International Workplace Group (IWG) CMD 2025 summary

Strategic direction and business model evolution

• Maintains leadership in flexible workspace, operating in over 120 countries with more than 1 million rooms open and 228,000 in the pipeline as of September 2025.

• Accelerated shift to a capital-light, managed and franchised model, now representing 65% of locations, up from 19% in H1 2023.

• Multi-brand, multi-format approach targets all customer segments and price points, expanding product and service range and driving higher conversion rates.

• Integration of digital and professional services has created a unified platform, enhancing product range and operational efficiency.

• Strategy remains unchanged: focus on network growth, delivery, fee income, and cash generation, leveraging megatrends in hybrid work.

Financial performance and guidance

• Medium-term EBITDA target reaffirmed at $1 billion, with 2026 guidance of $585m–$625m and at least 4% revenue growth in the company-owned division.

• Recurring management fees and system revenues from managed and franchised operations are growing rapidly, with recurring management fees expected to reach $45m in 2025, up 4.5x from 2023.

• Company-owned business targets a 30% gross margin, driven by higher occupancy, pricing, and selective cost efficiencies.

• CapEx remains tightly controlled, with maintenance CapEx at $100m and depreciation expected to fall significantly after 2027 as legacy growth CapEx is fully depreciated by 2029.

• Over $150m returned to shareholders since December 2023 via buybacks and dividends, with the buyback program extended into 2026.

Operational execution and market opportunity

• Network expansion is accelerating, with over 1,500 new locations annualized and a robust pipeline into 2026, mostly capital-light.

• Managed & Franchised division doubled open rooms to 247,000 between Dec 2023 and June 2025; pipeline increases this by 90%.

• North America leads in revenue growth and margin performance, aiming to double its network in two years and expand into every county/city with 20,000+ population.

• Enhanced supply chain, technology, and centralized support have kept costs flat despite rapid growth.

• Diverse partner base, including major institutions, is expanding, with significant opportunity to deepen multi-site relationships.