factors include, but are not limited to, the Companys ability to refinance, extend, restructure or repay near and intermediate term debt, its indebtedness, its ability to raise capital
through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, its liquidity demands, and economic conditions. The Company discusses these and other risks and uncertainties in its annual and
quarterly periodic reports filed with the U.S. Securities and Exchange Commission. The Company may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update or revise these forward-looking statements,
whether as a result of new information, future developments, or otherwise.
Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the United
States (GAAP), including Adjusted EBITDA, free cash flow and Adjusted EBITDA margin (including on a forward-looking basis). These financial measures are not measures of financial performance in accordance with GAAP and may exclude items
that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to net loss or other measures of profitability, liquidity or performance under GAAP. You
should be aware that WeWorks presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. WeWork believes that these
non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about WeWork. WeWorks management uses forward-looking non-GAAP measures to evaluate WeWorks projected financials and operating performance. Additionally, to the extent that forward-looking non-GAAP financial measures are
provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such reconciliations.
NON-GAAP DEFINITIONS:
Adjusted Earnings Before Interest Expense, Income Tax, Depreciation, and Amortization (Adjusted EBITDA)
We supplement our GAAP results by evaluating Adjusted EBITDA, a non-GAAP measure. We define Adjusted EBITDA
as net loss before income tax (benefit) provision, interest and other (income) expense, depreciation and amortization expense, stock-based compensation expense, expense related to stock-based payments for services rendered by consultants, income or
expense relating to the changes in fair value of assets and liabilities remeasured to fair value on a recurring basis, expense related to costs associated with mergers, acquisitions, divestitures and capital raising activities, legal, tax and
regulatory reserves or settlements, significant legal costs incurred in connection with the Companys defense against regulatory investigations and litigation regarding the Companys 2019 cancelled initial public offering and the related
execution of the SoftBank Transactions, net of any insurance or other recoveries, significant non-ordinary course asset impairment charges and, to the extent applicable, any impact of discontinued operations,
restructuring charges, and other gains and losses on operating assets.