IWG Shares Fall 2% Despite 11% Revenue Growth and Reiterated Guidance

IWG (LON: IWG), the flexible-workspace operator behind the Regus, Spaces and HQ brands, saw its shares fall more than 2% on Tuesday despite reporting an 11% rise in system-wide revenue for the first half of 2026 and reiterating its full-year profit guidance.

Shares traded at 181.475p in morning dealing, down 2.28% from yesterday’s close of 185.7p. That leaves the stock well below its 52-week high of 250.6p and only modestly above its 52-week low of 164.1p, and beneath both its 50-day moving average of 188.7p and its 200-day moving average of 205.6p.

According to a MarketBeat recap of IWG’s earnings call, system-wide revenue rose 11% to $2.4bn in the first half, with the managed-and-franchised network — IWG-branded centres run by third-party owners rather than IWG itself — growing fastest, up 36% to $535m in system-wide revenue. Recurring management fees, the ongoing fees IWG earns for running those franchised sites, climbed 84% to $35m. The company reiterated full-year adjusted EBITDA guidance of $585m-$625m under Christian Schmitz, who became chief executive in June. Schmitz said IWG’s priorities are “to expand margins in company-owned centers, increase fee income from managed and franchised locations, and broaden its network coverage.”

The growth came alongside an $83m working-capital outflow in the first half, which management described as a timing issue rather than a change in earnings power. Adjusted EBITDA came in at $265m for the period, as higher revenue and gross profit were offset by planned increases in overhead spending. IWG also returned $109m to shareholders through buybacks and dividends, cutting its share count by 3.8%, as part of a $150m buyback programme for 2026.

The stock’s fall on a day of double-digit revenue growth and reiterated guidance suggests the market is weighing how quickly IWG can turn that growth into cash, rather than questioning the growth story itself.