Thursday, 13 November 2025
International Workplace Group (IWG), the world’s largest hybrid workspace operator, reported steady network expansion in the third quarter of 2025, supported by strong growth in its Managed & Franchised segment and continued improvements in occupancy across its company-owned centres. The company generated $1.1 billion in system-wide revenue, up 4% year-on-year, with performance underpinned by a capital-light expansion strategy and rising demand for flexible workspace.
The Managed & Franchised portfolio delivered the strongest contribution, with 36% system-wide revenue growth and an 83% increase in recurring management fees, reflecting the acceleration in new signings and openings following increased H1 investment. The group signed 335 new centre deals during the quarter and opened 215 locations, representing year-on-year growth of more than 40% in both categories. By the end of September, IWG operated 245,000 rooms and 1,519 centres across its managed and franchised network.
Company-owned operations remained broadly stable, recording $806 million in revenue, in line with Q3 2024. Occupancy improvements from the first half of the year continued to feed into performance, with management expecting these trends to support revenue growth into 2026. RevPAR softened slightly by 3%, consistent with the company’s strategy to prioritise occupancy gains before pricing adjustments.
Digital & Professional Services reported revenue of $106 million, an 8% decline year-on-year, though underlying revenue remained stable after adjusting for an exited contract.
The group continued to return capital to shareholders, with more than $100 million distributed year-to-date. Net financial debt rose to $813 million, driven by a share repurchase of 16.7 million shares for $47 million during the quarter. IWG confirmed that $173 million of its 2027 convertible bond will be repaid on 9 December, leaving no material debt maturities until 2029.
Management reiterated full-year 2025 guidance, including expectations for higher centre growth than in 2024, stable adjusted EBITDA and net debt forecasts, and continued commitment to achieving at least $1 billion in medium-term EBITDA. The company will outline its updated strategic framework at an Investor Day in New York on 4 December.
Mark Dixon, Chief Executive of IWG, said the quarter’s results demonstrate the strength of the group’s hybrid operating model. “The incremental investment we have made in our Managed & Franchised segment has already led to an acceleration in the number of locations we have opened and added to the pipeline,” he said. “The evolution of occupancy and pricing sets us up well for further growth in the remainder of the year and into 2026.”
Photo: Mark Dixon, Chief Executive of IWG
