03 March 2026

PRELIMINARY RESULTS ANNOUNCEMENT

International Workplace Group plc, the world's largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ, Signature, issues its preliminary results for the twelve months ended 31 December 2025.

ACCELERATING GROWTH AND FURTHER SHARE BUYBACKS

Group performance: System-wide revenue growth, Adjusted EBITDA growth, record openings

•    Highest-ever System-wide revenue with growth of 4% to $4.5bn (FY2024: $4.3bn)

◦    Higher Group revenue vs 2024 at $3,762m

◦    2.4x growth in recurring management fee revenue year-over-year to $45m

◦   Company-owned pricing and occupancy strategy delivering in line with expectations, with momentum into 2026

◦    97bps increase in Company-owned adjusted gross profit margin

◦    Core overheads flat, demonstrating operational leverage as we continue to invest in growth

•    Highest-ever Adjusted EBITDA with 6% growth to $531m (FY2024: $501m)

•    Highest-ever network growth with 1,132 new centre signings and 782 openings (FY2024: 899 / 624)

•    Strong balance sheet: no refinancing requirements until 2029 and leverage continues to fall ending 2025 at 1.35x net debt / Adjusted EBITDA (FY2024: 1.46x)

•    Cashflow before corporate activities growth of 60% to $162m in 2025 (FY2024: $101m)

•    $144m of capital returned to shareholders in 2025 comprising $14m of dividends and $130m of share buybacks

•    2026 buyback programme continuing and increased by a further $50m to $100m

Summary financials and segment overview

At the Investor Day in December 2025 the segmental reporting was revised and the Company announced that going forwards it would report in two divisions which are presented below. A reconciliation between the new and historic divisional reporting is shown on page 65.

Managed & Franchised: Record network growth, RevPAR developing as expected driving System-wide revenue and fee income  

•  28% System-wide revenue growth year-over-year to $876m (2024: $682m) - fastest-ever growth in absolute terms for this segment of $194m

•   60% growth in total fee income to $126m (2024: $79m)

◦    140% growth of recurring management fees to $45m (2024: $19m)

•  Previously-announced further investment in the partnership sales team has accelerated the development of pipeline with 1,089 new locations signed in 2025 (2024: 853) - growth of 28%

•   Record 731 openings in 2025 with almost 3 new centres opened every working day

•   At the end of 2025, 307k rooms were open with a further 227k rooms that were signed not yet open. Once these rooms are all open and mature, they are expected to produce system-wide revenue of $1.8bn per year

•   Recurring management fees expected to grow to $80m in 2026 as previously guided. Recurring fees include all of the fee-based income tied to partner-operated and franchised centres

•  The Managed and Franchised segment now comprises 20% of System-wide revenue (2024: 16%), 41% of locations (2024: 28%) and 29% of rooms (2024: 19%)

1.     Signed rooms that have not been opened after 2 years have now been removed from the pipeline

Company-owned: Increased occupancy drives revenue visibility into 2026. Margins continuing to expand

•   Profitability continuing to improve with adjusted gross margin increasing to 26% ($945m) in 2025 from 25% ($920m) in 2024

•   Pricing and revenue trends are positive into 2026 benefiting from the focus on improving occupancy during   2025

•   RevPAR for 2025 of $340 (2024: $357)

•   We continue to selectively add locations to our Company-owned network with 49 new centres opened and 43   new locations signed

•   Revenue growth expected to be at least 4% in 2026 as communicated at our Investor Day in December

•  The Company-owned segment now comprises 68% of System-wide revenue (2024: 70%), 59% of locations (2024: 72%) and 71% of rooms (2024: 81%)

Overhead: Continued disciplined control of overhead costs

•  Total overheads increased from $514m to $546 driven by the increase in discretionary overheads of $36m to $95m. These discretionary investment overheads represent non‑capitalised spending undertaken at management's discretion to support and accelerate growth. In 2025 these included:

o Increased investment in the Partnership Sales team to drive managed partnership location signings

o Increased marketing investment to support new locations

o Project costs, including the Company's adoption of US GAAP accounting standards

Financing and Net Debt

1. Presented net of amounts related to the effective portion of forward exchange contracts and cross-currency interest rate swaps that hedge the principal component of the debt

Capital structure and allocation: Balance sheet strength enabling shareholder returns  

•  Following the exercise of the investor put on the 2027 Convertible Bond, there is a residual $6m maturity in December 2027, and no other financing maturities until 2029 (RCF), 2030 and 2032 (Eurobonds)

•   In 2025, the Company returned $144m to shareholders via share buybacks ($130m) and dividends ($14m)

•  The Company announced the first tranche of the 2026 share buyback on 31 December, and today, announce an increase of another $50m to the buyback programme

•  The Board has recommended a final dividend for 2025 of 0.93¢ representing an increase of 3% in the final dividend per share and resulting in a total dividend for 2025 of 1.38¢

•   We maintain our commitment to a BBB credit rating

Mark Dixon, Chief Executive of International Workplace Group plc, said:

"We set out a clear strategy at our first Investor Day in New York in December 2023 for capital light growth to deliver cashflow and business simplification. As we outlined in our Investor Day in December 2025 - this is what we have been delivering on, and we will continue to do so.

We continue to have structural tailwinds and a business which is both prepared for and delivering network growth. In the last twelve months, more locations were opened than we had open after fifteen years of operating. We now have over 1 million rooms in over 120 countries with a significant pipeline. This is expected to drive our future growth in revenue, EBITDA and cash flow"

Outlook and guidance

2026 has started as expected and we maintain a cautiously optimistic outlook for the year. We reiterate our full-year guidance as outlined at the Investor Day on 4 December 2025:

• Adjusted EBITDA of $585m-$625m, on the assumption that this will be driven predominantly by revenue growth rather than cost reduction

• Further share buybacks with a second tranche of $50m, taking the announced programme to $100m for the year so far

• Continued medium-term guidance to deliver at least $1bn EBITDA.

Financial calendar

17 March 2026                       Publication of 2025 Annual Report & Accounts

1 May 2026                            Final 2025 dividend record date

12 May 2026                          Q1 2026 trading update

19 May 2026                          Annual General Meeting

29 May 2026                          Final 2025 dividend payment date

11 August 2026                      H1 2026 results

3 November 2026                  Q3 2026 trading update

Results presentation

Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a presentation of the results today for analysts and investors at 9.00am UK time (SPACES, New Broad Street House, 35 New Broad St, London, EC2M 1NH).

The presentation will be available via live webcast and will be available to view at the following link  IWG Analyst Presentation

Further information

Chairman's Review

Our performance

During 2025, IWG continued to deliver on the execution of its strategy, strengthening our position as the world's leading platform for enabling work where, when and how it is conducted. Our capital-light approach to growth combined with strong operating results enabled a significant return of cash to shareholders during 2025 through our share buyback and dividend programmes while simultaneously adding a record number of new locations to our network.

We are entering 2026 with a strong pipeline for additional capital light location openings alongside the continuation of our share buyback programme. This momentum combined with operational discipline underpins both our growth ambitions and our commitment to delivering sustainable shareholder returns.

Our strategy

IWG's rapid growth reflects our ability to anticipate and respond to constant changes in how businesses across the world wish to manage and consume workspace. Our achievements against a backdrop of ongoing macroeconomic and geopolitical uncertainty reflects the resilience of our capital-light operating model and sustained demand for flexible workspace solutions.

Our effective combination of technology with the world's largest network of flexible workspace provides organisations with adaptable workspace solutions that are conveniently located near their workforce and tailored to their requirements. By addressing the wide-ranging needs of audiences that include workers, local businesses, businesses in multiple markets, and building owners, we deliver greater efficiency and choice for customers, attractive returns for our partners and shareholders, and long-term opportunities for our people.

Our people

Once again, the professionalism and commitment of our teams in markets across the world have provided the cornerstone of our continued success and accelerating growth. On behalf of the Board, I would like to recognise the outstanding contribution of our colleagues globally, whose focus on operational excellence and customer service continues to differentiate IWG in competitive markets. IWG remains committed to fostering an engaging and inclusive working environment that enables them to develop and build successful careers.

Our sustainability journey

IWG is actively navigating the evolution of sustainability parameters, technical and regulatory requirements, market developments and stakeholder expectations. During 2025 we continued to make substantial progress on our sustainability journey including the development of our Net Zero Transition Plan that will guide our future activities. Sustainability considerations are embedded in our governance and operating processes and we will issue our first standalone Sustainability Report during the second half of 2026, further enhancing transparency for our stakeholders

Our Board

We are focused on the execution of the strategy and managing succession at the Board level.  This was reflected in several appointments during 2025, with Lázaro Campos joining the board as Senior Independent Director and Stephen Jennings joining the board as Chair of the Nomination Committee. Both of these individuals bring significant relevant business and board experience to IWG. Their appointments increased the number of independent directors and depth of expertise as Board composition, effectiveness and succession remain ongoing priorities. I would like to thank all of the Board members for their commitment and constructive input during 2025 contributing to the delivery of value for all IWG stakeholders.

Looking ahead

We are at a moment when the world of work is changing faster and more significantly than ever before. Technological advancements, including the rapid evolution of AI are reshaping how and where work is undertaken. This dynamic environment creates new possibilities that are very well served by the IWG operating model. Flexibility remains central to success in such a fast-changing environment, and this is precisely what IWG delivers to our customers and partners.

As we look to 2026 and beyond, I am confident that IWG's unique position within the world of work will continue to support its positive evolution, driven by the effective execution of a strategy that meets the needs of millions of workers, their employers, building owners, communities, our people and our shareholders.

Douglas Sutherland

Chairman

3 March 2026

Chief Executive Officer's Review

In 2025, a significant milestone was achieved with more new locations signed and opened in a single year than in the entire first two decades of our operations. Our network now comprises more than one million rooms in over 120 countries and with a substantial pipeline in place, our growth will continue to accelerate rapidly in the years ahead.

We remain laser-focused on rapidly expanding our coverage to create a truly global network of buildings from the largest cities to smaller towns and the provinces. Our capital-light expansion strategy, delivered through partnerships with property owners and investors, enables companies of all sizes to work productively in locations that are convenient to their people.

Increasingly, our solutions are helping companies move away from the expense and inflexibility of long-term leases, replacing them with flexible, cost-effective agreements for smaller fully equipped spaces in one of our centres. At the same time, they retain the ability to access more than 5,000 locations worldwide.

The significant growth of platform and hybrid working has revolutionised how and where people work, bringing significant productivity benefits and lower costs to companies while transforming the working lives of their teams.

Over the past few years, these more flexible ways of working have become the default model for a significant proportion of white-collar workers with companies empowering their employees to work across multiple locations, splitting their time between local workspaces, a central office and home.

This is not simply a change in how people work, rather a rebalancing of where economic value is created. The days of needing to be tethered to a central HQ are behind us. Technology has changed everything, effectively removing the need for daily long and expensive commutes.

This long-term shift towards the hybrid model is one of the mega-trends of our time and represents a substantial financial opportunity for IWG. 83% of CEOs are already empowering their teams to work from multiple locations and with 1.2 billion white-collar workers globally, our industry has a total addressable audience valued at more than $2 trillion. Platform working is set to become the norm for many of these employees.

In 2025, we had the opportunity to partner with Arup to explore the productivity gains of more localised working for businesses of all sizes, as well as the economic advantages for them and their communities. This along with the existing research by Professor Nicholas Bloom - a senior fellow at the Stanford Institute for Economic Policy Research has contributed greatly to our understanding of the productivity benefits of more flexible ways of working.

This collective research confirms what we've long seen coming: working from local offices and workspaces closer to where people live doesn't just improve the quality of life for employees, it also delivers major productivity benefits for businesses, cities and entire economies.

The Rise of Platform Working

Today, the remarkable advances in cloud technology and video conferencing software - both vital to enabling effective hybrid working - mean workers no longer need to travel long distances daily. As a result, we are seeing a redistribution of the geography of work with teams able to spend a meaningful amount of time in their local communities alongside the city centre. Innovations in technology will continue to advance in years to come and will radically underline and fuel the flexibility of location.

The rising demand for more localised working has led to a large number of our new IWG centres opening in the heart of local communities, suburbs and rural areas, enabling many people around the world to say farewell to long daily commutes.

Small towns have seen a dramatic increase in new locations with signings in the U.S. including Franklin, TX, Berwyn, PA and Bloomfield Hills, MI, all with populations below 5,000, while at the same time our customers can access a growing number of premium and flagship city centre locations ranging from the Chrysler Building in New York to the upcoming Olympia development in London.

Strategy

At our most recent Investor Day in December 2025, I was pleased to update the market that our strategy to grow the most extensive coverage and network in a capital-light manner is working, and it has enabled us to return significant capital to shareholders. We expect to continue to deliver both cashflow and growth in the years ahead.

We are continuing to make ongoing investments into our world-class platform as well as our marketing operations. These investments will enable us to deliver on the rapid growth of our network coverage in partnership with the property industry and investors using capital-light expansion methods such as management agreements, partnering deals and franchising.

The shift towards hybrid and more localised working is propelling our business forward with the fastest growth ever seen in our history. In 2025, we added a record number of locations globally, signing 1,132 centres and achieved our highest-ever revenues. We are the partner of choice for businesses of all sizes including large enterprises with approximately 85% of the Fortune 500 amongst our customer base and an equally impressive 84% of our customers using multiple products and services.

During the year, we accelerated our capital-light growth strategy allowing us to capitalise on the growing number of property investors seeking to maximise their returns by partnering with IWG. There are currently over 1,300 centres in our rapidly expanding pipeline.

Focusing on growth through the capital-light business means that growth capex requirements will be dramatically lower in the future, generating more free cash flow for shareholders.

We are increasingly seeing partners sign multiple locations with IWG as they grasp the scale of the opportunity in front of them. My greatest thanks go to all our valued property owners and investors who have chosen to partner with us and as a business we are resolutely committed to the long-term success of these partnerships.

Market Leader in Innovation

As the market-leader in the structurally growing flexible and platform working industry, we are exceptionally well positioned for the long term. Not only do we lead the market on global reach, but also in a number of crucially important areas for future growth such as our home work products.

IWG has created an outstanding Research and Development team to ensure we are at the forefront of innovation. We will continue to add new concepts and platforms to widen our offer further to our expanding customer base.

The Transformative Impact of Technology and AI

Hybrid working and digital technology have always had a symbiotic relationship. Each wave of technological innovation enables more fluid collaboration across geographies and teams, as well as between businesses, fuelling the growth of hybrid. As a company, we are using AI more and more across our business and it is improving our operations and making us more efficient.

The ongoing rise and adoption of AI will be beneficial for IWG and we will continue to be agile, adapting to new ways of working and harnessing its benefits to significantly drive efficiency and increase the velocity of our business. We expect even greater use of our network as companies grow their adoption of AI.

Our Financial Performance

With such strong momentum globally behind the shift to platform and hybrid working, confirmed by our financial results for 2025, our record system revenue, EBITDA, and network growth have allowed us to increase and extend our share buyback.

Our financial performance reinforces that we are successfully executing our strategic goals and leave us well-positioned for 2026 and beyond.

I would like to take this opportunity to thank all our incredible team members that were the driving force behind the rapid growth of our global network and an excellent set of financial results. I would also like to acknowledge the tireless hard work of our Finance department who were responsible for the successful conversion of our reporting framework to US GAAP, the Group-wide ERP implementation programme, and continued investment in AI and automation.

Looking ahead

The future for IWG and all our stakeholders remains bright. We continue to grow our customer base, which is up 6% year-on-year, as well as our global network and best-in-class portfolio of locations and brands, while delivering on our capital-light expansion strategy.

2025 was a record year for both revenue and network expansion and provides the foundations for continued growth in the year ahead. With 1.2 billion white-collar workers globally and a potential audience valued at more than $2 trillion, there is substantial room for growth and as a company, we are absolutely committed to capturing more of this market over the years ahead.

Mark Dixon

Chief Executive Officer

3 March 2026

Chief Financial Officer's Review

2025 delivered in line with guidance as we expected and outlined at the 2024 full-year results presentation in March 2025. We had the highest-ever network growth at 782 openings, with System-wide revenue of $4.5bn, Adjusted EBITDA of $531m, positive earnings for a second consecutive year and underlying cashflow before shareholder returns of $162m. This enabled us to deliver capital returns to investors of $144m, comprising dividends of $14m and share buybacks of $130m. During 2025 we have also:

• Converted our reporting framework to US GAAP
• Completed the reorganisation of the Group's operating segments
• Undertaken a Group-wide ERP implementation and continued to invest in AI and automation
• Strengthened our balance sheet further with no refinancing needs until 2029 through the issuance of a €300m
• Investment Grade bond in May, fully hedged into USD reducing FX volatility

These changes will enable us to capitalise on our scale as the business grows while delivering further on our existing capital allocation policy with the dividend and continued share buyback programme.

Group income statement

We again show strong system-wide revenue performance during 2025 which is driving further capital-light income and therefore the business's transition towards a fee-driven model.

Segmental reporting

Up to 31 December 2025 the Company has been organised into three operating segments based on the types of services provided, namely the IWG Network (Company-owned and Managed & Franchised) and Digital & Professional Services.

Company-owned comprises leased and owned properties, Managed & Franchised comprises all centres that IWG operate on behalf of building owners or under franchise agreements, and Digital & Professional Services comprises enterprise managed real estate (where IWG manage space on behalf of an enterprise customer with a back-to-back lease in place) and other activities such as digital services, brokerage and consulting.

As announced at the Investor Day in December 2025, Digital & Professional Services reporting will be integrated into the other two segments in 2026 as follows:

• Enterprise Managed real estate business will be reported in the Company-owned segment
• Virtual Office revenues associated with Company-owned locations reported in Company-owned segment; and
• Digital, brokerage and consulting services will be reported in the Managed & Franchised segment

The Managed & Franchised segment under both the old and new structure carries no lease liability as IWG does not hold the underlying property leases when it manages a site on behalf a third party.

The two segments are presented below with a reconciliation to the three segments in the APM section.

Revenue

Group system-wide revenue increased by 4% to $4,453m. Group revenue stayed flat at $3,762m. This reflects the ongoing transition to a capital‑light model, with the Managed & Franchised segment accounting for a growing share of system‑wide revenue. While this segment remains smaller in absolute revenue terms, the profitability of these revenues is significantly higher than that of the Company‑owned segment, reinforcing the strategic value of this shift.

Our Managed & Franchised business delivered 28% system-revenue growth year-over-year to $876m (FY24: $682m) and $185m of segment revenue. Fee income increased by 60% to $126m (2024: $79m), of which recurring management fees grew 2.4x to $45m (2024: $19m). The growth in this segment is driven by the unprecedented number of centre openings, 782 during 2025, where signings continue to convert into openings at pace and therefore become revenue generating

Company-owned remained stable, delivering segment revenue of $3,577m.

Revenue per Available Room (RevPAR)

RevPAR is a monthly average KPI, defined as the system-wide revenue excluding the Managed Real Estate business (where IWG manage space on behalf of an enterprise customer with a back-to-back lease in place), and excluding centres opened and closed during the year, divided by the number of available rooms, which is defined as 7 square metres across all usable space. RevPAR is a well understood measure used across many industries and is particularly relevant to IWG as it incorporates all revenue received across IWG's expansive product portfolio.

Given the scale of growth and room additions that the Company is adding to the Network, RevPAR excluding centres opened in 2024 is presented below to show RevPAR progression excluding the impact of centres not yet mature. It is expected that the higher-growth segments will show a falling year-over-year RevPAR because new locations that have opened but are not yet mature are contained within the calculation.

Managed RevPAR is $211 (2024: $256) and excluding 2024 and 2025 openings is $350, being driven by new centre revenue performing in line with our plans. RevPAR in our franchised locations was $511 (2024: $499) which is higher than in our Managed Partnerships locations due to: (a) franchise locations being predominantly in high RevPAR countries, in particular Japan and Switzerland; (b) the higher maturity of franchise locations which have been operating for many years. As we have previously disclosed, RevPAR on these additional Managed Partnerships rooms is targeted to be $250 at maturity.

RevPAR in Company-owned for 2025 was $340, down by ~5% (2024: $357). This is due to price reductions to drive long-term occupancy. Higher occupancy also drives more revenue capture opportunity through ancillary services.

Adjusting items

The Group identified net adjusting items on gross profit of $64m (2024: $80m), operating profit of $95m (2024: $106m) and net income of $(65)m (2024: $(96)m).

These adjusting items refer to depreciation of landlord contributions (cost reimbursements) on leased properties of $64m (2024: $80m), impairment of long-lived assets and goodwill of $29m (2024: $83m), (gain) loss on disposal of long-lived assets and other closure related (credits) costs of $2m (2024: $(57)m) and gains on extinguishment of debt of $(1)m (2024: $(16)m). 

Adjusted gross profit

Gross profit increased from $948m in 2024 to $1,031m in 2025 and adjusted gross profit increased from $1,028m in 2024 to $1,095m in 2025.

Company-owned adjusted gross margin of 26.4% (2024: 25.4%), progression of 97bps as we continue to expect margins to trend towards our 30% target in the medium term.

1.         Adjusting items refer to the impact of the depreciation of landlord contributions (cost reimbursements) on leased properties on leases included in Depreciation and Amortisation

Selling, general and administrative expenses

Group SG&A increased in 2025 to $546m (2024: $514m). Core overheads remained flat as we continue to manage costs effectively, discretionary overheads increased as we selectively invest in growth, specifically:

•    $30m on the Partnership sales team, an additional investment of $5m year-over-year, to ensure we maintain our market leading position. We signed 1,132 new deals in 2025 vs 899 in 2024, and whilst our partnership sales team is an ongoing cost, we are expecting that the cost will be less than signings growth, therefore margins should continue to grow

•    $46m of marketing spend, an additional $33m year-over-year, to support the brand and centre growth, in particular additional marketing spend to increase the success of new centre openings

•    $9m of project costs, $4m increase year-over-year, recognised on one-off investments into the scalability of our sales and operating platform as we continue to optimise and automate processes.

Operating Income

Operating Income increased to $143m. The increase in gross profit was offset by year-over-year increases in SG&A of $32m, allowance for credit losses of $5m, and impairments and gain / loss on disposals of long-lived assets of $4m.

Net finance expense

The Group reported a net finance expense of $100m (2024: $84m). The increase is predominantly due to higher interest rates on Group debt following refinancing transactions completed in 2024 and the repayment of the convertible bond. The Group did not believe a lower coupon on the convertible bond merited additional dilution risk.

The net finance expense in 2025 includes cash interest of $87m related to borrowing facilities (2024: $64m). All the Group's Eurobonds are hedged into USD using cross-currency interest rate swaps. Under the swap agreements, interest is paid semi-annually in Q2 and Q4. Other finance costs predominantly include commitment fees and bank charges on facilities such as the $720m revolving credit facility and guarantees.

As of 31 December 2025, the cross-currency interest rate swaps had a positive fair value of $87m.

1.  Relates primarily to bank fees.  Excludes financing fees on the issuance of the Euro-bonds which are capitalised

Taxation

The estimated annual effective tax rate in 2025 is 74% (2024: 69%). The Group has performed an assessment of its potential exposure to Pillar Two global minimum income taxes and does not expect any material top-up taxes to arise in any jurisdiction in which it operates. The majority of the Group's entities benefit from transitional safe harbour rules which take them out of scope of the full rules, and the remaining countries are not expected to give rise to any material top-up tax. This position is unchanged from year end 2024.

Given the Group's global footprint across over 120 countries, it is not possible to take advantage of tax grouping on a global basis. As a result, the aggregation of tax paid in individual countries can lead to a high effective tax rate on group profits in certain periods. Although it is difficult to predict the impact of developments in global taxation, as profitability of the Group increases it is expected that the effective tax rate will fall.

Earnings per share

Earnings per share attributable to ordinary shareholders in 2025 was a profit of 1.8c (2024: profit of 1.8c).  Adjusted earnings per share attributable to ordinary shareholders in 2025 was a profit of 4.8c (2024: profit of 2.8c).

The weighted average number of shares in issue during the period was 1,007,813,563 (2024: 1,009,815,216). At 31 December 2025 the Group held 15,307,650 treasury shares (31 December 2024: 45,241,020). During the years ended 31 December 2025 and 2024, share awards of 14,693,363 and 9,320,378, respectively, had a dilutive effect with a negligible impact on the basic earnings per share.

Adjusted EBITDA

The Group's Adjusted EBITDA increased to $531m (2024: $501m).

1 . Adjusting items as per table above.

Network growth

Unprecedented network expansion, increasing our footprint by 16% to 4,609 centres (2024: 3,989). We opened 782 new centres (2024: 624 centres) and rationalised 162 centres (2024: 149 centres). Furthermore, 1,132 new centre deals were signed in 2025. Out of the 1,132 new deals signed 99% of the deals are capital-light which underpins our success of growing the network with minimal capital expenditure.

Of the 782 centres opened in 2025, 769 centres were capital-light openings which comprised managed partnership centres, variable rent centres, franchised centres and joint-venture centres. Only 13 centre openings were on a fully conventional basis.

Our estate of 4,609 centres as per the end of December 2025 is split into 41% or 1,891 in Managed & Franchised, which increased by 69% year-on-year, and 2,718 centres in Company-owned, of which 756 have variable rents. Strong growth in Managed partnership openings is expected to continue through 2026.

1.         Includes locations signed/opened in Managed & Franchised and Variable rent areas

Cash flow

1.         Expenses in relation to employee share awards are included in Adjusted EBITDA

2.         Cash flow before growth capex, tax, finance cost on bank & other facilities, financing activities and dividends

We continued to grow our business and revenues whilst managing our cost base, delivering a 60% increase in cash inflow before corporate activities in 2025 of $162m (2024: $101m). Cash flow was positively impacted by payments which were scheduled in 2025, but were paid at the start of 2026. Working capital relating the depreciation of landlord contributions (cost reimbursements) on leased properties refers to historic cash contributions made by landlords for growth capex in the Company-owned segment (shown as growth-related partner contributions further down the cash flow statement) and is amortised over the lifetime of the corresponding lease.

Cash tax paid was $(34)m in 2025 (2024: $(35)m) and primarily relates to corporate income tax and withholding taxes paid in various countries in which the Group operates. Finance costs paid on bank and other facilities was $(82)m in 2025 vs. $(74)m in 2024, the increase of which is due to the refinancing transactions completed in 2024 and 2025. 

Cash inflow before growth capex, financing and dividends was $244m (2024: $167m).

Total net capex was $174m in 2025 (2024: $112m). Maintenance capex was $92m in 2025 (2024: $49m) and has evolved as expected, and, as previously guided, is expected to be around $100m and growing with inflation going forward. Net growth capex was $82m in 2025 (2024: $63m but $88m as previously reported on a pre-IFRS 16 basis). Net growth capex increased in 2025 primarily due to two factors: firstly, timing differences in the enterprise managed real estate business between when contributions were received and when the related capex was spent and secondly, under US GAAP, capex is recognised when the cash is actually paid. Some accrued (unpaid) capex from 2024 was settled in mid‑2025, which has driven a higher year‑on‑year capex outflow on a US GAAP basis. These two factors should be considered alongside the working capital inflow for 2025.

Financing

During 2025 the Group successfully completed an additional debt transaction, extending the Group's debt maturity, and repurchased a further proportion of the Convertible Bond:

• €300m Euro bonds at an issuance price of 99.369%, a fixed coupon rate of 5.125% and a bullet maturity of 14 May 2032. The bonds are traded on the London Stock Exchange's International Securities Market and were fully hedged into USD, along with the previously unhedged portion of the Group's €625m Euro bonds.
• 2027 0.5% Convertible Bond:

o  The Company repurchased £18m ($23m) face value of the Convertible Bond at a weighted average price of £0.966, including accrued interest, representing a consideration of £17m ($22m). 

o  On 9 December 2025, bondholders exercised their option to cash settle at par and the Company repaid £136m ($183m) face value of the Convertible Bonds at a weighted average price of £1, including accrued interest, representing consideration of £136m ($183m).

o  The Company also closed out all the remaining forward exchange contracts relating to the Convertible Bond on 9 December 2025

o  Following these transactions, £5m ($6m) in aggregate principal amount of the Convertible Bond remains outstanding.

Net debt

Net financial debt was $(715)m at 31 December 2025 (31 December 2024: $(729)m). Net debt came in below expectations this year, and we anticipate it will rise through 2026 to slightly above 2024 levels. The Group's total debt facilities, including details of drawings, is summarised below:

At 31 December 2025 the Group complied with all facility covenants.

Dividends

In line with the Group's dividend policy, the Board has agreed to pay a final dividend of 0.93¢ per share (2024: 0.90¢ per share). The dividend is expected to be paid on 29 May 2026 to shareholders on the register at the close of business on 1 May 2026. Dividends are declared in US dollars and paid in pounds sterling with an option for shareholders to elect to receive payment in US dollars. The foreign exchange rate at which the final dividend will be converted into pounds sterling will be the New York closing rate on 1 May 2026.

Share buyback

IWG repurchased and cancelled 48,512,425 ordinary shares for $130m during 2025, equating to 4.5% of share capital outstanding. The programme average purchase price was £2.0113, a 13.1% discount to the share price as at 31 December 2025. A $50m tranche of a new programme for 2026 was announced on 31 December 2025. All share buybacks have been carried out in accordance with the authorisation granted by Shareholders.

Foreign Exchange

Risk management

Effective management of risk is an ongoing concern for the Group, and crucially, integral to our growth planning. A detailed assessment of the principal risks and uncertainties which could impact the Group's long-term performance and the risk management structure in place to identify, manage and mitigate such risk will be included in the 2025 Annual Report and Accounts.

Related parties

There have been no changes to the type of related party transactions entered into by the Group that had a material effect on the financial statements for 2025. Details of related party transactions that have taken place in the period can be found in Note 23.

Going concern

The Group reported a profit after tax of $15m in 2025 (2024: profit of $18m). Cashflow before growth capex and corporate activities but after interest and tax was $244m (2024: $167m). Furthermore, net cash of $364m (2024: $272m) was generated from operations during the same period. Although the Group's balance sheet at 31 December 2025 reports a net current liability position of $2,068m (31 December 2024: $2,277m), the Directors concluded after a comprehensive review that no liquidity risk exists as:

1.    The Group had funding available under the Group's $720m revolving credit facility of $436m (31 December 2024: $381m) which was available and undrawn at 31 December 2025. The facility's current maturity date is June 2029;

2.     A significant proportion of the net current liability position is due to lease liabilities which are held in non-recourse special purpose vehicles but also with a corresponding right-of-use asset. A large proportion of the net current liabilities comprise non-cash liabilities such as deferred revenue of $334m (31 December 2024: $539m) is expected to be recognised in future periods through the income statement. The Group holds short-term customer deposits of $621m (31 December 2024: $584m) which are spread across a large number of customers and no deposit held for an individual customer is material;

3.    The Group maintains a 12-month rolling forecast and a three-year strategic outlook. It also monitors the covenants in its debt facilities to manage the risk of potential breach. The Group expects to be able to refinance external debt and/or renew committed facilities as they become due, which is the assumption made in the viability scenario modelling, and to remain within covenants throughout the forecast period. In reaching this conclusion, the Directors have assessed:

·      the potential cash generation of the Group against a range of illustrative scenarios (including a severe but plausible outcome); and

·      mitigating actions to reduce operating costs and optimise cash flows during any ongoing global uncertainty.

4.    Has ability to access further liquidity through the debt capital markets as demonstrated through the bond issuance in 2024 and 2025

5.    An external assessment from Fitch, a leading global credit rating agency, which has rated the Group and its listed bonds as investment grade with a BBB (Stable) rating and has continued to monitor the Group's financial performance since the initial rating assessment.

Due to the above, the Group does not believe the net current liabilities represents a liquidity risk. The Directors consider that the Group is well placed to successfully manage the actual and potential risks faced by the organisation including risks related to inflationary pressures and geopolitical tensions.

On the basis of their assessment, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these Group consolidated financial statements and consider it appropriate to continue to adopt the going concern basis in preparing the financial statements of the Group.

Charlie Steel

Chief Financial Officer

3 March 2026