International Workplace Group (IWG) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational results in 2025, with strategic execution, cash generation, and capital-light growth driving expansion despite global volatility and industry changes.

• Expanded network to over 1 million rooms and 4,600+ centers across 120+ countries, with 5,979 locations open and 1,370 in the pipeline by year-end.

• Maintained market leadership, with a network larger than the next 10 competitors combined and rapid expansion in both enterprise and SME segments.

• Continued transition to a capital-light, flexible business model, emphasizing managed and franchised operations and leveraging mega trends like AI and remote work.

• Returned $144 million to shareholders through $14 million in dividends and a fully executed $130 million buyback program.

Financial highlights

• System-wide revenue reached a record $4.5 billion, up 4% year-over-year; Managed & Franchised revenue up 28%.

• Adjusted EBITDA reached $531 million, up 6% from 2024 and within guidance.

• Adjusted gross profit increased 9% to over $1 billion; Company-owned segment margin rose to 26% from 25%.

• Recurring management fees rose 140% to $45 million.

• Net debt reduced to $715 million, with leverage falling from 1.45x to 1.35x.

Outlook and guidance

• 2026 adjusted EBITDA guidance set at $585 million–$625 million, driven by revenue growth, not cost reduction.

• Recurring management fees expected to reach $80 million in 2026 and $125 million in 2027.

• Medium-term target remains at least $1 billion EBITDA, with incremental EBITDA translating to free cash flow.

• Net debt expected to rise slightly in 2026, with continued capital returns and investment-grade credit rating maintained.

• $100 million share buyback announced for 2026.