0001037976-26-000106
SEC filingRevenue growth of 11.1% to $6.4B and significant operating leverage drove a 177.2% increase in net income, as the firm benefited from larger deal sizes in office and industrial markets.
Revenue for the first quarter of 2026 was $6.4 billion, an increase of 11.1% compared to $5.7 billion in the prior year period. This growth was primarily driven by the office sector, where an increase in average deal size complemented higher transaction volumes, and the industrial sector, which benefited from larger deal sizes. Within Workplace Management, the increase reflected a mix of new client wins and mandate expansions, demonstrating the firm's ability to deepen existing relationships while securing new business.
Operating income increased 70.5% to $204.6 million, up from $120.0 million in the first quarter of 2025. This significant improvement reflects the operating leverage inherent in the business model, as revenue growth outpaced expense increases. Operating margin expanded to 3.2%.
The increase in segment platform operating expenses was largely driven by higher commission expense, correlated to the growth in Investment Sales, Debt/Equity Advisory and Other. Additionally, increased segment platform operating expenses reflected incremental human capital investments to support future business growth. Management noted that Adjusted EBITDA and margin expansion were driven by revenue growth, partially tempered by the higher commission expense.
Net income rose 177.2% to $159.4 million, compared to $57.5 million in the prior year. Diluted EPS was $3.33, a significant increase from $1.14 in the first quarter of 2025. This improvement reflects both the operational performance and the firm's disciplined approach to cost management during a period of revenue expansion.
Net cash used in operating activities was $755.0 million for the first quarter of 2026, compared to $767.6 million in the prior year period. 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.
Management continues to navigate a dynamic macroeconomic environment. The firm noted that macroeconomic conditions have had, and are expected to continue to have, a significant impact on the variability of results of operations. Despite these headwinds, management indicated they will continue to consider acquisitions that they believe will strengthen market position, increase profitability, and supplement organic growth. The firm manages and reports operations through four business segments: Real Estate Management Services, Leasing Advisory, Capital Markets Services, and Investment Management.