International Workplace Group Plc (LSE:IWG) reported record results for 2025, with adjusted EBITDA rising 6% to $531 million and system-wide revenue increasing 4% year-on-year to $4.5 billion.
The company also raised its 2026 share buyback programme by $50 million, bringing the total planned repurchases to $100 million.
Growth was led by the Managed & Franchised division, where fee income surged 60% to $126 million. Recurring management fees more than doubled to $45 million. The segment opened a record 731 centres during the year and signed 1,089 new agreements, 99% of which were structured under capital-light arrangements. System-wide revenue in this division climbed 28% to $876 million.
In company-owned operations, adjusted gross profit margin improved by 97 basis points to 26.4%, despite a 1% revenue decline to $3.6 billion as management prioritised occupancy optimisation. The group noted encouraging pricing and revenue trends entering 2026.
Group revenue remained broadly flat at $3.8 billion, reflecting the strategic pivot toward capital-light operations, where only fee income — rather than total centre revenue — is recognised. Cash flow before corporate activities increased 60% to $162 million.
IWG returned $144 million to shareholders in 2025, including $130 million through buybacks and $14 million in dividends. The board proposed a final dividend of 0.93 cents per share, up 3% year-on-year.
The company reaffirmed its 2026 adjusted EBITDA guidance of $585 million to $625 million and reiterated its medium-term ambition to generate at least $1 billion in EBITDA. Net debt declined to $715 million from $729 million the prior year, with no refinancing needs before 2029.
Chief executive Mark Dixon said the group’s capital-light growth strategy, outlined at its December 2023 Investor Day and reiterated in December 2025, continues to deliver improved cash flow and operational simplification, positioning IWG for further scalable expansion.
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