RNS Number : 8019V
International Workplace Group PLC
19 August 2025
19 August 2025
International Workplace Group PLC
H1 RESULTS ANNOUNCEMENT
International Workplace Group plc, the world's largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ, Signature, issues its results for the six months ended 30 June 2025.
DELIVERING GROWTH AND OPERATIONAL CASHFLOWS SUPPORT INCREASED RETURNS TO SHAREHOLDERS
Delivering the Group's growth, margin and cashflow strategy
• Highest-ever system-wide revenue of $2.2bn, 2% year-on-year growth vs $2.1bn at H1 2024
◦ 2.6x growth in recurring management fee revenue year-on-year
◦ 116bps increase in underlying Company-owned adjusted gross margin
◦ 6% underlying revenue growth in Digital & Professional Services and well established for delivery in 2026
◦ Core overheads flat, demonstrating operational leverage as we continue to invest in growth
• 6% Group Adjusted EBITDA growth to $262m (H1 2024: $247m)
• Strong balance sheet with no refinancing needs until 2029 and leverage remaining at 1.5x net debt / EBITDA
• $59m of capital returned to shareholders since March comprising dividends and buybacks, 3.5x more capital returned in 4 months vs the aggregate of the last 5 years
• Cashflow for FY 2025 expected to be up 40% to at least $140m
◦ Increase in the buyback programme for FY25 announced today to at least $130m
◦ Continuing our progressive dividend policy with an interim dividend of 0.45c per share
Summary financials and segment overview
$m
H1 2025
H1 2024
System-wide revenue
2,162
2,123
Group revenue
1,850
1,871
Adjusted EBITDA1
262
247
Operating profit
68
68
Earnings per share (¢)
1.1
0.9
Cashflow before corporate activities
48
36
Net debt
754
7292
1. EBITDA excluding adjusting items and depreciation of landlord contributions on leases 2. 31 December 2024
Segmental Summary
$m
System Revenue
Segment Revenue
Adjusted gross profit
Maintenance Capex (net)
Growth Capex (net)
Managed & Franchised
361
50
50
n/a
n/a
Company-owned
1,593
1,593
375
35
9
Digital & Professional Services
207
207
98
-
11
Total in H1 2025
2,162
1,850
523
35
20
Total in H1 2024
2,123
1,871
503
32
29
Managed & Franchised: increased system-wide revenue and fee income, driven by significant growth across our open network and signings pipeline
• 26% system-revenue growth year-over-year to $361m (H1 2024: $287m)
• 43% growth in total fee income to $50m (H1: 2024 $35m)
◦ 163% growth of recurring management fees to $19m (H1 2024: $7m)
• RevPAR in Managed Partnerships evolving as expected across cohorts
• Continued investment in the partnership sales team headcount of $15m has accelerated the development of our pipeline with 413 new locations signed in H1 2025 (H1 2024: 387)
• We continue to convert our pipeline into openings at pace with a further 37,400 gross rooms added to the network in H1 2025
• At the end of H1 2025, 220k rooms were open with a further 186k1 rooms that were signed not yet open. Once these rooms are all open and mature, they are expected to produce system-wide revenue of $1.4bn per year
$m
H1 2025
H1 2024
Growth
System revenue
361
287
26%
RevPAR ($)
317
384
(17)%
RevPAR - Managed
178
217
(18)%
RevPAR - Managed - excluding 2024 openings
285
n/a
n/a
RevPAR - Franchised & JVs
502
488
3%
Rooms open
220,000
154,000
43%
Centres open
1,365
901
51%
Rooms opened in the period
37,400
37,000
1%
Centres opened in the period
262
247
6%
Rooms in pipeline3
186,000
151,000
23%
New centre deals signed
413
387
7%
Fee income
50
35
43%
Adjusted gross profit
50
35
43%
3. Signed rooms that have not been opened after 2 years have now been removed from the pipeline - this equated to 19,000 rooms removed at the end of H1 2025
Company-owned: continued margin expansion with focus on occupancy to translate into future revenue growth
• 1% growth in open-centre revenue
• Adjusted gross margin expansion of 210bps to 24% (H1 2024: 21%). Margins expanded due to open centre revenue growth combined with a reduction in centre costs, of which, 116bps of this expansion is recurring
• RevPAR for H1 2025 of $346 reduced 3% (H1 2024: $358) but higher occupancy driving more revenue capture opportunity through higher services revenue
• 240bps increase in occupancy over the past 12 months
• We continue to selectively add locations to our Company-owned network
◦ Further reduction in both centre-related net growth capex to $7m (H1 2024: $22m) and controlled net maintenance capex of $35m (H1 2024: $32m)
$m
H1 2025
H1 2024
Change
Revenue
1,593
1,613
(1)%
Open Centre Revenue
1,576
1,560
1%
RevPAR ($)
346
358
(3)%
Rooms open
777,400
771,000
1%
Centres open
2,895
2,850
2%
Centres opened in the period
76
59
29%
Adjusted gross profit
375
346
8%
Adjusted gross profit margin
24%
21%
210bps
Digital & Professional Services: division positioned to deliver
• Underlying revenue growth of 6% year-over-year
• New management structure creating better alignment with wider enterprise strategy to better serve customer needs
• No changes to expectations
$m
H1 2025
H1 2024
Change
Revenue
207
223
(7)%
Underlying revenue
207
197
6%
Adjusted gross profit
98
122
(20)%
Underlying adjusted gross profit
98
108
(10)%
Mark Dixon, Chief Executive of International Workplace Group plc, said:
"We set out a clear strategy at our Investor Day in December 2023 for capital light growth to deliver cashflow, and business simplification. We have been delivering against this strategy and will continue to do so.
In the last six months, more locations were opened than in the entire first decade of our existence. We now have around 1 million rooms in 121 countries with a significant pipeline. This is expected to drive our future growth."
Outlook and guidance
We reiterate our guidance as outlined with the release of our US GAAP financials on 30 June 2025. For the full 2025 financial year we expect:
· Centre growth and signings to accelerate
· Adjusted EBITDA of $525m-$565m, but likely to be towards the lower end of the range due to further investment in Managed and Franchise segment growth
· Net debt to be roughly unchanged at the end of 2025 vs 31 December 2024
· Reiterate commitment to maintaining a BBB credit rating and de-levering towards 1.0x net debt / Adjusted EBITDA
· Share buyback of at least $130m;
· Cashflow to shareholders of at least $140m, at least a 40% increase to the guidance given in March; and
· On track to deliver medium-term at least $1bn EBITDA target.
Financial calendar
19 September 2025
Interim dividend record date
17 October 2025
Interim dividend payment date
4 November 2025
Q3 2025 trading update
4 December 2025
Investor Day in New York City
3 March 2026
2025 Full Year results
5 May 2026
Q1 2026 trading update
11 August 2026
2026 First Half results
Results presentation
Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a virtual presentation of the results today for analysts and investors at 9.00am UK time
The presentation will be available via live webcast and will be available to view at the following link IWG Analyst Presentation
Further information
International Workplace Group plc Mark Dixon, 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
In the first half of 2025, a very significant milestone was achieved with more new locations signed and opened than in the entire first decade of our operations. Our network now comprises more than one million rooms in 121 countries and our substantial pipeline will drive accelerated growth in the months and years ahead.
Our strategy
We set out a clear strategy at our Investor Day in December 2023 to grow, in a capital-light manner, with the aim of significant cashflow growth, all whilst making the business easier to understand. I am delighted that we have been delivering successfully against this strategy and will continue to do so.
We are continuing to make ongoing investments into our world class platform as well as our marketing operations to deliver on the rapid growth of network coverage in partnership with the property industry and investors using capital-light expansion methods such as management agreements, partnering deals and franchising.
The shift towards hybrid and more localised working is propelling our business forward with the fastest growth that we have ever seen in history. In the first half of 2025, we added a record number of locations globally, signing 496 centres, with all except two under the partnership model - and achieved our highest ever revenues.
We are executing our capital-light growth strategy benefiting from the growing pipeline of property investors seeking to maximise their returns by partnering with IWG.
Focusing on growth through the capital-light business continues to drive growth capex requirements lower, generating more free cash flow for shareholders.
We are increasingly seeing partners sign multiple locations with IWG as they grasp the scale of the opportunity in front of them. My greatest thanks go to all our valued property owners and investors who have chosen to partner with us and as a business we are resolutely committed to the long-term success of these partnerships.
The market in which we operate
Our growth is being fuelled by the widespread uptake of platform and hybrid working, which has revolutionised how and where people work, bringing significant productivity benefits and lower costs to companies while transforming the working lives of their teams.
Over the past few years, these more flexible ways of working have become the default model for a significant proportion of white-collar workers; with companies empowering their employees to work across multiple locations, splitting their time between local workspaces, a central office and home.
This is not simply a change in how people work, rather a rebalancing of where economic value is created. The days of needing to be tethered to a central HQ are behind us. Technology has changed everything, effectively removing the need for daily long and expensive commutes.
This long-term shift towards the hybrid model is one of the mega-trends of our time and represents a substantial financial opportunity for IWG. With 1.2 billion white-collar workers globally, our industry has a total addressable audience valued at more than $2 trillion and platform working is set to become the norm for many of these employees.
It is particularly rewarding to see over the past few years how academics, leading industry commentators and business leaders are now recognising the incredible benefits of this way of working for both companies and their people.
The research of Professor Nicholas Bloom - a senior fellow at the Stanford Institute for Economic Policy Research and acknowledged as the world's leading authority on the hybrid model - has shown that about 40% of white-collar employees now work in this model and will continue to do so in the future.
We had the opportunity to partner with Arup earlier this year to further explore the productivity gains that can be expected from more localised working for businesses of all sizes, as well as the economic advantages for companies and local communities, building on the groundbreaking work of Professor Bloom. This new research confirms what we've long seen coming: working from local offices and workspaces closer to where people live, doesn't just improve the quality of life for employees, it also delivers major productivity benefits for businesses, cities, and entire economies.
The results of this new study are powerful. By 2030, more flexible and localised ways of working could boost productivity by 11% in the US and 12% in the UK, contributing a staggering $219 billion and £24 billion to their respective economies each year. By 2045, that impact could rise to $566 billion and £46 billion annually - the equivalent of adding cities the size of Austin, Texas to the US economy or Leeds to the UK economy.
The Rise of Local Working
Today, the remarkable advances in cloud technology and video conferencing software - both vital to enabling effective hybrid working - mean workers no longer need to travel long distances on a daily basis. As a result, we are seeing a fundamental shift in the geography of work with the centre of gravity moving towards local communities. Tech changes will continue to advance in years to come and will radically underline and advance the flexibility of location.
The rising demand for more localised working has led to the majority of our new International Workplace Group centres opening in the heart of local communities, suburbs and rural areas, enabling many people around the world to say farewell to long daily commutes.
In particular, small towns have seen a dramatic increase in new locations with recent signings in the U.S including Franklin, TX, Berwyn, PA, and Bloomfield Hills, MI, all with populations below 5,000.
That is not to say that businesses are abandoning city centres: far from it. Increasingly, we are helping companies shake off the expense of the long-term city-centre lease and replace it with a flexible, cost-effective agreement on a smaller space in one of our city-based centres.
Our H1 Financial Performance
With such strong momentum globally behind the shift to platform and hybrid working, confirmed by our financial results for the first half, our record system revenue, EBITDA, and network growth leading to an extended share buyback.
Our financial performance reinforces that we are successfully executing our strategic goals and leave us well-positioned as move into H2 and beyond into 2026.
Our Managed and Franchise division achieved a 2.6x year-on-year growth in recurring management fee revenue driven by rapid expansion across our open network and signings pipeline. Meanwhile, the Company-owned portfolio delivered a 2% increase in adjusted gross margin and Digital & Professional Services grew by 6%. Core overheads remained flat, demonstrating significant operational leverage even as we continue to invest in growth.
I would like to take this opportunity to thank our incredible team members, whose dedication has driven the rapid expansion of our global network and delivered this strong set of results. I would also like to acknowledge the hard work of our Finance team reflected in the successful conversion of our reporting framework to US GAAP and ongoing finance efficiency initiatives.
Looking ahead
The future for IWG and all our stakeholders remains bright. We continue to grow our customer base, which is up 6% year-on-year, as well as our global network and our best-in-class portfolio of locations and brands, while delivering on our capital light expansion strategy.
The first half of this year set a record for both revenue and network expansion and provides the foundations for continued growth in the second half of the year and beyond. With the aforementioned 1.2 billion white-collar workers globally and a potential audience valued at more than $2 trillion, there is substantial room for growth and as a company, we are absolutely committed to capturing more of this market over the coming months and years ahead.
Mark Dixon
Founder and CEO
19 August 2025
Chief Financial Officer's Review
The first half of 2025 has been another strong period for the Group. Network growth of 338 new centre openings and good performance across all three segments has delivered a record six months of system-wide revenue of $2.2bn, Adjusted EBITDA of $262m, and underlying cashflow before shareholder returns of $48m. We delivered capital returns to investors of $59m ($50m though share buybacks and $9m dividends) in just over 3 months, 3.5x more than in aggregate over the last half-decade. Simultaneously net debt remained stable and net capex spend reduced. We have continued to deliver positive earnings for a second consecutive year.
The Finance department has:
• Converted our reporting framework to US GAAP
• Undertaken a Group-wide ERP implementation and continued to invest in AI and automation
• Strengthened our balance sheet further with no refinancing needs until 2029 through the issuance of a €300m Investment Grade bond in May, fully hedged into USD reducing FX volatility
The result of this is that we have a solid foundation from which we can continue to capitalise on our scale as the business grows, while delivering further on our existing capital allocation policy with the dividend and continued share buyback programme.
Financial performance
The Group reports results in accordance with US GAAP.
Group income statement
$m
H1 2025
H1 2024
System-wide revenue
2,162
2,123
Revenue
1,850
1,871
Cost of Sales
(1,369)
(1,400)
Gross profit
481
471
Gross profit margin
26%
25%
SG&A
(250)
(248)
Allowance for (recovery of) credit losses
(11)
(8)
Depreciation & Amortisation
(140)
(139)
Depreciation & Amortisation before landlord contributions
(182)
(171)
Depreciation of landlord contributions on leases
42
32
Impairments, disposals and closures
(12)
(8)
Operating Income
68
68
Interest Expense
(40)
(25)
Other finance costs
(16)
(11)
Profit before tax
12
32
Taxation and equity method investments
(4)
(23)
Profit for the period
8
9
Net loss attributable to non-controlling interests
3
-
Net income attributable to the Company
11
9
Basic EPS (¢)
From continuing operations
1.1
0.9
Attributable to shareholders
1.1
0.9
Adjusted EPS (¢)
From continuing operations
1.1
0.9
Attributable to shareholders
1.1
0.9
Segmental reporting
The Company is organised into three operating segments based on the types of services provided, namely; the IWG Network (Company-owned and Managed & Franchised) and Digital & Professional Services.
Revenue
Group system-wide revenue increased by 2% to $2,162m. Group revenue decreased by 1% to $1,850m as a result of closures and the impact of the loss of the legacy contract in DPS.
Our Managed & Franchised business delivered 26% system-revenue growth year-over-year to $361m (H1 2024: $287m) and $305m of segment revenue. Fee income increased by 43% to $50m (H1 2024: $35m), of which recurring management fees grew 2.6x to $19m (H1 2024: $7m). The growth in this segment is driven by the unprecedented number of centre openings, 338 in the last six months, where signings continue to convert into openings at pace.
Company-owned remained stable, delivering segment revenue of $1,593m, with open centres contributing growth of c.1%.
Digital & Professional Services reported revenue regression of 7% to $207m, however delivered underlying revenue growth of 6% when excluding the impacts of the loss of the legacy contract.
System Revenue
Segment Revenue
$m
H1 2025
H1 2024
% change
H1 2025
H1 2024
% change
Managed & Franchised
361
287
26%
50
35
43%
Company-owned
1,593
1,613
(1)%
1,593
1,613
(1)%
DPS
207
223
(7)%
207
223
(7)%
Group
2,162
2,123
2%
1,850
1,871
(1)%
Revenue per Available Room (RevPAR)
RevPAR is a monthly average KPI, defined as the system-wide revenue of the IWG Network (excluding Digital & Professional Services and excluding centres opened and closed during the year), divided by the number of available rooms, which is defined as 7 square metres across all usable space. RevPAR is a well understood measure used across many industries and is particularly relevant to IWG as it incorporates all revenue received across IWG's expansive product portfolio.
Given the scale of growth and room additions that the Company is adding to the Network, RevPAR excluding centres opened in 2024 is presented below to show RevPAR progression excluding the impact of centres not yet mature. It is expected that the higher-growth segments will show a falling year-over-year RevPAR because new locations that have opened but are not yet mature are contained within the calculation.
Managed RevPAR is $178 (H1 2024: $217) and excluding 2024 openings is $285, being driven by new centre revenue performing in line with our plans. RevPAR in our franchised locations was $502 (H1 2024: $488) which is higher than in our Managed Partnerships locations due to: (a) franchise locations being predominantly in high RevPAR countries, in particular Japan and Switzerland; (b) the higher maturity of franchise locations which have been operating for many years. As we have previously disclosed, RevPAR on these additional Managed Partnerships rooms is targeted to be $250 at maturity.
RevPAR in Company-owned for H1 2025 was $346, down by 3% (H1 2024: $358). This is due to price reductions to drive long-term occupancy, the latter of which is up 240bps over last 12 months. Higher occupancy also drives more revenue capture opportunity through ancillary services.
System RevPAR ($, monthly average)
H1 2025
H1 2025 ex 2024 openings
H1 2024
% change
Managed & Franchised
317
435
384
(17)%
Managed
178
285
217
(18)%
Franchised and JVs
502
519
488
3%
Company-owned
346
357
358
(3)%
DPS
n/a
n/a
n/a
n/a
IWG Network
341
367
362
(6)%
Adjusting items
The Group identified net adjusting items on gross profit of $42m (H1 2024: $32m) and operating profit of $54m (H1 2024: $40m). These adjusting items refer to depreciation of landlord contributions of $42m (H1 2024: $32m), impairment of long-lived assets and goodwill of $17m (H1 2024: $34m), (gain) loss on disposal of long-lived assets and other closure related (credits) costs of $(5)m (H1 2024: $(26)m).
Adjusting items impact ($m)
H1 2025
H1 2024
Depreciation of landlord contributions on leases
42
32
Adjusting items impact on Gross Profit
42
32
Impairment of long-lived assets and goodwill
17
34
(Gain) loss on disposal of long-lived assets and other closure related (credits) costs
(5)
(26)
Adjusting items impact on Operating Profit
54
40
Adjusting items impact on EBITDA
54
40
Adjusted gross profit
Gross profit increased from $471m in H1 2024 to $481m in H1 2025 and adjusted gross profit increased from $503m in H1 2024 to $523m in H1 2025.
Adjusted gross margin expansion of 210ps to 24% on Company-owned (H1 2024: 21%). Margins expanded due to open centre revenue growth combined with a reduction in centre costs, of which, 116bps of this expansion is recurring.
Given the operating model, 100% of Managed & Franchised revenue drops through to gross profit, therefore reporting adjusted gross profit of $50m (H1 2024: $35m).
Digital & Professional Services adjusted gross profit reduced to $98m. The reduction is due to both the loss of the legacy contract and an increase in cost of sales due to the recognition of a non-recurring, non-cash lease expense.
Adjusted gross profit ($m)
H1 2025
Adjusting items1
H1 2025 - Adjusted
H1 2024
Adjusting items1
H1 2024 - Adjusted
Managed & Franchised
50
50
35
35
Company-owned
345
30
375
314
32
346
DPS
86
12
98
122
122
Adjusted gross profit
481
42
523
471
32
503
1. Adjusting items refer to the impact of the depreciation of landlord contributions on leases included in Depreciation and Amortisation
SG&A
Group SG&A remained flat in H1 2025 at $250m (H1 2024: $248m). We continue to manage costs effectively, realising the benefits of the multiple completed and ongoing finance transformation projects, and had the benefit of non-recurring cost items which offset the investment in efficiencies and growth, specifically:
• Additional investment in the Partnership sales team of $4m in this half alone to ensure we maintain our market leading position. We signed 496 new deals in H1 2025 vs 465 in 2024, and whilst our partnership sales team is an ongoing cost, we are not expecting it to increase linearly with signings, therefore margins should continue to grow.
• Additional marketing to support the brand and centre growth.
• Project costs recognised on one-off investments into the scalability of our sales and operating platform as we continue to optimise and automate processes.
• Operating cost within the Finance transformation programme, such as consultancy and additional audit costs relating to the transition to US GAAP reporting
Operating Profit
Operating Profit was flat at $68m, with the increase in gross profit being offset by increases in allowance for (recovery of) credit losses and impairments, disposals and closures of $(3)m and $(4)m respectively year-over-year.
Net finance expense
The Group reported a net finance expense for the first half of the year of $56m (H1 2024: $36m). The increase of which is predominantly due to higher interest rates following refinancing transactions completed in 2024.
The net finance expense in 2025 mainly includes cash interest of $44m related to borrowing facilities (H1 2024: $37m). All the Group's Eurobonds are now hedged into USD using cross-currency interest rate swaps. Under the swap agreements, interest is paid semi-annually. Other finance costs include commitment fees on facilities such as the $720m revolving credit facility.
Finance expense $m
H1 2025
H1 2024
Interest expense
(40)
(25)
Foreign currency loss
(5)
(7)
Gain on extinguishment of debt
1
10
Other finance costs
(12)
(14)
Net finance expense
(56)
(36)
1. Excluding financing fees on the issuance of the Euro bond which are capitalised
Taxation
The estimated annual effective tax rate in 2025 is 50% (2024: 66%). The Group has performed an assessment of its potential exposure to Pillar Two global minimum income taxes and does not expect any material top-up taxes to arise in any jurisdiction in which it operates. At half year the Group has performed a high-level analysis of the Pillar II rules. The majority of the Group's entities benefit from transitional safe harbour rules which take them out of scope of the full rules, and the remaining countries are not expected to give rise to any material top-up tax in 2025. This position is unchanged from year end 2024 where a more detailed analysis was performed.
Given the Group's global footprint across over 120 countries, it is not possible to take advantage of tax grouping on a global basis. As a result, the aggregation of tax paid in individual countries can lead to a high effective tax rate on group profits in certain periods. Although it is difficult to predict the impact of developments in global taxation, as profitability of the Group increases it is expected that the effective tax rate will fall and the marginal effective tax rate on these profits is currently anticipated to be c.20%.
Earnings per share
Earnings per share attributable to ordinary shareholders in H1 2025 was a profit of 1.1c (H1 2024: profit of 0.9c).
The weighted average number of shares in issue during the period was 1,012,730, 251 (H1 2024: 1,007,598,732). At 30 June 2025 the Group held 20,468,890 treasury shares (31 December 2024: 45,241,020). During the six months ended 30 June 2025 and 2024, share awards of 10,878,879 and 10,605,446, respectively, had a dilutive effect with a negligible impact on the basic earnings per share.
Adjusted EBITDA
The Group's Adjusted EBITDA increased to $262m (H1 2024: $247m).
EBITDA ($m) Bridge
H1 2025
Adjusting items1
H1 2025 - Adjusted
H1 2024
Adjusting items1
H1 2024 - Adjusted
Managed & Franchised
50
50
35
35
Company-owned
345
30
375
314
32
346
DPS
86
12
98
122
-
122
Adjusted gross profit
481
42
523
471
32
503
SG&A
(250)
(250)
(248)
-
(248)
Allowance for (recovery of) credit losses
(11)
(11)
(8)
-
(8)
Depreciation & Amortisation
(140)
(140)
(139)
(139)
Impairments, disposals and closures
(12)
12
-
(8)
8
-
Operating profit/(loss)
68
54
122
68
40
108
Depreciation on property plant and equipment
112
112
112
112
Amortisation of intangible assets
28
28
27
-
27
Adjusted EBITDA
208
54
262
207
40
247
1 Adjusting items as per table above.
Network growth
Unprecedented network expansion, increasing our footprint by 14% to 4,260 centres (H1 2024: 3,751). We opened 338 new centres (H1 2024: 306 centres) and rationalised (67) centres (H1 2024: (69) centres). Furthermore, 496 new centre deals were signed in H1 2025. Out of the 496 new deals signed c.100% of the deals are capital-light which underpins our success of growing the network through capital-light partnerships.
Of the 338 centres opened in H1 2025, 327 centres were capital-light openings which comprised of managed partnership centres, variable rent centres, franchised centres and joint-venture centres. Only 11 centre openings were on a fully conventional basis.
Our estate of 4,260 centres as per the end of June 2025 is split into 32% or 1,365 in Managed & Franchised, which increased by 51% year-on-year, and 2,895 centres in Company-owned (of which 905 are based on variable rents).. Strong growth in Managed partnership openings is expected to continue in the remainder of 2025.
Key KPIs
H1 2025
H1 2024
YoY change
YoY change %
Number of centres open
4,260
3,751
509
14%
Centre Openings
338
306
32
10%
Of which capital-light1
327
291
36
12%
In %
97%
95%
Total new centre deals signed
496
465
31
7%
Of which capital-light1
494
460
34
7%
In %
100%
99%
1. Includes locations signed/opened in Managed & Franchised and Variable rent areas
System locations movement by type
Dec-24
Centre openings
Centre rationalisations
Changed
H1 2025
Conventional
2,004
11
(27)
2
1,990
Variable rent (capital light)
869
65
(25)
(4)
905
Company-owned
2,873
76
(52)
(2)
2,895
Managed and Franchised (capital light)
1,116
262
(15)
2
1,365
Total
3,989
338
(67)
0
4,260
System rooms movement by type ('000)
Dec-24
Centre openings
Centre rationalisations
Changed
H1 2025
Conventional
543
4
(6)
(0)
540
Variable rent (capital light)
233
13
(5)
(3)
237
Company-owned
775
17
(11)
(4)
777
Managed and Franchised (capital light)
185
37
(3)
1
220
Total
961
54
(14)
(3)
997
Cash flow
$m
H1 2025
H1 2024
Adjusted EBITDA
262
247
Working capital (excl. depreciation of landlord contributions on leases)
(30)
(43)
Working capital related to the depreciation of landlord contributions on leases
(66)
(61)
Maintenance capital expenditure (net)
(35)
(32)
Other items
(5)
10
Cash inflow/(outflow) from business activities1
126
121
Tax paid
(14)
(16)
Finance costs paid on bank & other facilities
(44)
(37)
Cash inflow/(outflow) before growth capex and corporate activities
68
68
Gross growth capital expenditure
(38)
(54)
Growth-related landlord contributions
18
25
Net growth capital expenditure
(20)
(29)
Purchase of subsidiary undertakings (net of cash)
-
(3)
Cash inflow/(outflow) before corporate activities
48
36
Cash impact expected to be recovered in H2
(15)
-
Proceeds from issue of loans, net of related transaction costs
15
819
Proceeds from issue of Eurobond, net of related transaction costs
337
613
Other finance transaction costs
(5)
(11)
Repayment of loans
(5)
(1,276)
Repayment of Convertible bond
(22)
(137)
Payment of ordinary dividend
(9)
(13)
Purchase of own shares
(50)
-
Other financing activities, net
3
(1)
Net cash inflow/(outflow) for the year
297
30
Opening net cash
148
141
FX movements
5
(11)
Closing cash
450
160
The total proceeds from landlord contributions relating to the reimbursement of costs and lease incentives of $23m (2024: $26m) are allocated between maintenance landlord contributions of $5m (2024: $1m) and growth landlord contributions of $18m (2023: $25m)
1. Cash flow before growth capex, tax, finance cost on bank & other facilities, financing activities and dividends
We continued to grow our business and revenues whilst managing our cost base, delivering a 33% increase in cash inflow before corporate activities in H1 2025 of $48m (H1 2024: $36m). Working capital relating the depreciation of partner contributions refers to historic cash contributions made by landlords for growth capex in the Company-owned segment (shown as growth-related partner contributions further down the cash flow statement) and is amortised over the lifetime of the corresponding lease.
Other working capital movements are summarised in the table below:
Working capital movements ($m)
H1 2025
H1 2024
Trade receivables, prepayments and deferred revenue
20
(40)
Customer deposit movements (excluding non-cash FX movements)
13
13
Trade payables and accruals
(39)
8
Cash bonus payment
(24)
(24)
Total
(30)
(43)
Cash tax paid was $(14)m in H1 2025 (H1 2024: $(16)m) and primarily relates to corporate income tax paid in various countries. Finance costs paid on bank & other facilities was $(44)m in H1 2025 vs. $(37)m in H1 2024, the increase of which is due to the refinancing transactions completed in 2024.
Cash inflow before growth capex, financing and dividends was $68m (H1 2024: $68m).
Total net capex for H1 2025 was $55m (H1 2024: $61). Maintenance capex remained in line with prior year at $35m (H1 2024: $32m) and is expected to be below $100m for the full year. Growth capex declined from $29m to $20m, with $9m spent on Company-owned centres. We are confident that overall capex will remain at this level due to new locations in our Company-owned business increasingly being signed up without capex needs for the Group; Managed & Franchised faces zero capex, and the majority of platform investment for Digital & Professional Services is complete.
Capital expenditure $m
Managed & Franchised
Company-owned
Digital & Professional Services
H1 2025
Managed & Franchised
Company-owned
Digital & Professional Services
H1 2024
Growth capital expenditure
-
16
12
28
-
47
1
48
Landlord contributions to Growth capital expenditure
-
(9)
(9)
(18)
-
(25)
-
(25)
Growth capital expenditure on Intangible Assets
-
2
8
10
-
1
5
6
Net Growth capital expenditure
-
9
11
20
-
23
6
29
Centre maintenance capital expenditure
-
32
-
32
-
26
-
26
Landlord contributions to Maintenance capital expenditure
-
(5)
-
(5)
-
(1)
-
(1)
Other maintenance capital expenditure
-
8
-
8
-
7
-
7
Net Maintenance capital expenditure
-
35
-
35
-
32
-
32
On 30 April 2025, the Company completed the acquisition of the remaining noncontrolling interests in the Digital and Professional Services reportable segment in exchange for 23,095,239 common shares of International Workplace Group plc.
Financing
During H1 2025 the Group successfully completed an additional debt transaction, extending the Group's debt maturity, and repurchased a further proportion of the Convertible Bond:
· €300 million Euro bonds at an issuance price of 99.369%, a fixed coupon rate of 5.125% and a bullet maturity of May 14, 2032. The bonds are traded on the London Stock Exchange's International Securities Market and were fully hedged into USD, along with the previously unhedged portion of the Group's €625m Euro bonds.
· 2027 0.5% Convertible Bond:
o During the six months ended 30 June 2025, the Company repurchased £18 million ($23 million) face value of the convertible bonds at a weighted average price of £0.965, including accrued interest, representing a consideration of £17 million ($22 million), resulting in a gain on settlement of $1 million.
o During the six months ended 30 June 2024, the Company repurchased £118 million face value of the convertible bonds at a weighted average price of 0.9215, including accrued interest, representing a consideration of £109 million, resulting in a gain on settlement of $10 million.
o Due to the repurchases occurring during the six months ended 30 June 2025 and 2024, £18m and £118m, respectively, of the forward exchange rate contracts entered into during January 2024, were closed out
Overall, net financial debt was $(754)m at 30 June 2025 (31 December 2024: $(729)m). The Group's total debt facilities, including details of drawings, is summarised below:
Net debt
Net Financial Debt $m
H1 2025
31 Dec 2024
2027 0.5% Convertible Bond
178
199
Euro Bond
989
648
RCF Drawn
0
0
Revolving Credit Facility (RCF)
720
720
RCF available
420
436
RCF guarantee utilisation
300
284
Other debt
33
19
Cash and cash equivalents
(446)
(137)
Net financial debt
754
729
At 30 June 2025 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 0.45¢ per share. The interim dividend is expected to be paid on 17 October 2025 to shareholders on the register at the close of business on 19 September 2025. Dividends are declared in US dollars and paid in pounds sterling with an option for shareholders to elect to receive payment in US dollars. The foreign exchange rate at which the final dividend will be converted into pounds sterling will be the New York closing rate on 19 September 2025.
Share buyback
In the first half of 2025, IWG repurchased and cancelled 20,652,686 ordinary shares which completed the first $50m tranche of its share buyback programme of up to $100m. The Second Tranche started on 1 July 2025 which has been carried out in accordance with the authorisation granted by the Annual General Shareholders Meeting held on 20 May 2025. .
Foreign Exchange
Per USD$
H1 2025
H1 2024
%
H1 2025
H1 2024
%
Sterling £
0.73
0.79
8%
0.77
0.79
3%
Euro €
0.85
0.93
9%
0.91
0.93
2%
Risk management
Effective management of risk is an everyday activity for the Group, and crucially, integral to our growth planning. A detailed assessment of the principal risks and uncertainties which could impact the Group's long-term performance and the risk management structure in place to identify, manage and mitigate such risk will be included in the 2025 Annual Report and Accounts.
Related parties
There have been no changes to the type of related party transactions entered into by the Group that had a material effect on the financial statements for H1 2025. Details of related party transactions that have taken place in the period can be found in note 13.
Going concern
The Group reported a profit after tax of $8m in H1 2025 (H1 2024: profit of $9m). Cashflow before growth capex and corporate activities but after interest and tax was $68m (H1 2024: $68m). Furthermore, net cash of $109m (H1 2024: $126m) was generated from operations during the same period. Although the Group's balance sheet at 30 June 2025 reports a net current liability position of $2,087m (31 December 2024: $2,277m), the Directors concluded after a comprehensive review that no liquidity risk exists as:
1. The Group had funding available under the Group's $720m revolving credit facility of $420m (31 December 2024: $436m) which was available and undrawn at 30 June 2025. The facility's current maturity date is June 2029;
2. A significant proportion of the net current liability position is due to lease liabilities which are held in non-recourse special purpose vehicles but also with a corresponding right-of-use asset. A large proportion of the net current liabilities comprise non-cash liabilities such as deferred revenue of $581m (31 December 2024: $539m) which will be recognised in future periods through the income statement. The Group holds customer deposits of $632m (31 December 2024: $584m) which are spread across a large number of customers and no deposit held for an individual customer is material; and
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. An external assessment from Fitch, a leading global credit rating agency, which has rated the Group and its listed bonds as investment grade with a BBB (Stable) rating and has continued to monitor the Group's financial performance since the initial rating assessment.
Due to the above, the Group does not believe the net current liabilities represents a liquidity risk. The Directors consider that the Group is well placed to successfully manage the actual and potential risks faced by the organisation including risks related to inflationary pressures and geopolitical tensions.
On the basis of their assessment, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these Group consolidated financial statements and consider it appropriate to continue to adopt the going concern basis in preparing the financial statements of the Group.
Charlie Steel
Chief Financial Officer
19 August 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Six months ended 30 June
$m, except per share amounts
2025
2024
Revenue
1,850
1,871
Cost of sales exclusive of items shown separately below
1,369
1,400
Gross profit
481
471
Selling, general and administrative expenses
250
248
Allowance for credit losses
11
8
Impairment of long-lived assets
17
34
Gain on disposal of long-lived assets and other closure related credits
(5)
(26)
Depreciation and amortisation
140
139
Depreciation andamortisation before landlord contributions
182
171
Depreciation of landlord contributions on leases
(42)
(32)
Operating income
68
68
Interest expense
(40)
(25)
Foreign currency loss
(5)
(7)
Gain on extinguishment of debt
1
10
Other finance costs
(12)
(14)
Income before income taxes and share of Income (loss) from equity method investments
12
32
Income tax expense
(6)
(21)
Share of income (loss) from equity method investments
2
(2)
Net income
8
9
Net loss attributable to non-controlling interests
3
-
Net income attributable to the Company
11
9
Net income per common share:
Basic(¢)
1.1
0.9
Diluted(¢)
1.1
0.9
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Six months ended 30 June
$m
2025
2024
Net income
8
9
Other comprehensive income, net of tax:
Foreign currency translation adjustments
66
10
Cash flow hedges
(34)
(2)
Total other comprehensive income
32
8
Total comprehensive income
40
17
Net loss attributable to non-controlling interests
(3)
-
Foreign currency translation adjustments attributable to non-controlling interests
3
-
Comprehensive income attributable to non-controlling interests
-
-
Comprehensive income attributable to the Company
40
17
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
$m, except share and per share amounts
30 June 2025 (UNAUDITED)
31 December 2024
Assets
Current assets:
Cash and cash equivalents
446
137
Accounts receivable, net
692
651
Prepaid expenses
158
152
Other current assets
416
391
Total current assets
1,712
1,331
Non-current assets:
Operating lease right-of-use assets
5,496
5,161
Property and equipment, net
800
784
Intangible assets, net
180
176
Deferred tax assets
368
357
Goodwill, net
1,254
1,173
Equity method investments
58
54
Other non-current assets
129
76
Total non-current assets
8,285
7,781
Total assets
9,997
9,112
Liabilities
Current liabilities:
Accounts payable
219
232
Short-term debt, net
222
212
Deferred revenue
581
539
Customer deposits
632
584
Operating lease liabilities
1,279
1,154
Accrued expenses and other current liabilities
866
887
Total current liabilities
3,799
3,608
Non-current liabilities:
Long-term debt, net
1,061
633
Long-term operating lease liabilities
5,255
4,989
Other non-current liabilities
97
91
Total non-current liabilities
6,413
5,713
Total liabilities
10,212
9,321
Shareholders' deficit
Common stock; par value $0.0124; 8,000,000,000 shares authorised, 1,036,595,965 issued and outstanding as of 30 June 2025 and 1,057,248,651 as of 31 December 2024, respectively
13
13
Treasury stock, at cost; 20,468,890 shares as of 30 June 2025 and 45,241,020 shares as of 31 December 2024
(94)
(182)
Additional paid-in capital
416
493
Accumulated deficit
(266)
(268)
Accumulated other comprehensive loss
(284)
(313)
Total shareholders' deficit
(215)
(257)
Non-controlling interests
-
48
Total shareholders'deficit
(215)
(209)
Total liabilities and shareholders' equity
9,997
9,112
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
Common Stock
$m, except share amounts
Shares
Amount
Treasury Stock
Additional paid-in capital
Accumulated Deficit
Accumulated other comprehensive loss
Total Shareholders' equity (deficit) - the Company
Non-controlling interests
Total Shareholders' equity (deficit)
Balance as of 1 January 2024
1,057,248,651
13
(194)
491
(269)
(345)
(304)
63
(241)
Net income
-
-
-
-
9
-
9
-
9
Other comprehensive income (loss), net of tax
-
-
-
-
-
8
8
-
8
Stock-based compensation
-
-
-
1
-
-
1
-
1
Dividends declared and paid
-
-
-
-
(13)
-
(13)
-
(13)
Purchase of non-controlling interests
-
-
12
-
-
-
12
(14)
(2)
Balance as of 30 June 2024
1,057,248,651
13
(182)
492
(273)
(337)
(287)
49
(238)
Balance as of 1 January 2025
1,057,248,651
13
(182)
493
(268)
(313)
(257)
48
(209)
Net income
-
-
-
-
11
-
11
(3)
8
Other comprehensive income (loss), net of tax
-
-
-
-
-
29
29
3
32
Retirement of derivative liability on NCI repurchase
-
-
9
(3)
-
-
6
-
6
Stock-based compensation
-
-
-
3
-
-
3
-
3
Share buyback and cancellation
(20,652,686)
-
-
(50)
-
-
(50)
-
(50)
Issuance of shares under stock compensation plans
-
9
(5)
-
-
4
-
4
Dividends declared and paid
-
-
-
-
(9)
-
(9)
-
(9)
Purchase of non-controlling interests
-
-
70
(22)
-
-
48
(48)
-
Balance as of 30 June 2025
1,036,595,965
13
(94)
416
(266)
(284)
(215)
-
(215)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six months ended 30 June
$m
2025
2024
Cash Flows from Operating Activities:
Net income
8
9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortisation
140
139
Operating lease cost
716
699
Stock-based compensation
4
1
Deferred income tax benefit
(3)
(4)
Allowance for credit losses
11
8
Share of (income) loss from equity method investments
(2)
2
Impairment of goodwill and other assets
17
34
Gain on disposal of assets
(16)
(14)
Gain on extinguishment of debt
(1)
(10)
(Decrease) in provision
(21)
(4)
Changes in operating assets and liabilities:
Accounts receivable and prepaid expenses
(11)
(41)
Other current assets and non-current assets
22
(7)
Accounts payable, accrued expenses, and other liabilities
(94)
20
Deferred revenue
9
(8)
Customer deposits
13
13
Operating lease liabilities
(712)
(726)
Proceeds from landlord contributions1
23
26
Other operating activities, net
6
(11)
Net cash provided by operating activities
109
126
Cash Flows from Investing Activities:
Purchases of property and equipment
(60)
(74)
Additions to intangible assets
(18)
(13)
Acquisition of companies, net of cash acquired
-
(3)
Other investing activities, net
2
-
Net cash used for investing activities
(76)
(90)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt
15
819
Proceeds from issue of Euro bonds
337
613
Payment of debt issuance cost
(5)
(11)
Repayment of long-term debt
(5)
(1,276)
Repayment of convertible bonds
(22)
(137)
Dividends paid
(9)
(13)
Purchase of treasury shares
(50)
-
Other financing activities, net
3
(1)
Net cash provided by (used for) financing activities
264
(6)
Effects of exchange rate changes on cash, cash equivalents and restricted cash
5
(11)
Changes in cash, cash equivalents and restricted cash
297
30
Net increase in cash, cash equivalents and restricted cash
302
19
Cash, cash equivalents and restricted cash at beginning of period2
148
141
Cash, cash equivalents and restricted cash at end of period2
450
160
1 During the six months ended 30 June 2025 and 2024, the total proceeds from landlord contributions were $23 million and $26 million, respectively. These amounts include reimbursements for costs of $18 million and $4 million, as well as lease incentives of $5 million and $22 million.
2 Restricted cash is presented within Other current assets and Other non-current assets. Refer to Note 1, Description of the Business and Summary of Significant Accounting Policies, for further details.
Six months ended 30 June
$m
2025
2024
Cash paid during the period for interest (net of amount capitalised)
44
37
Cash paid during the period for income taxes, net
14
16
Utilisation of treasury shares for acquisition of non-controlling interest
70
12
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 and Summary of Significant Accounting Policies
Business
International Workplace Group plc, and its subsidiaries (collectively "the Company"), is the world's largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ and Signature. International Workplace Group plc owns, manages and is a franchise operator of a network of business centres which are utilised by a variety of business customers. The Company manages its operations through three reportable segments: Company-owned, Managed and Franchised, and Digital and Professional Services.
The Company is a public limited company incorporated in Jersey under the Companies (Jersey) Law 1991 and registered, domiciled, and headquartered in Switzerland. The Company's common stock is traded on the London Stock exchange. It was originally founded as "Regus" in 1989.
All references to "we", "us", "our", "IWG" and the "the Company" are references to International Workplace Group plc and its subsidiaries on a consolidated basis.
Basis of Presentation
Since the 30 June 2024 interim report was issued, the basis of preparation changed from IFRS to US GAAP. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information and include the accounts of the Company and its consolidated subsidiaries. All values are in US dollars and rounded to millions, except where indicated otherwise. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted. The accompanying Condensed Consolidated Financial Statements do not constitute statutory accounts as defined in Companies (Jersey) Law 1991.
As such, the information included in the accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited US GAAP Consolidated Financial Statements ("audited consolidated financial statements") and the related notes thereto as of and for the year ended 31 December 2024 which are available from the Company's website - www.iwgplc.com. These Condensed Consolidated Financial Statements were prepared following the same accounting policies as the Consolidated Financial Sstatements. There was no material effect from the adoption of new accounting policies and new US GAAP standards effective as of 1 January 2025.
In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary for the fair statement of the Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income and Statements of Cash Flows for these interim periods. The results for the interim periods are not necessarily indicative of results for the full fiscal year.
The Directors are responsible for preparing the Company's Condensed Consolidated Financial Statements 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 owned subsidiaries 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 material intercompany transactions and balances have been eliminated in consolidation.
When making references in these Condensed Consolidated Financial Statements to Net income attributable to the Company and Total shareholders' deficit - the Company does not include non-controlling interests, which represent the third-party ownership interests of our consolidated non-wholly owned entities and are reported separately in the Condensed Consolidated Balance Sheets, Condensed Consolidated Statement of Operations, and Condensed Consolidated Statement of Comprehensive Income. On 8 March 2022, the Company completed the acquisition of 100% equity interest in The Instant Group. The Instant Group was merged with some of the Company's digital assets to create the Digital and Professional Services reportable segment. In a separate transaction, the Company sold a 13.4% noncontrolling equity interest in a subsidiary of the Digital and Professional Services reportable segment (which included equity interest in The Instant Group) for a consideration of $69 million.
During the six months ended 30 June 2024, the Company increased its equity voting rights in the Digital and Professional Services reportable segment subsidiary to 89.3% (from 86.6% as of 31 December 2023) for $14 million. During the six months ended 30 June 2025, specifically on 30 April 2025, the Company completed the acquisition of the remaining noncontrolling interests in the Digital and Professional Services reportable segment in exchange for 23,095,239 common shares of International Workplace Group plc. From May 2025 onward, the Company no longer has non-controlling interests.
In 2020, Redox Plc was deconsolidated from the Company due to a loss of control following bankruptcy proceedings. As a result of emergence on 25 April 2025, the Company reassessed its involvement with the subsidiary in accordance with ASC 810, Consolidation, and determined it had regained control of the entity. The criterion for applying fresh start accounting for Redox Plc is not met as the Company held 100% of the voting shares before commencement of the proceedings and upon emergence from bankruptcy. As part of regaining control, the Company received $20 million of Cash and recognized $6 million of Accrued expenses and other current liabilities, which were recorded on the Condensed Consolidated Balance Sheets, with the corresponding Condensed Consolidations Statements of Operations impact included in Selling, general and administrative. The subsidiary's results of operations are included in the Company's Condensed Consolidated Financial Statements from 25 April 2025.
Reorganisation
Upon completion of the acquisition of the remaining non-controlling interests in the Digital and Professional Services reportable segment, the Company reorganised its reporting structure ("Reorganisation"), changing the composition of the Digital and Professional Services reportable segment. To reflect the Reorganisation, assets and liabilities (including goodwill) were reassigned between reportable segments. Please reference Note 3, Segments, and Note 6, 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 the information available at the time, its experiences and various other assumptions believed to be reasonable for the estimates underlying the Company's Condensed Consolidated Financial Statements relate to, among other things, cash flows used in the assessment of impairment of goodwill, 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 on leases and the fair value of property and equipment, intangibles and leasehold assets and liabilities acquired in business combinations. Adjustments may be made in subsequent periods to reflect more current 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 deposits restricted under contractual agreements or legal disputes.
The following represents a reconciliation of cash and cash equivalents and restricted cash in the Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Condensed Consolidated Statements of Cash Flows:
As of
$m
30 June 2025
31 December 2024
Cash and cash equivalents
446
137
Restricted cash1
4
11
Cash, cash equivalents and restricted cash
450
148
1 As of 30 June 2025 and 31 December 2024, the following amounts of restricted cash were included in other current assets: $3 million and $8 million. Otherwise, all other restricted cash was included within other non-current assets.
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets
Long-lived assets, including right-of-use assets, property and equipment and other finite-lived intangible assets are evaluated for recoverability when events or changes in circumstances indicate that the asset may have been impaired. In evaluating an asset for recoverability, the Company considers the future cash flows expected to result from the continued use of the asset and the eventual disposition of the asset. If the sum of the expected future cash flows, on an undiscounted basis, is less than the carrying amount of the asset, an impairment loss equal to the excess of the carrying amount over the fair value of the asset is recognised.
We evaluate potential impairment at the reporting unit level. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying 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 on the Condensed Consolidated Statements of Operations.
Impairment of property and equipment was $4 million and $14 million for the six months ended 30 June 2025 and 2024, respectively. The recorded impairment related to the Company-owned segment and was due to underperforming business centres.
Impairment of right-of-use assets was $13 million and $20 million for the six months ended 30 June 2025 and 2024, respectively. The recorded impairment related to the Company-owned segment and was due to underperforming business centres.
Please reference Note 9, Fair Value Measurements, for more information regarding the underlying impairment assessments.
Recent Accounting Pronouncements Not Yet Adopted
The recently issued but not yet effective Accounting Standard Update ("ASU") applicable to the Company during the six months ended 30 June 2025 is disclosed below. None of the Recent Accounting Pronouncements Not Yet Adopted disclosed in Note 1, Description of the Business and Summary of Significant Accounting Policies, of the audited consolidated US GAAP financial statements as of and for the year ended 31 December 2024, were adopted during the six months ended 30 June 2025.
Business Combinations and Consolidation
In May 2025, the Financial Accounting Standards Board issued ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. The amendments in the update require an entity involved in an acquisition transaction primarily through the exchange of equity interests, where the legal acquiree is a VIE that meets the definition of a business, to consider specific factors outlined in paragraphs 805-10-55-12 through 55-15 to determine which entity qualifies as the accounting acquirer. This ASU is effective for fiscal years beginning after 15 December 2026, and interim reporting periods within those annual reporting periods. The amendments are applied prospectively. The Company is currently evaluating the effect of adopting this new accounting guidance.
Note 2. Revenue from Contracts with Customers
The Company's primary activity is the provision of global workspace solutions. Please reference Note 3, Segments, for revenue disaggregated by product categories.
Receivables
The Company's receivables from contracts with customers are separately presented as Accounts receivable, net on the Condensed Consolidated Balance Sheets. As of 30 June 2025, and 31 December 2024, the allowance for current expected credit losses was $12 million and $14 million, respectively.
Contract Liabilities
The Company's contract liabilities from contracts with customers are separately presented as Deferred revenue on the Condensed Consolidated Balance Sheets. The contract liabilities are classified as current due to the nature of the Company's invoicing arrangements. All the contract liabilities as of 31 December 2024 were recognised during the six months ended 30 June 2025. The change in contract liabilities period over period was due to the recognition of revenue, which was partially offset by incremental deferred revenue.
The Company elected the practical expedient as per ASC 606-10-50-14 and does not disclose information related to remaining performance obligations due to their original expected terms being one year or less.
Note 3. Segments
The Company is organised into three operating segments based on the types of services provided. The segment composition, as further described below, reflects the Reorganisation described in Note 1, Description of the Business and 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.
· Company-owned and Managed & Franchised comprises the IWG Network.
· Digital & Professional Services: Services and technology provided to customers and landlords.
Company-owned and Managed & Franchised are aggregated into the Networks reportable business segment. Digital and Professional Services meets the criteria for separate disclosure as a reportable business segment. The Company has determined its Chief Executive Officer ("CEO") is its Chief Operating Decision Maker ("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 determining how to allocate resources because landlord contributions on leases are evaluated in totality in commercial negotiations, rather than being dependent upon whether they are accounted for as lease incentives. Adjusted gross profit (including landlord contributions on leases) has been presented for the first time in the Condensed Consolidated Financial Statements on 30 June 2025. The following table reflects results of operations of the Company's reportable segments:
Networks
$m
Company-owned
Managed & Franchised
Digital and Professional Services
Total
30 June 2025
Revenue
1,593
50
207
1,850
Workstation revenue
1,168
-
-
1,168
Fee income
-
50
-
50
Other income
425
-
207
632
Cost of sales exclusive of the items shown below
1,248
-
121
1,369
Gross profit
345
50
86
481
Selling, general and administrative expenses
250
Allowancefor credit losses
11
Impairment of long-lived assets
17
(Gain)on disposal of long-lived assets and other closure related (credits)
(5)
Depreciation and amortisation
140
Depreciation and amortisation before landlord contributions
182
Depreciation of landlord contributions on leases
(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 of income from equity method investments
12
Gross profit
345
50
86
481
Landlord contributions on leases included in depreciation and amortisation
30
-
12
42
Adjusted gross profit
375
50
98
523
30 June 2024
Revenue
1,613
35
223
1,871
Workstation revenue
1,206
-
-
1,206
Fee income
-
35
-
35
Other income
407
-
223
630
Cost of sales exclusive of the items shown below
1,299
-
101
1,400
Gross profit
314
35
122
471
Selling, general and administrative expenses
248
Allowance for credit losses
8
Impairment of long-lived assets
34
Gain on disposal of long-lived assets and other closure related credits
(26)
Depreciation and amortisation
139
Depreciation and amortisation before landlord contributions
171
Depreciation of landlord contributions on leases
(32)
Operating income
68
Interest expense
(25)
Foreign currency loss
(7)
Gain on extinguishment of debt
10
Other finance costs
(14)
Income before income taxes and share of loss from equity method investments
32
Gross profit
314
35
122
471
Landlord contributions on leases included in depreciation and amortisation
32
-
-
32
Adjusted gross profit
346
35
122
503
Asset information
Total assets by Segment as of 30 June 2025 and 31 December 2024, were:
Networks
$m
Company - owned
Managed & Franchised
Digital and Professional Services
Total
30 June 2025
9,151
36
810
9,997
31 December 2024
8,420
34
658
9,112
Total capital expenditures by Segment for the six months ended 30 June 2025 and 2024 were:
Networks
$m
Company - owned
Managed & Franchised
Digital and Professional Services
Total
30 June 2025
58
20
78
30 June 2024
81
-
6
87
Note 4. Income Taxes
The Company recorded income tax expense, based upon the estimated annual effective tax rate as adjusted for discrete items, if any, of $6 million on pre-tax book income of $12 million, and $21 million on pre-tax book income of $32 million for the six months ended 30 June 2025 and 2024, respectively. This led to an effective tax rate of 50% and 66% for the six months ended 30 June 2025 and 2024, respectively, with the impact of non-deductible expenses as a proportion of pre-tax book income being a significant driver in both years. The decrease in the effective tax rate was primarily driven by an increase in the recognised deferred tax asset, predominantly in the US, for the six months ended 30 June 2025 compared to the prior year.
Note 5. 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 2025
30 June 2024
Income attributable to ordinary shareholders - basic and diluted
Net income
11
9
Weighted average shares outstanding used in computing earnings per share - basic and diluted
Weighted average shares - basic
1,012,730,251
1,007,598,732
Weighted average shares - diluted
1,023,609,130
1,018,204,178
Basic income per common share(¢)
1.1
0.9
Diluted income per common share(¢)
1.1
0.9
Antidilutive securities
Weighted average number of share options
43,238,766
35,544,278
Weighted average number of share awards under the CIP, PSP, DSBP and One-off Award
2,832,724
2,644,290
Weighted average number of shares that would have been issued at average market price
(35,192,611)
(27,583,121)
Options are considered dilutive when they would result in the issue of ordinary shares for less than the market price of ordinary shares in the period. The amount of the dilution is taken to be the average market price of shares during the period minus the exercise price. During the six months ended 30 June 2025 and 2024, share awards of 10,878,879 and 10,605,446, respectively, had a dilutive effect with a negligible impact on the basic earnings per share.
As discussed within Note 8, Debt, the Company repurchased portions of its convertible bonds during the six months ended 30 June 2025 and 2024. Due to the repurchases, the potentially issuable number of shares as of 30 June 2025 and 2024, were 31,054,804 and 50,854,898, respectively. The Convertible bonds had no dilutive effect for the six months ended 30 June 2025 and 2024.
Note 6. Goodwill, net
The following table shows changes in goodwill period over period:
$m
Company - owned
Managed & Franchised
Digital and Professional Services
Total
31 December 20231
885
-
312
1,197
Goodwill acquired
2
-
-
2
Currency translation adjustment
(21)
-
(5)
(26)
31 December 20241
866
-
307
1,173
Currency translation adjustment
36
-
19
55
30 April 2025 (pre-reallocation)
902
-
326
1,228
Reallocation
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
1 Balances are presented net of accumulated impairment losses of $16 million for the Company-owned segment.
The reallocation of goodwill was based on a relative fair value basis as a result of the Reorganisation discussed in Note 1, Description of the Business and Summary of Significant Accounting Policies.
There was no goodwill impairment recorded during the six months ended 30 June 2025 and 2024.
Note 7. Leases
The Company has operating leases for rental of commercial office real estate premises globally. The following table details the components of lease cost:
Six months ended
$m
30 June 2025
30 June 2024
Operating lease cost1
716
699
Short-term lease cost
-
-
Variable lease cost
66
70
Sublease income
(31)
(35)
Total lease cost
751
734
1 During the six months ended 30 June 2025 and 2024, the total operating lease cost was offset by the wind-down of previously capitalised lease incentives of $24 million and $29 million, respectively.
Note 8. Debt
The following table presents the carrying value of debt as of 30 June 2025 and 31 December 2024:
As of
$m
30 June 2025
31 December 2024
Short-term debt:
Bank overdrafts
30
15
Convertible bonds1
192
197
Total short-term debt
222
212
Long-term debt:
Euro bonds
1,058
629
Others2
3
4
Total long-term debt
1,061
633
1 As of 30 June 2025 and 31 December 2024, unamortised discounts, premiums, and debt issuance costs were $0 million and $1 million, respectively.
2 Primarily represent working capital facilities denominated in various currencies.
On 14 May 2025, the Company issued €300 million Euro bonds at an issuance price of 99.369%, a fixed coupon rate of 5.125% and a bullet maturity of 14 May 2032. The bonds are traded on the London Stock Exchange's International Securities Market.
The Company issued £350 million of convertible bonds in December 2020. During the six months ended 30 June 2025, the Company repurchased £18 million ($23 million) face value of the convertible bonds at a weighted average price of £0.965, including accrued interest, representing a consideration of £17 million ($22 million).
During the six months ended 30 June 2024, the Company repurchased £118 million face value of the convertible bonds at a weighted average price of 0.9215, including accrued interest, representing a consideration of £109 million.
Due to the repurchases occurring during the six months ended 30 June 2025 and 2024, £18m and £118m, respectively, of the forward exchange rate contracts entered into during 2024 January, were closed out.
For the six months ended 30 June 2025 and 2024, the repurchases of convertible bonds and settlement of the foreign exchange rate contracts result in a gain on settlement of $1 million and $10 million respectively.
As of 30 June 2025, the amount of the Revolving Credit Facility was $720 million and $420 million was available and undrawn. As of December 31, 2024, the amount of the facility was $720 million and $436 million was available and undrawn. Further background of the Company's borrowings and underlying terms, including maturity dates, is included in Note 13, Debt, of the audited consolidated financial statements as of and for the fiscal year ended 31 December 2024.
On 30 June 2025 the Group complied with all covenants related to the Revolving Credit Facility.
Note 9. Fair Value Measurements
Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Reference the Fair Value Measurement accounting policy included within Note 1, Description of the Business and Summary of Significant Accounting Policies, of the audited consolidated financial statements as of and for the fiscal year ended 31 December 2024 for the level of inputs outlined below to determine fair value. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments.
Recurring fair value measurements
The following table presents the carrying amounts and estimated fair values of the Company's financial instruments as of 30 June 2025 and 31 December 2024:
As of 30 June 2025
$m
Carrying amount
Level 1
Level 2
Level 3
Total
Assets:
Cross-currency swaps
64
-
-
64
64
Forward exchange contracts
14
-
-
14
14
Total assets
78
-
-
78
78
Liabilities:
Cross-currency swaps
1
-
-
1
1
Contingent consideration
7
-
-
7
7
Euro bonds
1,058
-
1,132
-
1,132
Convertible bonds
192
-
189
-
189
Total liabilities
1,258
-
1,321
8
1,329
As of 31 December 2024
$m
Carrying amount
Level 1
Level 2
Level 3
Total
Assets:
Cross-currency swaps
6
-
-
6
6
Total assets
6
-
-
6
6
Liabilities:
Contingent consideration
7
-
-
7
7
Euro bonds
629
-
694
-
694
Convertible bonds
197
-
187
-
187
Forward exchange contracts
3
-
-
3
3
Total liabilities
836
-
881
10
891
The fair value of contingent consideration is based on contractually defined targets of financial performance in connection with earn outs and other considerations. The fair value of the Euro bonds and convertible bonds are based on their published prices on the open market. The fair value of the foreign exchange contracts are based on a combination of forward pricing and swap models. There were no transfers between levels for the six months ended 30 June 2025 and 30 June 2024.
On 11 April 2025, the Company entered into hedging arrangements to swap €100 million of the Euro bonds notional plus interest into $110 million, with a weighted-average fixed coupon of 8.265%. As of 30 June 2025, a total of €625 million of the 2024 issuance was hedged, with arrangements to swap into $674 million with a weighted-average fixed coupon of 8.158%. The hedges are expected to remain in place for the life of the bonds and are designated as cash flow hedges.
As a result of this hedging arrangement, the Company discontinued its net investment hedge over the Company's European subsidiaries' operations. Prior to the discontinuation of the net investment hedge, its impact on other comprehensive earnings for both the six months ended 30 June 2025 and 2024, was $0 million.
Simultaneous to the closing of the Euro bonds issued (reference Note 8, Debt) during May 2025, the Company entered into a hedging arrangement to swap €300 million of the issuance and the related interest into $341 million, with a weighted-average fixed coupon of 6.902%. The hedge will remain in place for the life of the bonds and has been designated as a cash flow hedge.
Fair Value of Derivative Instruments
Derivative instruments were recorded at fair value in the consolidated balance sheets as follows:
As of 30 June 2025
$m
Other assets
Other liabilities
Cash flow hedges:
Forward exchange contracts - Convertible bonds £141 million
14
-
Cross-currency interest rate swaps - Euro bonds €625 million
64
-
Cross-currency interest rate swaps - Euro bonds €300 million
-
1
As of 31 December 2024
$m
Other assets
Other liabilities
Cash flow hedges:
Forward exchange contracts - Convertible bonds £158 million
-
3
Cross-currency interest rate swaps - Euro bonds €525 million
6
-
Net investment hedge:
Euro bonds €100 million
-
111
As of 30 June 2025 and 31 December 2024, $14m derivative asset (2024: $2m derivative liability) relating to the forward exchange contract - Convertible bond liability and $69m derivative asset (2024: $19m derivative liability) relating to the cross-currency interest rate swap - Euro bond liability hedging the principal component of the debt.
Derivative Volume
The gross notional values of our derivative instruments were:
$m
As of 30 June 2025
Cash flow hedges:
Forward exchange contracts - Convertible bonds £141 million
179
Cross-currency interest rate swaps - Euro bonds €625 million
674
Cross-currency interest rate swaps- Euro bonds € 300 million
341
$m
As of 31 December 2024
Cash flow hedges:
Forward exchange contract - Convertible bonds £158 million
201
Cross-currency interest rate swap - Euro bonds €525 million
564
Net investment hedge:
Euro bonds €100 million
104
Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses). Refer to Note 11, Accumulated Other Comprehensive Loss, for further information.
Non-recurring fair value measurements
During the six months ended 30 June 2025 and 2024, the long-lived assets held and used in certain centres warranted nonrecurring fair value measurements due to the existence of qualitative and quantitative impairment indicators. The fair value of the centre was derived based on the expected future cash flows of the centre as outlined in Note 1, Description of the Business and Summary of Significant Accounting Policies - Impairment of Long-lived Assets and Finite-Lived Intangible Assets. The corresponding impairment charges recorded during the reporting periods presented within these Condensed Consolidated Financial Statements were also disclosed therein.
During the six months ended 30 June 2025 and 2024, the Company's impairment assessments derived fair values of $27 million and $200 million, respectively, for the affected centres.
The categorisation of the framework used to value the right-of-use assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Such judgments and estimates included within the cash flow forecasts include assessment of the location of the centre, the local economic situation, competition, local environmental factors, the management of the centre, and future changes in occupancy, customer pricing and costs of the centre. While centre costs remain stable, revenue is a function of the expected levels of occupancy and the corresponding pricing achieved. In assessing any impairment, the derived fair value is assessed for sensitivity to changes in both occupancy and pricing, to determine the extent to which these estimates need to change before an impairment arises.
Note 10. Equity
Cash Dividends
During the six months ended 30 June 2025, the Company approved and paid out a dividend of $9 million ($0.009 per ordinary share). During the six months ended 30 June 2024, the Company approved and paid out a dividend of $13 million (£0.01 per ordinary share). The consolidated shareholders' deficit does not impact the Company's ability to make dividend payments.
Treasury Stock
On 4 March 2025, the Company announced a $50 million share repurchase program, then on 6 May 2025, the Company extended the share repurchase program by an additional $50 million to $100 million. Pursuant to the share repurchase program, during the six months ended 30 June 2025, the Company repurchased 20,652,686 shares of its common stock for $50 million, all of which were subsequently cancelled.
During the six months ended 30 June 2024, the Company repurchased 118,054 shares totalling $0.2 million.
Note 11. Accumulated Other Comprehensive Loss
The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:
$m
Foreign Currency Translation Adjustments
Cash Flow Hedge Adjustment
Net Investment Hedges, Adjustment
Total
Balance as of 1 January 2024
(345)
-
-
(345)
Current-period other comprehensive income (loss)
10
(2)
-
8
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes
-
-
-
-
Balance as of 30 June 2024
(335)
(2)
-
(337)
Balance as of 1 January 2025
(339)
23
3
(313)
Current-period other comprehensive income
63
73
-
136
Amounts reclassified from accumulated other comprehensive (loss), net of taxes
-
(104)
(3)
(107)
Balance as of 30 June 2025
(276)
(8)
-
(284)
Note 12. Commitments and Contingencies
Contingencies
From time to time, the Company is party to litigation and other legal proceedings in the ordinary course of business. The Company accrues for loss contingencies when it is both probable that it will incur the loss and when the Company can reasonably estimate the amount of the loss or range of loss. If an unfavourable outcome was to occur, there exists the possibility of a material adverse impact on the results of operations in the period in which the outcome occurs or in future periods. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred.
Commitments
The Company has contractual obligations related to centre fit-outs wherein the Company has to finish or improve the interior space of a leased property. Capital commitments in respect of centre fit-out obligations that are not offset by contractually committed landlord contributions are immaterial as of 30 June 2025.
During the six months ended 30 June 2025, there were no material changes in the bank guarantees, disclosed in Note 18, Commitments and contingencies, of the audited consolidated financial statements as of and for the fiscal year ended 31 December 2024.
Note 13. Related Party Transactions
Below is a summary of the Company's related party balances and transactions for the periods presented herein. Reference Note 19, Related Party Transactions, of the audited consolidated financial statements as of and for the year ended 31 December 2024, for further commentary on the nature of the related party relationships.
Equity Method Investments
The Company's related party balances on its Condensed Consolidated Balance Sheets as of 30 June 2025 and 31 December 2024 below relate entirely with parties that are accounted for under the equity method:
As of
$m
30 June 2025
31 December 2024
Accounts receivable, net
50
48
Accounts payable
49
45
During the six months ended 30 June 2025 and 2024, the Company recorded revenue transactions with related parties accounted for under the equity method of:
Six months ended
$m
30 June 2025
30 June 2024
Revenue
5
5
The Company had no material expense transactions with equity method investees during the periods presented.
Other related party transactions
During the six months ended 30 June 2025 and 2024, other related party expenses were $44 thousand and zero, respectively. As of 30 June 2025 and 31 December 2024, the Company had an outstanding balance of $48 thousand and $1 thousand, respectively.
Note 14. Principal Companies
As of 30 June 2025, the Company's principal subsidiary undertakings, their principal activities and countries of incorporation are set out below:
Name of undertaking
Country of incorporation
% of ordinary shares and votes held
Trading companies
Regus Australia Management Pty Ltd
Australia
100
Regus Belgium SA
Belgium
100
Regus do Brasil Ltda
Brazil
100
Regus Business Service (Shenzen) Ltd
China
100
Regus Management ApS
Denmark
100
Regus Management (Finland) Oy
Finland
100
IWG France Management Sarl
France
100
Reus Deutschland GmbH
Germany
100
Regus Netherlands B.V
Netherlands
100
Regus CME Ireland Limited
Ireland
100
Regus Business Centres Limited
Israel
100
Regus Business Centres Italia S.r.l.
Italy
100
Regus Management Malaysia Sdn Bhd
Malaysia
100
Regus Management de Mexico, SA de CV
Mexico
100
IWG Management Services Morocco
Morocco
100
Regus New Zealand Management Ltd
New Zealand
100
Regus Business Centre Norge AS
Norway
100
IWG Management Sp z.o.o.
Poland
100
Regus Business Centre, Lda
Portugal
100
Regus Management Singapore Pte Ltd
Singapore
100
Regus Management España SL
Spain
100
IWG Management (Sweden) AB
Sweden
100
Avanta Managed Offices Ltd
United Kingdom
100
Basepoint Centres Limited
United Kingdom
100
Green (Topco) Limited
United Kingdom
100
HQ Global Workplaces LLC
United States
100
RGN National Business Centre LLC
United States
100
RB Centres LLC
United States
100
Regus Management Group LLC
United States
100
Management companies
100
RGN Management Limited Partnership
Canada
100
Regus Service Centre Philippines B.V.
Philippines
100
Franchise International GmbH
Switzerland
100
Pathway IP II GmbH
Switzerland
100
Regus Global Management Centre SA
Switzerland
100
Regus Group Services Ltd
United Kingdom
100
IW Group Services (UK) Ltd
United Kingdom
100
Regus Management Group LLC
United States
100
Holding and finance companies
100
IWG Enterprise Sarl
Luxembourg
100
IWG Group Holdings Sarl
Luxembourg
100
IWG International Holdings Sarl
Luxembourg
100
Ibiza Holdings Limited.
Jersey
100
Global Platform Services GmbH
Switzerland
100
Regus Group Limited
United Kingdom
100
Regus Corporation
United States
100
Ibiza Finance Limited.
Jersey
100
Genesis Finance GmbH
Switzerland
100
Pathway Finance GmbH
Switzerland
100
Pathway Finance EUR 2 GmbH
Switzerland
100
Pathway Finance USD 2 GmbH
Switzerland
100
IWG US Finance LLC
United States
100
Note 15. Subsequent Events
The Company evaluated subsequent events through 19 August 2025, which is the date the Condensed Consolidated Statements were available to be issued.
Statement of directors' responsibilities
For the six months ended 30 June 2025
The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure 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 Entity'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 either intend to liquidate the Entity 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 as they determine is necessary to enable the preparation of the condensed set of financial statements that 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 financial report of International Workplace Group plc for the six months ended 30 June 2025 ("the interim financial information") which comprises the Condensed Consolidated Statements of Operations, the Condensed Consolidated Statements of Comprehensive Income (Loss), the Condensed Consolidated Balance Sheets, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Statement of Cash Flows and a summary of significant accounting policies and other explanatory notes, have been presented and prepared in accordance with US GAAP 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 financial information included on the Entity's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
On behalf of the board
Mark Dixon
Charlie Steel
Chief Executive Officer
Chief Financial Officer
19 August 2025
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 Entity to review the Entity's condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income, the condensed consolidated balance sheets, the condensed consolidated statements of changes in equity, the condensed consolidated statement of cash 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 condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects in accordance with U.S. Generally Accepted Accounting Principles (US GAAP).
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 Entity ("ISRE (UK) 2410") issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have 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 Entity to cease to continue as a going concern, and the above conclusions are not a guarantee that the Entity will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.
The directors are responsible for preparing the condensed set of consolidated financial statements included in the half-yearly financial report in accordance with US GAAP.
The annual financial statements of the Entity for the year ended 31 December 2024 are prepared in accordance with UK-adopted international accounting standards.
In preparing the condensed set of consolidated financial statements, the directors are responsible for assessing the Entity'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 either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to the Entity a conclusion on the condensed set of consolidated financial 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 are less 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 Entity in accordance with the terms of our engagement to assist the Entity in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Entity those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Entity for our review work, for this report, or for the conclusions we have reached.
KPMG
18 August 2025
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 under US GAAP which represents the generally accepted accounting principles (GAAP) under which the Company reports. The Company believes that the presentation of these APMs provides useful supplemental information, when viewed in conjunction with our US GAAP financial information as follows:
· 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 accordance with GAAP. The APMs can have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. These performance measures may not be calculated uniformly by all companies and therefore may not be directly comparable with similarly titled measures and disclosures of other companies.
Adjusted EBITDA:
Six months ended
$m
30 June 2025
30 June 2024
Operating income
Condensed Consolidated Statements of Operations
68
68
Add back:
182
171
Depreciation and amortisation
140
139
Depreciation of landlord contributions on leases
42
32
Adjusting items:
12
8
Impairment of long-lived assets
Condensed Consolidated Statements of Operations
17
34
(Gain) loss on disposal of long-lived assets and other closure related (credits) costs
(5)
(26)
Adjusted EBITDA
262
247
Net Debt:
As of
$m
30 June 2025
31 December 2024
Cash and cash equivalents
Condensed Consolidated Balance Sheets
(446)
(137)
Short-term debt, net
222
212
Long-term debt, net
1,061
633
Cash flow hedges
Note 9, Fair Value Measurements
(83)
21
Net Debt
754
729
Adjusted gross profit:
Networks
$m
Company-owned
Managed & Franchised
Digital and Professional Services
Total
30 June 2025
Gross profit
345
50
86
481
Landlord contributions on leases included in depreciation and amortisation
30
-
12
42
Adjusted gross profit
375
50
98
523
30 June 2024
Gross profit
314
35
122
471
Landlord contributions on leases included in depreciation and amortisation
32
-
-
32
Adjusted gross profit
346
35
122
503
Glossary:
Adjusted EBITDA
EBITDA excluding adjusting items.
Adjusted gross profit
Gross profit excluding adjusting items
Adjusting items
Adjusting items reflects the impact of adjustments, both incomes and costs not indicative of the underlying performance, which are considered to be significant in nature and/or size.
Capital-light
Business centres operating under a variable lease, joint-venture, managed and franchised arrangements.
Company-owned
Locations the Company operates directly and recognises full revenue and costs of the centre.
Digital and Professional Services
Services and technology provided to customers and landlords.
EBIT
Earnings before interest and tax.
EBITDA
Earnings before interest, tax, depreciation and amortisation.
EPS
Earnings per share.
Expansions
A general term which includes new business centres established by IWG and acquired centres in the year.
Growth capital expenditure
Capital expenditure in respect of centres which opened during the current or prior financial period and technology spend supporting operational growth.
Growth-related landlord contributions (leased centres)
Landlord contributions received in respect of leased centres which opened during the current or prior financial period.
IWG Network
Company-owned and Managed & Franchised comprises the IWG Network.
Maintenance capital expenditure (leased centres)
Capital expenditure in respect of centres owned for a full 12-month period prior to the start of the financial year and operated throughout the current financial year, which therefore have a full-year comparative.
Maintenance-related landlord contributions (leased centres)
Landlord contributions received in respect of centres leased for a full 12-month period prior to the start of the financial year and operated throughout the current financial year, which therefore have a full year‑ comparative.
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.
Net debt
Operations cash and cash equivalents, adjusted for both short and long-term debt, and the portion of derivatives that hedge the principal component of debt. Net debt excludes lease liabilities.
Occupancy
Occupied square metres divided by total inventory square metres expressed as a percentage where contracts are in place with a minimum term of one month.
Rooms
The yearly average total business centre square meters divided by a standard room of seven square meters.
RevPAR
Monthly average IWG Network revenue, divided by the average available number of rooms, excluding rooms opened and closed in the period
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.
TSR
Total shareholder return
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