International Workplace Group (IWG) Q2 2026 earnings summary

Executive summary

• System-wide revenue increased by 11% year-over-year to $2.4 billion in H1 2026, with group revenue up 6% and company-owned revenue up 5%.

• Recurring management fees surged 84% to $35 million, driven by rapid expansion of the managed and franchised segment.

• Over $109 million was returned to shareholders in H1 via buybacks and dividends; a $150 million buyback program was announced for 2026.

• Record network growth with 728 new centres signed and 425 opened, 98% of which were capital-light.

• The business is shifting toward an asset-light model, with managed and franchised now representing 22% of system revenue and 32% of open rooms.

Financial highlights

• Adjusted EBITDA rose to $265 million in H1 2026, with adjusted EPS doubling to 4.6¢.

• Managed and franchised system-wide revenue grew 36% to $535 million; recurring management fees reached $35 million.

• Company-owned revenue was $1.87 billion, with adjusted gross profit up 4% to $479 million.

• Net debt at June 30, 2026, was $880 million, up $22 million in the quarter after buybacks, dividends, and M&A.

• RevPAR increased by 11% due to pricing actions and closure of low-RevPAR rooms.

Outlook and guidance

• FY 2026 adjusted EBITDA guidance of $585–$625 million is reiterated, with company-owned revenue growth at least 4%.

• Recurring management fee income expected to reach $80 million in 2026 and $125 million in 2027.

• Medium-term adjusted EBITDA target of at least $1 billion, with incremental EBITDA translating to free cash flow.

• H2 cash flow expected to improve, with positive momentum and overhead cost reductions.