International Workplace Group plc (LON:IWG), the world’s largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ, Signature, has issued its results for the six months ended 30 June 2025.
DELIVERING GROWTH AND OPERATIONAL CASHFLOWS SUPPORT INCREASED RETURNS TO SHAREHOLDERS
Delivering the Group’s growth, margin and cashflow strategy
• Highest-ever system-wide revenue of $2.2bn, 2% year-on-year growth vs $2.1bn at H1 2024
◦ 2.6x growth in recurring management fee revenue year-on-year
◦ 116bps increase in underlying Company-owned adjusted gross margin
◦ 6% underlying revenue growth in Digital & Professional Services and well established for delivery in 2026
◦ Core overheads flat, demonstrating operational leverage as we continue to invest in growth
• 6% Group Adjusted EBITDA growth to $262m (H1 2024: $247m)
• Strong balance sheet with no refinancing needs until 2029 and leverage remaining at 1.5x net debt / EBITDA
• $59m of capital returned to shareholders since March comprising dividends and buybacks, 3.5x more capital returned in 4 months vs the aggregate of the last 5 years
• Cashflow for FY 2025 expected to be up 40% to at least $140m
◦ Increase in the buyback programme for FY25 announced today to at least $130m
◦ Continuing our progressive dividend policy with an interim dividend of 0.45c per share
Summary financials and segment overview
| $m | H1 2025 | H1 2024 | |||||
| System-wide revenue | 2,162 | 2,123 | |||||
| Group revenue | 1,850 | 1,871 | |||||
| Adjusted EBITDA1 | 262 | 247 | |||||
| Operating profit | 68 | 68 | |||||
| Earnings per share (¢) | 1.1 | 0.9 | |||||
| Cashflow before corporate activities | 48 | 36 | |||||
| Net debt | 754 | 7292 | |||||
| 1. EBITDA excluding adjusting items and depreciation of landlord contributions on leases2. 31 December 2024 | |||||||
| Segmental Summary | |||||||
| $m | System Revenue | Segment Revenue | Adjusted gross profit | Maintenance Capex (net) | Growth Capex (net) | ||
| Managed & Franchised | 361 | 50 | 50 | n/a | n/a | ||
| Company-owned | 1,593 | 1,593 | 375 | 35 | 9 | ||
| Digital & Professional Services | 207 | 207 | 98 | – | 11 | ||
| Total in H1 2025 | 2,162 | 1,850 | 523 | 35 | 20 | ||
| Total in H1 2024 | 2,123 | 1,871 | 503 | 32 | 29 | ||
Managed & Franchised: increased system-wide revenue and fee income, driven by significant growth across our open network and signings pipeline
• 26% system-revenue growth year-over-year to $361m (H1 2024: $287m)
• 43% growth in total fee income to $50m (H1: 2024 $35m)
◦ 163% growth of recurring management fees to $19m (H1 2024: $7m)
• RevPAR in Managed Partnerships evolving as expected across cohorts
• Continued investment in the partnership sales team headcount of $15m has accelerated the development of our pipeline with 413 new locations signed in H1 2025 (H1 2024: 387)
• We continue to convert our pipeline into openings at pace with a further 37,400 gross rooms added to the network in H1 2025
• At the end of H1 2025, 220k rooms were open with a further 186k1 rooms that were signed not yet open. Once these rooms are all open and mature, they are expected to produce system-wide revenue of $1.4bn per year
| $m | H1 2025 | H1 2024 | Growth |
| System revenue | 361 | 287 | 26% |
| RevPAR ($) | 317 | 384 | (17)% |
| RevPAR – Managed | 178 | 217 | (18)% |
| RevPAR – Managed – excluding 2024 openings | 285 | n/a | n/a |
| RevPAR – Franchised & JVs | 502 | 488 | 3% |
| Rooms open | 220,000 | 154,000 | 43% |
| Centres open | 1,365 | 901 | 51% |
| Rooms opened in the period | 37,400 | 37,000 | 1% |
| Centres opened in the period | 262 | 247 | 6% |
| Rooms in pipeline3 | 186,000 | 151,000 | 23% |
| New centre deals signed | 413 | 387 | 7% |
| Fee income | 50 | 35 | 43% |
| Adjusted gross profit | 50 | 35 | 43% |
3. Signed rooms that have not been opened after 2 years have now been removed from the pipeline – this equated to 19,000 rooms removed at the end of H1 2025
Company-owned: continued margin expansion with focus on occupancy to translate into future revenue growth
• 1% growth in open-centre revenue
• Adjusted gross margin expansion of 210bps to 24% (H1 2024: 21%). Margins expanded due to open centre revenue growth combined with a reduction in centre costs, of which, 116bps of this expansion is recurring
• RevPAR for H1 2025 of $346 reduced 3% (H1 2024: $358) but higher occupancy driving more revenue capture opportunity through higher services revenue
• 240bps increase in occupancy over the past 12 months
• We continue to selectively add locations to our Company-owned network
◦ Further reduction in both centre-related net growth capex to $7m (H1 2024: $22m) and controlled net maintenance capex of $35m (H1 2024: $32m)
| $m | H1 2025 | H1 2024 | Change |
| Revenue | 1,593 | 1,613 | (1)% |
| Open Centre Revenue | 1,576 | 1,560 | 1% |
| RevPAR ($) | 346 | 358 | (3)% |
| Rooms open | 777,400 | 771,000 | 1% |
| Centres open | 2,895 | 2,850 | 2% |
| Centres opened in the period | 76 | 59 | 29% |
| Adjusted gross profit | 375 | 346 | 8% |
| Adjusted gross profit margin | 24% | 21% | 210bps |
Digital & Professional Services: division positioned to deliver
• Underlying revenue growth of 6% year-over-year
• New management structure creating better alignment with wider enterprise strategy to better serve customer needs
• No changes to expectations
| $m | H1 2025 | H1 2024 | Change |
| Revenue | 207 | 223 | (7)% |
| Underlying revenue | 207 | 197 | 6% |
| Adjusted gross profit | 98 | 122 | (20)% |
| Underlying adjusted gross profit | 98 | 108 | (10)% |
Mark Dixon, Chief Executive of International Workplace Group plc, said:
“We set out a clear strategy at our Investor Day in December 2023 for capital light growth to deliver cashflow, and business simplification. We have been delivering against this strategy and will continue to do so.
In the last six months, more locations were opened than in the entire first decade of our existence. We now have around 1 million rooms in 121 countries with a significant pipeline. This is expected to drive our future growth.”
Outlook and guidance
We reiterate our guidance as outlined with the release of our US GAAP financials on 30 June 2025. For the full 2025 financial year we expect:
· Centre growth and signings to accelerate
· Adjusted EBITDA of $525m-$565m, but likely to be towards the lower end of the range due to further investment in Managed and Franchise segment growth
· Net debt to be roughly unchanged at the end of 2025 vs 31 December 2024
· Reiterate commitment to maintaining a BBB credit rating and de-levering towards 1.0x net debt / Adjusted EBITDA
· Share buyback of at least $130m;
· Cashflow to shareholders of at least $140m, at least a 40% increase to the guidance given in March; and
· On track to deliver medium-term at least $1bn EBITDA target.
Financial calendar
| 19 September 2025 | Interim dividend record date |
| 17 October 2025 | Interim dividend payment date |
| 4 November 2025 | Q3 2025 trading update |
| 4 December 2025 | Investor Day in New York City |
| 3 March 2026 | 2025 Full Year results |
| 5 May 2026 | Q1 2026 trading update |
| 11 August 2026 | 2026 First Half results |
Results presentation
Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a virtual presentation of the results today for analysts and investors at 9.00am UK time
The presentation will be available via live webcast and will be available to view at the following link IWG Analyst Presentation
