CBRE Group, Inc. stock research
FY2025 Q2
CBRE Group (CBRE) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit also rose. Cost of revenue grew at a pace that outpaced revenue growth, causing gross margin to weaken slightly from the prior quarter and from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit also rose. Cost of revenue grew at a pace that outpaced revenue growth, causing gross margin to weaken slightly from the prior quarter and from the year-ago period.
- The primary margin driver was the relationship between revenue and cost of revenue: revenue increased, but cost of revenue increased more, resulting in a slight gross margin compression.
- Compared with the immediately preceding quarter, gross margin was slightly lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.1%
Gross profit
$1.6B
Revenue
$9.6B
Cost of revenue
$7.9B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $8.9B | $1.6B | $7.3B | 18.1% |
| Dec 31, 2024 | $10.2B | $1.9B | $8.3B | 18.7% |
| Mar 31, 2025 | $8.8B | $1.5B | $7.3B | 17.2% |
| Jun 30, 2025 | $9.6B | $1.6B | $7.9B | 17.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.1 pts
Year-over-year change
Jun 30, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver was the relationship between revenue and cost of revenue: revenue increased, but cost of revenue increased more, resulting in a slight gross margin compression.
Compared with the immediately preceding quarter, gross margin was slightly lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.