International Workplace Group Plc · LSE:IWG
International Workplace — H1 2025 Earnings Presentation
33 slides from International Workplace's earnings presentation, Aug 19, 2025
Slide 1: Financial results for the six months ending 30.6.2025
Financial results for the six months ending 30.6.2025 19 August 2025
Slide 2: Caution statement
Caution statement 2025 Half Year Results 2 No representations or warranties, express or implied are given in, or in respect of, this presentation or any further information supplied. In no circumstances, to the fullest extent This presentation may contain forward-looking The Company undertakes no ob
Slide 3: Mark Dixon, Founder & Chief Executive Officer
2025 Half Year Results 3 Mark Dixon Founder & Chief Executive Officer
Slide 4: IWG is delivering
IWG is delivering 4 The strategy w e set out at the December 2023 Investor Day was simple “ On track to deliver $1bn of EBITDA in the medium-term” Group system-wide Cashflow is guided to be We are buying back US GAAP has been revenue has grown to a up 40% in 2025 $130m of stock this year implemented
Slide 5: The Plan
The Plan 2025 Half Year Results 5 We set out a clear plan at the Investor Day in December 2023 and we are delivering it What we said1 What we are delivering • Since the end of 2022, we have increased our centre location count by 27% to 4,260 and now have 1 “We will grow our coverage and network” mil
Slide 6: We have the largest network by far, and it's getting much larger
We have the largest network by far, 2025 Half Year Results 6 and it’s getting much larger 5, 5052 1m open rooms1 121 338 # of locations countries in the network new locations opened in H1 496 new locations signed in H1 1 At 30 June 2025 0 1,000 2,000 3,000 4,000 5,000 2 at 30 June 2025, and Ii nclud
Slide 7: We also have a tremendous growth opportunity in our market
We also have a tremendous growth 2025 Half Year Results 7 Total addressable market opportunity in our market Market cap $3. 4trn $2trn $5. 7trn $83bn $3bn $195bn Sources: Bloomber g: 30/06/2025, TAM: ai rbnb S-1 Filing, Ub er S-1 Filing, vario us academic stud ies
Slide 8: Why customers choose us
Why customers choose us 2025 Half Year Results 8 Many companies now feeling Two new centres opening From one hour to five years No capex the benefits of platform every day in 2025 working Continually growing coverage Flexibility and Transition from Continued growth in companies and network value-for
Slide 9: Why our landlord partners choose us
Why our landlord partners choose us 2025 Half Year Results 9 Concept 36 years of experience has 2nd largest 1 million rooms in Regus, Spaces, 9m connected honed processes furniture buyer HQ and many devices and • Assets operated by IWG under an IWG brand for optimal globally 121 countries more growi
Slide 10: Managed & Franchised
Managed & 2025 Half Year Results 10 1 Franchised Growth accelerating • Very strong year in 2025 so far, delivering as expected +2.6x • Recurring management fee revenue +2.6x vs H1 2024 • Expect growth to accelerate further in 2026 as we invest more • Both open footprint and signings pipeline have gr
Slide 11: Company-owned
Company- 2025 Half Year Results 11 2 owned Margins expanding toward target • At the investor day, we said we would increase Company- owned margins to 30% and we are on track to deliver • Recent focus has been to lever price to drive occupancy increases 116bps Underlying increase in o Long-term1 occu
Slide 12: Digital & Professional Services
Digital & 2025 Half Year Results 12 3 Professional Services Improvement in underlying revenue • Underlying revenue growth of 6% 1 year-on-year • New divisional management structure allows for better alignment with wider enterprise strategy, which is starting to see customer wins • Refocused and see
Slide 13: Overheads
Overheads 2025 Half Year Results 13 Core – down. Discretionary – additional investment • We said we will continue to reduce core overheads – and this is what we have been doing Core Overheads Discretionary Overheads 240 100 • We will continue investing in discretionary overheads to drive 90 220 grow
Slide 14: Cash is king
Cash is king 2025 Half Year Results 14 Cash returned to shareholders with flat Net Debt / EBITDA • The strategy to grow the business is being delivered • At far less capital intensity than historically was the case • Resulting in far more of the cashflows being generated being available to sharehold
Slide 15: H1 Summary
H1 Summary 2025 Half Year Results 15 • We are delivering on our plans • Happy with the performance in H1 2025 • The strategy to build rapid coverage and network continues • In the last 6 months, we have opened more locations than in the first decade of our existence $59m • Resulting in strong financ
Slide 16: Financial Performance
IWG 2025 Half Year Results 16 Financial Performance Charlie Steel Chief Financial Officer
Slide 17: IWG is delivering both growth and cashflow
IWG is delivering both growth and cashflow 2025 Half Year Results 17 1. Network expansion 2. All three divisions 3. Operational performance driving driving revenue performing cashflow and shareholder returns • Highest-ever systemwide revenue • Managed & Franchised fee income of • $59m returned to sh
Slide 18: We continue to simplify the business foundations
We continue to simplify 2025 Half Year Results 18 the business foundations Operational • US GAAP reporting standard implemented • In second year of USD reporting • Multi-million dollar finance transformation programme o New ERP system – one accounting system globally o Continued investment in automa
Slide 19: Managed & Franchised
Managed & 2025 Half Year Results 19 Managed partnerships room evolution through H1 2025 1 Franchised 500 450 186 406 400 +19% 350 Rooms (‘000) 300 250 35 220 Unprecedented growth continues 185 200 150 • Total fees +43% from new rooms opening and existing rooms maturing 100 • Recurring management fee
Slide 20: Managed & Franchised (continued)
Managed & Franchised 2025 Half Year Results 20 1 (continued) Managed Partnership RevPAR evolving as expected RevPA R evolution • RevPAR of new Managed Partnerships evolving in line with 300 previous cohorts but slightly slower than the original 18 month expectations 250 • Forecasts remain in line du
Slide 21: Managed & Franchised (continued)
Managed & 2025 Half Year Results 21 1 Franchised (continued) Estimated number of Managed & Franchised rooms open 450 399 400 350 +42% 333 275 Rooms open (000) 300 250 220 185 200 • At the end of H1 2025, 220k Managed & Franchised rooms were 154 open, and 186k in the pipeline. 150 100 o When all room
Slide 22: Company-owned
Company- 2025 Half Year Results 22 2 owned Gross profi t margin (% ) 24% 24% 22% 21% 20% Gross margin continuing to expand 18% 16% 14% • Our plan is to expand our margins, and this is what we are delivering. In the first 12% half, margins have expanded by 116bps year-on-year on an underlying basis 1
Slide 23: Digital & Professional Services
Digital & 2025 Half Year Results 23 3 Professional Services • Underlying revenue growth of 6% 1 year-over-year • New divisional management structure allows for better Underlying revenue growth alignment with wider enterprise strategy, which is starting to see customer wins • Refocused division which
Slide 24: Operational Cashflow Overview
Operational Cashflow Overview 2025 Half Year Results 24 Digital & Professional • Rapid Managed & Franchised system revenue growth $m Company ow ned Managed & Franchised Services leading to significant growth in fee income Divisional Free Cashflow 286 50 98 • Margins in Company-owned continue to expa
Slide 25: Managed & Franchised system revenue and core overhead control driving EBITDA
Managed & Franchised system revenue and 2025 Half Year Results 25 core overhead control driving EBITDA 290 23 15 270 17 1 262 (19) (21) 250 247 230 210 190 170 150 Company Owned Fee Income Core H1'25 Adj EBITDA Revenue (Open Centres) Overheads H1'24 Adj EBITDA Company Owned D&PS Discretionary Costs
Slide 26: Summary P&L
Summary P&L 2025 Half Year Results 26 $m H1 2025 H1 2024 • Record system-wide revenue of $2.2bn driven by 26% System- w ide revenue 2, 162 2, 123 growth in Managed & Franchised system revenue Group revenue 1,850 1,871 • Reduction in cost of sales through cost discipline and Cost of Sales 1,369 1,400
Slide 27: Total capex continues to decline
Total capex continues to decline 2025 Half Year Results 27 Capital Managed Digital & Digital & • Total capex continues to decline in line Company H1 Managed & Company Change with our strategy to grow in a more expenditure - & Professional Professional H1 2024 Owned 2025 Franchised Owned ( %) $m Fran
Slide 28: Continued cashflow generation
Continued cashflow generation 2025 Half Year Results 28 $m H1 25 H1 24 • Cashflow before corporate activities expected to grow 40% in 2025 vs 2024 A djusted EBIT DA 1 262 247 • 33% growth in cashflow pre corporate activities year-on- Working capital (excl. amortisation of landlord contributions on l
Slide 29: Net Debt / EBITDA stable
Net Debt / EBITDA stable 2025 Half Year Results 29 Delivering capital returns without increasing leverage ND/EBITDA 1 = 1.5x ND/EBITDA 2 = 1.5x 729 50 9 754 48 709 5 695 14 643 10 8 (5) 44 (14) 35 (179) Discretionary Non-cash & $66m financing costs $14m Shareholder returns $59m 1 Net Debt as of 31st
Slide 30: How are we exposed to currency moves
How are we exposed 2025 Half Year Results 30 to currency moves Sensitivity impact of 1% devaluation in USD • Movements in USD are broadly neutral for the Group as Full Year 2025 overheads offset gross profit gains $m Revenue Centre Costs Gross Profit Overhead Total • Given our geographical exposure
Slide 31: 2025 Cashflow guidance
2025 Cashflow guidance 2025 Half Year Results 31 Cashflow before corporate activities guided to be at least $140m in 2025 17 140 7 15 (4) 57 57 15 48 (24) Annual b onus H1 reported Cash timing impact Add iti onal interest Total cashflow before Other incremental paid in H1 cashflow before recovered i
Slide 32: Outlook
Outlook 2025 Half Year Results 32 More growth, cashflow, buybacks FY 2025: EBITDA, cashflow and net debt • Adjusted EBITDA1 expected to be in the already guided range of $525m to $565m, but likely to be towards the lower end of the range due to further investment in growth in the successful managed
Slide 33: Thank you
Thank you Q&A
International Workplace Group — H1 2025 Earnings Presentation on 6ix