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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 169 added, 93 removed, 647 unchanged (29% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) March 31, 2026 December 31, 2025

(in millions, except share and per share data) June 30, 2026 December 31, 2025

Assets (unaudited)

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Short-term borrowings 83.4 92.7

Current maturities of long-term debt, net of debt issuance costs of $ 0.2 and $ —

Commercial paper, net of debt issuance costs of $ — and $ 0.2

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions, except share and per share data) (unaudited) Three Months Ended March 31,

(in millions, except share and per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 6,927.9 6,250.1 $ 13,314.4 11,996.5

7 unchanged sentences

Interest expense, net of interest income 26.4 35.3 43.4 59.9

Equity earnings (losses) 7.5 ( 25.6 )

Equity (losses) earnings ( 2.2 ) ( 27.4 ) 5.3 ( 53.0 )

Other income 3.3 2.5 5.7 4.2

2 unchanged sentences

Net income 214.3 110.5 373.7 168.0

Net income attributable to noncontrolling interest 0.4 2.2

Net (loss) income attributable to noncontrolling interest ( 1.3 ) ( 1.8 ) ( 0.9 ) 0.4

Net income attributable to common shareholders $ 215.6 112.3 $ 374.6 167.6

10 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

Company Shareholders' Equity

10 unchanged sentences

Foreign currency translation adjustments — — — — — — ( 12.4 ) — ( 12.4 )

Decrease in amounts due to noncontrolling interest — — — — — — — ( 0.9 ) ( 0.9 )

Net decrease in amounts due to noncontrolling interest — — — — — — — ( 0.9 ) ( 0.9 )

March 31, 2026 46,303,700 $ 0.5 1,974.4 7,228.1 ( 13.9 ) ( 1,297.3 ) ( 584.9 ) 119.7 $ 7,426.6

Net income (loss) — — — 215.6 — — — ( 1.3 ) 214.3

Vesting of shares related to equity compensation plans, net of amounts withheld for payment of taxes 99,601 — ( 1.5 ) ( 0.4 ) — 2.5 — — 0.6

Stock-based compensation — — 54.8 — — — — — 54.8

Shares held in trust — — — — 0.1 — — — 0.1

Repurchase of common stock, including excise tax ( 396,104 ) — 30.0 — — ( 140.1 ) — — ( 110.1 )

Foreign currency translation adjustments — — — — — — ( 6.2 ) — ( 6.2 )

Net increase in amounts due to noncontrolling interest — — — — — — — 20.2 20.2

June 30, 2026 46,007,197 $ 0.5 2,057.7 7,443.3 ( 13.8 ) ( 1,434.9 ) ( 591.1 ) 138.6 $ 7,600.3

JONES LANG LASALLE INCORPORATED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

Company Shareholders' Equity

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March 31, 2025 47,513,451 $ 0.5 2,001.9 6,383.0 ( 12.1 ) ( 923.5 ) ( 610.6 ) 122.9 $ 6,962.1

Net income (loss) — — — 112.3 — — — ( 1.8 ) 110.5

Vesting of shares related to equity compensation plans, net of amounts withheld for payment of taxes 31,597 — ( 6.5 ) ( 0.6 ) — 5.2 — — ( 1.9 )

Stock-based compensation — — 44.0 — — — — — 44.0

Shares held in trust — — — — 0.1 — — — 0.1

Repurchase of common stock ( 166,071 ) — — — — ( 40.2 ) — — ( 40.2 )

Foreign currency translation adjustments — — — — — — 86.4 — 86.4

Increase in amounts due to noncontrolling interest — — — — — — — 0.6 0.6

June 30, 2025 47,378,977 $ 0.5 2,039.4 6,494.7 ( 12.0 ) ( 958.5 ) ( 524.2 ) 121.7 $ 7,161.6

Accumulated other comprehensive income (loss)

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) (unaudited) 2026 2025

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Net capital additions – property and equipment ( 115.0 ) ( 88.9 )

Business acquisitions, net of cash acquired ( 19.2 ) ( 6.1 )

Business dispositions, net of cash disposed 12.9 —

Capital contributions to investments ( 26.7 ) ( 132.1 )

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Repayments of commercial paper ( 2,015.0 ) ( 1,035.0 )

Net proceeds from (repayments of) short-term borrowings 73.4 ( 67.2 )

Net repayments of short-term borrowings ( 10.4 ) ( 47.9 )

Payments of deferred business acquisition obligations and earn-outs ( 16.4 ) ( 8.4 )

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Supplemental disclosure of cash flow information:

Restricted cash, beginning of period $ 299.8 236.5

Restricted cash, end of period 283.1 212.3

Restricted cash, beginning of the period $ 299.8 236.4

Restricted cash, end of the period 278.9 269.1

Cash paid during the period for:

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Operating leases 103.0 99.6

Non-cash activities:

Business acquisitions (including contingent consideration) $ — 0.2

Deferred business acquisition obligations — 0.9

See accompanying notes to Consolidated Financial Statements.

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Management's Discussion and Analysis of Financial Condition and Results of Operations and to Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for further discussion of our significant accounting policies and estimates.

Our Consolidated Financial Statements as of March 31, 2026, and for the periods ended March 31, 2026 and 2025, are unaudited.

Our Consolidated Financial Statements as of June 30, 2026, and for the periods ended June 30, 2026 and 2025, are unaudited.

In the opinion of management, we have included all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the Consolidated Financial Statements for these interim periods.

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Changes in the geographic mix of income can impact our estimated effective tax rate.

As a result of the items mentioned above, the results for the periods ended March 31 are not fully indicative of what our results will be for the full fiscal year.

As a result of the items mentioned above, the results for the periods ended June 30 are not fully indicative of what our results will be for the full fiscal year.

Accelerated share repurchase program

In March 2026, we entered into an Accelerated Share Repurchase ("ASR") program, whereby we made an upfront payment of $ 200.0 million and received initial delivery of approximately 587,000 shares at a price of $ 289.52 per share.

These shares represented a portion of the prepayment amount, and the remainder of the shares associated with this ASR will be delivered on contractual settlement dates during the second quarter.

During the second quarter, we received approximately 51,200 additional shares, which represented the second and final delivery related to the ASR.

The cumulative repurchases under this ASR totaled approximately 638,400 shares at an average price of $ 313.29 per share.

NEW ACCOUNTING STANDARDS

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Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606.

We adopted this guidance for the interim periods beginning January 1, 2026 and elected to apply the practical expedient, which assumes that current conditions as of the balance sheet date do not change for the remaining life of current accounts receivable and current contract assets.

We adopted this guidance for the interim periods beginning January 1, 2026 and elected to apply the

practical expedient, which assumes that current conditions as of the balance sheet date do not change for the remaining life of current accounts receivable and current contract assets.

This ASU did not have a material impact on our financial statements or results of operations.

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We do not expect this guidance to have a material impact on our financial statements.

In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations.

This ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those years, for public business entities, with early adoption permitted.

We are evaluating the effect this guidance will have on our financial statements and related disclosures.

REVENUE RECOGNITION

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Such out-of-scope revenue is presented below.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Such contract assets and liabilities are presented below.

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Contract assets, gross $ 421.6 407.1

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Remaining performance obligations represent the aggregate transaction price for contracts where our performance obligations have not yet been satisfied.

As of March 31, 2026, the aggregate amount of transaction price allocated to remaining performance obligations represented an insignificant amount of our total revenue.

As of June 30, 2026, the aggregate amount of transaction price allocated to remaining performance obligations represented an insignificant amount of our total revenue.

In accordance with ASC Topic 606, excluded from the aforementioned remaining performance obligations are (i) amounts attributable to contracts expected to be completed within 12 months and (ii) variable consideration for services performed as a series of daily performance obligations, such as facilities management, property management and Investment Management contracts.

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(4) Investment Management.

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.

Real Estate Management Services 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.

Leasing Advisory offers agency leasing and tenant representation, as well as advisory and consulting services.

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The Chief Operating Decision Maker ("CODM") of JLL measures and evaluates the segment results based on Adjusted EBITDA for purposes of making decisions about allocating resources and assessing performance.

Our CODM is not provided with total asset information by segment and accordingly does not measure or allocate resources based on total assets information.

Our CODM is not provided with total asset information by segment and accordingly does not measure or allocate resources based on total asset information.

Therefore, we have not disclosed asset information by segment.

As of March 31, 2026, we continue to define our Global Executive Board, collectively, as our CODM.

As of June 30, 2026, we continue to define our Global Executive Board, collectively, as our CODM.

Summarized financial information by business segment is as follows.

Real Estate Management Services Three Months Ended March 31,

Real Estate Management Services Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Depreciation and amortization (1)

$ 33.0 35.4 $ 65.2 72.3

(1) Excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders.

Leasing Advisory Three Months Ended March 31,

Leasing Advisory Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Depreciation and amortization $ 10.8 11.0 $ 22.3 23.0

Capital Markets Services Three Months Ended March 31,

Capital Markets Services Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Depreciation and amortization $ 10.1 17.5 $ 20.5 36.4

Investment Management Three Months Ended March 31,

Investment Management Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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The following table is a reconciliation of segment revenue to consolidated revenue.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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The balances and activity associated with our investments (inclusive of convertible notes receivable) in proptech funds and early-to-mid-stage proptech companies ("Proptech Investments") do not constitute an operating or reporting segment and are reported in All Other below.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

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Restructuring and acquisition charges $ ( 25.7 ) ( 21.3 ) $ ( 31.0 ) ( 41.0 )

Net gain on disposition 0.6 — 0.6 —

Interest on employee loans, net of forgiveness 1.7 2.0 4.2 3.6

Equity earnings (losses) - Investment Management and Proptech Investments (1)

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 )

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Business Combinations Activity

During the three months ended June 30, 2026, we completed one acquisition within the Real Estate Management Services business segment.

Aggregate terms of our acquisition included cash paid at closing of $ 20.5 million.

A preliminary purchase price allocation resulted in (i) Goodwill of $ 37.4 million, (ii) identifiable intangibles of $ 7.6 million, (iii) assumed liabilities less acquired assets of $ 3.3 million and (iv) $ 21.2 million of noncontrolling interest.

As of June 30, 2026, we have not completed our analysis to assign fair values to all of the identifiable intangible and tangible assets acquired and, therefore, we may further refine the purchase price allocations for this acquisition during the open measurement period.

The following table details cash payments relating to acquisitions.

Payments for current-year acquisitions are included in cash used in investing activities, while payments for prior-year acquisitions are primarily reflected in cash used in financing activities.

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2026 2025

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Total paid for business acquisitions $ 36.9 18.7

(1) Inclusive of $1.3 million cash acquired.

Earn-Out Payments

The following table details the number of acquisitions related to our earn-out payments, in addition to the maximum (undiscounted) amount and fair values of those earn-out payments.

($ in millions) March 31, 2026 December 31, 2025

($ in millions) June 30, 2026 December 31, 2025

Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria 9 11

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Goodwill and Other Intangible Assets

Goodwill and unamortized intangibles as of March 31, 2026 consisted of:

Goodwill and unamortized intangibles as of June 30, 2026 consisted of:

(i) Goodwill of $ 4,726.7 million, (ii) identifiable intangibles of $ 584.8 million amortized over their remaining finite useful lives and (iii) $ 50.9 million of identifiable intangibles with indefinite useful lives that are not amortized.

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We performed a quantitative test relying on the discounted cash flow ("DCF") method, an income approach, and a market approach in determining the estimated fair value of these reporting units.

Our analysis relied on significant judgments and assumptions in determining the inputs, specifically, forecasted revenue growth, forecasted profitability margin and the discount rate used to present value the estimated future cash flows.

Our analysis relied on significant judgments and assumptions in determining the

inputs, specifically, forecasted revenue growth, forecasted profitability margin and the discount rate used to present value the estimated future cash flows.

Our analysis indicated that no impairment existed, as the estimated fair value of both the Software and Technology Solutions and Real Estate Management Services reporting units exceeded their respective carrying values.

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Balance as of January 1, 2026 $ 1,225.1 1,405.3 2,019.8 57.1 $ 4,707.3

Additions, net of adjustments 37.4 — — — 37.4

Dispositions ( 3.7 ) — — — ( 3.7 )

Impact of exchange rate movements ( 2.7 ) ( 4.9 ) ( 6.5 ) ( 0.2 ) ( 14.3 )

Balance as of March 31, 2026 $ 1,221.7 1,400.1 2,012.4 56.8 $ 4,691.0

Balance as of June 30, 2026 $ 1,256.1 1,400.4 2,013.3 56.9 $ 4,726.7

(in millions) Real Estate Management Services Leasing Advisory Capital Markets Services Investment Management Consolidated

Balance as of January 1, 2025 $ 1,211.3 1,372.6 1,971.5 55.9 $ 4,611.3

Additions, net of adjustments — — 6.6 — 6.6

Impact of exchange rate movements 16.4 35.4 44.5 1.6 97.9

Balance as of March 31, 2025 $ 1,215.0 1,385.4 1,985.7 56.4 $ 4,642.5

Balance as of June 30, 2025 $ 1,227.7 1,408.0 2,022.6 57.5 $ 4,715.8

The following tables detail, by intangible type, movements in the gross carrying amount and accumulated amortization of our identifiable intangibles.

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Additions, net of adjustments 43.8 7.6 51.4

Dispositions — (12.3) (12.3)

Adjustment for fully amortized intangibles ( 25.3 ) ( 0.3 ) ( 25.6 )

Impact of exchange rate movements — ( 0.8 ) ( 0.8 )

Balance as of March 31, 2026 $ 908.6 335.0 $ 1,243.6

Balance as of June 30, 2026 $ 915.3 330.2 $ 1,245.5

Accumulated Amortization

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( 60.9 ) ( 13.3 ) ( 74.2 )

Dispositions — 5.0 5.0

Adjustment for fully amortized intangibles 25.3 0.3 25.6

Impact of exchange rate movements — ( 0.1 ) ( 0.1 )

Balance as of March 31, 2026 $ ( 459.3 ) ( 134.0 ) $ ( 593.3 )

Net book value as of March 31, 2026 $ 449.3 201.0 $ 650.3

Balance as of June 30, 2026 $ ( 474.2 ) ( 135.6 ) $ ( 609.8 )

Net book value as of June 30, 2026 $ 441.1 194.6 $ 635.7

(1) Included in this amount for MSRs was $ 4.2 million related to write-offs due to prepayments of sold warehouse receivables for which we retained the servicing rights.

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Impact of exchange rate movements — 10.0 10.0

Balance as of March 31, 2025 $ 859.6 546.5 $ 1,406.1

Balance as of June 30, 2025 $ 867.2 553.1 $ 1,420.3

Accumulated Amortization

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Impact of exchange rate movements — ( 3.8 ) ( 3.8 )

Balance as of March 31, 2025 $ ( 395.5 ) ( 308.8 ) $ ( 704.3 )

Net book value as of March 31, 2025 $ 464.1 237.7 $ 701.8

Balance as of June 30, 2025 $ ( 410.9 ) ( 327.4 ) $ ( 738.3 )

Net book value as of June 30, 2025 $ 456.3 225.7 $ 682.0

(1) Included in this amount for MSRs was $ 2.3 million related to write-offs due to prepayments of sold warehouse receivables for which we retained the servicing rights.

Amortization of MSRs is included in Revenue within the Consolidated Statements of Comprehensive Income.

Summarized investment balances as of March 31, 2026 and December 31, 2025 are presented in the following table.

(in millions) March 31, 2026 December 31, 2025

Summarized investment balances as of June 30, 2026 and December 31, 2025 are presented in the following table.

(in millions) June 30, 2026 December 31, 2025

Investment Management co-investments $ 490.3 505.8

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Our Investment Management co-investments are primarily direct investments in property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement, while our Proptech Investments are generally investments in early-to-mid-stage proptech companies as well as proptech funds.

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.

There were no significant other-than-temporary impairment charges on Investments for the three months ended March 31, 2026 and 2025.

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.

There were no significant other-than-temporary impairment charges on Investments for the six months ended June 30, 2026.

During the six months ended June 30, 2025, we recognized an investment-level impairment charge of $ 2.2 million on one investment accounted for under the measurement alternative.

This activity was included within Equity earnings on our Consolidated Statements of Comprehensive Income.

There were no other significant impairments in 2025.

We report a majority of our investments at fair value.

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Transfers in — 24.6

Fair value investments as of March 31, $ 833.8 856.0

Fair value investments as of June 30, $ 821.4 833.7

See Note 7, Fair Value Measurements, for additional discussion of our investments reported at fair value.

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Financial Instruments

Our financial instruments include Cash and cash equivalents, Trade receivables, Notes and other receivables, Reimbursable receivables, Warehouse receivables, restricted cash, contract assets, Accounts payable, Reimbursable payables, Commercial paper, Short-term borrowings, contract liabilities, Warehouse facilities, Credit facility, Long-term debt and foreign currency derivatives.

Our financial instruments include Cash and cash equivalents, Trade receivables, Notes and other receivables, Reimbursable receivables, Warehouse receivables, restricted cash, contract assets, Accounts payable, Reimbursable payables, Commercial paper, Short-term borrowings, current portion of long-term debt, contract liabilities, Warehouse facilities, Credit facility, Long-term debt and foreign currency derivatives.

The carrying amounts of Cash and cash equivalents, Trade receivables, Notes and other receivables, Reimbursable receivables, restricted cash, contract assets, Accounts payable, Reimbursable payables, contract liabilities and the Warehouse facilities approximate their estimated fair values due to the short-term nature of these instruments.

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We estimated the fair value of our Long-term debt using dealer quotes that are Level 2 inputs in the fair value hierarchy.

The fair value and carrying value of our debt are presented in the following table.

(in millions) March 31, 2026 December 31, 2025

The fair value and carrying value of our debt, including its current portion, are presented in the following table.

(in millions) June 30, 2026 December 31, 2025

Long-term debt, fair value $ 819.2 838.7

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We did not consider any adjustments to NAV estimates provided by investees, including adjustments for any restrictions to the transferability of ownership interests embedded within investment agreements to which we are a party, to be necessary based upon (i) our understanding of the methodology utilized and inputs incorporated to estimate NAV at the investee level, (ii) consideration of market demand for the specific types of real estate assets held by each venture and (iii) contemplation of real estate and capital markets conditions in the localities in which these ventures operate.

As of March 31, 2026 and December 31, 2025, investments at fair value using NAV were $ 483.3 million and $ 491.1 million, respectively.

As of June 30, 2026 and December 31, 2025, investments at fair value using NAV were $ 483.0 million and $ 491.1 million, respectively.

As these investments are not required to be classified in the fair value hierarchy, they have been excluded from the following table.

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The following table categorizes by level in the fair value hierarchy the estimated fair value of our assets and liabilities measured at fair value on a recurring basis.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

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The fair value of the Warehouse receivables is based on already locked-in security-buy prices.

As of March 31, 2026 and December 31, 2025, all of our Warehouse receivables included in the Consolidated Balance Sheets were under commitment to be purchased by government-sponsored enterprises ("GSEs") or by a qualifying investor as part of a U.S.

As of June 30, 2026 and December 31, 2025, all of our Warehouse receivables included in the Consolidated Balance Sheets were under commitment to be purchased by government-sponsored enterprises ("GSEs") or by a qualifying investor as part of a U.S.

government or GSE mortgage-backed security program.

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We maintain a deferred compensation plan for certain of our U.S.

employees and members of our Board of Directors that allows them to defer portions of their compensation.

employees that allows them to defer portions of their compensation.

We recorded this plan on our Consolidated Balance Sheets as Deferred compensation plan assets, long-term deferred compensation plan liabilities, included in Deferred compensation, and as a reduction of equity, Shares held in trust.

The components of the plan are presented in the following table.

(in millions) March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Deferred compensation plan assets $ 797.2 723.6

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The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

(in millions) Balance as of March 31, 2026 Net change in fair value Foreign CTA (1)

Purchases / Additions Settlements Transfers in (out) Balance as of June 30, 2026

Investments $ 305.7 ( 10.2 ) 0.1 — — — $ 295.6

Mortgage banking derivative assets and liabilities, net 46.6 13.6 — 31.2 ( 65.6 ) — 25.8

Earn-out liabilities 17.7 — — — ( 0.7 ) — 17.0

(in millions) Balance as of March 31, 2025 Net change in fair value Foreign CTA (1)

Purchases / Additions Settlements Transfers in (out) Balance as of June 30, 2025

Investments $ 311.0 ( 25.3 ) 1.4 6.0 — — $ 293.1

Mortgage banking derivative assets and liabilities, net 16.7 9.7 — 34.9 ( 41.4 ) — 19.9

Earn-out liabilities 37.5 ( 7.4 ) 0.3 0.2 ( 12.0 ) 0.5 19.1

(in millions) Balance as of December 31, 2025 Net change in fair value Foreign CTA (1)

Purchases / Additions Settlements Balance as of

March 31, 2026

Purchases / Additions Settlements Transfers in (out) Balance as of

June 30, 2026

Investments $ 304.7 ( 8.5 ) ( 0.6 ) — — — $ 295.6

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(in millions) Balance as of December 31, 2024 Net change in fair value Foreign CTA (1)

Purchases / Additions Settlements Transfers out Balance as of March 31, 2025

Purchases / Additions Settlements Transfers in (out) Balance as of June 30, 2025

Investments $ 330.3 ( 45.2 ) 2.1 6.0 ( 0.1 ) — $ 293.1

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Our determination of fair value primarily relies on Level 3 inputs.

We did not recognize any significant investment-level impairment losses during the three months ended March 31, 2026 or 2025.

We did not recognize any significant investment-level impairment losses during the six months ended June 30, 2026.

During the six months ended June 30, 2025, we recognized an investment-level impairment charge on one investment accounted for under the measurement alternative, as further described in Note 6, Investments.

See Note 6, Investments, for additional information, including information related to impairment charges recorded at the investee level.

Debt is composed of the following obligations.

($ in millions) March 31, 2026 December 31, 2025

($ in millions) June 30, 2026 December 31, 2025

Short-term debt:

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Other short-term borrowings 63.2 89.9

Long-term senior notes, 1.96 %, face amount of € 175.0 , due June 2027, net of debt issuance costs of $ 0.2 and $ —

Commercial paper, net of debt issuance costs of $ 0.0 and $ 0.2

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The maturities of the Program notes may vary but may not exceed 397 days from the date of issuance.

We intend to use net proceeds of the Program for general corporate purposes, including the repayment of outstanding borrowings under our credit facilities.

We intend to use net proceeds of the Program for general corporate purposes.

Credit Facilities

We have a $ 3.3 billion unsecured revolving credit facility (the "Facility") that matures on November 3, 2028.

Undiscounted pricing on the Facility ranges from Adjusted Term Secured Overnight Financing Rate ("SOFR") plus 0.875% to 1.35% , with pricing including facility fees, as of March 31, 2026 at Adjusted Term SOFR plus 0.93 %.

In addition, we have an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $ 400.0 million.

Interest and fees are set at the time of utilization and calculated on a 360-day basis.

Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate.

As such, the Uncommitted Facility had no outstanding balance as of both March 31, 2026 and December 31, 2025.

Undiscounted pricing on the Facility ranges from Adjusted Term Secured Overnight Financing Rate ("SOFR") plus 0.875% to 1.35% , with pricing including facility fees, as of June 30, 2026 at Adjusted Term SOFR plus 0.93 %.

In addition, prior to June 30, 2026, we had access to an uncommitted credit agreement (the "Uncommitted Facility"), which allowed for discretionary short-term liquidity of up to $ 400.0 million.

Interest and fees were set at the time of utilization and calculated on a 360-day basis.

Between quarter-end dates, we periodically used the proceeds to reduce indebtedness under the Facility at a lower interest rate.

The Uncommitted Facility was terminated on June 30, 2026, and had no outstanding balance as of December 31, 2025, and June 30, 2026.

We last used the Uncommitted Facility in June of 2025.

The following table provides additional information on our Program, Facility and Uncommitted Facility, collectively.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

($ in millions) 2026 2025 2026 2025

3 unchanged sentences

Short-Term and Long-Term Debt

In addition to our credit facilities, we have the capacity to borrow up to $ 58.1 million as of March 31, 2026, under local overdraft facilities.

In addition to our credit facilities, we have the capacity to borrow up to $ 58.0 million as of June 30, 2026, under local overdraft facilities.

Amounts outstanding are presented in the debt table above.

As of March 31, 2026, our issuer and senior unsecured ratings are investment grade:

As of June 30, 2026, our issuer and senior unsecured ratings are investment grade:

Baa1 from Moody's Investors Service, Inc.

1 unchanged sentence

Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions.

We remained in compliance with all covenants as of March 31, 2026.

We remained in compliance with all covenants as of June 30, 2026.

Warehouse Facilities

2 unchanged sentences

This activity, in aggregate, is reflected as net cash flows from operating activities in our Consolidated Statements of Cash Flows.

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2026 2025

1 unchanged sentence

Proceeds from the sales of mortgage loans 4,304.7 3,938.4

Net increase (decrease) in Warehouse facilities 403.9 ( 240.3 )

Net (decrease) increase in Warehouse facilities ( 58.8 ) 382.5

The following table provides details regarding our Warehouse facilities lines of credit.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in millions) Outstanding Balance Maximum Capacity Outstanding Balance Maximum Capacity

15 unchanged sentences

Pursuant to these facilities, we are required to comply with certain financial covenants regarding (i) minimum net worth, (ii) minimum servicing-related loans and (iii) minimum adjusted leverage ratios.

We remained in compliance with all covenants under our facilities as of March 31, 2026.

We remained in compliance with all covenants under our facilities as of June 30, 2026.

We are party to a master repurchase agreement with a maximum capacity of $ 1.1 billion.

8 unchanged sentences

In addition, we have established receivables from third-party insurance providers for claim amounts in excess of the risk retained by our captive insurance company.

There was no such receivable recorded as of March 31, 2026 and December 31, 2025, in Notes and other receivables on our Consolidated Balance Sheets.

There was no such receivable recorded as of June 30, 2026 and December 31, 2025, in Notes and other receivables on our Consolidated Balance Sheets.

The following table shows the professional indemnity accrual activity and related payments.

1 unchanged sentence

December 31, 2025 $ 1.4

New claims 3.3

Prior year claims adjustments (including foreign currency changes) 0.9

March 31, 2026 $ 1.8

June 30, 2026 $ 5.6

December 31, 2024 $ 4.2

New claims 3.0

Prior year claims adjustments (including foreign currency changes) 0.3

Claims paid ( 2.5 )

March 31, 2025 $ 2.0

June 30, 2025 $ 5.0

Delegated Underwriting and Servicing ("DUS") Program Loan Loss-Sharing

2 unchanged sentences

Generally, we share approximately one-third of incurred losses, subject to a cap of 20% of the principal balance of the mortgage at origination.

As of March 31, 2026 and December 31, 2025, we had loans, funded and sold, subject to such loss-sharing arrangements with an aggregate unpaid principal balance of $ 26.6 billion and $ 25.8 billion, respectively.

As of June 30, 2026 and December 31, 2025, we had loans, funded and sold, subject to such loss-sharing arrangements with an aggregate unpaid principal balance of $ 26.8 billion and $ 25.8 billion, respectively.

For all DUS program loans with loss-sharing obligations, we record a non-contingent liability equal to the estimated fair value of the guarantee obligations undertaken upon sale of the loan, which reduces our gain on sale of the loan.

Subsequently, this liability is amortized over the estimated life of the loan and recognized as Revenue on the Consolidated Statements of Comprehensive Income.

As of March 31, 2026 and December 31, 2025, the loss-sharing guarantee obligations were $ 30.7 million and $ 30.4 million, respectively, and are included in other liabilities on our Consolidated Balance Sheets.

As of June 30, 2026 and December 31, 2025, the loss-sharing guarantee obligations were $ 29.7 million and $ 30.4 million, respectively, and are included in other liabilities on our Consolidated Balance Sheets.

The loss-sharing aspect of the program represents an off-balance sheet credit exposure.

We record a separate contingent reserve for this risk calculated on an individual loan level.

As of March 31, 2026 and December 31, 2025, the loan loss guarantee reserve was $ 24.2 million and $ 29.9 million, respectively, and is included within Other liabilities on our Consolidated Balance Sheets.

There were no loan losses incurred during the three months ended March 31, 2026.

As of June 30, 2026 and December 31, 2025, the loan loss guarantee reserve was $ 24.0 million and $ 29.9 million, respectively, and is included within Other liabilities on our Consolidated Balance Sheets.

There were no loan losses incurred during the six months ended June 30, 2026.

During the six months ended June 30, 2025, we entered into an enhanced loss-sharing agreement with Fannie Mae associated with a specific three-loan portfolio, which finalized our portion of the loss at $ 20.6 million.

RESTRUCTURING AND ACQUISITION CHARGES

3 unchanged sentences

Restructuring and acquisition charges are presented in the following table.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

4 unchanged sentences

Restructuring and acquisition charges $ 25.7 21.3 $ 31.0 41.0

We expect nearly all cash-based charges related to (i) severance and other employment-related charges and (ii) restructuring, pre-acquisition and post-acquisition charges as of March 31, 2026 will be paid during the next twelve months.

We expect nearly all cash-based charges related to (i) severance and other employment-related charges and (ii) restructuring, pre-acquisition and post-acquisition charges as of June 30, 2026 will be paid during the next twelve months.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT

1 unchanged sentence

(in millions) Pension and postretirement benefit Cumulative foreign currency translation adjustment Total

Balance as of December 31, 2025 $ ( 63.4 ) ( 509.1 ) $ ( 572.5 )

Balance as of March 31, 2026 $ ( 63.4 ) ( 521.5 ) $ ( 584.9 )

Other comprehensive loss before reclassification

2 unchanged sentences

— ( 6.2 ) ( 6.2 )

Balance as of June 30, 2026 $ ( 63.4 ) ( 527.7 ) $ ( 591.1 )

(in millions) Pension and postretirement benefit Cumulative foreign currency translation adjustment Total

Balance as of March 31, 2025 $ ( 56.0 ) ( 554.6 ) $ ( 610.6 )

Other comprehensive income before reclassification

Other comprehensive income after tax expense of $ - , $ - and $ -

Balance as of June 30, 2025 $ ( 56.0 ) ( 468.2 ) $ ( 524.2 )

(in millions) Pension and postretirement benefit Cumulative foreign currency translation adjustment Total

Balance as of December 31, 2025 $ ( 63.4 ) ( 509.1 ) $ ( 572.5 )

Other comprehensive loss before reclassification

— ( 18.6 ) ( 18.6 )

Other comprehensive loss after tax expense of $ - , $ - and $ -

— ( 18.6 ) ( 18.6 )

Balance as of June 30, 2026 $ ( 63.4 ) ( 527.7 ) $ ( 591.1 )

(in millions) Pension and postretirement benefit Cumulative foreign currency translation adjustment Total

Balance as of December 31, 2024 $ ( 55.5 ) ( 591.4 ) $ ( 646.9 )

Other comprehensive (loss) income before reclassification

2 unchanged sentences

( 0.5 ) 123.2 122.7

Balance as of March 31, 2025 $ ( 56.0 ) ( 554.6 ) $ ( 610.6 )

Balance as of June 30, 2025 $ ( 56.0 ) ( 468.2 ) $ ( 524.2 )

For pension and postretirement benefits, we report amounts reclassified from Accumulated other comprehensive loss in Other income within the Consolidated Statements of Comprehensive Income.

10 unchanged sentences

Gains and losses from the revaluation of these contracts are recognized as a component of Operating, administrative and other expense and are offset by the gains and losses recognized on the revaluation of intercompany loans and other foreign currency balances.

The impact to net income was not significant for the three months ended March 31, 2026 and 2025.

The impact to net income was not significant for the six months ended June 30, 2026 and 2025.

We are exposed to credit risk in the event of nonperformance of the counterparties under the derivative contracts.

4 unchanged sentences

The total notional of these swaps is $ 805.8 million, which will mature between 2030 and 2035.

During the three months ended March 31, 2026, we entered into forward contracts to hedge foreign currency risk that were not designated as hedges which generally have a maturity of less than 90 days.

During the six months ended June 30, 2026, we entered into forward contracts to hedge foreign currency risk that were not designated as hedges which generally have a maturity of less than 90 days.

The following table details the gross notional value and net basis of these contracts.

(in billions) March 31, 2026 December 31, 2025

(in billions) June 30, 2026 December 31, 2025

Foreign currency forward contracts, gross notional value $ 1.63 2.04

2 unchanged sentences

Fair Value Asset Fair Value Liability

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

(in millions)

11 unchanged sentences

Derivatives designated as hedging instruments are presented in Other long-term assets or Other long-term liabilities.

Those not designated as hedging instruments are presented in Restricted cash, prepaid and other assets or Other current liabilities.

Those not designated as hedging instruments are presented in Restricted cash, prepaid and other current assets or Other current liabilities.

See Note 7, Fair Value Measurements, for additional information on derivative instruments accounted for at fair value.

The following table summarizes the pre-tax impact of the outstanding derivatives on the Consolidated Statements of Comprehensive Income.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

1 unchanged sentence

Interest income $ 2.6 — $ 5.1 —

Gain recognized in Accumulated other comprehensive loss 23.2 —

(Loss) gain recognized in Accumulated other comprehensive loss ( 10.4 ) — 12.8 —

Derivatives not designated as hedging instruments:

(Loss) gain recognized in Operating, administrative and other $ ( 5.7 ) 7.3

We did not enter into any net investment hedges for the three months ended March 31, 2025.

As such, there was no impact to this period.

Gain (loss) recognized in Operating, administrative and other $ 1.2 ( 0.4 ) $ ( 4.5 ) 6.9

We did not enter into any net investment hedges for the six months ended June 30, 2025.

As such, there was no impact to the comparative periods.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements