260 pounds, despite lots of cardio, but, I'm getting thinner? Huh?

Hey guys. I am 6'5. So, I need a little more food to fuel myself. I've been going to the gym, I see myself toning up and slimming down more and more. Gradual, but still. When I first started working out, I lost about 7 pounds in a few weeks. Now, even though I keep getting more toned and muscle is growing. My body is getting gradually thinner, but I'm staying at 260 pounds. I guess, this is good? I just don't want weird shaped muscles from focusing too much on weights I guess. I've been doing cardio every time I go to the gym. I get cardio at work every day.

Is this normal? Am I just bulking up faster than I realize?