International Workplace Group (IWG) announced its preliminary results for the year ended December 31, 2025, highlighting significant growth and strategic achievements. Here’s a summary of the key points
### **Financial Performance**
**System-wide Revenue Growth**Achieved the highest-ever system-wide revenue of $4.5 billion, a 4% increase from $4.3 billion in 2024.
**Adjusted EBITDA Growth**Record Adjusted EBITDA of $531 million, up 6% from $501 million in 2024.
**Record Openings**Opened 782 new centers, the highest ever, compared to 624 in 2024.
**Strong Balance Sheet**Net debt to Adjusted EBITDA ratio improved to 1.35x from 1.46x in 2024, with no refinancing requirements until 2029.
**Cashflow Growth**Cashflow before corporate activities increased by 60% to $162 million.
**Shareholder Returns**Returned $144 million to shareholders, including $14 million in dividends and $130 million in share buybacks. The 2026 buyback program was increased by $50 million to $100 million.
### **Segment Performance**
**Managed & Franchised Segment**
System-wide revenue grew by 28% to $876 million.
Total fee income increased by 60% to $126 million.
Recurring management fees grew 2.4x to $45 million.
Signed 1089 new locationsa 28% increasewith 731 openings.
**Company-Owned Segment**
Revenue remained stable at $3577 million.
Adjusted gross margin improved to 26% from 25% in 2024.
RevPAR was $340, down from $357 in 2024 due to strategic price reductions to drive occupancy.
### **Strategic Highlights**
**Network Expansion**: Added 1132 new center signingswith 99% being capital-lightand opened 782 centersincreasing the network to 4609 centers globally.
**Capital-Light Strategy**Continued focus on partnerships and franchising, reducing growth capex requirements and generating more free cash flow.
**Sustainability**Progressed on the Net Zero Transition Plan and committed to issuing a standalone Sustainability Report in 2026.
**Board Appointments**Strengthened the board with the appointment of Lázaro Campos as Senior Independent Director and Stephen Jennings as Chair of the Nomination Committee.
### **Outlook**
**2026 Guidance**Adjusted EBITDA of $585 million to $625 million, driven by revenue growth.
**Share Buybacks**Announced a second tranche of $50 million for the 2026 buyback program, totaling $100 million.
**Medium-Term Goal**Reaffirmed commitment to deliver at least $1 billion in EBITDA.
### **Management Commentary**
**Mark Dixon, CEO**Emphasized the success of the capital-light growth strategy, record network expansion, and the company’s position as a leader in the flexible workspace industry. Highlighted the transformative impact of technology and AI on the business.
**Charlie Steel, CFO**Noted the strong financial performance, balance sheet improvements, and the successful transition to US GAAP reporting.
### **Conclusion**
IWG’s 2025 results demonstrate robust growth, strategic execution, and a focus on shareholder value. The company is well-positioned to capitalize on the increasing demand for flexible and hybrid workspaces, supported by its global network, capital-light model, and technological advancements.
| Metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| System-wide Revenue | $4,453m | $4,297m | +3.6% |
| Group Revenue | $3,762m | $3,756m | +0.2% |
| Adjusted EBITDA | $531m | $501m | +6.0% |
| Operating Profit | $143m | $142m | +0.7% |
| Net Debt | $715m | $729m | -1.9% |
| Leverage (Net Debt / Adjusted EBITDA) | 1.35x | 1.46x | -7.5% |
| Cashflow before corporate activities | $162m | $101m | +60.4% |
| Capital Returned to Shareholders | $144m | N/A | N/A |
| Share Buyback Program (2026) | $100m | N/A | N/A |