291.7 $ 659.9 516.5
(1) This adjustment excludes the noncontrolling interest portion which is not attributable to common shareholders.
In discussing our operating results, we report percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. We believe this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.
The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Operating income and (iii) Adjusted EBITDA.
Three Months Ended June 30, Six Months Ended June 30,
($ in millions) 2026 % Change 2026 % Change
Revenue:
At current period exchange rates $ 6,927.9 11 % $ 13,314.4 11 %
Impact of change in exchange rates (38.1) n/a (160.5) n/a
At comparative period exchange rates $ 6,889.8 10 % $ 13,153.9 10 %
Operating income:
At current period exchange rates $ 290.9 47 % $ 495.5 56 %
Impact of change in exchange rates 2.4 n/a 9.4 n/a
At comparative period exchange rates $ 293.3 49 % $ 504.9 59 %
Adjusted EBITDA:
At current period exchange rates $ 386.3 32 % $ 659.9 28 %
Impact of change in exchange rates 1.9 n/a 7.6 n/a
At comparative period exchange rates $ 388.2 33 % $ 667.5 29 %
Revenue
For the second quarter, revenue increased 10% compared with the prior-year quarter. Advisory revenues were collectively up 21%, led by Leasing Advisory, up 24%, and Investment Sales, Debt/Equity Advisory and Other, within Capital Markets Services, up 25% (excluding the impact of net non-cash MSR and mortgage banking derivative activity). The 8% increase in Resilient revenues was highlighted by Workplace Management, within Real Estate Management Services, up 10%.
On a year-to-date basis, revenue also increased 10%. Advisory revenues grew 19% collectively, led by Leasing Advisory, up 20%, and Investment Sales, Debt/Equity Advisory and Other, up 25% (excluding the impact of non-cash MSR and mortgage banking derivative activity). Resilient revenues increased 8% collectively, highlighted by Workplace Management, up 9%, and Project Management, up 6%.
The following highlights Resilient and Advisory revenue as a percentage of total revenue for the second quarter and first half of 2026, followed by the year-over-year change for each of the trailing eight quarters. Refer to segment operating results for further detail.
QTD Resilient vs. Advisory Revenue YTD
Operating Expenses
Consolidated operating expenses were $6.6 billion for the second quarter, up 9% from the same period in 2025. Gross contract costs were $4.6 billion, up 9% from the prior-year quarter, attributable to growth from businesses with higher client pass-through expenses such as Workplace Management (where higher costs were driven by mandate expansions and new client wins) and Project Management (where increased costs were attributable to changes in contract mix), both within Real Estate Management Services. Platform operating expenses were $2.0 billion for the second quarter, a 10% increase from the prior-year quarter, largely due to higher commission expense, driven by Advisory revenue growth.
The second-quarter increase in Restructuring and acquisition charges was primarily driven by the absence of earn-out fair value adjustments in the current quarter and lower severance and employment-related charges. The decrease for the first half of 2026 reflected the same lower severance and employment-related charges, which more than offset the impact from the change in earn-out fair value adjustments.
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Severance and other employment-related charges $ 16.6 18.0 $ 19.5 25.4
Restructuring, pre-acquisition and post-acquisition charges 9.1 10.7 11.0 19.1
Fair value adjustments that resulted in a net increase to earn-out liabilities from prior-period acquisition activity - (7.4) 0.5 (3.5)
Restructuring and acquisition charges $ 25.7 21.3 $ 31.0 41.0
Interest Expense
Interest expense, net of interest income, for the three and six months ended June 30, 2026, was $26.4 million and $43.4 million, respectively, compared with $35.3 million and $59.9 million in the prior-year periods. Lower expense was primarily due to lower average borrowings and a lower effective interest rate compared with the prior-year period.
Equity Earnings/Losses
The following details Equity earnings/losses by investment type. Equity losses in the current quarter, and prior-year periods, were largely attributable to valuation declines of certain Proptech Investments. Equity earnings in the first half of 2026, compared with equity losses in the prior-year period, reflected greater valuation increases in Investment Management as well as notably lower net valuation declines in Proptech Investments.
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Investment Management $ 5.1 (1.3) $ 10.6 (7.4)
Proptech Investments (8.0) (27.4) (6.7) (48.9)
Other 0.7 1.3 1.4 3.3
Equity (losses) earnings $ (2.2) (27.4) $ 5.3 (53.0)
Income Taxes
The following details our Income tax provision and effective tax rate.
Three Months Ended June 30, Six Months Ended June 30,
($ in millions) 2026 2025 2026 2025
Income tax provision $ 51.3 26.7 $ 89.4 40.7
Effective tax rate 19.3 % 19.5 % 19.3 % 19.5 %
On July 4, 2025, the United States enacted the One Big Beautiful Bill Act ("OBBBA"). The OBBBA included provisions altering the timing of deductions from certain depreciable assets, research and experimental expenses, and interest expense, with some effective in 2025 and some in 2026. The OBBBA further altered the determination and rates of taxation of international earnings, primarily effective in 2026. For provisions effective in 2026, the current period's effective tax rate includes the impact of such OBBBA provisions, which are not material to income tax expense or the financial statements as a whole.
Net Income and Adjusted EBITDA
The following details Net income attributable to common shareholders and Adjusted EBITDA for the three and six months ended June 30, 2026, and 2025.
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Net income attributable to common shareholders $ 215.6 112.3 $ 374.6 167.6
Adjusted EBITDA 386.3 291.7 659.9 516.5
For the second quarter and first half of 2026, higher Adjusted EBITDA and margin were primarily driven by Capital Markets Services and Leasing Advisory, reflecting strong revenue growth and enhanced platform leverage. In addition, profit growth included the absence of $14 million of loan loss expense recognized in the prior-year quarter associated with an enhanced loss-share agreement with Fannie Mae for a specific three-loan portfolio.
The following chart reflects segment Adjusted EBITDA for the second quarter and first six months of 2026 and 2025. Proptech Investments are reflected outside of the reporting segments in "All Other;" Adjusted EBITDA for the segments, therefore, does not sum to the consolidated total.
Aggregation of Segment Adjusted EBITDA (in millions)
Segment Operating Results
Effective January 1, 2026, we began reporting Software and Technology Solutions (historically a standalone reporting segment) as a fifth business line within Real Estate Management Services. In addition, the revenue disaggregation within Leasing Advisory was collapsed and the presentation of Investment Management revenue was simplified to reflect two captions: Advisory fees and Incentive and transaction fees. Prior-period financial information was recast to conform with this presentation.
We manage and report our operations as four business segments: Real Estate Management Services, Leasing Advisory, Capital Markets Services and Investment Management. Our Real Estate Management Services business provides a broad suite of integrated services to occupiers of real estate, including facility and property management, project management, portfolio and other services, and software and technology solutions. We consider "Property Management" to be services provided to non-occupying property investors and "Workplace Management" to be services provided to facility occupiers. Leasing Advisory offers agency leasing and tenant representation, as well as advisory and consulting services. Our Capital Markets Services offerings include investment sales, debt and equity advisory, value and risk advisory, and loan servicing. Investment Management provides services on a global basis to institutional investors and high-net-worth individuals.
Segment operating expenses comprise Gross contract costs and Segment platform operating expenses, which includes Platform compensation and benefits; Platform operating, administrative and other expenses; and Depreciation and amortization. Our measure of segment results excludes Restructuring and acquisition charges.
Real Estate Management Services
% Change
Three Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Workplace Management $ 3,707.7 3,349.1 358.6 11 % 10 %
Project Management 1,013.4 971.6 41.8 4 3
Property Management 468.6 454.4 14.2 3 3
Portfolio Services and Other 120.6 118.9 1.7 1 1
Software and Technology Solutions 58.1 55.9 2.2 4 4
Revenue $ 5,368.4 4,949.9 418.5 8 % 8 %
Platform compensation and benefits $ 527.4 515.4 12.0 2 % 2 %
Platform operating, administrative and other 172.6 162.8 9.8 6 5
Depreciation and amortization 34.0 36.4 (2.4) (7) (7)
Segment platform operating expenses 734.0 714.6 19.4 3 2
Gross contract costs 4,560.9 4,173.5 387.4 9 9
Segment operating expenses $ 5,294.9 4,888.1 406.8 8 % 8 %
Equity earnings $ 0.3 0.5 (0.2) (40) % (32) %
Adjusted EBITDA $ 107.4 97.8 9.6 10 % 11 %
Real Estate Management Services (continued)
% Change
Six Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Workplace Management $ 7,290.6 6,612.7 677.9 10 % 9 %
Project Management 1,857.4 1,719.1 138.3 8 6
Property Management 939.7 900.0 39.7 4 3
Portfolio Services and Other 231.5 231.6 (0.1) - (1)
Software and Technology Solutions 114.9 113.0 1.9 2 1
Revenue $ 10,434.1 9,576.4 857.7 9 % 8 %
Platform compensation and benefits $ 1,033.0 994.9 38.1 4 % 2 %
Platform operating, administrative and other 335.7 316.0 19.7 6 4
Depreciation and amortization 67.1 74.2 (7.1) (10) (11)
Segment platform operating expenses 1,435.8 1,385.1 50.7 4 2
Gross contract costs 8,891.7 8,104.5 787.2 10 8
Segment operating expenses $ 10,327.5 9,489.6 837.9 9 % 7 %
Equity earnings $ 0.8 0.9 (0.1) (11) % (11) %
Adjusted EBITDA $ 172.8 158.8 14.0 9 % 11 %
Compared with the prior-year periods, Real Estate Management Services achieved revenue growth across nearly all business lines for both the second quarter and first half of 2026. For both periods, continued strength in Workplace Management highlighted the top-line increases, led by mandate expansions and complemented by new wins. Project Management revenue growth for the second quarter followed a strong increase in the prior-year quarter (up 22%), and reflected a low double-digit management fee increase in the Americas, augmented by higher pass-through costs due to contract mix, partially offset by slower growth in certain other geographies. First-half growth benefited from stronger first-quarter performance and also followed a meaningful increase in the prior-year period (up 19%).
The increases in Segment platform operating expenses for the second quarter and first half of 2026 were primarily driven by incremental revenue-related human capital investments. Higher gross contract costs for both periods correlated to top-line performance across the segment's business lines.
Adjusted EBITDA improvements for the second quarter and first half of 2026 were primarily attributable to the revenue growth described above and incremental platform leverage.
Leasing Advisory
% Change
Three Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Revenue $ 836.9 676.8 160.1 24 % 24 %
Platform compensation and benefits $ 593.4 479.3 114.1 24 % 24 %
Platform operating, administrative and other 74.1 74.2 (0.1) - -
Depreciation and amortization 10.8 11.0 (0.2) (2) (2)
Segment platform operating expenses 678.3 564.5 113.8 20 20
Gross contract costs 3.6 3.3 0.3 9 7
Segment operating expenses $ 681.9 567.8 114.1 20 % 20 %
Adjusted EBITDA $ 166.6 120.4 46.2 38 % 39 %
% Change
Six Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Revenue $ 1,523.2 1,262.9 260.3 21 % 20 %
Platform compensation and benefits $ 1,092.0 906.1 185.9 21 % 20 %
Platform operating, administrative and other 142.2 134.6 7.6 6 5
Depreciation and amortization 22.3 23.0 (0.7) (3) (4)
Segment platform operating expenses 1,256.5 1,063.7 192.8 18 17
Gross contract costs 6.0 5.3 0.7 13 11
Segment operating expenses $ 1,262.5 1,069.0 193.5 18 % 17 %
Adjusted EBITDA $ 283.5 217.4 66.1 30 % 31 %
The increases in Leasing Advisory revenue for the second quarter and first half of 2026 were driven by accelerated momentum in the office, industrial and data center asset classes, compared with the prior-year periods. Many geographies achieved double-digit revenue increases for both periods, highlighted by the U.S., with meaningful growth from Japan and the UK. For both the second quarter and first half of 2026, broad-based asset class growth across the U.S. was primarily driven by office and industrial, as a significant uptick in average deal size was complemented by higher volume. Office leasing revenue growth outperformed global office volumes for both the second quarter and first half of 2026 (up 20% and 17%, respectively, compared with global market volumes up 2% and 1%, according to JLL Research), with U.S. revenue outperformance for both periods (up 24% and 19%, respectively, compared with U.S. market volumes up 12% and 10%).
The increases in Segment platform operating expenses for the second quarter and first half of 2026 were primarily attributable to higher commission expense, driven by the revenue growth. Consistent with the first quarter, larger average deal size drove a higher average commission rate for both periods, as higher commission tiers were achieved earlier this year.
Adjusted EBITDA and margin expansion for the second quarter and first half of 2026 were driven by revenue growth, net of higher commission expense, coupled with incremental platform leverage.
Capital Markets Services
% Change
Three Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Investment Sales, Debt/Equity Advisory and Other $ 472.2 380.6 91.6 24 % 24 %
Value and Risk Advisory 102.7 97.7 5.0 5 3
Loan Servicing 45.3 42.0 3.3 8 8
Revenue $ 620.2 520.3 99.9 19 % 19 %
Platform compensation and benefits $ 451.1 374.1 77.0 21 % 20 %
Platform operating, administrative and other 83.5 95.0 (11.5) (12) (13)
Depreciation and amortization 10.1 17.5 (7.4) (42) (43)
Segment platform operating expenses 544.7 486.6 58.1 12 11
Gross contract costs 2.0 1.7 0.3 18 8
Segment operating expenses $ 546.7 488.3 58.4 12 % 11 %
Equity earnings $ 0.4 0.8 (0.4) (50) % (50) %
Net non-cash MSR and mortgage banking derivative activity $ (10.3) (4.2) (6.1) (145) % (143) %
Adjusted EBITDA $ 95.2 54.7 40.5 74 % 74 %
Capital Markets Services (continued)
% Change
Six Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Investment Sales, Debt/Equity Advisory and Other $ 874.7 693.2 181.5 26 % 25 %
Value and Risk Advisory 192.0 179.3 12.7 7 4
Loan Servicing 88.7 83.1 5.6 7 7
Revenue $ 1,155.4 955.6 199.8 21 % 19 %
Platform compensation and benefits $ 841.2 703.6 137.6 20 % 18 %
Platform operating, administrative and other 157.3 165.7 (8.4) (5) (7)
Depreciation and amortization 20.5 36.4 (15.9) (44) (45)
Segment platform operating expenses 1,019.0 905.7 113.3 13 11
Gross contract costs 2.9 2.8 0.1 4 (2)
Segment operating expenses $ 1,021.9 908.5 113.4 12 % 11 %
Equity earnings $ 0.7 2.4 (1.7) (71) % (71) %
Net non-cash MSR and mortgage banking derivative activity $ (15.8) (17.1) 1.3 8 % 8 %
Adjusted EBITDA $ 172.3 103.3 69.0 67 % 69 %
For the second quarter and first half of 2026, Capital Markets Services top-line growth was fueled by debt advisory and investment sales, as well as robust equity advisory activity. Debt advisory and investment sales grew 44% (38% for the first half of 2026) and 20% (23% for the first half of 2026), respectively, for the quarter, while equity advisory was up 53% compared with the prior-year quarter (61% for the first half of 2026). Geographically, the U.S., Japan and Australia led revenue growth for the second quarter, while the U.S., Japan and Spain led for the first half. This growth outpaced softness in investment sales in parts of Europe, where deal timelines elongated during the second quarter. U.S. investment sales revenue growth of over 53% for the quarter (38% for the first half), outpacing the broader market, which grew 22% over the prior-year quarter (24% over the first half of the prior year) according to JLL Research.
The increases in segment platform operating expenses for the second quarter and first half of 2026 were substantially driven by higher commission expense, correlated to the growth in Investment Sales, Debt/Equity Advisory and Other. A higher average commission rate, reflecting the achievement of higher commission tiers earlier this year compared with 2025, contributed to the increase for both periods. Further, in the prior-year quarter, we recognized approximately $14.0 million of incremental expense associated with an enhanced loss-share agreement with Fannie Mae for a specific three-loan portfolio, which did not recur this year.
Adjusted EBITDA and margin improvements for the second quarter and first half of 2026 were primarily attributable to the revenue growth described above, net of higher commission expense, the favorable year-over-year change in loan-related expenses and incremental platform leverage.
Investment Management
% Change
Three Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Advisory fees $ 94.3 93.3 1.0 1 % 2 %
Incentive and transaction fees 8.1 9.8 (1.7) (17) (13)
Revenue $ 102.4 103.1 (0.7) (1) % 1 %
Platform compensation and benefits $ 62.2 60.9 1.3 2 % 2 %
Platform operating, administrative and other 16.0 17.5 (1.5) (9) (9)
Depreciation and amortization 2.3 2.8 (0.5) (18) (17)
Segment platform operating expenses 80.5 81.2 (0.7) (1) (1)
Gross contract costs 7.8 8.3 (0.5) (6) (6)
Segment operating expenses $ 88.3 89.5 (1.2) (1) % (1) %
Adjusted EBITDA(1)
$ 16.4 16.3 0.1 1 % 8 %
Equity earnings (losses) $ 5.1 (1.3) 6.4 n.m. n.m.
Investment Management (continued)
% Change
Six Months Ended June 30, Change in in Local
($ in millions) 2026 2025 U.S. dollars Currency
Advisory fees $ 184.2 182.6 1.6 1 % - %
Incentive and transaction fees 17.5 19.0 (1.5) (8) (6)
Revenue $ 201.7 201.6 0.1 - % - %
Platform compensation and benefits $ 121.4 119.2 2.2 2 % 1 %
Platform operating, administrative and other 32.5 33.8 (1.3) (4) (6)
Depreciation and amortization 5.1 5.7 (0.6) (11) (12)
Segment platform operating expenses 159.0 158.7 0.3 - (1)
Gross contract costs 16.4 16.5 (0.1) (1) (1)
Segment operating expenses $ 175.4 175.2 0.2 - % (1) %
Adjusted EBITDA(1)
$ 31.4 32.1 (0.7) (2) % 1 %
Equity earnings (losses) $ 10.6 (7.4) 18.0 n.m. n.m.
(1) Adjusted EBITDA excludes Equity earnings (losses) attributable to common shareholders for Investment Management.
Investment Management revenue was largely consistent with the prior-year periods for both the second quarter and first half of 2026. Advisory fees reflected growth associated with continued capital raise momentum over the trailing twelve months, most notably in North America, offset by anticipated lower fees from funds in Asia Pacific, as discussed in the first quarter.
Segment platform operating expenses and Adjusted EBITDA were nominally consistent with the prior-year periods.
Equity earnings for the second quarter and first half of 2026 reflected valuation increases across the underlying investment portfolio, compared with equity losses in the prior-year periods, which were driven by valuation declines in Asia Pacific and North America funds.
AUM was flat in USD and in local currency during the quarter, and increased 2% in USD and 1% in local currency over the trailing twelve months. Changes in AUM are detailed in the tables below (in billions):
Quarter-to-date
Beginning balance (March 31, 2026)
$ 86.9
Asset acquisitions/takeovers 2.2
Asset dispositions/withdrawals (2.5)
Valuation changes 0.7
Foreign currency translation (0.5)
Change in uncalled committed capital and cash held -
Ending balance (June 30, 2026)
$ 86.8
Trailing Twelve Months
Beginning balance (June 30, 2025)
$ 84.9
Asset acquisitions/takeovers 6.9
Asset dispositions/withdrawals (8.4)
Valuation changes 2.4
Foreign currency translation 0.8
Change in uncalled committed capital and cash held 0.2
Ending balance (June 30, 2026)
$ 86.8
LIQUIDITY AND CAPITAL RESOURCES
We finance our operations, co-investment activity, share repurchases, capital expenditures and business acquisitions with internally generated funds, borrowings on our Facility, and through issuance of Long-term debt and commercial paper.
Cash Flows from Operating Activities
Operating activities used $266.9 million of cash in the first six months of 2026, compared with $434.8 million of cash used in operating activities during the same period in 2025. The improvement in operating cash flows was primarily attributable to higher cash provided by earnings, partially offset by higher trade receivables - correlated with the revenue growth - with net working capital adjustments in aggregate broadly consistent with the prior-year period.
Cash Flows from Investing Activities
We used $125.5 million of cash for investing activities during the first six months of 2026, compared with $200.4 million used during the same period in 2025. The decrease in cash used for investing activities was primarily attributable to our January 2025 $100.0 million contribution to JLL Income Property Trust ("JLL IPT"), partially offset by higher capital expenditures. We discuss these and other drivers of investing activity below in further detail.
Cash Flows from Financing Activities
Financing activities provided $251.8 million of cash during the first six months of 2026, compared with $617.5 million provided during the same period in 2025. The decrease in cash provided by financing activities reflected lower net borrowings under the Facility and the Program, largely driven by a higher cash balance at the beginning of 2026 and lower cash used for investing activities. We discuss specific drivers of financing activities, including share repurchases, in further detail below.
Debt
Our $3.3 billion Facility matures on November 3, 2028, and bears a variable interest rate. Outstanding borrowings, including the balance of the Facility, Short-term borrowings (financing lease obligations, overdrawn bank accounts and local overdraft facilities) and the balance outstanding under the Program are presented below.
(in millions) June 30, 2026 December 31, 2025
Outstanding borrowings under the Facility $ 345.0 -
Short-term borrowings 83.4 92.7
Outstanding commercial paper 420.0 -
In addition to our Facility, we had the capacity to borrow up to $58.0 million under local overdraft facilities as of June 30, 2026.
The following table provides additional information on our Program, Facility and Uncommitted Facility, collectively. The Uncommitted Facility had no outstanding balance as of December 31, 2025, and was terminated in June 2026. We did not draw on the Uncommitted Facility in 2026. Average outstanding borrowings for the periods presented reflect usage of the Uncommitted Facility until its termination in June 2026.
Three Months Ended June 30, Six Months Ended June 30,
($ in millions) 2026 2025 2026 2025
Average outstanding borrowings $ 1,222.6 1,573.5 $ 842.6 1,290.0
Average effective interest rate 4.3 % 5.0 % 4.3 % 5.0 %
We will continue to use the Facility for working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases, capital expenditures and acquisitions.
Refer to Note 8, Debt, in the Notes to Consolidated Financial Statements for additional information on our debt.
Investment Activity
As of June 30, 2026, we had a carrying value of $873.6 million in Investments, primarily related to Investment Management co-investments and investments in early-to-mid-stage proptech companies as well as proptech funds ("Proptech Investments"). For the six months ended June 30, 2026, return of capital exceeded funding of investments by $0.6 million, and during the same period in 2025, funding of investments exceeded return of capital by $104.5 million, primarily driven by our $100.0 million investment in JLL IPT. We have maximum potential unfunded commitments to direct investments or investment vehicles of $305.5 million and $5.8 million as of June 30, 2026, for our Investment Management business and Proptech Investments, respectively.
See Note 6, Investments, in the Notes to Consolidated Financial Statements for additional information on our investment activity.
Capital Expenditures
Net capital additions for the six months ended June 30, 2026 and 2025 were $115.0 million and $88.9 million, respectively. Our capital expenditures in 2026 were primarily for leasehold improvements, purchased/developed software and technology hardware. Leasehold improvement spend led the way, as we continue to invest in our global real estate footprint.
Business Acquisitions
The following table details cash payments relating to acquisitions. Payments for current-year acquisitions are within cash used in investing activities, while payments for prior-year acquisitions are primarily within cash used in financing activities.
Six Months Ended June 30,
(in millions) 2026 2025
Payments relating to current-year acquisitions(1)
$ 20.5 6.1
Payments for deferred business acquisition and earn-out obligations 16.4 12.6
Total paid for business acquisitions $ 36.9 18.7
(1) Inclusive of $1.3 million cash acquired.
Terms for many of our past acquisitions have typically included cash paid at closing with provisions for additional deferred consideration and earn-out payments subject to certain contract requirements, including the passage of time and performance, respectively. Deferred business acquisition obligations totaled $5.7 million as of June 30, 2026. These obligations represent the current discounted values of payments due to sellers of businesses for which our acquisition had been completed as of the balance sheet date and for which the only remaining condition on those payments is the passage of time. As of June 30, 2026, we had the potential to make earn-out payments for a maximum of $66.8 million on 9 completed acquisitions subject to the achievement of certain performance conditions. Refer to Note 5, Business Combinations, Goodwill and Other Intangible Assets, in the Notes to the Consolidated Financial Statements for further information on Business Acquisitions.
We will continue to consider acquisitions that we believe will strengthen our market position, increase our profitability and supplement our organic growth.
Share Repurchase and Dividend Programs
In February 2026, our Board of Directors authorized an additional $2.2 billion for the repurchase of our common stock, augmenting the $801.7 million remaining repurchases available under prior authorizations as of December 31, 2025. We may repurchase shares through open-market and privately negotiated transactions, including accelerated share repurchase programs.
During the three months ended June 30, 2026, we completed the $200.0 million ASR program we initiated in March 2026, resulting in the additional receipt of approximately 51,200 shares in the second quarter of 2026 (bringing the total shares repurchased under the ASR to 638,400). Total share repurchases are presented below.
Three Months Ended June 30, Six Months Ended June 30,
($ in millions) 2026 2025 2026 2025
Total number of shares repurchased (in 000's) 405.8 176.5 1,304.1 251.8
Total paid for shares repurchased $ 110.0 41.4 $ 410.0 61.2
As of June 30, 2026, $2,591.6 million remained authorized for repurchases under our share repurchase program.
Repatriation of Foreign Earnings
Based on our historical experience and future business plans, we do not expect to repatriate our foreign-sourced earnings to the United States. We believe our policy of permanently investing earnings of foreign subsidiaries does not significantly impact our liquidity. As of June 30, 2026 and December 31, 2025, we had total Cash and cash equivalents of $458.2 million and $599.1 million, respectively, of which approximately $378.1 million and $386.0 million, respectively, was held by foreign subsidiaries.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report, including this Management's Discussion and Analysis of Financial Condition and Results of Operations, contains "forward-looking statements" within the meaning of the federal securities laws. All such statements are qualified by this cautionary note, which is provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may also be included in our other public filings, press releases, our website, and oral and written presentations by management.
Statements in the future tense, and all statements accompanied by terms such as "believe," "will," "may," "could," "project," "expect," "estimate," "assume," "intend," "anticipate," "target," "plan" and variations thereof and similar terms, are intended to be forward-looking statements. Such statements do not relate strictly to historical or current facts as they relate to our intent, belief and current expectations about our strategic direction, prospects and future results, and give our current expectations or forecasts of future events. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made.
Jones Lang LaSalle Inc. published this content on July 30, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 30, 2026 at 17:46 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]