Cushman & Wakefield (CWK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 5% year-over-year to $2.3 billion, led by strong leasing (up 8–14%) and capital markets (up 11%) growth, while services revenue declined 1% but increased 3–4% organically excluding a non-core business sale.

• Net income improved to $1.9 million from a net loss of $28.8 million in Q1 2024; diluted EPS was $0.01 versus a loss of $0.13.

• Adjusted EBITDA rose 23–24% to $96.2 million, with margin up 103 basis points to 6.2%.

• Liquidity stood at $1.7 billion, including $1.1 billion undrawn credit and $0.6 billion in cash.

• $25 million in debt was prepaid in Q1 2025, and a $1 billion term loan was repriced, lowering the interest rate by 25 basis points.

Financial highlights

• Total revenue: $2,284.6 million, up 5% year-over-year; service line fee revenue: $1,540.7 million, up 3–4%.

• Adjusted EBITDA: $96.2 million, up from $78.1 million (+23–24%); margin improved to 6.2% from 5.2% year-over-year.

• Net income: $1.9 million, up $30.7 million from prior year; adjusted net income was $20.5 million, up from $0.6 million.

• Adjusted EPS improved to $0.09 from $0.00; net income margin improved to 0.1% from -1.3%.

• Free cash flow was negative $166.6 million, consistent with seasonal patterns.

Outlook and guidance

• Full-year revenue targets remain unchanged, with mid-single-digit growth expected in leasing and services, and capital markets growth anticipated to accelerate versus 2024.

• EPS growth in 2025 is expected to surpass 2024, with further acceleration in 2026.

• Guidance remains flexible given macroeconomic uncertainties, with ongoing focus on execution, margin improvement, and long-term growth.

• Effective tax rate expected at 25%.