CBRE Group, Inc. stock research
FY2025 Q4
CBRE Group (CBRE) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to last year but higher than the prior quarter. Cost of revenue rose more than proportionally, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to last year but higher than the prior quarter. Cost of revenue rose more than proportionally, causing gross margin to weaken sequentially and year-over-year.
- The most observable driver is the increase in cost of revenue relative to revenue, which compressed gross margin despite higher revenue.
- Compared to the prior quarter, revenue improved but gross margin weakened. Compared to the same quarter last year, revenue improved while gross profit was stable, yet gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.0%
Gross profit
$1.9B
Revenue
$11.4B
Cost of revenue
$9.5B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $8.8B | $1.5B | $7.3B | 17.2% |
| Jun 30, 2025 | $9.6B | $1.6B | $7.9B | 17.1% |
| Sep 30, 2025 | $10.1B | $1.8B | $8.3B | 17.7% |
| Dec 31, 2025 | $11.4B | $1.9B | $9.5B | 17.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.7 pts
Year-over-year change
Dec 31, 2024
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the increase in cost of revenue relative to revenue, which compressed gross margin despite higher revenue.
Compared to the prior quarter, revenue improved but gross margin weakened. Compared to the same quarter last year, revenue improved while gross profit was stable, yet gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.