International Workplace Group (IWG) Q1 2026 TU earnings summary

Executive summary

• System-wide revenue grew 9% year-over-year to $1.17 billion in Q1 2026, with group revenue up 4% to $958 million, despite macroeconomic and geopolitical uncertainty.

• Network expansion accelerated with a record 382 deals signed and 222 centers opened in Q1 2026, significantly higher than the prior year.

• Strong momentum in both capital-light managed/franchised and company-owned segments, making the business more predictable, cash generative, and resilient.

• Managed & Franchised fee income surged 70% year-over-year to $39 million, with recurring managed fee income up 80% to GBP 16 million.

• Over $75 million returned to shareholders in 2026, with more than $230 million returned since December 2023.

Financial highlights

• System-wide revenue reached $1.17 billion, up 9% year-over-year; group revenue was $958 million, up 4%.

• Managed and franchised system revenue grew 41% to $260 million; fee income up 70% year-over-year to $39 million.

• Recurring managed fee income rose 80% to GBP 16 million for Q1.

• Company-owned revenue increased 2% year-over-year to $906 million, with RevPAR up 6%.

• Net financial debt rose to $858 million at 31 March 2026, up from $721 million a year earlier.

Outlook and guidance

• Full-year guidance maintained: adjusted EBITDA of $585–$625 million, company-owned revenue growth of at least 4%, and recurring managed fee income of $80 million.

• Net debt expected to return to year-end 2025 levels by end of 2026 as working capital normalizes.

• Commitment to investment grade credit rating and proactive cost reduction measures amid macroeconomic uncertainty.

• Share buybacks totaling $100 million announced for 2026, with updates expected at H1 results.