Although WeWork racks in billions of dollars in investment capital each year, it has yet to make a profit. Recently, the company revealed that it doubled its losses to $1.93 billion last year, while also doubling its revenue.
This comes to little surprise to most: the company’s expenditures to build out offices and acquire tech companies are high. It also suffers from high interest payments from debt investments.
Despite larger companies growing to take up one-third of WeWork’s total office leasing, its occupancy still dropped from 84% to 80% between the third and fourth quarters of last year, which the company claims is due to having a large number of locations in its portfolio and that each space takes 18 months to fill up.
Still, taking this drop in occupancy and the company’s platform of easily canceled leases could spell bad news for the company in the face of economic downturn.