IWG Plc
LSE:IWG

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IWG Plc
LSE:IWG
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Price: 227.4 GBX 0.44% Market Closed
Market Cap: 2.3B GBX

IWG Plc
Investor Relations

In the bustling landscape of modern employment, IWG Plc stands as a seasoned player, expertly navigating the evolution of workspaces. Born in 1989, under the vision of its founder Mark Dixon, IWG, originally known as Regus, has transformed from a pioneering serviced office company into a global leader in flexible work solutions. With a robust presence across multiple countries, IWG operates an extensive portfolio of brands, including Regus, Spaces, HQ, and Signature, each catering to a particular segment of the business world. The company capitalizes on the growing demand for flexible office spaces, offering everything from fully equipped private offices to collaborative co-working spaces, serving the needs of freelancers, startups, and multinational corporations alike.

IWG’s business model thrives on its innovative approach to leasing real estate. It doesn’t just sell office space; it curates environments that foster productivity, collaboration, and creativity. The company leases large commercial properties, refurbishes them, and then rents out the space under flexible terms that offer clients a variety of service options. This not only appeals to a broad spectrum of professionals seeking short-term commitments but also creates a dynamic revenue stream for IWG. Moreover, through its franchise model, the company collaborates with local players to expand its reach while minimizing operational risks and capital outlay. By consistently adapting to the changing needs of the modern workforce, IWG has carved out a lucrative niche in the corporate real estate domain, effectively turning workspace flexibility into a thriving business model.

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IWG
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Last Earnings Call
Fiscal Period
Q2 2025
Call Date
Aug 19, 2025
AI Summary
Q2 2025

Record Revenue: IWG delivered its highest-ever system-wide revenue of $2.2 billion in H1 2025, up 2% year-over-year.

Margin Improvement: Underlying gross margin in company-owned segment expanded by 160 basis points to 24%, with a midterm target of 30% still in sight.

Strong Cash Returns: $59 million returned to shareholders in H1 through buybacks and dividends, with a full-year buyback target increased 30% to $130 million.

Guidance Tightened: Full-year 2025 adjusted EBITDA guidance range ($525–565 million) is unchanged, but results are now expected toward the lower end due to increased growth investment.

Cash Flow Upgraded: 2025 cash flow guidance pre-corporate activity raised to at least $140 million, a 40% increase from the March outlook.

Management Franchise Growth: Management franchise fee income grew 42% and is expected to double again in 2026.

Continued Investment: Increased investment in people and marketing is driving network expansion, with over 1 million rooms now open and 200,000 in the pipeline.

Focus on 2026: While 2025 is largely on track, management is prioritizing strong EBITDA and cash flow growth in 2026 and reiterates confidence in reaching at least $1 billion EBITDA in the medium term.

Key Financials
Revenue
$2.2 billion
System-wide Revenue
$2.2 billion
Management Franchise Fee Income
$50 million
Management Franchise Recurring Management Fee Income
$19 million (H1)
Management Franchise System Revenue
$400 million
Company-owned Underlying Gross Margin
24%
Company-owned Margin Expansion
160 basis points (underlying), 116 basis points (as cited separately)
EBITDA
$262 million (H1)
Earnings Growth
25%
Cash Flow before Corporate Activities
$140 million (guidance for 2025)
Cash Flow before Corporate Activities (H1)
$48 million reported; $57 million underlying (H1)
Share Buybacks
$130 million (2025 target)
Capital Returned to Shareholders
$59 million (H1 2025)
Net Debt to EBITDA
flat since end of 2024
Number of Open Rooms
over 1 million
Pipeline Rooms
200,000
Centers Opened
2 centers per day currently
Digital and Professional Services Underlying Revenue Growth
6% year-on-year
Long-term Occupancy
up 240 basis points in 12 months
New Center CapEx
<$25 million (2025 expected)
Maintenance CapEx
<$100 million (2025 expected)
Interim Dividend
$0.0045 per share
Earnings Call Recording
Other Earnings Calls

Management

Mr. Mark Dixon
Founder, CEO & Executive Director
No Bio Available
Mr. Thomas Sinclair
Chief Investment Officer
No Bio Available
Richard Manning
Group Investor Relations Director
No Bio Available
Simon Condon
Group Head of Communications
No Bio Available
Fatima Koning
Chief Commercial Officer
No Bio Available
Francesca Peters
Chief Talent Officer
No Bio Available
Mr. Timothy Sean James Donovan Regan BEc, FAPI, FCA, MAICD
Company Secretary
No Bio Available
Mr. Wayne Berger
Chief Executive Officer of N. Americas
No Bio Available
Mr. Stephen Gleadle
Group Finance Director
No Bio Available

Contacts

Address
ZUG
Zug
Dammstrasse 19
Contacts