JONES LANG LASALLE INC 10-Q

Item 2. 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 three months ended March 31, 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 three months ended March 31, 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. 26 Table of Contents 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 March 31, 2026, and 2025, are not fully indicative of the results we expect to realize for the full fiscal year. 27 Table of Contents 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 March 31, Change in % Change in Local Currency ($ in millions) 2026 2025 U.S. dollars Real Estate Management Services $ 5,065.7 4,626.5 439.2 9 % 7 % Leasing Advisory 686.3 586.1 100.2 17 16 Capital Markets Services 535.2 435.3 99.9 23 21 Investment Management 99.3 98.5 0.8 1 (1) Revenue $ 6,386.5 5,746.4 640.1 11 % 9 % Platform compensation and benefits $ 1,454.3 1,291.7 162.6 13 % 10 % Platform operating, administrative and other expenses 321.8 301.1 20.7 7 4 Depreciation and amortization 57.8 71.6 (13.8) (19) (21) Total platform operating expenses 1,833.9 1,664.4 169.5 10 8 Gross contract costs 4,342.7 3,942.3 400.4 10 8 Restructuring and acquisition charges 5.3 19.7 (14.4) (73) (73) Total operating expenses $ 6,181.9 5,626.4 555.5 10 % 8 % Operating income $ 204.6 120.0 84.6 71 % 76 % Equity earnings (losses) $ 7.5 (25.6) 33.1 n.m. n.m. Net non-cash MSR and mortgage banking derivative activity $ (5.5) (12.9) 7.4 57 % 57 % Adjusted EBITDA $ 273.6 224.8 48.8 22 % 24 % 28 Table of Contents 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. 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. 29 Table of Contents 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 March 31, (in millions) 2026 2025 Net income attributable to common shareholders $ 159.0 55.3 Add: Interest expense, net of interest income 17.0 24.6 Income tax provision 38.1 14.0 Depreciation and amortization (1) 56.9 70.7 Adjustments: Restructuring and acquisition charges 5.3 19.7 Net non-cash MSR and mortgage banking derivative activity 5.5 12.9 Interest on employee loans, net of forgiveness (2.5) (1.6) Equity (earnings) losses - Investment Management and Proptech Investments (1) (6.0) 28.7 Credit losses on convertible note investments 0.3 0.5 Adjusted EBITDA $ 273.6 224.8 (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 March 31, ($ in millions) 2026 % Change Revenue: At current period exchange rates $ 6,386.5 11 % Impact of change in exchange rates (122.4) n/a At comparative period exchange rates $ 6,264.1 9 % Operating income: At current period exchange rates $ 204.6 71 % Impact of change in exchange rates 7.0 n/a At comparative period exchange rates $ 211.6 76 % Adjusted EBITDA: At current period exchange rates $ 273.6 22 % Impact of change in exchange rates 5.7 n/a At comparative period exchange rates $ 279.3 24 % 30 Table of Contents Revenue Revenue increased 9% compared with the prior-year quarter. Collectively, Advisory revenues grew 17%, led by Leasing Advisory, up 16%, and Investment Sales, Debt/Equity Advisory and Other, within Capital Markets Services, up 23% (excluding the impact of net non-cash MSR and mortgage banking derivative activity). The collective 7% increase in Resilient revenues was highlighted by Workplace Management, up 8%, and Project Management, up 10%, both within Real Estate Management Services. The following highlights Revenue by reporting segment and type, for the first quarter of 2026 and 2025 ($ in millions). Refer to segment operating results for further detail. Operating Expenses Consolidated operating expenses were $6.2 billion for the first quarter, up 8% from the same period in 2025. Gross contract costs were $4.3 billion, up 8% from the prior-year quarter, attributable to growth from businesses with higher client pass-through expenses such as Workplace Management and Project Management, both within Real Estate Management Services. Platform operating expenses were $1.8 billion for the first quarter, an 8% increase from the prior-year quarter, largely due to revenue-related variable compensation expense growth. 31 Table of Contents The year-over-year change in Restructuring and acquisition charges for the first quarter was largely driven by lower severance and employment-related charges and lower acquisition-related expenses in 2026. Three Months Ended March 31, (in millions) 2026 2025 Severance and other employment-related charges $ 2.9 7.4 Restructuring, pre-acquisition and post-acquisition charges 1.9 8.4 Fair value adjustments that resulted in a net increase to earn-out liabilities from prior-period acquisition activity 0.5 3.9 Restructuring and acquisition charges $ 5.3 19.7 Interest Expense Interest expense, net of interest income, for the three months ended March 31, 2026, was $17.0 million, compared with $24.6 million in the prior-year period. Lower expense was primarily due to a lower effective interest rate and lower average borrowings compared with the prior-year period. Equity Earnings/Losses The following details Equity earnings/losses by investment type. In the current period, equity earnings reflected modest net valuation increases across the underlying investment portfolios. Equity losses in the prior-year quarter were largely attributable to valuation declines of certain Proptech Investments. Three Months Ended March 31, (in millions) 2026 2025 Investment Management $ 5.5 (6.1) Proptech Investments 1.3 (21.5) Other 0.7 2.0 Equity earnings (losses) $ 7.5 (25.6) Income Taxes The following details our Income tax provision and effective tax rate. Three Months Ended March 31, ($ in millions) 2026 2025 Income tax provision $ 38.1 14.0 Effective tax rate 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. 32 Table of Contents Net Income and Adjusted EBITDA The following details Net income attributable to common shareholders and Adjusted EBITDA for the three months ended March 31, 2026, and 2025. Three Months Ended March 31, (in millions) 2026 2025 Net income attributable to common shareholders $ 159.0 55.3 Adjusted EBITDA $ 273.6 224.8 For the first quarter of 2026, higher Adjusted EBITDA and margin were primarily driven by Capital Markets Services and Leasing Advisory, led by strong Advisory revenue growth. Profitability also reflected incremental platform leverage and continued cost discipline. The following chart reflects segment Adjusted EBITDA for the first quarter 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) 33 Table of Contents 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 March 31, Change in in Local ($ in millions) 2026 2025 U.S. dollars Currency Workplace Management $ 3,582.9 3,263.6 319.3 10 % 8 % Project Management 844.0 747.5 96.5 13 10 Property Management 471.1 445.6 25.5 6 4 Portfolio Services and Other 110.9 112.7 (1.8) (2) (4) Software and Technology Solutions 56.8 57.1 (0.3) (1) (1) Revenue $ 5,065.7 4,626.5 439.2 9 % 7 % Platform compensation and benefits $ 505.6 479.5 26.1 5 % 2 % Platform operating, administrative and other 163.1 153.2 9.9 6 3 Depreciation and amortization 33.1 37.8 (4.7) (12) (14) Segment platform operating expenses 701.8 670.5 31.3 5 2 Gross contract costs 4,330.8 3,931.0 399.8 10 8 Segment operating expenses $ 5,032.6 4,601.5 431.1 9 % 7 % Equity earnings $ 0.5 0.4 0.1 25 % 13 % Adjusted EBITDA $ 65.4 61.0 4.4 7 % 12 % Real Estate Management Services revenue growth was primarily driven by Workplace Management and Project Management. Within Workplace Management, the increase reflected a mix of new client wins and mandate expansions. Globally, Project Management delivered double-digit growth, primarily driven by the Americas, with higher pass-through costs augmenting a high single-digit management fee increase. Increased segment platform operating expenses were driven by incremental human capital investments to support future business growth. Higher gross contract costs correlated to top-line performance in the Workplace Management, Project Management and Property Management business lines. Higher Adjusted EBITDA was primarily driven by the revenue growth described above. 34 Table of Contents Leasing Advisory % Change Three Months Ended March 31, Change in in Local ($ in millions) 2026 2025 U.S. dollars Currency Revenue $ 686.3 $ 586.1 100.2 17 % 16 % Platform compensation and benefits $ 498.6 426.8 71.8 17 % 15 % Platform operating, administrative and other 68.1 60.4 7.7 13 10 Depreciation and amortization 11.5 12.0 (0.5) (4) (6) Segment platform operating expenses 578.2 499.2 79.0 16 14 Gross contract costs 2.4 2.0 0.4 20 18 Segment operating expenses $ 580.6 501.2 79.4 16 % 14 % Adjusted EBITDA $ 116.9 97.0 19.9 21 % 22 % The increase in Leasing Advisory revenue was driven by continued momentum in the office sector and an acceleration in industrial. Many geographies achieved double-digit revenue growth for the quarter, highlighted by the U.S. and with a meaningful uptick in the UK. Broad-based growth across the U.S. was primarily driven by office - as an increase in average deal size complemented higher volume - and industrial, primarily due to larger deal size. Office leasing revenue growth outperformed global office volumes (up 12% compared with market volumes down 1% according to JLL Research), highlighted by U.S. revenue outperformance (up 14% compared with market volumes up 7% according to JLL Research). Higher segment platform operating expenses were substantially driven by higher commission expense, correlated to the revenue growth. The increase in deal size contributed to a higher average commission rate, compared with 2025, as higher commission tiers were achieved earlier this year. Adjusted EBITDA and margin expansion were driven by revenue growth, partially tempered by the higher commission expense noted above. 35 Table of Contents Capital Markets Services % Change Three Months Ended March 31, Change in in Local ($ in millions) 2026 2025 U.S. dollars Currency Investment Sales, Debt/Equity Advisory and Other $ 402.5 312.6 89.9 29 % 27 % Value and Risk Advisory 89.3 81.6 7.7 9 5 Loan Servicing 43.4 41.1 2.3 6 6 Revenue $ 535.2 435.3 99.9 23 % 21 % Platform compensation and benefits $ 390.1 329.5 60.6 18 % 16 % Platform operating, administrative and other 73.8 70.7 3.1 4 — Depreciation and amortization 10.4 18.9 (8.5) (45) (46) Segment platform operating expenses 474.3 419.1 55.2 13 10 Gross contract costs 0.9 1.1 (0.2) (18) (19) Segment operating expenses $ 475.2 420.2 55.0 13 % 10 % Equity earnings $ 0.3 1.6 (1.3) (81) % (83) % Net non-cash MSR and mortgage banking derivative activity $ (5.5) (12.9) 7.4 57 % 57 % Adjusted EBITDA $ 77.1 48.6 28.5 59 % 63 % Capital Markets Services top-line growth was fueled by investment sales and debt advisory transactions, across nearly all sectors, with robust equity advisory activity (up nearly 80% compared with the prior-year quarter). Investment sales and debt advisory grew 27% (42% on a two-year stacked basis) and 30% (81% on a two-year stacked basis), respectively. Globally, investment sales revenue growth significantly outpaced the broader market, which grew 11% over the same period according to JLL Research. The increase in segment revenue was broad-based across most geographies and was led by the U.S., Japan and the UK. 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. This driver was partially offset by lower amortization expense versus the prior-year quarter, as certain acquisition-related intangible assets fully amortized in mid-2025. Higher Adjusted EBITDA and margin expansion for the quarter were primarily attributable to the revenue growth described above, augmented by $7.2 million of lower loan-related expenses, including a reduction in the loan loss reserves. 36 Table of Contents Investment Management % Change Three Months Ended March 31, Change in in Local ($ in millions) 2026 2025 U.S. dollars Currency Advisory fees $ 89.9 89.3 0.6 1 % (1) % Incentive and transaction fees 9.4 9.2 0.2 2 2 Revenue $ 99.3 98.5 0.8 1 % (1) % Platform compensation and benefits $ 59.2 58.3 0.9 2 % (1) % Platform operating, administrative and other 16.5 16.3 0.2 1 (2) Depreciation and amortization 2.8 2.9 (0.1) (3) (7) Segment platform operating expenses 78.5 77.5 1.0 1 (1) Gross contract costs 8.6 8.2 0.4 5 5 Segment operating expenses $ 87.1 85.7 1.4 2 % (1) % Adjusted EBITDA (1) $ 15.0 15.8 (0.8) (5) % (6) % Equity earnings (losses) $ 5.5 (6.1) 11.6 n.m. n.m. (1) Adjusted EBITDA excludes Equity earnings (losses) attributable to common shareholders for Investment Management. Investment Management revenue was largely flat compared with the prior-year quarter. Advisory fees reflected growth associated with capital raise activity over the trailing twelve months, most notably in North America, offset by lower fees from funds in Asia Pacific, reflecting disposition activity and the conclusion of initial investment periods. Current-quarter equity earnings were driven primarily by asset valuation increases in Asia Pacific funds. The prior-year quarter equity losses were driven by asset valuation declines in Asia Pacific and North America funds . AUM increased 1% in USD (1% in local currency) during the quarter, and increased 6% in USD (3% in local currency) over the trailing twelve months. Changes in AUM are detailed in the tables below (in billions): Quarter-to-date Beginning balance (December 31, 2025) $ 86.4 Asset acquisitions/takeovers 2.3 Asset dispositions/withdrawals (2.2) Valuation changes 0.8 Foreign currency translation (0.4) Change in uncalled committed capital and cash held — Ending balance (March 31, 2026) $ 86.9 Trailing Twelve Months Beginning balance (March 31, 2025) $ 82.3 Asset acquisitions/takeovers 6.0 Asset dispositions/withdrawals (7.2) Valuation changes 2.4 Foreign currency translation 2.5 Change in uncalled committed capital and cash held 0.9 Ending balance (March 31, 2026) $ 86.9 37 Table of Contents 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 $755.0 million of cash in the first three months of 2026, compared with $767.6 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 net working capital (most notably net reimbursables). Cash Flows from Investing Activities We used $61.3 million of cash for investing activities during the first three months of 2026, compared with $152.8 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 other drivers of investing activity below in further detail. Cash Flows from Financing Activities Financing activities provided $649.4 million of cash during the first three months of 2026, compared with $900.7 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) March 31, 2026 December 31, 2025 Outstanding borrowings under the Facility $ 340.0 — Short-term borrowings 167.1 92.7 Outstanding commercial paper 615.0 — In addition to our Facility, we had the capacity to borrow up to $58.1 million under local overdraft facilities as of March 31, 2026. The following table provides additional information on our Facility, Uncommitted Facility and the Program, collectively. Three Months Ended March 31, ($ in millions) 2026 2025 Average outstanding borrowings $ 458.5 1,003.3 Average effective interest rate 4.2 % 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. 38 Table of Contents Investment Activity As of March 31, 2026, we had a carrying value of $886.6 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 three months ended March 31, 2026, return of capital exceeded funding of investments by $4.1 million, and during the same period in 2025, funding of investments exceeded return of capital by $108.0 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 $196.7 million and $6.6 million as of March 31, 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 three months ended March 31, 2026 and 2025 were $64.9 million and $44.5 million, respectively. Our capital expenditures in 2026 were primarily for leasehold improvements, purchased/developed software and technology hardware. 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. Three Months Ended March 31, (in millions) 2026 2025 Payments relating to current-year acquisitions $ — — Payments for deferred business acquisition and earn-out obligations 8.5 0.6 Total paid for business acquisitions $ 8.5 0.6 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 $12.9 million as of March 31, 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 March 31, 2026, we had the potential to make earn-out payments for a maximum of $75.4 million on 11 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 March 31, 2026, we repurchased $300.0 million of our common stock, including $200.0 million repurchased under an ASR program initiated in March 2026, detailed in the following table. Three Months Ended March 31, ($ in millions) 2026 2025 Total number of shares repurchased (in 000's) 898.3 75.3 Total paid for shares repurchased $ 300.0 19.8 As of March 31, 2026, $2,701.7 million remained authorized for repurchases under our share repurchase program. 39 Table of Contents 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 March 31, 2026 and December 31, 2025, we had total Cash and cash equivalents of $436.2 million and $599.1 million, respectively, of which approximately $363.8 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. 40 Table of Contents