First Quarter Trading Statement
Summary by AI BETAClose X
12 May 2026
FIRST QUARTER TRADING STATEMENT
International Workplace Group plc, the world's largest hybrid workspace platform with a network in over 120 countries through workspace, professional services and digital brands such as Regus, Spaces, HQ, Signature and Instant Offices, issues its first quarter trading statement for the three months ended 31 March 2026.
4% YEAR-OVER-YEAR REVENUE GROWTH DRIVEN BY NETWORK EXPANSION, 2026 GUIDANCE MAINTAINED
· System-wide revenue of $1,166m, growth of 9% year-on-year
· Group revenue of $958m, growth of 4% year-on-year
· Network and coverage expanding rapidly, with higher signings and openings year-on-year
o Q1 2026 signings 382 (Q1 2025: 224)
o Q1 2026 openings 222 (Q1 2025: 165)
· Company-owned year-on-year revenue growth of 2% and RevPAR growth of 6%
· Managed & Franchised fee income of $39m, growth of 70% year-on-year
· Capital-returns to shareholders progressing in line with strategy with $75m returned to shareholders so far in 2026
· Maintaining FY 2026 guidance with adjusted EBITDA range of $585m-$625m, Company-owned revenue growth of at least 4% (with corresponding flat costs), and recurring managed fee income of $80m
· Continued commitment to investment grade credit rating
Mark Dixon, Chief Executive of International Workplace Group plc, said:
"I am delighted with our strong start to 2026 as we continue the rapid growth of our network supported by increasing sales despite the challenging economic backdrop. Potential customers are requiring more flexibility in their Real Estate strategy to address the uncertainty arising from the impact of conflicts and the growing influence of AI. This is resulting in record levels of Enterprise customer enquiries as our coverage and network enable us to provide unique, flexible, global solutions.
Signings and openings continue to grow, allowing the flywheel of our business model to deliver greater cashflow while requiring less capital to grow than historically. This combination has enabled a return of over $230m to shareholders since our Investor Day in New York in December 2023 as we continue our journey of capital returns."
SUMMARY FINANCIALS
|
($m) |
Q1 2026 |
Q1 20251 |
Change |
|
|
unaudited |
|
|
|
System-wide revenue |
1,166 |
1,072 |
9% |
|
Managed & Franchised |
260 |
184 |
41% |
|
Company-owned |
906 |
888 |
2% |
|
Group revenue |
958 |
924 |
4% |
|
Net financial (debt) |
(858) |
(721) |
|
1. Q1 2025 was initially reported under IFRS. At H1 2025 the Company changed the basis of preparation to US GAAP. As a result the Q1 2025 comparatives have been presented under US GAAP and differ from the amounts previously reported under IFRS
Managed & Franchised: 80% growth in recurring management fees
Total fee revenue increased 70% in the quarter on a year-on-year basis as system revenue grew by 41% as previously signed rooms evolved into openings, and already open rooms continued to mature. Recurring management fee revenue growth continues to grow as expected, delivering $16m in the quarter, growth of 80% year-on-year. Despite increased macroeconomic uncertainty, signings accelerated in Q1 to 377, growth of 75% year-on-year, as the model increasingly becomes the go-to for landlords and partners. Openings continued to accelerate and we ended the quarter with 336,000 rooms open and a further 231,000 in the pipeline. When all these rooms are open and mature, potential annual system-revenue of the Managed & Franchised division is over $1.9bn.
|
|
Q1 2026 |
Q1 20251 |
Growth |
|
|
unaudited |
|
|
|
System (Partner) revenue ($m) |
260 |
184 |
41% |
|
Segment revenue |
52 |
36 |
44% |
|
RevPAR ($) Managed |
164 |
173 |
(5)% |
|
RevPAR ($) Franchised & JV |
492 |
487 |
1% |
|
Fee revenue ($m) |
39 |
23 |
70% |
|
Recurring managed fee income ($m) |
16 |
9 |
80% |
|
Rooms open |
336,000 |
227,0002 |
48% |
|
Managed |
248,000 |
146,000 2 |
70% |
|
Franchised & JV |
88,000 |
81,000 |
9% |
|
Centres open |
2,082 |
1,3612 |
53% |
|
Managed |
1,569 |
895 2 |
75% |
|
Franchised & JV |
513 |
466 |
10% |
|
Rooms opened in the period |
31,000 |
23,0002 |
35% |
|
Centres opened in the period |
213 |
1532 |
39% |
|
Rooms in pipeline |
231,000 |
192,000 |
20% |
|
New centre deals signed |
377 |
2182 |
73% |
2. MLAs included in Managed & Franchised locations / rooms for Q1 2025 to give like-for-like location and rooms. They were recategorised as M&F from Company-owned for FY 2025 results as explained at the Investor Day in December 2025
Company-owned: return to revenue growth
Revenue in this segment has grown 2% year-on-year and this also resulted in RevPAR increasing by 6% year-on-year. We signed 5 new locations in the quarter. Capex remains as expected and in-line with previous guidance, and we will continue to add locations on an opportunistic basis.
|
|
Q1 2026 |
Q1 20251 |
Growth |
|
|
unaudited |
|
|
|
Revenue ($m) |
906 |
888 |
2% |
|
RevPAR ($) |
389 3 |
3663 |
6%3 |
|
Rooms open |
771,000 |
749,0002 |
3% |
|
Centres open |
2,748 |
2,7522 |
0% |
|
Rooms opened in the period |
3,000 |
3,0002 |
0% |
|
Centres opened in the period |
9 |
122 |
(25)% |
2. MLAs included in Managed & Franchised locations / rooms for Q1 2025 to give like-for-like location and rooms. They were recategorised as M&F from Company-owned for FY 2025 results as explained at the Investor Day in December 2025
3. Company-owned RevPAR now includes 100% of Virtual-office revenues associated with Company-owned locations but continues to exclude revenues from Enterprise Managed Real Estate. Both amounts were previously reported in D&PS. Underlying RevPAR growth before these changes was also 6%.
RevPAR
RevPAR is a monthly average KPI, defined as the system-wide revenue (excluding Enterprise Managed Real Estate and excluding rooms opened and closed during the period), divided by the number of available rooms, which is defined as 7 square metres across all usable space. Given the scale of the growth and room additions that the Company is adding to the network, RevPAR excluding centres opened in 2025 is presented below to show RevPAR progression excluding the impact of centres not yet mature.
RevPAR continues to evolve as expected. It is anticipated that the higher-growth segments will show a falling year-over-year RevPAR because new locations that have opened are not yet mature are contained within the calculation.
Company-owned RevPAR increased by 6% year-on-year, in-line with our pricing strategy to drive revenue at the segment level. Following the integration of Digital & Professional Services, all the Virtual Office revenue associated with a location is included in the RevPAR of that segment - Company-owned RevPAR increased by 6% before any changes to methodology.
|
|
|
|
|
|
|
System RevPAR ($, monthly average) |
Q1 2026 |
Q1 2026 ex 2025 Openings |
Q1 2025 |
% change |
|
|
unaudited |
|
||
|
Managed |
164 |
222 |
173 |
(5)% |
|
Franchised and JVs |
492 |
524 |
487 |
1% |
|
Company-Owned |
389 3 |
388 3 |
366 3 |
6% |
|
IWG Network |
348 |
378 |
355 |
(2)% |
3. Company-owned RevPAR now includes 100% of Virtual-office revenues associated with Company-owned locations but continues to exclude revenues from Enterprise Managed Real Estate. Both amounts were previously reported in D&PS. Underlying RevPAR growth before these changes was also 6%.
Financing and Net Debt
|
($m) |
31 March 2026 |
31 Dec 2025 |
31 March 2025 |
|
|
unaudited |
|
|
|
Cash & Cash equivalents |
(158) |
(302) |
(135) |
|
Drawn RCF |
0 |
0 |
0 |
|
2027 0.5% Convertible Bond |
6 |
6 |
178 |
|
2030 €625m 6.5% Corporate Bond |
659 |
658 |
653 |
|
2032 €300m 5.125% Corporate Bond |
333 |
333 |
0 |
|
Other |
18 |
20 |
25 |
|
Net financial debt |
858 |
715 |
721 |
Net financial debt increased over the quarter driven by:
· Repurchase of 19,484,055 shares for $53m as part of the share buyback programme
· Annual cash bonus payments, as accrued for at 31 December 2025
· The roll out of automated invoice software in the quarter led to payment days falling markedly over the course of Q1. This will normalise through 2026 so net debt will reduce accordingly by the end of the year, but expected to end 2026 at slightly elevated levels compared to 31 December 2025
· As a reminder, most of the 0.5% coupon Convertible Bond was put back to the Company in December 2025, and we will have a full year of interest costs of the €300m 5.125% Corporate Bond during 2026
· The Company has no exposure to either interest or FX rates on its bonds - all bonds are fixed coupon with the first refinancing in 2030, and hedged into USD
Outlook and guidance
Whilst the Group's direct exposure from ongoing conflicts is limited, including from its operations in the Middle East, we are cognisant of the rising macroeconomic uncertainty and volatility. The broader economic effect of these conflicts includes global inflationary pressures, and the Company is taking proactive steps to reduce costs during Q2 and beyond. Despite the macroeconomic backdrop, centre signings and openings have continued to accelerate, enterprise customer enquiries are increasing, sales have risen and pricing has been positive.
Accordingly, our expectations for 2026 currently remain unchanged. We maintain 2026 guidance as communicated at our FY 2025 results on 3 March 2026:
· Adjusted 2026 EBITDA of $585m-625m
· Company-owned revenue growth of at least 4%
· Recurring management fee income of $80m
· Maintenance of an investment grade credit rating
We have announced $100m of share buybacks so far for 2026, and will update this with the first-half results on 11 August 2026
Financial calendar
19 May 2026 Annual General Meeting
29 May 2026 Final 2025 dividend payment date
11 August 2026 2026 Interim Results
3 November 2026 Third Quarter 2026 Trading Update
Details of results presentation
Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a conference call for analysts and investors at 9am UK time.
Please pre-register through PC, Mac, iOS or Android to attend the conference call using the link below: https://brunswickgroup.zoom.us/webinar/register/WN_fdBsp5LsTgy3irqfaTvCsw
Further information
International Workplace Group plc
Mark Dixon, Chief Executive Officer
Charlie Steel, Chief Financial Officer
Richard Manning, Head of Investor Relations
Brunswick Tel: +44 (0) 20 7404 5959
Nick Cosgrove
Greg Dawson
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