IWG Rides Hybrid Work Trend to Solid Q3 Growth, Share Buybacks Continue

International Workplace Group (IWG), the hybrid workspace platform, reported a positive third-quarter trading statement, demonstrating growth driven by its capital-light expansion strategy.

The company's system-wide revenue reached $1.125 billion, a 4% increase year-over-year, fueled by strong performance in its Managed & Franchised segment.

The Managed & Franchised segment shone with a 36% surge in system-wide revenue, reaching $213 million for the quarter. Recurring management fees within this segment saw an impressive 83% jump year-over-year, highlighting the success of IWG's strategic investments.

Company-owned locations maintained stable revenue, with occupancy continuing to climb.

IWG is actively returning capital to shareholders, having executed over $100 million in share buybacks during 2025. In Q3 alone, the company repurchased 16,748,305 shares for $47 million, signaling confidence in its financial position and future prospects. This is being offset against customary working capital movements from supplier payments.

Key Financial Highlights:

• System-wide Revenue: $1.125 billion (up 4% YoY)
• Managed & Franchised Revenue: $213 million (up 36% YoY)
• Recurring Management Fee Growth: 83% YoY
• Share Buybacks (YTD): Over $100 million

Driver Breakdown:

• Capital-Light Expansion: Strategic investment in Managed & Franchised segment drives network growth.
• Occupancy Growth: Company-owned locations see continued occupancy gains, bolstering revenue.
• Recurring Revenue: Focus on recurring management fees provides a stable income stream.

AskTraders Takeaway: The strong performance in the Managed & Franchised segment, coupled with ongoing share buybacks, could attract further market interest in IWG. However, investors should monitor RevPAR trends and the impact of digital & professional services revenue decline.

CEO Mark Dixon commented, “I am pleased with the financial results in the third quarter of 2025… The evolution of occupancy and pricing sets us up well for further growth in the remainder of the year and into 2026.” This reinforces the company's strategic focus on expanding its network and capitalizing on the growing demand for hybrid workspace solutions.

While the company-owned revenue saw little growth, the company is expecting the higher occupancy levels to drive revenue in Q4 and into 2026. In this sector, the managed and franchised segments are where the future growth is expected to come from, and that is where the company is focusing their attention.

IWG has confirmed its full-year 2025 guidance, including higher center growth and signings compared to 2024. The company also reiterated its commitment to maintaining a BBB credit rating and delivering at least $1 billion in EBITDA in the medium term.