IWG Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-11T11:15:00Z Comparison mode: maximal Scorecard contract: v1 Reporting period: the Quartr event identity for this release is Q2 2026; the company reports on a half-year cycle and every figure below is for the six months ended 30 June 2026 unless stated otherwise. Source status: release=available (interim report 4000642, 44 pages; pages 1-8 read, covering the highlights, segmental summaries, CEO and CFO reviews, group income statement, net debt bridge, guidance and RevPAR tables) | financials=interim report only (slides 4001166 not read) | transcript=available and complete (analyst presentation 2026-08-11 08:00Z)

Consensus scorecard

• Consensus scorecard, bulleted equivalent:
  • Revenue / consolidated group revenue: Quartr actual $1,970m against API Ninjas consensus $1,893m - Beat +$77m, +4.1%.
  • EPS / adjusted EPS attributable to shareholders: Quartr actual $0.046 (4.6 cents as printed) against API Ninjas consensus $0.066 - Miss −$0.020, −30.3%.

Reported results and guidance

• Group income statement, bulleted equivalent (H1 2026 vs H1 2025, $m): system-wide revenue $2,400 vs $2,162 (+11.0%); group revenue $1,970 vs $1,850 (+6.5%); cost of sales $(1,429) vs $(1,369); gross profit $541 vs $481 (+12.5%) at a 27.5% margin against 26%; selling, general and administrative expenses $(315) vs $(250) (+26.0%); allowance for credit losses $7 vs $(11); depreciation and amortisation before landlord contributions $(184) vs $(182); depreciation of landlord contributions $28 vs $42; impairments, disposals and closures $(39) vs $(12); operating income $38 vs $68 (−44.1%); interest expense $(51) vs $(40); other finance costs $(7) vs $(16); loss before tax $(20) against profit of $12; taxation and equity method investments $22 vs $(4); net income $2 vs $8; net income attributable to non-controlling interests nil vs $3; net income attributable to the Company $2 vs $11. Basic EPS from continuing operations and attributable to shareholders was 0.2 cents against 1.1 cents. Adjusted EPS from continuing operations was 4.6 cents against 2.3 cents and attributable to shareholders 4.6 cents against 2.2 cents. Adjusted EBITDA was $265m against $262m, cashflow before corporate activities was $(55)m against $51m, and net debt was $880m against $754m.

• Managed & Franchised, bulleted equivalent (H1 2026 vs H1 2025): system (partner) revenue $535m vs $392m (+36.5%); segment revenue $105m vs $80m (+31.2%); gross profit $90m vs $61m (+47.5%); fee revenue $80m vs $50m (+60.0%); recurring managed fee income $35m vs $19m (+84.2%); blended RevPAR $249 vs $328 (−24.1%); Managed RevPAR $164 vs $180 (−8.9%), or $232 excluding 2025 and 2026 openings; Franchised and JV RevPAR $498 vs $505 (−1.4%); rooms open 358,000 vs 248,000 (+44.4%); centres open 2,230 vs 1,507 (+48.0%); rooms added in the period 57,000 vs 45,000; centres opened in the period 395 vs 309; rooms in pipeline 257,000 vs 196,000 (+31.1%); new centre deals signed 711 vs 413 (+72.2%).

• Company-owned, bulleted equivalent (H1 2026 vs H1 2025): revenue $1,865m vs $1,770m (+5.4%); RevPAR $407 vs $367 (+10.9%); rooms open 769,000 vs 750,000 (+2.5%); centres open 2,744 vs 2,753; centres opened in the period 30 vs 29; adjusted gross profit $479m vs $462m (+3.7%) at an unchanged 26% margin.

• Guidance, bulleted equivalent: IWG states expectations for 2026 remain unchanged and reiterates the guidance communicated at the 12 May 2026 Q1 trading update, namely adjusted 2026 EBITDA of $585m to $625m, Company-owned revenue growth of at least 4%, recurring management fee income of $80m, and maintenance of an investment grade credit rating with net debt to EBITDA leverage finishing 2026 slightly elevated against December 2025. It adds that second-half cash flow is expected to be ahead of the prior year, and reiterates medium-term adjusted EBITDA guidance of at least $1bn. It has announced $150m of share buybacks so far in 2026 against $130m delivered in 2025, and declares an interim dividend of 0.48 cents per share with a record date of 9 October 2026 and payment date of 3 November 2026.

• Balance sheet and financing: net debt was $880m at 30 June 2026 against $858m at Q1 2026 and $715m at FY 2025. The components are cash and cash equivalents $(372)m against $(158)m and $(302)m; 2027 0.5% convertible bonds $6m in all three periods; 2030 EUR 625m 6.5% corporate bonds $660m, $659m and $658m; 2032 EUR 500m 5.125% corporate bonds $570m, $333m and $333m; and other $16m, $18m and $20m. The 2032 Eurobond was increased to EUR 500m from EUR 300m and the revolving credit facility was renewed and extended in July 2026, increasing its size by $280m to a $1bn facility and its duration to 2031 from 2029. Bond coupons are fixed and the bonds are hedged into US dollars, so the company states it has no interest rate or FX exposure on them.

Key bullish aspects

• Group revenue of $1,970m beat the API Ninjas consensus of $1,893m by $77m, or 4.1%.
• Group revenue rose 6.5% to a record $1,970m and system-wide revenue rose 11.0% to a record $2,400m, with gross profit up 12.5% to $541m and gross margin up 1.5 points to 27.5%.
• The capital-light Managed & Franchised segment is scaling fast: system revenue up 36.5% to $535m, fee revenue up 60.0% to $80m, and recurring management fees up 84.2% to $35m. The segment now represents 22% of system revenue against 18% and 32% of all open rooms against 25%.
• Network expansion accelerated on every measure: 728 group signings against 496, 425 openings against 338, Managed & Franchised signings up 72.2% to 711 and centres open up 48.0% to 2,230. Rooms open in that segment rose 44.4% to 358,000.
• The pipeline is 257,000 signed but unopened rooms, up 31.1%, which the company says would produce over $2bn of annual system-wide revenue once open and mature. That figure is stated after removing signed rooms that have not opened within two years.
• Company-owned RevPAR rose 10.9% to $407 on the strategy of removing promotional activity at renewals, described as stronger pricing on a higher occupancy base, and Company-owned revenue growth accelerated to 5.4%, ahead of the at-least-4% full-year guide.
• Managed RevPAR excluding 2025 and 2026 openings was $232 against a stated maturity target of $250, so the cohort that has had time to mature is tracking close to target.
• Full-year and medium-term EBITDA guidance were both reiterated, and the company says H2 cash flow will be ahead of the prior year with overheads reducing significantly in H2 on operational efficiency programmes.
• Financing was materially strengthened: the 2032 Eurobond increased to EUR 500m from EUR 300m, and in July the RCF was upsized $280m to $1bn and extended to 2031. The company states very little debt falls due before 2030 and that bonds are fixed-coupon and hedged into USD.
• Q2 cashflow before corporate activities and M&A recovered to approximately $36m after the Q1 accounts-payable distortion, and net debt was broadly flat in Q2 at a $22m increase despite $47m of buybacks, a $9m dividend and bolt-on M&A.
• Capital returns rose: $109m returned to 30 June ($100m of buybacks and $9m of dividends), 37,971,536 shares repurchased, the buyback programme raised to $150m on 30 June against $130m in all of 2025, and a 0.48 cent interim dividend under a stated progressive policy.
• Adjusted EPS attributable to shareholders more than doubled to 4.6 cents from 2.2 cents.

Key bearish aspects

• Adjusted EPS attributable to shareholders of $0.046 missed the API Ninjas consensus of $0.066 by $0.020, or 30.3%.
• Operating income fell 44.1% to $38m on 6.5% revenue growth, and the company swung to a pre-tax loss of $(20)m from a $12m profit a year earlier. Net income fell 75.0% to $2m and basic EPS fell to 0.2 cents from 1.1 cents.
• Adjusted EBITDA was essentially flat, up 1.1% to $265m against 6.5% revenue growth and 11.0% system-wide revenue growth, so none of the top-line growth reached the company's own headline profit measure. The full-year guide of $585m-$625m requires $320m-$360m in H2 against $265m delivered in H1, an implied H2 step-up of 21% to 36%.
• Selling, general and administrative expenses rose 26.0% to $315m, far ahead of revenue, and were the single largest driver of the operating income decline. The company frames this as deliberate investment, including a $10m increase in marketing to $32m.
• Impairments, disposals and closures rose to $(39)m from $(12)m, and depreciation of landlord contributions fell to $28m from $42m; those two items together account for a $41m adverse swing on their own.
• Cashflow before corporate activities swung to an outflow of $(55)m from an inflow of $51m. Net debt rose 16.7% year over year to $880m and is up $165m from $715m at December 2025.
• Interest expense rose 27.5% to $(51)m, and the 2032 Eurobond upsizing to EUR 500m at a 5.125% coupon adds further fixed interest cost.
• The gap between basic EPS of 0.2 cents and adjusted EPS of 4.6 cents is 4.4 cents, so the doubling of adjusted EPS rests almost entirely on adjusting items, and the release pages read do not itemize the bridge.
• Blended Managed & Franchised RevPAR fell 24.1% to $249, Managed RevPAR fell 8.9% to $164 and even Franchised and JV RevPAR fell 1.4% to $505. The company attributes the blended decline to immature new openings, but the mature-cohort figure of $232 is presented only for Managed, with no comparable prior-year mature figure.
• Company-owned centres open fell slightly to 2,744 from 2,753 and rooms open grew only 2.5%, so essentially all network growth is in the partner segment where IWG captures a fee rather than the revenue.
• IWG Network RevPAR, the whole-group measure, fell 0.8% to $357 from $360.
• Management says leverage will finish 2026 slightly elevated against December 2025, so the balance sheet is guided to end the year weaker than it started.

Key uncertainties

• The provider's EPS estimate of $0.066 is well above both the company's reported basic EPS of 0.2 cents and its adjusted EPS of 4.6 cents, and above the $0.037 the provider recorded as the full prior-year actual. The basis the estimate was compiled on is not established, which makes the size of the EPS miss less reliable than its direction.
• Adjusted EBITDA guidance of $585m-$625m is reiterated but implies an H2 that is 21% to 36% larger than H1. The release attributes this to overheads reducing significantly in H2, without quantifying the reduction or naming the specific efficiency programmes.
• The bridge from net income of $2m to adjusted EPS of 4.6 cents is not itemized on the pages read, so the composition and recurrence of the adjusting items is not established here.
• The claim that the 257,000-room pipeline will produce over $2bn of annual system-wide revenue depends on a maturity assumption the release does not date. The disclosed change to the pipeline definition, removing signed rooms unopened after two years, means the pipeline figure is not directly comparable to prior disclosures without knowing how many rooms were removed.
• Managed RevPAR at maturity is targeted at $250 and the mature cohort is at $232; the release does not say how long maturity takes or what share of the 358,000 open rooms are already mature.
• The Q1 net debt increase of $143m is attributed to automated supplier invoice software shortening payment days. Whether that is a permanent working-capital reset or a timing effect that reverses is not stated.
• Recent centre acquisitions are described as achieved at highly attractive valuations with minimal cash outflow and significant profitability potential expected in H2, but no purchase price, centre count, or expected contribution is disclosed.
• The taxation and equity method line swung to a $22m credit from a $(4)m charge on a pre-tax loss, and is the reason net income stayed positive. The release pages read do not explain the credit.
• Net income attributable to the Company of $11m in H1 2025 exceeds group net income of $8m with $3m attributed to non-controlling interests; the sign convention is reproduced as printed and the release does not annotate it.
• No revenue guidance is given at group level; the only revenue guide is Company-owned growth of at least 4%.

Market context

• API Ninjas price snapshot for IWGFF: $2.548 on OTC with volume of 38,500, timestamped 2026-08-11T10:20:53Z. IWGFF is a thinly traded US over-the-counter line, not the primary London listing, so this snapshot is not a reliable read on the market reaction to the release and none is characterized here. No snapshot was retrieved for the primary LSE listing.
• The results were released at approximately 06:00Z per the Quartr content date, ahead of a virtual analyst presentation at 9.00am UK time (08:00Z). The event is inside the due-event window on both the call clock and document availability.

Source limitations

• Every displayed actual comes from Quartr interim report document 4000642. Pages 1 through 8 of the 44-page document were read, covering the results highlights, the segmental summary tables, the CEO and CFO reviews, the group income statement, the net debt table, the guidance section and the RevPAR tables. Pages 9 through 44, which contain the condensed consolidated financial statements, notes and the adjusted-measure reconciliations, were not read; that gap is reflected in the uncertainties above rather than filled by estimate.
• The group income statement, segment tables and net debt table render as structured Markdown in the Quartr text layer and were reproduced as printed. The EPS block renders with wrapped rows; the four EPS lines were assigned by matching each figure to the corresponding statement in the segmental summary on page 1, which independently states adjusted EPS of 4.6 cents against 2.3 cents, and to the CFO review, which independently states system-wide revenue of $2.4bn, adjusted EBITDA of $265m, net debt of $880m and cash outflow before shareholder returns of $(55)m.
• Segment revenue foots to the group: Managed & Franchised segment revenue $105m plus Company-owned $1,865m equals group revenue of $1,970m; system revenue $535m plus $1,865m equals system-wide revenue of $2,400m. Both hold in the prior-year column as well, at $80m plus $1,770m equals $1,850m and $392m plus $1,770m equals $2,162m.
• CROSS-LISTING TICKER RESOLUTION, ACTION SUGGESTED FOR THE HUMAN OPERATOR: the Quartr primary ticker for this event is IWG, the London listing. API Ninjas returns no rows for IWG. The consensus used here comes from the API Ninjas row keyed IWGFF, the US over-the-counter line for the same ordinary shares. No currency or share-ratio conversion is involved: IWG plc reports in US dollars and IWGFF is an ordinary-share line, not a depositary receipt, so the estimates were used as published. Corroboration that the provider's IWGFF series is the same issuer and the same half-year reporting cadence: its 2025-08-19 row carries an actual revenue of $1,836,723,073 against the company's reported H1 2025 group revenue of $1,850m, and an actual EPS of $0.0107 against the company's reported H1 2025 basic EPS of 1.1 cents. config/listing-map.json has no IWG entry, so this row was assembled outside the configured resolve_cross_listing_estimates path; adding an IWG entry with api_ticker IWGFF, depositary_share_ratio 1 and USD as both currencies would put future IWG events on the supported path. Config writes are outside this task's boundary, so no edit was made.
• The API Ninjas row is dated 2026-08-11, which matches the Quartr event date exactly, and carries no fiscal_year or fiscal_quarter, so the exact ticker-and-date path is the one used and no fiscal-period conflict exists. The row carried no actual revenue or EPS, so no provider reconciliation diagnostics were available for this event.
• EPS BASIS AND A CAVEAT FOR THE HUMAN OPERATOR: adjusted EPS attributable to shareholders of 4.6 cents was selected as the displayed EPS actual because it is the company's headline non-GAAP per-share measure and the figure closest in magnitude to the provider's estimate. The provider's own historical actual series does NOT track that basis: its H1 2025 actual of $0.0107 matches the company's basic EPS of 1.1 cents, not the adjusted 2.2 to 2.3 cents. On the provider's apparent basic basis, the company's H1 2026 figure of 0.2 cents against the same $0.066 estimate would be a far larger miss of −97.0%. DIRECTION IS NOT BASIS-SENSITIVE - it is a miss on either basis - but the magnitude of −30.3% is the narrower of the two readings. Separately, the $0.066 estimate exceeds the $0.037 the provider recorded as the company's full prior-year actual, which leaves open that the estimate is compiled on a basis, or for a period, that this report cannot verify. Maximal mode publishes the labeled result with these reservations stated rather than leaving the row blank.
• API Ninjas supplied only the consensus estimates. Both scorecard variances were calculated locally as the Quartr actual less the API Ninjas estimate, divided by the absolute estimate.
• A complete non-live transcript already exists for this event; it was not read for this preliminary report. The post-call stage remains open and will carry this scorecard forward.