For FY 2025, IWG expects cashflow to rise 40% to at least $140 million
LONDON: International Workplace Group plc (IWG), the world’s largest hybrid workspace provider, reported its highest-ever system-wide revenue of $2.2 billion for the six months ended June 30, 2025, marking a 2% year-on-year increase.
The company’s strategic focus on capital-light growth, margin expansion, and operational cashflows has translated into stronger returns for shareholders and a robust financial outlook.
IWG’s recurring management fee revenue surged 2.6x year-on-year, while adjusted EBITDA rose 6% to $262 million. The group maintained a strong balance sheet with no refinancing needs until 2029 and leverage steady at 1.5x net debt/EBITDA. Since March, $59 million has been returned to shareholders via dividends and buybacks—3.5x more than the total returned over the past five years.
The company-owned segment expanded adjusted gross margins by 210 basis points to 24%, driven by higher occupancy and reduced center costs. Meanwhile, the Managed & Franchised division saw a 26% jump in system revenue and a 163% increase in recurring management fees. Digital & Professional Services posted 6% underlying revenue growth, positioning the segment for delivery in 2026.
CEO Mark Dixon highlighted the group’s rapid expansion, noting that more locations were opened in the past six months than in the company’s first decade. With nearly 1 million rooms across 121 countries and a pipeline of 186,000 signed but unopened rooms, IWG is on track to meet its medium-term EBITDA target of $1 billion.
For FY 2025, IWG expects cashflow to rise 40% to at least $140 million and has increased its buyback program to $130 million. The interim dividend was set at 0.45 cents per share, reinforcing its progressive dividend policy.