International Workplace Group (IWG) Trading Update summary

Network and business growth

• Added more locations in the past 12 months than several competitors combined, expanding network and platform for customers and partners.

• Signed 6% more locations and opened 16% more in Q1 2025 compared to 2024, with over 202,000 rooms open and 192,000 more signed.

• 224 new signings and 165 openings in Q1 2025, both higher than the prior year.

• Network growth is increasingly balanced between the U.S., Europe, and Asia, with the U.S. still leading but international momentum rising.

• Company-owned centers saw 3% revenue growth from open centers, with a focus on margin improvement and low CapEx contracts.

Financial performance and capital allocation

• System-wide revenue reached $1.057 billion in Q1 2025, up 2% year-over-year.

• Managed and franchised business delivered 23% system revenue growth and up to 44% fee income growth.

• Net debt reduced by $83 million year-over-year to $708 million as of March 31, 2025.

• Share buyback program increased from $50 million to $100 million, with $10 million in shares and £1 million ($23 million) of 2027 convertible bonds repurchased.

• Pre-IFRS 16 EBITDA guidance for 2025 reiterated at $580–$620 million, with a medium-term target of $1 billion.

Market trends and customer demand

• Shift toward flexible, capital-light workspace solutions continues, driven by demand for reduced commuting and increased worker productivity.

• Companies seek to avoid long-term liabilities and prefer rentalized, flexible workspace arrangements.

• Record inquiries and sales in March, with lead indicators at all-time highs, especially in the U.S.

• Owners of buildings increasingly seek flexible options to generate cash flow, supporting market potential and network expansion.

• Digital and professional services saw underlying revenue growth of 2%, with consulting and app-based services gaining traction.