International Workplace Group has announced that it generated record system-wide revenue of $4.5 billion in 2025, up 3.6% year over year, as demand for hybrid workspaces supported continued expansion across its global coworking network.
Adjusted EBITDA rose 6% to $531 million, the highest in the company’s history, reflecting margin gains at company-owned locations and rapid growth in its managed and franchised operations, according to Share Cast.
Capital-Light Growth Drives Fee Expansion
The strongest performance came from IWG’s managed and franchised division, a capital-light model that allows property owners to partner with the company to operate flexible workspace locations.
That segment delivered 28% system-wide revenue growth and 60% growth in fee income in 2025, with record signings and openings. Management said the expanding pipeline is expected to lift recurring fee income further in 2026.
The shift toward franchising and management agreements reduces upfront capital requirements while increasing margin stability — a strategy the company says positions it for long-term cash flow growth as hybrid work becomes embedded in corporate real estate strategies.
Company-Owned Centers Show Margin Gains
IWG’s company-owned portfolio also improved profitability, with gross margin expansion across the estate. The group expects at least 4% revenue growth in 2026 and projects adjusted EBITDA between $585 million and $625 million.
Group revenue, which excludes franchise and joint venture system-wide income, was largely flat at $3.76 billion.
Chief Executive Mark Dixon said the company sees continued structural demand for hybrid workspace and highlighted the scale of recent expansion, noting that more locations were opened in the past year than the company had after its first 15 years in operation.
Hybrid Work Remains the Core Bet
IWG’s performance underscores how large coworking operators are leaning into managed partnerships and franchising to capture growth in hybrid work without adding significant balance sheet risk.
As companies continue to reassess office footprints, flexible workspace providers are positioning themselves as infrastructure for distributed teams — betting that demand for shorter leases will remain a durable revenue driver in the future of work.
