What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-04-30 · 190 added, 88 removed, 307 unchanged (48% of the section changed)

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 ).

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.

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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.

There have been no material changes to these critical accounting policies and estimates during the six months ended June 30, 2026.

ITEMS AFFECTING COMPARABILITY

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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.

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

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Consolidated Operating Results

Three Months Ended March 31, Change in % Change in Local Currency

Three Months Ended June 30, Change in % Change in Local Currency

($ in millions) 2026 2025 U.S.

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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.

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.

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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.

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Below is a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA.

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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Depreciation and amortization (1)

56.2 66.7 113.1 137.4

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 (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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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

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

($ in millions) 2026 % Change 2026 % Change

At current period exchange rates $ 6,927.9 11 % $ 13,314.4 11 %

Impact of change in exchange rates (122.4) n/a

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 %

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At current period exchange rates $ 290.9 47 % $ 495.5 56 %

Impact of change in exchange rates 7.0 n/a

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 %

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At current period exchange rates $ 386.3 32 % $ 659.9 28 %

Impact of change in exchange rates 5.7 n/a

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 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).

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 $6.2 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.

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,

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

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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.

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.

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,

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

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Other 0.7 1.3 1.4 3.3

Equity earnings (losses) $ 7.5 (25.6)

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

The following details our Income tax provision and effective tax rate.

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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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,

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

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Adjusted EBITDA 386.3 291.7 659.9 516.5

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.

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.

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Real Estate Management Services

Three Months Ended March 31, Change in in Local

Three Months Ended June 30, Change in in Local

($ in millions) 2026 2025 U.S.

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Adjusted EBITDA $ 107.4 97.8 9.6 10 % 11 %

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.

Real Estate Management Services (continued)

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

Three Months Ended March 31, Change in in Local

Three Months Ended June 30, Change in in Local

($ in millions) 2026 2025 U.S.

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Adjusted EBITDA $ 166.6 120.4 46.2 38 % 39 %

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.

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

Three Months Ended March 31, Change in in Local

Three Months Ended June 30, Change in in Local

($ in millions) 2026 2025 U.S.

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Adjusted EBITDA $ 95.2 54.7 40.5 74 % 74 %

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.

Capital Markets Services (continued)

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.

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

Three Months Ended March 31, Change in in Local

Three Months Ended June 30, Change in in Local

($ in millions) 2026 2025 U.S.

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Equity earnings (losses) $ 5.1 (1.3) 6.4 n.m.

Investment Management (continued)

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.

(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.

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 (December 31, 2025)

Beginning balance (March 31, 2026)

Asset acquisitions/takeovers 2.2

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Change in uncalled committed capital and cash held —

Ending balance (March 31, 2026)

Ending balance (June 30, 2026)

Trailing Twelve Months

Beginning balance (March 31, 2025)

Beginning balance (June 30, 2025)

Asset acquisitions/takeovers 6.9

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Change in uncalled committed capital and cash held 0.2

Ending balance (March 31, 2026)

Ending balance (June 30, 2026)

LIQUIDITY AND CAPITAL RESOURCES

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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).

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 $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.

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 other drivers of investing activity below in further detail.

We discuss these and 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.

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.

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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

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

Outstanding borrowings under the Facility $ 345.0 —

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Outstanding commercial paper 420.0 —

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 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

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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.

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 three months ended March 31, 2026 and 2025 were $64.9 million and $44.5 million, respectively.

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

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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,

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.

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.

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 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.

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.

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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,

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

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Total paid for shares repurchased $ 110.0 41.4 $ 410.0 61.2

As of March 31, 2026, $2,701.7 million remained authorized for repurchases under our share repurchase program.

As of June 30, 2026, $2,591.6 million remained authorized for repurchases under our share repurchase program.

Repatriation of Foreign Earnings

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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.

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

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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 2. Management’s Discussion and Analysis