International Workplace Group (LSE:IWG) said group revenue for the three months to 31 March rose 4% year-on-year to $958m and system-wide revenue reached $1,166m, underpinning management's decision to maintain full-year guidance.
The hybrid workspace platform said growth was driven by network expansion with Q1 signings of 382 (Q1 2025: 224) and Q1 openings of 222 (Q1 2025: 165), and reported managed & franchised fee income of $39m, up 70% year-on-year.
Company-owned revenue rose 2% year-on-year while company-owned RevPAR increased 6% as new locations continue to mature.
The group said recurring managed fee income is on track for $80m in 2026, total fee revenue grew 70% in the quarter and recurring managed fees delivered $16m in Q1, up 80% year-on-year.
Net financial debt increased during the quarter driven by a $53m share repurchase, annual cash bonus payments and shorter payment days after rolling out automated invoice software, although the company expects payment days to normalise and net debt to reduce through 2026.
It noted the return of $75m to shareholders so far in 2026, announced $100m of buybacks for the year and said it remains committed to maintaining an investment grade credit rating.
"I am delighted with our strong start to 2026 as we continue the rapid growth of our network supported by increasing sales despite the challenging economic backdrop," Chief Executive Mark Dixon said.
The company will publish interim results on 11 August and holds its AGM on 19 May.
