International Workplace Group Plc (LSE:IWG) reported third-quarter system-wide revenue of $1.13 billion, a 4% year-on-year increase that narrowly missed analyst expectations. The company continued to expand its global footprint of flexible workspaces, but shares fell 2.6% as investors reacted to uneven performance across business segments.
The managed and franchised division remained a standout performer, posting a 36% increase in system-wide revenue and an 83% surge in recurring management fees compared with the same period last year. In contrast, company-owned revenue came in at $806 million—below analyst forecasts of $833 million—and was broadly flat on a yearly basis.
“I am pleased with the financial results in the third quarter of 2025,” said Mark Dixon, Chief Executive of IWG. “The incremental investment we have made in our Managed & Franchised segment has already led to an acceleration in the number of locations we have opened and added to the pipeline as we continue to expand our network and coverage.”
The company reported a significant uptick in network growth, with 335 new signings during the quarter, up 43% year-over-year, and 215 new location openings, a 41% increase. These gains reflect IWG’s capital-light growth model, which emphasizes partnerships and franchising.
Revenue per available room (RevPAR) for the company-owned business stood at $354, down 3% year-on-year but showing sequential improvement compared with the first half. IWG said its occupancy growth strategy is progressing and expected to support stronger revenue momentum through the final quarter and into 2026.
Revenue from the Digital and Professional Services division totaled $106 million, a decline of 8% year-on-year, though underlying revenue remained stable once an exited contract was excluded.
Net financial debt rose to $813 million from $754 million at the end of June, driven in part by the company’s share buyback activity, which totaled $47 million during the period.
IWG reaffirmed its full-year 2025 guidance, maintaining its adjusted EBITDA target and its medium-term ambition to deliver at least $1 billion in EBITDA. The company also reiterated plans to return a minimum of $140 million to shareholders during 2025.
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