WeWork India Management (WEWORK) Q2 25/26 earnings summary

Executive summary

• Achieved record revenue and profitability in Q2 FY2026, marking the first quarter as a listed company and first-ever PAT positive under Indian GAAP and Ind AS, driven by strong demand and pricing discipline.

• Public listing completed in October 2025 on NSE and BSE, reflecting resilience and commitment to workspace innovation.

• Operates 70 centers across eight cities, with 7.7 million sq ft and 115,000 desks, and a strong expansion pipeline to 145,000 desks and 10 million sq ft.

• Enterprise clients account for 75% of business, with increasing membership tenure and over 50% of desk sales from existing members.

• Expanded digital revenue streams and launched the WeWork India app, enhancing member experience and digital engagement.

Financial highlights

• Q2 revenue reached INR 585.5 crore, up 7.3% quarter-over-quarter and 17.2% year-over-year; operational revenue at INR 574.7 crore, up 22.4% year-over-year.

• IGAP-equivalent EBITDA at INR 118.4 crore, up 45% quarter-over-quarter and 15.8% year-over-year; EBITDA margin expanded to 20.3%.

• PAT under IGAP at INR 39.3 crore, up 3.7x quarter-over-quarter and over 2x year-over-year; first-ever PAT positive under Indian GAAP at INR 6.4 crore.

• Operating cash flow at INR 375 crore, up 16% quarter-over-quarter and 11% year-over-year; free cash flow post-CAPEX improved to negative INR 14 crore.

• Net debt reduced to INR 311 crore from INR 529 crore last year; average borrowing cost down by 500 bps to 10.4%.

Outlook and guidance

• Capacity expected to reach 145,000 desks and 10 million sq ft by March, with 20,000-25,000 desk additions annually, targeting growth above industry average of 20%.

• Revenue growth guidance of over 20% for the full year, with EBITDA margins expected to remain above 20%.

• CAPEX expected at INR 100 crore per quarter, with annual spend aligning to desk additions and refurbishment needs.

• Net debt projected to approach zero by year-end.

• Positioned for continued growth as India's flex workspace market expands, with strong urbanization and enterprise demand.