International Workplace Group on Tuesday told investors that third-quarter system-wide revenue rose 12% year-on-year to $1.26bn, taking the annualised run-rate past $5bn, as the company tightened its 2026 adjusted EBITDA guidance to above current market consensus.
The London-listed flexible workspace operator, which runs a global network of company-owned, managed and franchised centres under brands including Regus, Spaces and HQ, said group revenue grew 9% to $1.03bn in the three months to 30 September.
The network passed 5,000 centres during the quarter, a scale milestone the company highlighted alongside the system-wide revenue run-rate.
Growth was led once again by the asset-light Managed & Franchised business, where fee revenue climbed 28% year-on-year to $45m and recurring managed fee revenue jumped 72% to $19m.
That builds on a first half in which recurring management fee income rose 84% to $35m; Managed & Franchised revenue made up 22% of system-wide revenue at the half-year stage, against 18% a year earlier.
Company-owned revenue rose 8% year-on-year, with RevPAR, a monthly average revenue-per-available-room metric, up 2% to $388.
Signings in the quarter totalled 332 against 335 a year earlier, while openings came in at 211 versus 215, broadly flat on last year's pace after a stronger first half in which signings reached 728 and openings 425.
Buybacks and reduced debt
Net financial debt fell to $874m at the end of September from $880m at the half-year, having risen from $715m at the end of 2025 on the back of automated invoice software, working capital tied to bolt-on acquisitions and share buybacks.
IWG repurchased $39m of shares during the quarter, taking capital returned through buybacks to $139m over the first nine months of the year, and lifted the full-year buyback programme to up to $200m from the previously announced $100m.
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The company renewed its revolving credit facility in July, increasing it to $1bn and extending its duration to 2031 from 2029.
"Well placed to deliver"
"The group is well placed to deliver full-year results in line with our expectations and to enter 2027 as a continued strong platform for further growth and enhanced shareholder returns," said chief executive Christian Schmitz.
IWG said it continues to expect 2026 adjusted EBITDA within its $585m-$625m range but now trading above current consensus of $599m, alongside company-owned revenue growth of at least 4%, recurring managed fee revenue of $80m, and net debt to adjusted EBITDA leverage of around 1.4 to 1.5 times by the year end.
The company reiterated its medium-term target of at least $1bn in adjusted EBITDA, and scheduled full-year results for 2 March 2027.