CBRE · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

CBRE GROUP, INC. · 2026-10-22 · Importance 50 · Surprise 40 · No source text

For the nine months ended September 30, 2026, cost of revenue excluding pass-through costs increased 17.8%, faster than revenue growth of 15.5%, and rose to 40.4% of revenue from 39.6%. Management attributed the increase primarily to business growth and higher employee compensation and commission expenses. In BOE, this cost rose to 36.6% of segment revenue from 35.8%, driven by professional compensation costs associated with revenue growth. In Project Management, it increased to 34.6% of segment revenue from 33.7%, reflecting increased professional compensation and third-party spend.

Key facts

• CBRE third-quarter cost of revenue excluding pass-through costs increased 14.9%, primarily due to business growth and higher employee compensation and commission expenses; it rose to 40.8% of revenue from 40.0%. source
• CBRE third-quarter cost of revenue excluding pass-through costs increased to 40.8% of revenue from 40.0%, resulting from higher costs to support revenue growth. source
• CBRE cost of revenue excluding pass-through costs increased 17.8% in the first nine months of 2026 due to business growth and higher employee compensation and commission expenses. source
• CBRE cost of revenue excluding pass-through costs increased to 40.4% of revenue from 39.6% in the first nine months of 2026. source

Impact estimates