Company: JLL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001037976-25-000071
Chunk: 45

Company: JONES LANG LASALLE INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 45
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9% increase from the prior-year quarter, largely due to revenue-related expense growth.

On a year-to-date basis, operating expenses were $17.9 billion, up 11%. Gross contract costs were $12.4 billion, up 12%, while Platform operating expenses were $5.5 billion, up 9%. The drivers of the increases are consistent with the quarterly narrative above.

34

The year-over-year change in Restructuring and acquisition charges for the third quarter was largely driven by an expense credit in the prior-year quarter associated with a lower expected earn-out payout related to a 2021 U.S. property management joint venture. For September year to date, the change was primarily attributable to i) the impact of expense credits in the prior year associated with lower expected earn-out payouts and ii) higher severance and other employment-related charges in 2025 associated with restructuring programs, notably restructuring associated with the 2025 change in segments.

Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Severance and other employment-related charges$5.4 6.1 $30.8 17.8 Restructuring, pre-acquisition and post-acquisition charges5.9 6.0 25.0 20.1 Fair value adjustments that resulted in a net decrease to earn-out liabilities from prior-period acquisition activity0.4 (20.9)(3.1)(33.5)Restructuring and acquisition charges$11.7 (8.8)$52.7 4.4 

Interest Expense

Interest expense, net of interest income, for the three and nine months ended September 30, 2025, was $29.2 million and $89.1 million, respectively, compared with $38.1 million and $110.3 million in the prior-year periods. Lower expense was primarily due to a lower effective interest rate and lower average borrowings compared with the respective prior-year periods.

Equity Earnings/Losses

The following details Equity earnings/losses by investment type. Equity earnings/losses for the third quarter and first nine months of 2025 largely reflect net valuation changes for Investment Management and Proptech Investments. 

Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Investment Management$9.3 (13.8)$1.9 (25.0)Pro