11 August 2026

H1 2026 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 results for the six months ended 30 June 2026.

6% YEAR-ON-YEAR GROUP REVENUE GROWTH DRIVEN BY CONTINUED NETWORK EXPANSION

Growth initiatives continuing to deliver expected results  

•   Record system-wide revenue with growth of 11% to $2.4bn (H1 2025: $2.2bn)

◦    6% year-on-year group revenue growth to a record $2.0bn (H1 2025: $1.9bn)

◦    84% growth in recurring management fee revenue year-on-year to $35m (H1 2025: $19m)

◦    5% Company-owned revenue growth year-on-year to $1.9bn (H1 2025: $1.8bn)

◦  Managed & Franchised segment continues to grow in importance for the Group - now representing 22% of system-revenue (H1 2025: 18%) and 32% of all open rooms (H1 2025: 25%)

•   Network & Coverage: Signings and openings continue to increase year-on-year

◦    H1 2026 signings 728 (H1 2025: 496)

◦    H1 2026 openings 425 (H1 2025: 338)

•  Increase in Q2 cashflow before corporate activities and M&A to $36m; as previously disclosed, Q1 cashflow impacted by accounts payable processes efficiencies

•  Following a period of increased investment, overheads expected to reduce significantly in H2 further strengthening the Group's cashflow

•   Balance sheet strengthened further with an increase in the 2032 Eurobond to €500m from €300m

•  The RCF was renewed and extended in July 2026, increasing the size by $280m to a $1bn facility and duration to 2031 from 2029

•   $109m of capital returned to shareholders to 30 June 2026, comprising dividends and share buybacks.

◦    $150m of share buybacks announced so far for 2026

◦    Continuing our progressive dividend policy with an interim dividend of 0.48c per share

•   Reiterating both 2026 and mid-term EBITDA guidance

Summary financials and segment overview

$m, US GAAP basis		H1 2026	H1 2025	% change
System-wide revenue2, 3		2,400	2,162	11%
Group revenue		1,970	1,850	6%
Adjusted EBITDA1, 2, 3		265	262	1%
Operating profit		38	68	(44)%
Adjusted Earnings per share (¢)2, 3		4.6	2.3	100%
Cashflow before corporate activities		(55)	51
Net debt		880	754

1.         EBITDA excluding adjusting items and depreciation of landlord contributions (cost reimbursements) on leased properties

2.         Refer to the Chief Financial Officer Reviews and the Reconciliation for alternative performance measures schedules for the details

3.         See the Glossary for the defined terms

 

Segmental Summary
$m, US GAAP basis	System-wide revenue	Segment revenue	Adjusted gross profit	Maintenance capex (net)	Growth capex (net)
Managed & Franchised	535	105	90	-	1
Company-owned	1,865	1,865	479	42	32
Total in H1 2026	2,400	1,970	569	42	33
Total in H1 2025	2,162	1,850	523	35	20

Managed & Franchised: 84% increase in recurring fee income as system-wide revenue continues to build, driven by significant growth across our network and pipeline

•   36% system-wide revenue growth year-on-year to $535m (H1 2025: $392m)

•   60% growth in total fee income to $80m

◦    84% growth in recurring management fees to $35m (H1 2025: $19m)

•   RevPAR in Managed Partnerships evolving as expected across cohorts

•   Previous investments in partnership sales team yielding results as signings accelerated to 711 (H1 2025: 413)

•   Signings converting into openings at pace as nearly 400 centres opened in H1 2026 (H1 2025: 309)

•   At the end of H1 2026, 358,000 rooms were open with a further 257,000 rooms that were signed but not yet open. Once these rooms are all open and mature, they are expected to produce system-wide revenue of over $2bn per year

 

$m	H1 2026	H1 2025	Growth
System (Partner) revenue	535	392	36%
Segment revenue	105	80	31%
Gross profit	90	61	48%
Fee revenue	80	50	60%
Recurring managed fee income	35	19	84%
RevPAR ($)	249	328	(24)%
RevPAR - Managed	164	180	(9)%
RevPAR - Managed - excluding 2025 and 2026 openings	232	n/a		n/a
RevPAR - Franchised & JVs	498	505		(1)%
Rooms open	358,000	248,000		44%
Centres open	2,230	1,507		48%
Rooms added in the period	57,000	45,000		27%
Centres opened in the period	395	309		28%
Rooms in pipeline4	257,000	196,000		31%
New centre deals signed	711	413		72%

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

Company-owned: Strategic execution driving revenue growth   

•   Company-owned revenue growth accelerated to 5% year-on-year giving confidence in our FY26 guidance of at least 4%

•  Occupancy levels have been maintained while increasing rates across the group as previous price initiatives expire, resulting in RevPAR growth of 11% to $407 (H1 2025: $367)

•  Recent centre acquisitions achieved at highly attractive valuations with minimal cash outflow have significant profitability potential through integration into our platform and leverage of our scale-driven cost efficiencies with related profitability expected to be seen during H2

 

$m	H1 2026	H1 2025	Growth
Revenue	1,865	1,770	5%
RevPAR ($)	407	367	11%
Rooms open	769,000	750,000	2.5%
Centres open	2,744	2,753	-
Centres opened in the period	30	29	3%
Adjusted gross profit	479	462	4%
Adjusted gross profit margin	26%	26%	-

 

Overheads: Strategic investment driving record revenues

•  Group overheads increased to $315m (H1 2025: $250m) reflecting continued investment in sales, marketing and operational capability

•   Investment in the Partnership sales team and increased marketing expenditure of $10m to $32m contributed to record signings, openings and system revenue

Financing and Net Debt

$m	H1 2026	Q1 2026	FY 2025
Cash & Cash equivalents	(372)	(158)	(302)
2027 0.5% Convertible Bonds5	6	6	6
2030 €625m 6.5% Corporate Bonds5	660	659	658
2032 €500m 5.125% Corporate Bonds5	570	333	333
Other	16	18	20
Net debt	880	858	715

5.         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

 

Net financial debt increased over the half driven by:

•   Investment into growth initiatives during H1 2026, with overall overhead costs expected to reduce during H2 through our operational efficiency programmes

•   Repurchase of 37,971,536 shares for $100m as part of the share buyback programme. The Company increased the share buyback programme to $150m on 30 June 2026

•   Working capital relating to, and payment for, roll-in acquisitions

•   Annual cash bonus payments which were accrued at 31 December 2025

 

As discussed during our Q1 trading update on 12 May 2026, Net debt increased from $715m to $858m (an increase of $143m) as we rolled out automated supplier invoice software. Cash generation increased meaningfully in Q2, and despite returning $47m to shareholders via share buybacks, a dividend of $9m and small bolt-on M&A, net debt flattened out to $880m, an increase of $22m. This reflects underlying cashflow generation before corporate activities and M&A in Q2 of $36m.

The Company has no exposure to either interest rates or FX on its bonds - coupons are fixed coupon and bonds are hedged into USD.

We maintain our commitment to a BBB credit rating.

Christian Schmitz, Chief Executive Officer of International Workplace Group plc, said:

"Our strategy remains clear. We continue to expand our global coverage at pace, building an unrivalled network that extends from the world's largest cities to smaller towns and regional markets. Through our capital-light partnership model, we continue to increase customer choice while creating long-term value for our partners and shareholders."

Outlook and guidance

Despite the macroeconomic backdrop, centre signings and openings have continued to accelerate, enterprise customer enquiries and sales are increasing, revenue has accelerated and pricing has been positive. Inflationary pressures have been seen globally, and the Company has taken steps to reduce costs in H1 2026, the benefits of this will be seen in H2 2026 and beyond.

Accordingly, our expectations for 2026 remain unchanged. We maintain 2026 guidance as communicated at our Q1 trading update on 12 May 2026:

•   Adjusted 2026 EBITDA of $585m-$625m

•   Company-owned revenue growth of at least 4%

•   Recurring management fee income of $80m

•   Maintenance of an investment grade credit rating and leverage on a Net debt / EBITDA basis to finish 2026 slightly elevated compared to December 2025

Additionally, we expect cash flow performance in the second half of 2026 to be ahead of the prior year. We also reiterate our guidance of at least $1bn of adjusted EBITDA in the medium term.

We have announced $150m of share buybacks so far in 2026, ahead of $130m delivered in 2025, and we will update accordingly through 2026.  

Financial calendar

11 September 2026	Interim dividend record date
9 October 2026	Interim dividend payment date
3 November 2026	Q3 2026 trading update
2 March 2027	2026 Full Year results
11 May 2027	Q1 2027 trading update
10 August 2027	2027 First Half results

 

Results presentation

Mark Dixon, Founder and Executive Chair, Christian Schmitz, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a virtual presentation of the results today for analysts and investors at 9.00am UK time.

The presentation will be available via live webcast and will be available to view at the following link https://brunswickgroup.zoom.us/webinar/register/WN_2wkraJh-T2C2n9NqBw0eXQ

 

Further information

International Workplace Group plc Christian Schmitz, Chief Executive Officer Charlie Steel, Chief Financial Officer Richard Manning, Head of Investor Relations

Brunswick Tel: + 44 (0) 20 7404 5959 Nick Cosgrove Peter Hesse

 

 

Chief Executive Officer's Review

The first half of 2026 has been another period of strong strategic execution for IWG. We have continued to expand our global network through our capital-light growth strategy, strengthening our market leadership while delivering against the priorities we set out at our Investor Day.

Our strategy remains clear. We continue to expand our global coverage at pace, creating an unrivalled network of professional workspace that extends from the world's largest cities to smaller towns and regional markets. Through our capital-light partnership model, we continue to increase customer choice while creating long-term value for our partners and shareholders.

Increasingly, our solutions are helping companies move away from the cost and inflexibility of long-term leases, replacing them with flexible, fully equipped workspace backed by access to more than 5,000 locations worldwide. This combination of flexibility, scale and convenience continues to differentiate IWG in the market.

Businesses are increasingly adopting capital-light operating models across every aspect of their organisations, and real estate is no exception. Companies want greater flexibility over their cost base, avoiding long-term commitments wherever possible in favour of more agile, scalable workspace solutions. As this structural shift gathers pace, demand for flexible workspace continues to grow, reinforcing the strength of our business model.

Strategy

Our strategy continues to deliver strong operational and commercial momentum. During the first half of 2026, we signed a record 728 new locations globally, achieved our highest ever revenues and further strengthened the reach of our platform.

The breadth of our network continues to create significant competitive advantages. Today, more than 80% of our customers use multiple IWG products and services, demonstrating the value of our platform and the increasing depth of customer engagement. At the same time, we continue to attract new partners seeking to maximise the value of their real estate through flexible workspace.

Alongside our network expansion, we continue to invest in technology, digital capabilities and marketing to support future growth, while maintaining a disciplined approach to capital allocation.

Technology and AI

Advances in AI are accelerating the pace of change across every industry. As technology continues to evolve at extraordinary speed, the velocity of business is increasing and organisations are having to make decisions in an environment that is becoming harder to predict. For many, the challenge is no longer simply improving productivity, but understanding what their business, workforce and operational requirements will look like just a few years from now.

Our recent research found that 60% of CEOs and CFOs believe the rise of AI has made it impossible to know how much office space they will need in just two years' time. Against this backdrop, businesses are increasingly seeking workplace strategies that allow them to scale up or down quickly, reduce unnecessary fixed costs and give their people access to high-quality workspace wherever they need it. In an environment of constant technological change, organisations need the agility to adapt, and that is exactly what IWG's global platform is designed to deliver.

Alongside this, we continue to harness AI across our own operations to improve efficiency, enhance customer experience and increase the productivity and velocity of our own business.

Financial Performance

Our financial performance in the first half reflects continued momentum across the business and reinforces the strength of our strategy. Growth in our network, together with increasing demand for flexible workspace, positions us well for the remainder of the year.

The acceleration in revenue has also supported further share buybacks, while we have remained disciplined in our capital allocation and committed to generating sustainable cash flow alongside continued investment in long-term growth opportunities.

I would like to thank our colleagues across the world for their continued commitment and contribution during the first half. Their focus on serving customers, supporting our partners and executing our strategy has been instrumental in delivering another strong period of progress.

Looking Ahead

We enter the second half of the year with confidence. Our capital-light growth strategy, expanding global network and market-leading platform leave us well positioned to capture the significant opportunities created by the continued structural shift towards more flexible ways of working.

Our priorities remain unchanged: expanding our network, strengthening our partnerships, investing in our platform and delivering long-term value for customers, partners and shareholders.

 

Christian Schmitz

Chief Executive Officer

11 August 2026

Chief Financial Officer's Review

The first half of 2026 has been a strong period for the Group as we continue to deliver against the priorities we set out at our Investor Day. Our global network continues to have exceptional growth with 425 new centre openings and strong performance across both segments delivering a record six months of system-wide revenue of $2.4bn, Adjusted EBITDA of $265m and positive net income. We delivered capital returns to investors of $109m ($100m through share buybacks and $9m dividends). Net capex spend was aligned to expectations.

Net Debt was $880m at 30 June 2026 with underlying cash outflow before shareholder returns of $(55)m. As discussed during our Q1 trading update on 12 May 2026, Net debt increased from $715m to $858m (an increase of $143m) predominantly as a result of payment days falling markedly in Q1 from the introduction of automated invoice software. In Q2, Net debt increased from $858m to $880m, an increase of $22m. This increase in Q2 2026 is after returning $47m to shareholders via share buybacks, a final dividend payment of $9m and small bolt-on M&A activity. Therefore, cashflow generation before corporate activities and M&A in Q2 2026 was approximately $36m.

Furthermore, there has been significant investment into growth initiatives during H1 2026, with overall overhead costs expected to reduce in H2 2026 due to operational efficiencies which will have a positive impact on cashflow and Net Debt.

The balance sheet has been strengthened further with the RCF renewal, increasing the size and extended duration to 2031 from 2029, coupled with an increase in the 2032 Eurobond to €500m from €300m, leaving very little debt becoming due before 2030.

Group income statement

$m		H1 2026	H1 2025
System-wide revenue		2,400	2,162
Revenue		1,970	1,850
Cost of Sales, exclusive of items shown separately below		(1,429)	(1,369)
Gross profit		541	481
Gross profit margin		27.5%	26%
Selling, general and administrative expenses		(315)	(250)
Allowance for credit losses		7	(11)
Depreciation & amortisation before landlord contributions on leased properties		(184)	(182)
Depreciation of landlord contributions (cost reimbursements) on leased properties		28	42
Impairments, disposals and closures		(39)	(12)
Operating income		38	68
Interest Expense		(51)	(40)
Other finance costs		(7)	(16)
(Loss) profit before tax		(20)	12
Taxation and equity method investments		22	(4)
Net income		2	8
Net income attributable to non-controlling interests		-	3
Net income attributable to the Company		2	11
Basic EPS (¢)
From continuing operations		0.2	1.1
Attributable to shareholders		0.2	1.1
Adjusted EPS (¢)
From continuing operations		4.6	2.3
Attributable to shareholders		4.6	2.2

Segmental reporting

The Company is organised into two operating segments based on the types of services provided, namely Company-owned and Managed & Franchised. The Managed & Franchised segment carries no lease liabilities as IWG does not hold the underlying property leases when it manages a site on behalf of a third party.

 

Revenue

Group system-wide revenue increased by 11% to $2.4bn. Managed & Franchised segment continues to account for a larger share of System-wide revenue - now representing 22% (H1 2025: 18%). Group revenue increased by 6% to $2.0bn.

Our Managed & Franchised business delivered 36% system-revenue growth year-over-year to $535m (H1 2025: $392m) and $105m of segment revenue. Fee income increased by 60% to $80m (H1 2025: $50m), of which recurring management fees grew to $35m (H1 2025: $19m). The growth in this segment is driven by the unprecedented number of centre openings, 395 in the last six months, where signings continue to convert into openings at pace.

Company-owned delivered growth in segment revenue of 5% to $1.9bn.

	System-wide Revenue			Segment Revenue
$m	H1 2026	H1 2025	% change	H1 2026	H1 2025	% change
Managed & Franchised	535	392	36%	105	80	31%
Company-owned	1,865	1,770	5%	1,865	1,770	5%
Group	2,400	2,162	11%	1,970	1,850	6%

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 2025 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 $164 (H1 2025: $180) and excluding 2025 openings is $232, being driven by new centre revenue performing in line with our plans. RevPAR in our franchised locations was $498 (H1 2025: $505) 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 H1 2026 was $407, up by 11% (H1 2025: $367). This is a result of the strategy to remove promotional activity at renewals, resulting in stronger pricing on a higher occupancy base.  

System RevPAR ($, monthly average)	H1 2026	H1 26 ex 25 openings	H1 2025	% change
Managed & Franchised	249	344	328	(24.1)%
Managed	164	232	180	(8.9)%
Franchised and JVs	498	527	505	(1.4)%
Company-owned	407	400	367	10.9%
IWG Network	357	388	360	(0.8)%

 

 

Adjusting items

The Group identified net adjusting items on gross profit of $28m (H1 2025: $42m) and operating profit of $71m (H1 2025: $54m). These adjusting items refer to depreciation of landlord contributions of $28m (H1 2025: $42m), impairment of long-lived assets and goodwill of $28m (H1 2025: $17m), loss (gain) on disposal of long-lived assets and other closure related (credits) costs of $11m (H1 2025: $(5)m) and $4m of other items.

Adjusting items impact ($m)	H1 2026	H1 2025
Depreciation of landlord contributions (cost reimbursements) on leased properties	28	42
Adjusting items impact on Gross Profit	28	42
Impairment of long-lived assets and goodwill	28	17
Loss (gain) on disposal of long-lived assets, closures and acquisition related items	11	(5)
Other items	4	N/A
Adjusting items impact on Operating Profit, EBITDA and Net Income	71	54

 

Adjusted gross profit

Gross profit increased to $541m (H1 2025: $481m) and adjusted gross profit increased to $569m (H1 2025: $523m). Company-owned delivered an adjusted gross margin of 26% (H1 2025: 26%), we continue to expect margins to trend towards our 30% target in the medium term.

We have acquired some centres at highly attractive valuations with minimal cash outflow and no capital investment requirements, unlocking significant profitability potential through integration into our platform and leverage of our scale-driven cost efficiencies. This profitability is expected to start to be realised during H2 2026.

Adjusted gross profit ($m)	H1 2026	Adjusting items1	H1 2026 - Adjusted	H1 2025	Adjusting items1	H1 2025 - Adjusted
Managed & Franchised	90		90	61	-	61
Company-owned	451	28	479	420	42	462
Adjusted gross profit	541	28	569	481	42	523

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

Selling, general and administrative expenses

Group SG&A increased in H1 2026 to $315m (H1 2025: $250m). Core overheads increased by $50m primarily as a result of the benefit of a one-off gain in H1 2025 and an increase of $24m in employee salary and bonus costs.

Discretionary overheads increased as we selectively invest in growth, specifically:

•   $19m on the Partnership sales team, an additional investment of $5m year-over-year. 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.

•   $32m of marketing spend, an additional $10m year-over-year. This spend is expected to reduce significantly in H2 2026.

Operating Income

Operating Income decreased to $38m. The increase in gross profit was offset by year-over-year increases in SG&A of $65m, impairments and gain / loss on disposals of long-lived assets of $27m.

Net finance expense

The Group reported a net finance expense of $58m (H1 2025: $56m). The increase is predominantly due to higher interest rates on Group debt following refinancing transactions completed in 2024 and 2025.

The net finance expense in 2026 includes cash interest of $54m related to borrowing facilities (H1 2025: $44m). 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 revolving credit facility and guarantees.

As of 30 June 2026, the cross-currency swaps had a positive fair value of $30m.

Finance expense $m	H1 2026	H1 2025
Interest expense	(51)	(40)
Foreign currency loss	(2)	(5)
Gain on extinguishment of debt	-	1
Other finance costs 1	(5)	(12)
Net finance expense	(58)	(56)

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

Taxation

The effective tax rate (after discrete items) is 95% and 50% for the six months ended 30 June 2026 and 2025, respectively, with the impact of non-deductible expenses as a proportion of pre-tax book income being a significant driver in both years. The increase in the effective tax rate was primarily driven by changes in the recognised deferred tax asset, predominantly in the US, for the six months ended 30 June 2025.

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 H1 2026 was a profit of 0.2c (H1 2025: profit of 1.1c).  Adjusted earnings per share attributable to ordinary shareholders in H1 2026 was a profit of 4.6c (H1 2025: profit of 2.3c).

The weighted average number of shares in issue during the period was 977,026,195 (H1 2025: 1,012,730,251). At 30 June 2026 the Group held 14,447,661 treasury shares (31 December 2025: 15,307,650). During the six months ended 30 June 2026 and 2025, share awards of 8,651,007 and 10,878,879, respectively, had a dilutive effect with a negligible impact on the basic earnings per share.

Adjusted EBITDA

The Group's Adjusted EBITDA increased to $265m (H1 2025: $262m).

EBITDA ($m) Bridge	H1 2026	Adjusting items1	H1 2026 - Adjusted	H1 2025	Adjusting items1	H1 2025 - Adjusted
Managed & Franchised	90	-	90	61	-	61
Company-owned	451	28	479	420	42	462
Adjusted gross profit	541	28	569	481	42	523
SG&A	(315)	4	(311)	(250)	-	(250)
Allowance for credit losses	7	-	7	(11)	-	(11)
Depreciation & amortisation	(156)	(28)	(184)	(140)	(42)	(182)
Impairments, disposals and closures	(39)	39	-	(12)	12	-
Operating profit	38	43	81	68	12	80
Depreciation on property plant and equipment	166	-	166	154	-	154
Amortisation of intangible assets	18	-	18	28	-	28
Adjusted EBITDA	222	43	265	250	12	262

1.         Adjusting items as per table above.

Network growth

Unprecedented network expansion, increasing our footprint by 17% to 4,974 centres (H1 2025: 4,260). We opened 425 new centres (H1 2025: 338 centres) and rationalised (109) centres (H1 2025: (67) centres). Furthermore, 728 new centre deals were signed in H1 2026. Out of the 728 new deals signed 98% of the deals are capital-light which underpins our success of growing the network with minimal capital expenditure.

Of the 425 centres opened in H1 2026, 395 centres were capital-light openings which comprised managed partnership centres, variable rent centres, franchised centres and joint-venture centres. Only 30 centre openings were on a fully conventional basis.

Our estate of 4,974 centres as per the end of June 2026 is split into 45% or 2,230 in Managed & Franchised, and 2,744 centres in Company-owned, of which 734 have variable rents. Strong growth in Managed partnership openings is expected to continue through 2026.

Key KPIs		H1 2026	H1 2025	YoY change	YoY change %
Number of centres open		4,974	4,260	714	17%
Centre Openings		425	338	87	26%
Of which capital-light1		410	327	83	25%
In %		96%	97%
Total new centre deals signed		728	496	232	47%
Of which capital-light1		711	494	217	44%
In %		98%	100%

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

 

System locations movement by type	Dec- 2025	Centre openings	Acquisition	Centre rationalisations	Change	H1 2026
Conventional	1,962	15	45	(27)	15	2,010
Variable rent (capital-light)	756	15	-	(18)	(19)	734
Company-owned	2,718	30	45	(45)	(4)	2,744
Managed and Franchised (capital-light)	1,891	395	4	(64)	4	2,230
Total	4,609	425	49	(109)	-	4,974

 

System rooms movement by type ('000)	Dec- 2025	Centre openings	Acquisition	Centre rationalisations	Change	H1 2026
Conventional	532	7	34	(8)	4	569
Variable rent (capital-light)	208	4	-	(5)	(7)	200
Company-owned	740	11	34	(13)	(3)	769
Managed and Franchised (capital-light)	307	57	1	(8)	1	358
Total	1,047	68	35	(21)	(2)	1,127

 

Cash flow

$m		H1 2026	H1 2025
Adjusted EBITDA		265	262
Working capital related to the depreciation of landlord contributions (cost reimbursements) on leased properties		(59)	(66)
Working capital		(83)	(6)
Maintenance capital expenditure (net)		(42)	(35)
Funding of employee share awards		3	3
Other items		(20)	(29)
Cash inflow from business activities1		64	129
Tax paid		(24)	(14)
Finance costs paid on bank & other facilities		(54)	(44)
Cash inflow before growth capex and corporate activities		(14)	71
Gross growth capital expenditure		(52)	(38)
Growth-related landlord contributions		19	18
Net growth capital expenditure		(33)	(20)
Purchase of subsidiary undertakings (net of cash)		(8)	-
Cash inflow before corporate activities		(55)	51
Proceeds from issue of loans, net of related transaction costs		-	15
Proceeds from issue of Eurobond, net of related transaction costs		237	337
Repayment of loans		-	(5)
Repayment of Convertible bond		-	(22)
Payment of ordinary dividend		(9)	(9)
Share buyback		(100)	(50)
Finance transaction costs		(1)	(5)
Other financing activities, net (incl. Contingent consideration payment on acquisition of companies)		(2)	(15)
Net cash inflow for the year		70	297
Opening net cash		304	148
FX movements		-	5
Closing cash		374	450
The total proceeds from landlord contributions relating to the reimbursement of costs and lease incentives of $23m (H1 2025: $23m) are allocated between maintenance landlord contributions of $4m (H1 2025: $5m) and growth landlord contributions of $19m (H1 2025: $18m)

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

 

Cash flow was negatively impacted by payments which were scheduled in 2025 but were paid at the start of 2026 and the roll out of automated invoice software in the first quarter which led to a significant reduction in payment days. This is reflected in a reduction in net amounts due to suppliers of $87m presented within accounts payables and accounts receivable, net.

Working capital relating to 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 $(24)m in H1 2026 (H1 2025: $(14)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 $(54)m in H1 2026 vs. $(44)m in H1 2025, the increase of which is due to the refinancing transactions completed in 2025.

Cash inflow before growth capex, financing and dividends was $(14)m in H1 2026 (H1 2025: $71m).

Total net capex was $75m in H1 2026 (H1 2025: $55m). Net maintenance capex was $42m in H1 2026 (H1 2025: $35m) 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 $33m in H1 2026 (H1 2025: $20m), increasing primarily due to under US GAAP, capex is recognised when the cash is actually paid. Some accrued (unpaid) capex from 2024 was settled in H2 2025, which has driven a higher year‑on‑year net capex outflow on a US GAAP basis.

Capital expenditure $m	Managed & Franchised	Company-owned	H1 2026	Managed & Franchised	Company-owned	H1 2025
Growth capital expenditure	-	48	48	-	28	28
Landlord contributions to Growth capital expenditure	-	(19)	(19)	-	(18)	(18)
Growth capital expenditure on Intangible Assets	1	3	4	8	2	10
Net Growth capex	1	32	33	8	12	20
Centre maintenance capital expenditure	-	36	36	-	32	32
Landlord contributions to Maintenance capital expenditure	-	(4)	(4)	-	(5)	(5)
Maintenance capital expenditure on Intangible Assets	-	10	10	-	8	8
Net Maintenance capex	-	42	42	-	35	35

Financing

Net financial debt increased from 31 December 2025 driven by:

•   Repurchase of 37,971,536 shares for $100m as part of the share buyback programme. The Company increased the share buyback programme to $150m on 30 June 2026, and will update accordingly

•   Annual cash bonus payments, as accrued for at 31 December 2025 but paid in H1 2026

•   The roll out of automated invoice software in the quarter led to payment days falling markedly over the course of Q1 2026

•   On 23 June 2026, the 2032 Eurobond was increased to €500m from €300m, issuing an additional €200 million for proceeds of €204 million. The Company entered into a hedging arrangement to swap €200 million of the issuance and the related interest into $232 million, with a weighted-average fixed coupon of 6.585%

◦    The Company has minimal exposure to either interest or FX rates on its bonds - all bonds are fixed coupon with the first refinancing in 2030, and hedged into USD

◦    As a reminder, most of the 0.5% coupon Convertible Bond was put back to the Company in December 2025, and we will have a full year of interest costs of the €300m 5.125% Corporate Bond during 2026

•   In July 2026, the RCF was renewed, increasing the size to $1bn and extending the duration to 2031 from 2029

Net debt

Net financial debt was $(880)m at 30 June 2026 (31 December 2025: $(715)m). The Group's total debt facilities, including details of drawings, is summarised below:

Net Financial Debt $m		H1 2026	31 Dec 2025
2027 0.5% Convertible Bond		6	6
Eurobonds		1,230	991
RCF Drawn		-	-
Revolving Credit Facility (RCF)		720	720
RCF guarantee allocation		284	284
Cash RCF available		436	436
Other debt		16	20
Cash and cash equivalents		(372)	(302)
Net financial debt		880	715

 

At 30 June 2026 the Group complied with all facility covenants.

Dividends

In line with the Group's dividend policy, the Board has agreed to pay an interim dividend of 0.48¢ per share (H1 2025: 0.45¢ per share). The dividend is expected to be paid on 9 October 2026 to shareholders on the register at the close of business on 11 September 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 interim dividend will be converted into pounds sterling will be the New York closing rate on 11 September 2026.

Share buyback

In the first half of 2026, IWG repurchased 37,971,536 ordinary shares for $100m, equating to 3.7% of share capital outstanding. The programme average purchase price was £1.96. A $50m tranche of a new programme for 2026 was announced on 30 June 2026. All share buybacks have been carried out in accordance with the authorisation granted by Shareholders.

Foreign Exchange

 

		Closing rates			Average rates
Per USD$		H1 2026	H1 2025	%	H1 2026	H1 2025	%
Sterling £		0.76	0.73	(3)%	0.74	0.77	3%
Euro €		0.88	0.85	(3)%	0.86	0.91	6%

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 2026 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 H1 2026. Details of related party transactions that have taken place in the period can be found in Note 16.

Going concern

The Group reported a net income of $2m in H1 2026 (H1 2025: net income of $8m). Net cash of $51m in H1 2026 (H1 2025: $109m) was generated from operations during the period. Although the Group's balance sheet at 30 June 2026 reports a net current liability position of $1,975m (31 December 2025: $2,068m), 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 2025: $436m) which was available and undrawn at 30 June 2026. The facility's current maturity date is June 2029. Furthermore in July 2026, the RCF was renewed, increasing the size to $1bn and extending the duration to 2031 from 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 $321m (31 December 2025: $334m) is expected to be recognised in future periods through the income statement. The Group holds short-term customer deposits of $651m (31 December 2025: $621m) 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.  The Group has ability to access further liquidity through the debt capital markets as demonstrated through the Eurobond issuances in 2024, 2025 and 2026

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 Condensed 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

11 August 2026