Interim report
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RNS Number : 0509Q International Workplace Group PLC 11 August 2026 11 August 2026 IWG H1 2026 RESULTS ANNOUNCEMENT International Workplace Group Regus SPACES . HO Signature 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 ) о 6 % year - on - year group revenue growth to a record $ 2.0bn ( H1 2025 : $ 1.9bn ) о 84 % growth in recurring management fee revenue year - on - year to $ 35m ( H1 2025 : $ 19m ) о о 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 о H1 2026 signings 728 ( H1 2025 : 496 ) о 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 . о $ 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 System - wide revenue 2 , 3 Group revenue Adjusted EBITDA 1 , 2 , 3 Operating profit Adjusted Earnings per share ( c ) 2 , 3 Cashflow before corporate activities Net debt 1 . H1 2026 H1 2025 % change 2,400 2,162 11 % 1,970 1,850 6 % 265 262 1 % 38 68 ( 44 ) % 4.6 2.3 100 % ( 55 ) 51 880 754 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
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Segmental Summary $m, US GAAP basis System-widerevenue Segmentrevenue Adjustedgrossprofit Maintenancecapex (net) Growthcapex(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 $m H1 2026 H12025 Growth System (Partner) revenue 535 392 36% Segment revenue 105 80 31% Gross profit 90 61 48% Fee revenue 80 50 60% Recurring managed fee income 35 19 84% RevPAR ($) 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% -
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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 (anincrease of $143m) as we rolled out automated supplier invoice software. Cash generation increased meaningfullyin 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 beforecorporate 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 bondsare 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 networkthat extends from the world's largest cities to smaller towns and regional markets. Through our capital-lightpartnership model, we continue to increase customer choice while creating long-term value for our partners andshareholders." Outlook and guidance Despite the macroeconomic backdrop, centre signings and openings have continued to accelerate, enterprisecustomer enquiries and sales are increasing, revenue has accelerated and pricing has been positive. Inflationarypressures have been seen globally, and the Company has taken steps to reduce costs in H1 2026, the benefits ofthis will be seen in H2 2026 and beyond. Accordingly, our expectations for 2026 remain unchanged. We maintain 2026 guidance as communicated at ourQ1 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 alsoreiterate 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 willupdate accordingly through 2026. Financial calendar 11 September 2026 Interim dividend record date
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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, ChiefFinancial Officer, will be hosting a virtual presentation of the results today for analysts and investors at 9.00am UKtime. The presentation will be available via live webcast and will be available to view at the following linkhttps://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 expandour global network through our capital-light growth strategy, strengthening our market leadership while deliveringagainst 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 ofprofessional workspace that extends from the world's largest cities to smaller towns and regional markets. Throughour capital-light partnership model, we continue to increase customer choice while creating long-term value for ourpartners 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-termcommitments wherever possible in favour of more agile, scalable workspace solutions. As this structural shiftgathers 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, wesigned a record 728 new locations globally, achieved our highest ever revenues and further strengthened thereach of our platform. The breadth of our network continues to create significant competitive advantages. Today, more than 80% of ourcustomers use multiple IWG products and services, demonstrating the value of our platform and the increasingdepth of customer engagement. At the same time, we continue to attract new partners seeking to maximise thevalue of their real estate through flexible workspace. Alongside our network expansion, we continue to invest in technology, digital capabilities and marketing to supportfuture 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 atextraordinary speed, the velocity of business is increasing and organisations are having to make decisions in anenvironment 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 fromnow. Our recent research found that 60% of CEOs and CFOs believe the rise of AI has made it impossible to know howmuch office space they will need in just two years' time. Against this backdrop, businesses are increasinglyseeking workplace strategies that allow them to scale up or down quickly, reduce unnecessary fixed costs and givetheir people access to high-quality workspace wherever they need it. In an environment of constant technologicalchange, organisations need the agility to adapt, and that is exactly what IWG's global platform is designed todeliver. Alongside this, we continue to harness AI across our own operations to improve efficiency, enhance customerexperience 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 thestrength of our strategy. Growth in our network, together with increasing demand for flexible workspace, positionsus well for the remainder of the year. The acceleration in revenue has also supported further share buybacks, while we have remained disciplined in ourcapital allocation and committed to generating sustainable cash flow alongside continued investment in long-termgrowth opportunities. I would like to thank our colleagues across the world for their continued commitment and contribution during thefirst half. Their focus on serving customers, supporting our partners and executing our strategy has been
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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 networkand market-leading platform leave us well positioned to capture the significant opportunities created by thecontinued structural shift towards more flexible ways of working. Our priorities remain unchanged: expanding our network, strengthening our partnerships, investing in our platformand 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 setout at our Investor Day. Our global network continues to have exceptional growth with 425 new centre openingsand 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 ($100mthrough 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. Asdiscussed during our Q1 trading update on 12 May 2026, Net debt increased from $715m to $858m (an increaseof $143m) predominantly as a result of payment days falling markedly in Q1 from the introduction of automatedinvoice software. In Q2, Net debt increased from $858m to $880m, an increase of $22m. This increase in Q2 2026is after returning $47m to shareholders via share buybacks, a final dividend payment of $9m and small bolt-onM&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 overheadcosts expected to reduce in H2 2026 due to operational efficiencies which will have a positive impact on cashflowand Net Debt. The balance sheet has been strengthened further with the RCF renewal, increasing the size and extendedduration to 2031 from 2029, coupled with an increase in the 2032 Eurobond to €500m from €300m, leaving verylittle 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 contributionson leased properties (184) (182) Depreciation of landlord contributions (costreimbursements) 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, namelyCompany-owned and Managed & Franchised. The Managed & Franchised segment carries no lease liabilities asIWG 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 accountfor a larger share of System-wide revenue - now representing 22% (H1 2025: 18%). Group revenue increased by
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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 whichrecurring management fees grew to $35m (H1 2025: $19m). The growth in this segment is driven by theunprecedented number of centre openings, 395 in the last six months, where signings continue to convert intoopenings 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 H12025 % 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 Estatebusiness (where IWG manage space on behalf of an enterprise customer with a back-to-back lease in place), andexcluding centres opened and closed during the year, divided by the number of available rooms, which is definedas 7 square metres across all usable space. RevPAR is a well understood measure used across many industriesand is particularly relevant to IWG as it incorporates all revenue received across IWG's expansive productportfolio. Given the scale of growth and room additions that the Company is adding to the Network, RevPAR excludingcentres opened in 2025 is presented below to show RevPAR progression excluding the impact of centres not yetmature. It is expected that the higher-growth segments will show a falling year-over-year RevPAR because newlocations 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 centrerevenue performing in line with our plans. RevPAR in our franchised locations was $498 (H1 2025: $505) which ishigher than in our Managed Partnerships locations due to: (a) franchise locations being predominantly in highRevPAR countries, in particular Japan and Switzerland; (b) the higher maturity of franchise locations which havebeen operating for many years. As we have previously disclosed, RevPAR on these additional ManagedPartnerships rooms is targeted to be $250 at maturity. RevPAR in Company-owned for H1 2026 was $407, up by 11% (H1 2025: $367). This is a result of the strategy toremove promotional activity at renewals, resulting in stronger pricing on a higher occupancy base. System RevPAR ($,monthly average) H1 2026 H1 26 ex 25openings 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 (H12025: $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 assetsand other closure related (credits) costs of $11m (H1 2025: $(5)m) and $4m of other items. Adjusting items impact ($m) H12026 H12025 Depreciation of landlord contributions (cost reimbursements) on leasedproperties 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 relateditems 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:$523m). Company-owned delivered an adjusted gross margin of 26% (H1 2025: 26%), we continue to expectmargins to trend towards our 30% target in the medium term. We have acquired some centres at highly attractive valuations with minimal cash outflow and no capital investmentrequirements, unlocking significant profitability potential through integration into our platform and leverage of ourscale-driven cost efficiencies. This profitability is expected to start to be realised during H2 2026. Adjusted gross profit($m) H12026 Adjusting items1 H1 2026 -Adjusted H12025 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
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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 asa 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 inSG&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 higherinterest 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). Allthe Group's Eurobonds are hedged into USD using cross-currency interest rate swaps. Under the swapagreements, interest is paid semi-annually in Q2 and Q4. Other finance costs predominantly include commitmentfees 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 H12026 H12025 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 significantdriver in both years. The increase in the effective tax rate was primarily driven by changes in the recogniseddeferred 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 groupingon a global basis. As a result, the aggregation of tax paid in individual countries can lead to a high effective taxrate on group profits in certain periods. Although it is difficult to predict the impact of developments in globaltaxation, 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: profitof 2.3c). The weighted average number of shares in issue during the period was 977,026,195 (H1 2025: 1,012,730,251). At30 June 2026 the Group held 14,447,661 treasury shares (31 December 2025: 15,307,650). During the six monthsended 30 June 2026 and 2025, share awards of 8,651,007 and 10,878,879, respectively, had a dilutive effect witha negligible impact on the basic earnings per share. Adjusted EBITDA The Group's Adjusted EBITDA increased to $265m (H1 2025: $262m). EBITDA ($m) Bridge H12026 Adjusting items1 H1 2026-Adjusted H12025 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 andclosures (39) 39 - (12) 12 - Operating profit 38 43 81 68 12 80
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Depreciation on propertyplant and equipment 166 - 166 154 - 154 Amortisation of intangibleassets 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 opened425 new centres (H1 2025: 338 centres) and rationalised (109) centres (H1 2025: (67) centres). Furthermore, 728new centre deals were signed in H1 2026. Out of the 728 new deals signed 98% of the deals are capital-lightwhich 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 managedpartnership centres, variable rent centres, franchised centres and joint-venture centres. Only 30 centre openingswere 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, and2,744 centres in Company-owned, of which 734 have variable rents. Strong growth in Managed partnershipopenings is expected to continue through 2026. Key KPIs H1 2026 H1 2025 YoYchange YoYchange% 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 locationsmovement by type Dec-2025 Centreopenings Acquisition Centrerationalisations Change H12026 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 andFranchised(capital-light) 1,891 395 4 (64) 4 2,230 Total 4,609 425 49 (109) - 4,974 System roomsmovement by type('000) Dec-2025 Centreopenings Acquisition Centrerationalisations Change H12026 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 andFranchised(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 (costreimbursements) 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) -
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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 onacquisition of companies) (2) (15) Net cash inflow for the year 70 297 Opening net cash 304 148 FX movements - 5 Closing cash 374 450The 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 2026and the roll out of automated invoice software in the first quarter which led to a significant reduction in paymentdays. This is reflected in a reduction in net amounts due to suppliers of $87m presented within accounts payablesand accounts receivable, net. Working capital relating to the depreciation of landlord contributions (cost reimbursements) on leased propertiesrefers to historic cash contributions made by landlords for growth capex in the Company-owned segment (shownas growth-related partner contributions further down the cash flow statement) and is amortised over the lifetime ofthe corresponding lease. Cash tax paid was $(24)m in H1 2026 (H1 2025: $(14)m) and primarily relates to corporate income tax andwithholding taxes paid in various countries in which the Group operates. Finance costs paid on bank and otherfacilities was $(54)m in H1 2026 vs. $(44)m in H1 2025, the increase of which is due to the refinancingtransactions 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 withinflation going forward. Net growth capex was $33m in H1 2026 (H1 2025: $20m), increasing primarily due tounder US GAAP, capex is recognised when the cash is actually paid. Some accrued (unpaid) capex from 2024was settled in H2 2025, which has driven a higher year‑on‑year net capex outflow on a US GAAP basis. Capital expenditure$m Managed &Franchised Company-owned H12026 Managed &Franchised Company-owned H12025 Growth capitalexpenditure - 48 48 - 28 28 Landlord contributionsto Growth capitalexpenditure - (19) (19) - (18) (18) Growth capitalexpenditure onIntangible Assets 1 3 4 8 2 10 Net Growth capex 1 32 33 8 12 20 Centre maintenancecapital expenditure - 36 36 - 32 32 Landlord contributionsto Maintenancecapital expenditure - (4) (4) - (5) (5) Maintenance capitalexpenditure onIntangible Assets - 10 10 - 8 8 Net Maintenancecapex - 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%
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◦ 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 (H12025: 0.45¢ per share). The dividend is expected to be paid on 9 October 2026 to shareholders on the register atthe close of business on 11 September 2026. Dividends are declared in US dollars and paid in pounds sterlingwith an option for shareholders to elect to receive payment in US dollars. The foreign exchange rate at which theinterim 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 capitaloutstanding. The programme average purchase price was £1.96. A $50m tranche of a new programme for 2026was announced on 30 June 2026. All share buybacks have been carried out in accordance with the authorisationgranted by Shareholders. Foreign Exchange Closing rates Average rates Per USD$ 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. Adetailed assessment of the principal risks and uncertainties which could impact the Group's long-term performanceand the risk management structure in place to identify, manage and mitigate such risk will be included in the 2026Annual Report and Accounts. Related parties There have been no changes to the type of related party transactions entered into by the Group that had amaterial effect on the financial statements for H1 2026. Details of related party transactions that have taken placein 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 30June 2026 reports a net current liability position of $1,975m (31 December 2025: $2,068m), the Directorsconcluded 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
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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 Directorsconsider that the Group is well placed to successfully manage the actual and potential risks faced by theorganisation 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 adequateresources to continue in operational existence for a period of at least 12 months from the date of approval of theseGroup Condensed consolidated financial statements and consider it appropriate to continue to adopt the goingconcern basis in preparing the financial statements of the Group. Charlie Steel Chief Financial Officer 11 August 2026 International Workplace Group PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six months ended 30 June $m except per share amounts Notes 2026unaudited 2025 Revenue 3 1,970 1,850 Cost of sales, exclusive of items shown separately below 1,429 1,369 Gross profit 541 481 Selling, general and administrative expenses 315 250 Allowance for credit losses 3 (7) 11 Impairment of long-lived assets and goodwill 8/12 28 17 Loss (gain) on disposal of long-lived assets, closures andacquisition related items 11 (5) Depreciation and amortisation before landlord contributions onleased properties 184 182 Depreciation of landlord contributions (cost reimbursements) onleased properties (28) (42) Operating income 38 68 Interest expense (51) (40) Foreign currency loss (2) (5) Gain on extinguishment of debt 11 - 1 Other finance costs (5) (12) (Loss) Income before income taxes and share ofIncome from equity method investments (20) 12 Income tax benefit (expense) 6 19 (6) Share of income from equity method investments 3 2 Net income 2 8 Net loss attributable to non-controlling interests - 3 Net income attributable to the Company 2 11 Net income per common share:
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Basic (¢) 0.2 1.1 Diluted (¢) 0.2 1.1 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. International Workplace Group PLC CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) Six months ended 30 June $m Notes 2026unaudited 2025 Net income 2 8 Other comprehensive (loss) income, net of tax: 14 Foreign currency translation adjustments (8) 66 Changes in unrealised gains (losses) on cash flow hedges,net of tax 6 (34) Total other comprehensive (loss) income (2) 32 Total comprehensive income - 40 Net loss attributable to non-controlling interests - (3) Foreign currency translation gains attributable to non-controlling interests - 3 Comprehensive income attributable to non-controllinginterests - - Comprehensive income attributable to the Company - 40 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. International Workplace Group PLC CONDENSED CONSOLIDATED STATEMENT OF BALANCE SHEETS As of $m except share and per share amounts Notes 30 June 2026unaudited 31December2025 Assets Current assets: Cash and cash equivalents 2 372 302 Accounts receivable, net 3 537 419 Prepaid expenses 145 165 Other current assets 455 390 Total current assets 1,509 1,276 Non-current assets: Operating lease right-of-use assets 9 5,402 5,293 Property and equipment, net 731 778 Intangible assets, net 151 156 Deferred tax asset 6 436 362 Goodwill, net 8 1,385 1,245 Equity method investments 60 59 Other non-current assets 100 147 Total non-current assets 8,265 8,040 Total assets 9,774 9,316 Liabilities Current liabilities: Accounts payable 10 262 297 Short-term debt, net 11 14 17 Deferred revenue 3 321 334 Customer deposits 651 621 Operating lease liabilities 9 1,321 1,300 Accrued expenses and other current liabilities 915 775 Total current liabilities 3,484 3,344 Non-current liabilities: Long-term debt, net 11 1,273 1,070
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Long-term operating lease liabilities 9 5,215 5,022 Other non-current liabilities 210 185 Total non-current liabilities 6,698 6,277 Total liabilities 10,182 9,621 Shareholders' deficit Common Shares; par value $0.0124; 8,000,000,000 sharesauthorised, 971,864,422 issued and outstanding as of 30 June2026 and 1,008,736,266 as of 31 December 2025, respectively 13 12 12 Treasury Shares, at cost 14,447,661 shares as of 30 June 2026and 15,307,650 shares as of 31 December 2025 13 (65) (67) Additional paid-in capital 228 324 Accumulated deficit (271) (264) Accumulated other comprehensive (loss) 14 (312) (310) Total shareholders' deficit (408) (305) Non-controlling interests - - Total shareholders' deficit (408) (305) Total liabilities and shareholders' equity 9,774 9,316 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. International Workplace Group PLC CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY $m, except share amounts Notes Shares Amount TreasuryShares Additional paid-incapital AccumulatedDeficit Accumulatedothercomprehensiveloss Sh Balance as of 1 January 2025 1,057,248,651 13 (182) 493 (268) (313) Net income (loss) - - - - 11 - Other comprehensive income,net of tax 14 - - - - - 29 Retirement of derivativeliability on NCI repurchase - - 9 (3) - - Share-based compensation - - - 3 - - Share buyback and cancellation 13 (20,652,686) - - (50) - - Issuance of shares under sharecompensation plans - 9 (5) - - Dividends declared and paid 13 - - - - (9) - Purchase of non-controllinginterests - - 70 (22) - - Balance as of 30 June 2025 1,036,595,965 13 (94) 416 (266) (284) Balance as of 1 January 2026 1,008,736,226 12 (67) 324 (264) (310) Net income - - - - 2 - Other comprehensive (loss),net of tax 14 - - - - - (2) Share-based compensation - - - 4 - - Share buyback and cancellation 13 (36,871,804) - - (97) - - Share buyback and nocancellation 13 (1,099,732) - (3) - - - Issuance of shares under sharecompensation plans - 5 (3) - - Dividends declared and paid 13 - - - - (9) - Balance as of 30 June 2026(unaudited) 971,864,422 12 (65) 228 (271) (312) The accompanying notes are an integral part of these Consolidated Financial Statements. International Workplace Group PLC CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
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Six months ended 30 June $m Notes 2026unaudited 2025 Cash Flows from Operating Activities: Net income 2 8 Adjustments to reconcile net income (loss) to net cash providedby Operating Activities: Depreciation and amortisation before landlord contributions onleased properties 4 184 182 Depreciation of landlord contributions (cost reimbursements) on leased properties1 4 (28) (42) Operating lease cost 9 691 716 Share-based compensation 4 4 Deferred income tax benefit 6 (10) (3) Allowance for credit losses (7) 11 Share of income from equity method investments 9 (3) (2) Impairment of long-lived assets 28 17 (Gain) loss on disposal 7 (16) Gain on extinguishment of debt - (1) Increase (decrease) in provision 11 (21) Changes in operating assets and liabilities3:Accounts receivable and prepaid expenses (99) (11) Other current assets and non-current assets (73) 22 Accounts payable, accrued expenses, and other liabilities 97 (94) Deferred revenue 10 9 Customer deposits 4 13 Operating lease liabilities (788) (712) Proceeds from landlord contributions on leased properties 23 23 Other operating activities, net (2) 6 Net cash provided by operating activities 51 109 Cash Flows from Investing Activities: Purchases of property and equipment (84) (60) Additions to intangible assets (14) (18) Acquisition of companies, net of cash acquired 5 (8) - Other investing activities, net - 2 Net cash used for investing activities (106) (76) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt 11 - 15 Proceeds from issue of Eurobonds 11 237 337 Payment of debt issuance cost - (5) Repayment of long-term debt 11 - (5) Repayment of Convertible bonds 11 - (22) Dividends paid 13 (9) (9) Share buybacks 13 (100) (50) Other financing activities, net (3) 3 Net cash provided by financing activities 125 264 Effects of exchange rate changes on cash, cash equivalents andrestricted cash - 5 Changes in cash, cash equivalents and restricted cash 70 297 Net increase in cash, cash equivalents and restricted cash 70 302 Cash, cash equivalents and restricted cash at beginning of period2 304 148 Cash, cash equivalents and restricted cash at end of period2 374 450 Supplemental Disclosure of Cash Flow Information Six months ended 30 June $m 2026unaudited 2025 Cash paid during the period for interest (net of amount capitalised) 54 44 Cash paid during the period for income taxes, net 24 14 Supplemental Disclosure of Non-cash Investing & Financing Activities Utilisation of treasury shares for acquisition of non-controlling interest - 70 1. During the six months ended 30 June 2026 and 2025, the total proceeds from landlord contributions were $23 million and $23 million, respectively. These amounts include reimbursements for costs of $19 million and $18 million, as well as lease incentives of $4 million and $5
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million. 2. Restricted cash is presented within Other current assets. Refer to Footnote 2, Summary of Significant Accounting Policies, for further details. All cash in cash and cash equivalents is unrestricted. 3. Cashflows associated with changes in operating assets and liabilities include assets and liabilities acquired as part of business combinations in the period, refer to Note 5, Acquisitions, for further details. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Description of the Business International Workplace Group plc, and its subsidiaries (collectively the "Company"), is the world'slargest hybrid workspace platform with a network in over 120 countries through flexible workspacebrands such as Regus, Spaces, HQ and Signature. International Workplace Group plc owns, managesand is a franchise operator of a network of business centres which are utilised by a variety of businesscustomers. As of 31 December 2025, the Company managed its operations through three operatingsegments: Company-owned, Managed & Franchised, and Digital and Professional Services. From 1January 2026, the Company has consolidated its Digital and Professional Services operating segmentinto its other two operating segments. All references to "we", "us", "our", "IWG" and "the Company" are references to International WorkplaceGroup plc and its subsidiaries on a consolidated basis. Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements have been prepared in accordancewith accounting principles generally accepted in the United States of America ("US GAAP") for interimfinancial information and include the accounts of the Company. All values are in US dollars androunded to millions, except where indicated otherwise. Certain information and footnote disclosuresnormally included in annual financial statements prepared in accordance with US GAAP have beencondensed or omitted. The accompanying Condensed Consolidated Financial Statements do notconstitute statutory accounts as defined in Companies (Jersey) Law 1991. As such, the information included in the accompanying Condensed Consolidated Financial Statementsshould be read in conjunction with the audited US GAAP Consolidated Financial Statements ("auditedconsolidated financial statements") and the related notes thereto as of and for the year ended 31December 2025 which are available from the Company's website - www.iwgplc.com. TheseCondensed Consolidated Financial Statements were prepared following the same accounting policiesas the Consolidated Financial Statements. There was no material effect from the adoption of newaccounting policies and new US GAAP standards effective as of 1 January 2026. In the opinion of management, the accompanying Condensed Consolidated Financial Statementsreflect all adjustments, consisting of normal recurring adjustments, which are necessary for the fairstatement of the Condensed Consolidated Balance Sheets, Statements of Operations, Statements ofComprehensive Income and Statements of Cash Flows for these interim periods. The results for theinterim periods are not necessarily indicative of results for the full fiscal year. The Directors are responsible for preparing the Company's Condensed Consolidated FinancialStatements using applicable GAAP, as prescribed in the Companies (Jersey) Law 1991. Principles of Consolidation Our Condensed Consolidated Financial Statements include the accounts of our wholly ownedsubsidiaries and other non-wholly owned entities in which we have a controlling financial interest,including Variable Interest Entities ("VIE") for which we are the primary beneficiary. All materialintercompany transactions and balances have been eliminated in consolidation. Non-controlling interests primarily relate to The Instant Group. On 8 March 2022, the Companycompleted the acquisition of 100% equity interest in The Instant Group. In a separate transaction, theCompany sold a 13.4% non-controlling equity interest for a consideration of $69 million. On 30 April 2025, the Company completed the acquisition of the remaining noncontrolling interests inexchange for 23,095,239 common shares of International Workplace Group plc. From May 2025onward, the Company no longer has any material non-controlling interests.
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In 2020, Redox Plc was deconsolidated from the Company due to a loss of control followingbankruptcy proceedings. As a result of emergence on 25 April 2025, the Company reassessed itsinvolvement with the subsidiary in accordance with ASC 810, Consolidation, and determined it hadregained control of the entity. The criterion for applying fresh start accounting for Redox Plc is not metas the Company held 100% of the voting shares before commencement of the proceedings and uponemergence from bankruptcy. As part of regaining control, the Company received $20 million of Cash and recognized $6 million ofAccrued expenses and other current liabilities, which were recorded on the Condensed ConsolidatedBalance Sheets, with the corresponding Condensed Consolidated Statements of Operations impactincluded in Selling, general and administrative. The subsidiary's results of operations are included inthe Company's Condensed Consolidated Financial Statements from 25 April 2025. The Company completed the acquisition of 100% equity interest in The Design Offices Group. Thiswas completed on 1 March 2026 for a total consideration of $8 million (reference Note 5, Acquisitions). Reorganisations Upon completion of the acquisition of the remaining non-controlling interests in June 2025, theCompany reorganised its reporting structure. To reflect this, assets and liabilities (including goodwill)were reassigned between reportable segments. From 1 January 2026, the Company changed how it managed its operations and the provision ofsegmental information regularly provided to the CODM through two reportable segments: Company-owned and Managed and Franchised. As a result, the composition of reportable segments waschanged, and assets and liabilities (including goodwill) were reassigned to these two reportablesegments and prior period information was recast. Please reference Note 4, Segments, and Note 8, Goodwill, net, for further information. Use of Estimates The preparation of the Condensed Consolidated Financial Statements, in accordance with US GAAP,requires management to make estimates and assumptions that affect the amounts reported and,accordingly, actual results could differ from those estimates. The Company bases its estimates on theinformation available at the time, its experiences and various other assumptions believed to bereasonable for the estimates underlying the Company's Condensed Consolidated FinancialStatements which relate to, among other things, cash flows used in the assessment of impairment ofgoodwill, intangibles, property and equipment, right-of-use assets, reserves for uncertain tax positions,valuation of derivatives, valuation allowances on deferred tax assets, incremental borrowing rates onleases and the fair value of property and equipment, intangibles and leasehold assets and liabilitiesacquired in business combinations. Adjustments may be made in subsequent periods to reflect morecurrent estimates and assumptions about matters that are inherently uncertain. Restricted Cash The Company is required to maintain cash deposits with certain banks which consist of depositsrestricted under contractual agreements or legal disputes. Deposits with landlords are presented assecurity deposits in Other current assets and Other non-current assets and are not considered ascash, restricted cash or otherwise. The following represents a reconciliation of cash and cash equivalents in the Consolidated Balancesheets to cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows: As of $m 30 June 2026 31 December2025 Cash and cash equivalents 372 302 Restricted cash[1] 2 2 Cash, cash equivalents and restricted cash 374 304 Impairment of Long-Lived Assets and Finite-Lived Intangible Assets Long-lived assets, including right-of-use assets, property and equipment and other finite-livedintangible assets are evaluated for recoverability when events or changes in circumstances indicatethat the asset may have been impaired. In evaluating an asset for recoverability, the Companyconsiders the future cash flows expected to result from the continued use of the asset and theeventual disposition of the asset. If the sum of the expected future cash flows, on an undiscounted basis, is less than the carryingamount of the asset, an impairment loss equal to the excess of the carrying amount over the fair valueof the asset is recognised. Impairment losses cannot be reversed in subsequent periods. We evaluate potential impairment at the asset group level. We allocate the impairment loss related toan asset group among the various assets within the asset group pro rata based on the relativecarrying values of the respective assets. Impairment of long-lived and finite-lived intangible assets,including right-of-use assets, is included in Impairment of long-lived assets and goodwill on theCondensed Consolidated Statements of Operations. Impairment of property and equipment was $15 million and $4 million, and impairment of right-of-useassets was $13 million and $13 million for the six months ended 30 June 2026 and 2025, respectively.The recorded impairments related to the Company-owned segment and was due to underperformingbusiness centres. Please reference Note 12, Fair Value Measurements, for more information regarding the underlyingimpairment assessments. Recent Accounting Pronouncements Not Yet Adopted The recently issued but not yet effective Accounting Standard Update ("ASU") applicable to theCompany during the six months ended 30 June 2026 that may have a material impact have beenconsidered. None of the new recent accounting pronouncements are considered material at 30 June2026 for the Company. Measurement of Credit Losses for Accounts Receivable and Contract Assets
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The Company's trade receivables are within the scope of ASU 2025-05. The amendments provide anoptional practical expedient for estimating expected credit losses, which the Company has not adoptedas these amendments did not result in any changes to the Company's existing methodology or to theamounts reported in the consolidated financial statements. Note 3. Revenue from Contracts with Customers The Company's primary activity is the provision of global workspace solutions. Please reference Note4, Segments, for revenue disaggregated by product categories. Receivables The Company's receivables from contracts with customers are separately presented as Accountsreceivable, net on the Condensed Consolidated Balance Sheets. As of 30 June 2026, and 31December 2025, the allowance for current expected credit losses was $8 million and $15 million,respectively. A summary of the components of accounts receivable, net is as follows: $m HY2026 FY2025 Receivables related to contracts with customers[2] 545 434 Allowance for current expected credit losses (8) (15) Total accounts receivable, net 537 419 Contract Liabilities The Company's contract liabilities, which are included in Deferred revenue on the CondensedConsolidated Balance Sheets and are based on the Company's billing cycle which changed during2025. The contract liabilities are classified as current due to the nature of the Company's invoicingarrangements. All material contract liabilities as of 31 December 2025 were recognised as revenueduring the six months ended 30 June 2026. The Company elected the practical expedient as per ASC 606-10-50-14 and does not discloseinformation related to remaining performance obligations due to their original expected terms beingone year or less. The Company also elected the practical expedient as per ASC 340-40-25-4 andexpenses costs of obtaining contracts, which would otherwise have an amortisation period of one yearor less, as incurred. Note 4. Segments The Company is organised into two operating segments based on the types of services provided. Thesegment composition, as further described below, reflects the Reorganisation described in Note 2,Summary of Significant Accounting Policies: • Company-owned: Locations the Company operates directly and recognises full revenue and costs of the centre. • Managed & Franchised: Locations the Company receives a franchise or management fee for providing services to centres. Managed centres are operated by the Company; franchise locations are operated by the franchise holder. The Company only recognises the fee as revenue. The Company is not responsible for capital expenditures in the centres and does not recognise the related centre operating costs. The Company has determined its Chief Executive Officer ("CEO") is its Chief Operating DecisionMaker ("CODM"). The CEO reviews the Company's financial performance based on these segments,specifically using Gross profit to assess performance and make resource allocation decisions.Adjusted gross profit is also used by the CODM in assessing segmental performance and determininghow to allocate resources because landlord contributions on leases are evaluated in totality incommercial negotiations, rather than being dependent upon whether they are accounted for as leaseincentives. Adjusted gross profit (including landlord contributions on leases) has been presented forthe first time in the Condensed Consolidated Financial Statements on 30 June 2025. The followingtable reflects results of operations of the Company's reportable segments: $m Company-owned Managed &Franchised Total 30 June 2026 Revenue 1,865 105 1,970 Workstation revenue 1,222 - 1,222 Fee income - 80 80 Other income 643 25 668 Cost of sales, exclusive of the items shownseparately below 1,414 15 1,429 Gross profit 451 90 541 Selling, general and administrative expenses 315 Allowance for credit losses (7) Impairment of long-lived assets 28 Loss on disposal of long-lived assets,closures, restructurings and acquisitionrelated items 11 Depreciation and amortisation beforelandlord contributions on leased properties 184 Depreciation of landlord contributions (costreimbursements) on leased properties (28) Operating income 38 Interest expense (51)
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Foreign currency loss (2) Gain on extinguishment of debt - Other finance costs (5) Income before income taxes and share ofincome from equity method investments (20) Gross profit 451 90 541 Landlord contributions on leases included indepreciation and amortisation 28 - 28 Adjusted gross profit 479 90 569 $m Company-owned Managed &Franchised Total 30 June 2025 Revenue 1,770 80 1,850 Workstation revenue 1,168 - 1,168 Fee income - 50 50Other income 602 30 632 Cost of sales, exclusive of the items shownseparately below 1,350 19 1,369 Gross profit 420 61 481 Selling, general and administrative expenses 250 Allowance for credit losses 11 Impairment of long-lived assets 17 (Gain) on disposal of long-lived assets,closures, restructurings and acquisitionrelated items (5) Depreciation and amortisation beforelandlord contributions on leased properties 182 Depreciation of landlord contributions (costreimbursements) on leased properties (42) Operating income 68 Interest expense (40) Foreign currency loss (5) Gain on extinguishment of debt 1 Other finance costs (12) Income before income taxes and share ofincome from equity method investments 12 Gross profit 420 61 481 Landlord contributions on leases included indepreciation and amortisation 42 - 42 Adjusted gross profit 462 61 523 Asset information Total assets by Segment as of 30 June 2026 and 31 December 2025, were: $m Company - owned Managed &Franchised Total 30 June 2026 9,462 312 9,774 31 December 2025 9,020 296 9,316 Total gross capital expenditures by Segment for the six months ended 30 June 2026 and 2025 were: $m Company - owned Managed &Franchised Total 30 June 2026 97 1 98 30 June 2025 70 8 78 Note 5. Acquisitions In the first quarter of 2026, the Company acquired 100% of the share capital of Design Offices GmbHand its affiliates ("DO"), a flexible workspace operator in Germany, pursuant to a Share PurchaseAgreement dated 28 February 2026. The acquisition was completed on 1 March 2026 for the totalcash purchase consideration of $8 million. The Company accounted for the transaction as a business combination under ASC 805, and thepurchase price was allocated to the identifiable assets acquired and liabilities assumed based on theirestimated fair values as of the acquisition date. Acquisition costs of $1 million, including legal andadvisory fees, were expensed as incurred and recorded within Loss (gain) on disposal of long-livedassets, closures, restructurings and acquisition related items in the Condensed ConsolidatedStatements of Operations. Following closing, the Company began integrating DO's operations, including its head office andsubsidiaries, into the Company's network in Germany during the second quarter of 2026.
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The following table summarises the fair values of assets acquired and liabilities assumed at theacquisition date: Fair Value of Identifiable Assets Acquired and Liabilities Assumed ($m) $m Design Offices Assets Acquired Cash and cash equivalents 2 Accounts receivable, net 4 Prepaid expenses 3 Other current assets 1 Operating lease right-of-use assets 274 Property and equipment, net 31 Intangible assets 3 Deferred tax asset 68 Total Assets Acquired 386 Accounts payable 26 Customer deposits 34 Operating lease liabilities 466 Other liabilities 6 Total Liabilities Assumed 532 Net identifiable liabilities acquired (146) Purchase Price 8 Goodwill 154 Goodwill of $154 million arose on the acquisition and primarily reflects the value of the acquiredoperating network and future growth opportunities. Whilst the purchase price is fixed, the purchase price allocation is provisional and may be adjustedduring the measurement period as additional information becomes available regarding the fair valuesof assets acquired and liabilities assumed. Q2 2026 acquisitions During the second quarter of 2026, the Company acquired immaterial acquisitions for a totalconsideration of $3 million (excluding cash obtained of $1m) resulting in the recognition of $1 million ofgoodwill. This related to a 100% of the share capital of another flexible workspace operator inGermany. Note 6. Income Taxes The Company recorded an income tax benefit (2025: expense), based upon the estimated annualeffective tax rate including the impact of discrete items, of $19 million on pre-tax book loss of $20million, and $6 million on pre-tax book income of $12 million, for the six months ended 30 June 2026and 2025, respectively. This resulted from an annual effective tax rate of 79% and 60% applied to thesix months ended 30 June 2026 and 2025, respectively, plus the impact of discrete items. The Company operates across multiple jurisdictions which have varying tax rates and taxable resultprofiles. Deferred tax assets are recognised only to the extent these are expected to be utilisedagainst future taxable profits, and this contributes to upward pressure on the estimated annualeffective rate for 2026. Applying a positive effective tax rate to a loss before tax results in a tax benefit being reported at 30June 2026. The Company expects to report a tax expense for the full year 2026. The lower effective tax rate for the six months to 30 June 2025 was primarily due to the initialrecognition of deferred tax assets in that period, primarily in the US, compared to the deferred taxasset recognition for the six months ended 30 June 2026. Note 7. Earnings Per Share The table below illustrates the calculation of basic and diluted earnings per share: Six months ended $m except share and per share amounts 30 June 2026 30 June 2025 Income attributable to ordinary shareholders - basic and diluted Net income 2 11 Weighted average shares outstanding used in computing earnings pershare - basic and diluted Weighted average shares - basic 977,026,195 1,012,730,251 Weighted average shares - diluted 985,677,202 1,023,609,130 Basic income per common share (¢) 0.2 1.1 Diluted income per common share (¢) 0.2 1.1 Effects of dilutive securities Weighted average number of share options 5,538,956 8,046,155 Weighted average number of share awards under the CIP, PSP, DSBPand One-off Award 3,112,051 2,832,724 Antidilutive securities Potentially issuable shares on Convertible bonds 949,081 31,054,804 Options are considered dilutive when they would result in the issue of ordinary shares for less than themarket price of ordinary shares in the period. The amount of the dilution is taken to be the averagemarket price of shares during the period minus the exercise price. During the six months ended 30
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June 2026 and 2025, share awards of 8,651,007 and 10,878,879, respectively, had a dilutive effectwith a negligible impact on the basic earnings per share. As discussed within Note 11, Debt, the Company repurchased portions of its Convertible bonds during2025. Due to the repurchases, the potentially issuable number of shares as of 30 June 2026 and2025, were 949,081 and 31,054,804, respectively. The Convertible bonds had no dilutive effect for thesix months ended 30 June 2026 and 2025. Note 8. Goodwill, net The following table shows changes in goodwill period over period: $m Company -owned Managed &Franchised DPS Total 1 January 20251 866 - 307 1,173 Currency translation adjustment 36 - 19 55 30 April 2025 (pre-reallocation) 902 - 326 1,228 Reassignment 26 26 (52) - 30 April 2025 (post-reallocation) 928 26 274 1,228 Currency translation adjustment 16 1 9 26 30 June 20251 944 27 283 1,254 Currency translation adjustment (1) 1 (9) (9) 31 December 2025 943 28 274 1,245 1 January - Segments change 235 39 (274) - Currency translation adjustment (14) (1) n/a (15) Additions 155 - n/a 155 30 June 2026 1,319 66 n/a 1,385 1. Balances are presented net of accumulated impairment losses of $16 million for the Company-owned segment. The reassignment of goodwill reflected above relate to: (i) the June 2025 reorganisation of the Company's reporting structure following the acquisition of the remaining non-controlling interests and (ii) the change in reportable segments effective 1 January 2026. Both instances were based on a relative fair value basis. Refer to Note 2, Summary of Significant Accounting Policies for further information. There was no goodwill impairment recorded during the six months ended 30 June 2026 and 2025. Note 9. Leases The Company has operating leases for rental of commercial office real estate premises globally. Thefollowing table details the components of lease cost: Six months ended As of $m 30 June 2026 30 June 2025 Operating lease cost1 691 716 Short-term lease cost - - Variable lease cost 92 66 Sublease income (36) (31) Total lease cost 747 751 1. During the six months ended 30 June 2026 and 2025, the total operating lease cost was offset by the wind-down of previously capitalised lease incentives of $31 million and $24 million, respectively. Note 10. Accounts Payable Accounts payable consist of the following: As of $m 30 June 2026 31 December 2025 Trade payables 207 240 Obligations under PSA 55 57 Total accounts payable 262 297 In November 2025, the Company entered into a Payment Service Agreement Contract (PSA). Underthis PSA, a third party settles some trade creditor invoices of IWG directly with their suppliers upon thecontractual maturity of the supplier invoices in exchange for a fixed payment fee. The Company isreducing its usage of the PSA over time. Note 11. Debt The following table presents the carrying value of debt as of 30 June 2026 and 31 December 2025: As of $m 30 June 2026 31 December 2025 Short-term debt: Bank overdrafts 14 17 Total short-term debt 14 17 Long-term debt:
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Eurobonds 1,265 1,061 Others1 8 9 Total long-term debt 1,273 1,070 1. Primarily represent amounts due on the Convertible bonds Eurobonds The Company issued €575 million Eurobonds on 28 June 2024 at a fixed coupon rate of 6.5% and abullet maturity of June 2030. An additional €50 million was issued on 10 September 2024, bringing thetotal issued to €625 million. As of 30 June 2026, all of the €625 million was hedged, with arrangementsto swap into $674 million with a weighted-average fixed coupon of 8.158%. On 14 May 2025, the Company issued €300 million Eurobonds at a fixed coupon rate of 5.125% and abullet maturity of 14 May 2032. It also entered into a hedging arrangement to swap all of the issuanceand the related interest into $341 million, with a weighted-average fixed coupon of 6.902%. On 23 June 2026, an additional €200 million was issued against the Eurobonds due 2032, bringing thetotal to €500 million. The proceeds were €204 million, and the Company entered into a hedgingarrangement to swap €200 million of the issuance and the related interest into $232 million, with aweighted-average fixed coupon of 6.585%. The hedges are expected to remain in place for the life of the bonds and are designated as cash flowhedges. Convertible bonds During the six months ended 30 June 2025, the Company repurchased £18 million ($23 million) facevalue of the Convertible bonds at a weighted average price of £0.965, including accrued interest,representing a consideration of £17 million ($22 million). Due to the repurchases occurring during thesix months ended30 June 2025 £18m of the related forward exchange rate contracts were closed out. For the sixmonths ended 30 June 2025 the repurchases of Convertible bonds and settlement of the foreignexchange rate contracts result in a gain on settlement of $1 million.No Convertible bonds were repurchased during the six months ended 30 June 2026. As of 30 June 2026, the amount of the Revolving Credit Facility was $720 million and $436 million wasavailable and undrawn. As of December 31, 2025, the amount of the facility was $720 million and $436million was available and undrawn. Further background of the Company's borrowings and underlyingterms, including maturity dates, is included in Note 17, Debt, of the audited consolidated financialstatements as of and for the fiscal year ended 31 December 2025. On 30 June 2026, the Group complied with all covenants related to the Revolving Credit Facility. Note 12. Fair Value Measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liabilityin an orderly transaction between market participants at the measurement date. Reference the Fair Value Measurement accounting policy included within Note 2, Description of theBusiness and Summary of Significant Accounting Policies, of the audited consolidated financialstatements as of 31 December 2025 for the level of inputs outlined below to determine fair value. Thecarrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accountspayable, and accrued liabilities approximate fair value because of the short maturity of theseinstruments. The carrying amounts of other non-current assets, including building owner deposits, andother non-current liabilities, including customer deposits and provisions for liabilities, approximate fairvalue due to their nature. Recurring fair value measurements The following table presents the carrying amounts and estimated fair values of the Company'sfinancial instruments as of 30 June 2026 and 31 December 2025. Fair value is defined as the amountthat would be received to sell an asset or paid to transfer a liability in an orderly transaction betweenmarket participants at the measurement date: As of 30 June 2026 $m Carryingamount Level 1 Level 2 Level 3 Total Assets: Cross-currency swaps 40 - 40 - 40 Total assets 40 - 40 - 40 Liabilities: Cross-currency swaps 10 - 10 - 10 Contingent consideration 1 - 1 - 1 Eurobonds 1,265 - 1,356 - 1,356 Convertible bonds 6 - 5 - 5 Total liabilities 1,282 - 1,372 - 1,372 As of 31 December 2025 $m Carryingamount Level 1 Level 2 Level 3 Total Assets: Cross-currency swaps 87 - 87 - 87
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Total assets 87 - 87 - 87 Liabilities: Contingent consideration 2 - 2 - 2 Eurobonds 1,061 - 1,156 - 1,156 Convertible bonds 6 - 5 - 5 Forward exchangecontracts - - - - - Total liabilities 1,069 - 1,163 - 1,163 The fair value of contingent consideration is based on contractually defined targets of financialperformance in connection with earn outs and other considerations relating to acquisitions. The fairvalue of the Eurobonds and Convertible bonds are based on their published prices on the open marketas these instruments are traded on a restricted market. The fair value of the foreign exchangecontracts are based on a combination of forward pricing and swap models. There were no transfersbetween levels for the six months ended 30 June 2026 and 30 June 2025. Fair Value of Derivative Instruments Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of 30 June 2026 $m Other non-current assets Other non-currentliabilities Cash flow hedges: Cross-currency interest rate swaps - Eurobonds €625m 40 - Cross-currency interest rate swaps - Eurobonds €500m - 10 As of 31 December 2025 $m Other non-current assets Other non-currentliabilities Cash flow hedges: Cross-currency interest rate swaps - Eurobonds €625m 78 - Cross-currency interest rate swaps - Eurobonds €300m 9 - As of 30 June 2026, and 31 December 2025, $35m derivative asset (2025: $70m derivative asset)relating to the cross-currency interest rate swaps - Eurobonds liabilities hedged the principalcomponent of the debt and the remaining portion of the derivatives hedge the related interest. TheGroup has no FX or interest rate swaps that do not directly hedge the Eurobonds. The Group does nothave cash flow hedges relating to its operating activities. Derivative Volume The gross notional values of our derivative instruments were: $m As of 30 June 2026 Cash flow hedges: Cross-currency interest rate swaps - Eurobonds €625m 674 Cross-currency interest rate swaps - Eurobonds €500m 573 $m As of 31 December 2025 Cash flow hedges: Cross-currency interest rate swaps - Eurobonds €625m 674 Cross-currency interest rate swaps - Eurobonds €300m 341 Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensiveearnings/(losses). Refer to Note 14, Accumulated Other Comprehensive Loss, for further information. Non-recurring fair value measurements As of 30 June 2026 and 31 December 2025, the long-lived assets held and used in certain centreswarranted nonrecurring fair value measurements due to the existence of qualitative and quantitativeimpairment indicators. The fair value of the centre was derived based on the expected future cashflows of the centre as outlined in Note 2, Summary of Significant Accounting Policies. Thecorresponding impairment charges recorded during the reporting periods presented within theseCondensed Consolidated Financial Statements were also disclosed therein. As of 30 June 2026 and 31 December 2025, the Company's impairment assessments derived fairvalues of $91 million and $86 million, respectively, for the affected centres. The categorisation of the framework used to value the right-of-use assets is considered Level 3, due tothe subjective nature of the unobservable inputs used to determine the fair value. Such judgments andestimates included within the cash flow forecasts include assessment of the location of the centre, thelocal economic situation, competition, local environmental factors, the management of the centre, andfuture changes in occupancy, customer pricing and costs of the centre. While centre costs remainstable, revenue is a function of the expected levels of occupancy and the corresponding pricingachieved. In assessing any impairment, the derived fair value is assessed for sensitivity to changes inboth occupancy and pricing, to determine the extent to which these estimates need to change beforean impairment arises.
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Note 13. Equity Cash Dividends During the six months ended 30 June 2026, the Company approved and paid out a final dividend of $9million (¢0.93 per ordinary share). During the six months ended 30 June 2025, the Company approvedand paid out a final dividend of $9 million (¢0.90 per ordinary share). The consolidated shareholders'deficit does not impact the Company's ability to make dividend payments. Common Shares The Company announced the first tranche ($50m) of the 2026 share buyback programme on 31December 2025, a second tranche on 3 March 2026 ($50m) and on 30 June 2026 announced afurther tranche ($50m), taking the programme up to $150m. Pursuant to this share repurchaseprogram, during the six months ended 30 June 2026, the Company repurchased 37,971,536 shares ofits common stock for $100 million (six months ended 30 June 2025: 20,652,686 shares of its commonstock for $50 million), of which 36,871,804 were cancelled during the period and 1,099,732subsequently cancelled. Note 14. Accumulated Other Comprehensive Loss The changes in the components of accumulated other comprehensive loss, net of taxes, were asfollows: $m ForeignCurrencyTranslationAdjustments Cash FlowHedgeAdjustment NetInvestmentHedges,Adjustment Total Balance as of 1 January 2025 (339) 23 3 (313) Current-period other comprehensiveincome 63 73 - 136 Amounts reclassified from accumulatedother comprehensive (loss), net of taxes - (104) (3) (107) Balance as of 30 June 2025 (276) (8) - (284) Balance as of 1 January 2026 (295) (15) - (310) Current-period other comprehensive(loss) (8) (29) - (37) Amounts reclassified from accumulatedother comprehensive income, net oftaxes - 35 - 35 Balance as of 30 June 2026 (303) (9) - (312) Note 15. Commitments and Contingencies Contingencies From time to time, the Company is party to litigation and other legal proceedings in the ordinary courseof business. The Company accrues for loss contingencies when it is both probable that it will incur theloss and when the Company can reasonably estimate the amount of the loss or range of loss. If anunfavourable outcome were to occur, there exists the possibility of a material adverse impact on theresults of operations in the period in which the outcome occurs or in future periods. The Companyexpenses legal costs relating to its lawsuits, claims and proceedings as incurred. Information aboutmaterial reasonably possible loss contingencies is also disclosed in the financial statements. Commitments The Company has contractual obligations related to centre fit outs wherein the Company has to finishor improve the interior space of a leased property. Capital commitments in respect of centre fit-outobligations that are not offset by contractually committed landlord contributions are immaterial as of 30June 2026. On 29 June 2026 the Company entered into a 3-year commitment agreement, subject tomilestones, of$30 million over the three years relating to the use of cloud computing services. The Company holds bank guarantees and letters of credit held with certain banks, predominantly insupport of leasehold contracts with a variety of landlords. As of 30 June 2026 and 31 December 2025,the guarantees were $364 million and $344 million, respectively. During 2026, the Company maintains a guarantees and indemnities facility (the "Sureties Facility"),that supports the issuance of guarantees related to rent lease obligations. The amount available underthe Sureties Facility is $120 million. $44 million under the Sureties Facility was utilised during the six-month period ended 30 June 2026. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Note 16. Related Party Transactions Below is a summary of the Company's related party balances and transactions for the periodspresented herein. Reference Note 23, Related Party Transactions, of the audited consolidated financialstatements as of and for the year ended 31 December 2025, for further commentary on the nature ofthe related party relationships. These balances and transactions primarily relate to companies that theCompany has an equity interest in but does not consolidate. Equity Method Investments The Company's related party balances on its Condensed Consolidated Balance Sheets as of 30 June2026 and 31 December 2025 below relate entirely with parties that are accounted for under the equitymethod: As of $m 30 June 2026 31 December 2025 Accounts receivable, net 66 51 Accounts payable 76 52 During the six months ended 30 June 2026 and 2025, the Company recorded revenue transactionswith related parties accounted for under the equity method of: Six months ended $m 30 June 2026 30 June 2025 Revenue 4 5 The Company had no material expense transactions with equity method investees during the periodspresented. Other related party transactions During the six months ended 30 June 2026 and 2025, the Company acquired goods and services froman entity indirectly controlled by a Director of the Company amounting to $16 thousand and $44thousand, respectively. As of 30 June 2026 and 31 December 2025, the Company had an outstandingbalance of $89 thousand and $76 thousand, respectively. Note 17. Subsequent Events The Company evaluated subsequent events through 11 August 2026, which is the date theCondensed Consolidated Statements were available to be issued. Revolving Credit Facility On 31 July 2026, the Company entered into a new multi ‑ currency revolving credit facility ("RCF") witha total commitment that was extended by $280 million from $720 million to $1 billion enhancing theGroup's liquidity position and a maturity date of 31 July 2031 with an option to extend for a further twoyears with the Banks' consent. The rate of interest on any cash amounts drawn under the new RCFwill be variable and based on the utilisation period selected by the Company. The new facility replacesthe Company's existing $720 million RCF that was in place through 17 June 2029. One of thecovenants, relating to interest cover, was removed, reflecting the Group's further transition to a capital-light model. Other Facilities In addition, on 31 July 2026, the Company increased its guarantees facility by $75 million. Other Acquisitions Subsequent to 30 June 2026, the Company completed the acquisition of centres in France and Spainfor nominal cash consideration. Statement of Directors' responsibilities For the six months ended 30 June 2026 The Directors are responsible for preparing the half-yearly financial report in accordance with theDisclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority("the UK FCA"). In preparing the condensed set of financial statements included within the half-yearly financial report,the Directors are required to: • prepare and present the condensed set of consolidated financial statements in accordance with principles generally accepted in the United States of America ("US GAAP"); • ensure the condensed set of consolidated financial statements has adequate disclosures; • select and apply appropriate accounting policies; and • make accounting estimates that are reasonable in the circumstances. • assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors
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either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. The Directors are responsible for designing, implementing and maintaining such internal controls asthey determine is necessary to enable the preparation of the condensed set of financial statementsthat is free from material misstatement whether due to fraud or error. We confirm that to the best of our knowledge: 1. The condensed set of consolidated financial statements included within the half-yearly financialreport of International Workplace Group plc for the six months ended 30 June 2026 ("the interimfinancial information") which comprises the Condensed Consolidated Statements of Operations, theCondensed Consolidated Statements of Comprehensive Income/(Loss), the CondensedConsolidated Balance Sheets, the Condensed Consolidated Statements of Changes in Equity, theCondensed Consolidated Statements of Cash Flows and a summary of significant accountingpolicies and other explanatory notes, have been presented and prepared in accordance with USGAAP and the DTR of the UK FCA. 2. The interim financial information presented, as required by the DTR of the UK FCA, includes: ◦ an indication of important events that have occurred during the first 6 months of the financial year, and their impact on the condensed set of financial statements; ◦ a description of the principal risks and uncertainties for the remaining 6 months of the financial year; ◦ related parties' transactions that have taken place in the first 6 months of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period; and ◦ any changes in the related parties' transactions described in the last annual report that could have a material effect on the financial position or performance of the enterprise in the first 6 months of the current financial year. The Directors are responsible for the maintenance and integrity of the corporate and financialinformation included on the Company's website. Legislation in the UK governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions. On behalf of the board Christian Schmitz Charlie Steel Chief Executive Officer Chief Financial Officer 11 August 2026 This half yearly announcement contains certain forward-looking statements with respect to the operations of International Workplace Group plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are several factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast. Independent Review Report to International Workplace Group plc Conclusion We have been engaged by the Company to review the Company's condensed set of consolidatedfinancial statements in the half-yearly financial report for the six months ended 30 June 2026 whichcomprises the condensed consolidated statements of operations, the condensed consolidatedstatements of comprehensive income/(loss), the condensed consolidated balance sheets, thecondensed consolidated statements of changes in equity, the condensed consolidated statements ofcash flows and a summary of significant accounting policies and other explanatory notes. Based on our review, nothing has come to our attention that causes us to believe that the condensedset of consolidated financial statements in the half-yearly financial report for the six months ended 30June 2026 is not prepared, in all material respects in accordance with U.S. Generally AcceptedAccounting Principles(US GAAP) and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's FinancialConduct Authority ("the UK FCA").
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Basis for conclusion We conducted our review in accordance with International Standard on Review Engagements (UK)2410 Review of Interim Financial Information Performed by the Independent Auditor of the Company("ISRE (UK) 2410") issued for use in the UK. A review of interim financial information consists ofmaking enquiries, primarily of persons responsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with InternationalStandards on Auditing (UK) and consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit. Accordingly, we do notexpress an audit opinion. Conclusions relating to going concern Based on our review procedures, which are less extensive than those performed in an audit asdescribed in the Basis for conclusion section of this report, nothing has come to our attention thatcauses us to believe that the directors have inappropriately adopted the going concern basis ofaccounting, or that the directors have identified material uncertainties relating to going concern thathave not been appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410.However, future events or conditions may cause the Company to cease to continue as a goingconcern, and the above conclusions are not a guarantee that the Company will continue in operation. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. Thedirectors are responsible for preparing the half-yearly financial report in accordance with the DTR ofthe UK FCA. The directors are responsible for preparing the condensed set of consolidated financial statementsincluded in the half-yearly financial report in accordance with US GAAP. The annual financialstatements of the Company for the year ended 31 December 2025 are prepared in accordance withUS GAAP. In preparing the condensed set of consolidated financial statements, the directors are responsible forassessing the Company's ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the directors eitherintend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Our responsibility Our responsibility is to express to the Company a conclusion on the condensed set of consolidatedfinancial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that areless extensive than audit procedures, as described in the Basis for conclusion section of this report. The purpose of our review work and to whom we owe our responsibilities This report is made solely to the Company in accordance with the terms of our engagement to assistthe Company in meeting the requirements of the DTR of the UK FCA. Our review has beenundertaken so that we might state to the Company those matters we are required to state to it in thisreport and for no other purpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company for our review work, for this report, or for theconclusions we have reached. KPMG 10 August 2026 Chartered Accountants 1 Stokes Place St. Stephen's Green Dublin 2 D02 DE03 Ireland Reconciliation for alternative performance measures The Company reports certain alternative performance measures (APMs) that are not required underUS GAAP which represents the generally accepted accounting principles (GAAP) under which theCompany reports. The Company believes that the presentation of these APMs provides usefulsupplemental information, when viewed in conjunction with our US GAAP financial information asfollows: • To evaluate the historical and planned underlying results of our operations; • To set Director and management remuneration; and • To discuss and explain the Company's performance with the investment analyst community. None of the APMs should be considered as an alternative to financial measures derived in accordancewith GAAP. The APMs can have limitations as analytical tools and should not be considered inisolation or as a substitute for an analysis of our results as reported under GAAP. These performancemeasures may not be calculated uniformly by all companies and therefore may not be directlycomparable with similarly titled measures and disclosures of other companies. Adjusted EBITDA:
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Six months ended $m 30 June 2026 30 June 2025 Operating income Condensed ConsolidatedStatements ofOperations 38 68 Add back: 184 182 Depreciation and amortisation beforelandlord contributions on leasedproperties 156 140 Depreciation of landlord contributions(cost reimbursements) on leasedproperties 28 42 Adjusting items: 43 12 Impairment of long-lived assets Condensed ConsolidatedStatements of Operations 28 17 Loss (gain) on disposal of long-livedassets, closures, restructurings andacquisition related items 11 (5) Other items[3] Condensed Consolidatedstatements of cash flows 4 N/A CFO review CFO review 265 262 Net Debt: As of $m Reference 30 June 2026 31 December2025 Cash and cash equivalents Condensed Consolidatedbalance sheets (372) (302) Short-term debt, net Condensed Consolidatedbalance sheets 14 17 Long-term debt, net, unhedged Condensed Consolidatedbalance sheets 1,273 1,070 Cash flow hedges Note 12 (35) (70) Net Debt CFO review 880 715 The cash flow hedges within the net debt calculation above are exclusively to hedge the FX exposureon the Eurobonds and are considered for the purposes of calculating financial covenants and creditratios considered by Fitch. The business does not have cash flow hedges relating to its operatingactivities. Adjusted gross profit: $m Company-owned Managed &Franchised Total 30 June 2026 Gross profit 451 90 541 Landlord contributions onleases included in depreciationand amortisation 28 - 28 Adjusted gross profit 479 90 569 30 June 2025 Gross profit 420 61 481 Landlord contributions onleases included in depreciationand amortisation 42 - 42 Adjusted gross profit 462 61 523 Adjusted EPS[4]: As of $m Reference 30 June 2026 30 June 2025 Net income 2 11 Impairment of long-livedassets Condensed Consolidatedstatements of operations 28 17 Loss (gain) on disposal oflong-lived assets,closures, restructuringsand acquisition relateditems Condensed Consolidatedstatements of operations 11 (5) Other items[5] Condensed Consolidatedstatements of cash flows 4 N/A Adjusted net income 45 23 Net income per commonshare Basic (¢) Condensed Consolidatedstatements of operations 0.2 1.1
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Diluted (¢) Condensed Consolidatedstatements of operations 0.2 1.1 Adjusted net income percommon share Basic (¢) CFO review 4.6 2.3 Diluted (¢) CFO review 4.6 2.2 Capital Expenditure: 30 June 2026 Net capitalexpenditure Landlordcontributions Gross capitalexpenditure Analysed as: Reference Maintenance capital expenditure CFO review 42 (4) 46 Growth capital expenditure CFO review 33 (19) 52 Total CondensedConsolidatedstatements of cashflows 75 (23) 98 30 June 2025 Net capitalexpenditure Landlordcontributions Gross capitalexpenditure Analysed as: Reference Maintenance capital expenditure CFO review 35 (5) 40 Growth capital expenditure CFO review 20 (18) 38 Total CondensedConsolidatedstatements of cashflows 55 (23) 78 Glossary: Adjusted EPS EPS excluding adjusting items. Adjusted EBITDA EBITDA excluding adjusting items and depreciation on landlord contributions on leased properties -cost re-imbursements. Adjusted gross profit Gross profit excluding adjusting items. Adjusted Net Income Net income excluding adjusting items. Adjusting items Adjusting items reflects the pre-tax impact of adjustments, both incomes and costs not indicative of theunderlying performance, which are considered to be significant in nature and/or size. Ancillary services Additional services provided alongside workspace solutions that include virtual office services, dayoffices, short-term meeting rooms and other on demand support services. Capital-light Business centres in Managed & Franchised operated under arrangements where the Company doesnot recognise lease liabilities and is not responsible for capital expenditures. Company-owned ("CO") Locations the Company operates directly and recognises full revenue and costs of the centre. EBIT Earnings before interest and tax. EBITDA Earnings before interest, tax, depreciation and amortisation. EPS Earnings per share Expansions
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A general term which includes new business centres established by IWG and acquired centres in theyear. Fee income Total fee income relating to the Managed & Franchised business. Franchise and JV Fees Fees earned from partners who operate IWG branded business centres. Growth capital expenditure Capital expenditure in respect of centres which opened during the current or prior financial period andtechnology spend supporting operational growth. Growth-related landlord contributions (leased properties) Landlord contributions received in respect of leased properties which opened during the current or prior financial period. Maintenance capital expenditure (leased properties) Capital expenditure in respect of centres owned for a full 12-month period prior to the start of thefinancial year and operated throughout the current financial year. Maintenance-related landlord contributions (leased properties) Landlord contributions received in respect of properties leased for a full 12-month period prior to thestart of the financial year and operated throughout the current financial year, which therefore have afull-year comparative. Managed & Franchised ("M&F") Locations the Company receives a franchise or management fee for providing services to centres.Managed centres are operated by the Company; franchise locations are operated by the franchiseholder. The Company only recognises its fee as revenue. The Company is not responsible for capitalexpenditures in the centres and does not recognise the related centre operating costs. Net debt Operations cash and cash equivalents, adjusted for both short and long-term debt, and the portion ofderivatives that hedge the principal component of debt. Net debt excludes lease liabilities andrestricted cash. The Group has no cash flow hedges relating to its operations. Occupancy Occupied square metres divided by total inventory square metres expressed as a percentage wherecontracts are in place with a minimum term of one month. Other fee income Other fees received including those in connection with the set up and opening of centres. Rooms The yearly average total business centre square metres divided by a standard room of seven squaremetres. Recurring fee revenue Ongoing monthly revenue earned from Managed & Franchised customers for the continued use ofworkspaces, centres and related services. Recurring management fees Ongoing monthly fees on System-wide revenue earned from Managed partnerships for the continueduse of workspaces, centres and related services. RevPAR Monthly average IWG Network revenue, divided by the average available number of rooms, excludingrooms opened and closed in the period. Share buyback programme Refers to the programme that permits the Company to repurchase its own shares in the open market. System-wide revenue Refers to the total revenue generated across IWG Network, including revenue from franchise,managed centre and joint-venture partners, but excluding related fee income. Tenant Incentive ('TI') amortisation The amortisation of tenant improvements (often called leasehold improvements allowances or landlordcontributions) received from landlords on properties that the company leases. TSR Total shareholder return.
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Corporate directory Secretary and Registered Office Tim Regan, Company SecretaryInternational Workplace Group plc Registered Office: Registered Head Office:22 Grenville Street Baarerstrasse 52St Helier CH-6300JE4 8PX ZugJersey Switzerland Registered number Jersey122154 Registrars MUFG Corporate Markets (Jersey) LimitedIFC 5St Helier Jersey JE1 1ST Auditor KPMG1 Stokes PlaceSt. Stephen's GreenDublin 2DO2 DE03Ireland Legal advisors to the Company as toEnglish law Slaughter and MayOne Bunhill RowLondon EC1Y 8YY Legal advisors to the Company as toJersey law Mourant Ozannes22 Grenville StreetSt HelierJersey JE4 8PX Legal advisors to the Company as to Swisslaw Bär & Karrer LtdBrandschenkestrasse 90CH-8027ZurichSwitzerland Corporate Brokers Barclays Bank plc5 The North ColonnadeCanary WharfLondon E14 4BB Investec Bank plc2 Gresham StreetLondon EC2V 7QP Financial PR advisors Brunswick Group LLP16 Lincoln's Inn FieldsLondon WC2A 3ED [1] As of 30 June 2026, and 31 December 2025, the following amounts of restricted cash were included in Other current assets: $2 million and $2 million. [2] Includes $66 million and $51 million, respectively of related party receivables as of 30 June 2026 and 31 December 2025. See Note 16, Related Party Transactions, for further information. [3] For the six months ended 30 June 2025, total other items were $4 million. [4] Adjusted EPS was not separately disclosed in the Company's H1 2025 Interim Report and has been presented for comparative purposes only [5] For the six months ended 30 June 2025, total other items were $4 million. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END