International Workplace Group (IWG) Q3 2025 TU earnings summary

Executive summary

• Achieved system-wide revenue of $1.1 billion in Q3 2025, up 4% year over year, with strong network growth and higher occupancy expected to continue into 2026.

• Managed and franchised segment drove 36% system-wide revenue growth and 83% increase in recurring management fees year over year.

• Opened 62% more centers on a net basis compared to Q3 2024, with 335 new locations signed in Q3 and 831 in the first nine months.

• Over $100 million returned to shareholders in 2025, with ongoing share buybacks.

• Focused investment in enterprise customer growth and network scale is driving increased occupancy and revenue.

Financial highlights

• Q3 2025 system-wide revenue: $1,125 million, up 4% year over year.

• Managed and franchised system revenue grew 36% year over year in Q3 and 29% year to date to $574 million.

• Recurring management fee income rose 83% year over year to $11 million in Q3, totaling $30 million for the first nine months.

• Company-owned division revenue was flat year over year, with 1% growth in open center revenue.

• Digital and professional services Q3 revenue was $106 million, down 8% year over year.

Outlook and guidance

• Guidance for 2025 reaffirmed: higher center growth and signings than 2024, no change to adjusted EBITDA or net debt guidance.

• Share buyback of at least $130 million and free cash flow to shareholders of at least $140 million in 2025.

• On track to deliver at least $1 billion EBITDA in the medium term.

• Expect further acceleration in system revenue growth into 2026.