International Workplace Group (IWG) H1 2025 earnings summary

Executive summary

• Record system-wide revenue of $2.2 billion in H1 2025, up 2% year-over-year, driven by network expansion and 26% growth in Managed & Franchised segment revenue.

• Adjusted EBITDA grew 6% year-over-year to $262 million, with margin expansion and cost discipline supporting profitability.

• $59 million returned to shareholders in H1 2025 via buybacks and dividends, 3.5x more than the prior five years combined.

• Network expanded to 4,260 locations and 1 million rooms, with 338 new centre openings and 27% growth in centre count since end of 2022.

• Interim dividend of $0.0045 per share announced, with a $130 million buyback planned for the year.

Financial highlights

• System-wide revenue up 2% to $2,162 million; group revenue at $1,850 million, with gross profit of $481 million and gross margin at 26%.

• Managed and franchised segment fee income up 43% to $50 million; recurring management fees 2.6x higher than H1 2024.

• Net income attributable to the company was $11 million, with basic EPS of 1.1¢.

• Free cash flow from business operations reached $106 million.

• Net debt to EBITDA held flat at 1.5x, with all debt fully hedged in US dollars.

Outlook and guidance

• Adjusted EBITDA for FY 2025 expected in the $525–$565 million range, likely at the lower end due to further investment.

• Cash flow before corporate activities expected to be at least $140 million for 2025, a 40% increase over prior guidance.

• Buyback program increased to $130 million for 2025, continuing into 2026.

• Confident in achieving at least $1 billion in EBITDA in the medium term, with 2026 expected to be a key year for growth.

• Net debt expected to remain roughly unchanged by year-end, with no refinancing needs until 2029.