International Workspace Group (IWG) has reported record revenues of $2.4bn (£1.8bn) for the six months to the end of June, up 11%, as AI pushes more firms towards flexible workspaces.
IWG’s Spaces brand in Leeds
The hybrid workspace specialist, which operates brands such as Regus, Spaces, HQ and Signature, signed up a record 728 new locations globally in H1, up from 496 in H1 2025, alongside 425 new openings, up from 338 year on year.
The half-year results follow record annual growth in its results for 2025, with $4.45bn (£3.35bn) of revenue.
Recurring fee income for IWG’s managed and franchised workspaces increased 84% in H1 2026 and these spaces now represent 22% of total revenue, up from 18% last year.
IWG said advances in AI were accelerating the pace of change across every industry, creating an environment that was becoming harder to predict. Some 60% of chief executive and chief financial officer respondents to the firm’s research said AI had made it impossible to know how much office space they would need in two years’ time. This uncertainty is increasingly driving firms towards flexible workspaces.
IWG added that overhead costs were expected to fall in H2 as a result of recent growth initiatives and operational efficiencies that would boost results in the second half and beyond.
The firm reiterated its 2026 outlook of adjusted core profit between $585m (£433m) and $625m (£463m), “despite the macroeconomic backdrop” and on the back of a strong first half for new openings, revenue, customer enquiries and pricing.
Christian Schmitz, chief executive of IWG, said: “Our strategy remains clear. We continue to expand our global coverage at pace, building an unrivalled network that extends from the world’s largest cities to smaller towns and regional markets.
“Through our capital-light partnership model, we continue to increase customer choice while creating long-term value for our partners and shareholders.”
Founder and long-time chief executive Mark Dixon announced in June he was stepping down from the role and into an executive chair position, with Schmitz stepping up to become chief executive.
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