First Quarter Trading Statement

International Workplace Group PLC

12 May 2026

 

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: [phone]

Nick Cosgrove

Greg Dawson

 

END