IWG Shares Slide 17% After Profit Guidance Cut Amid Strong Growth

IWG, the flexible office space company that owns the Regus and Spaces brands, saw its shares drop 17% following an announcement that its full-year adjusted profit for 2025 is expected to be at the lower end of the previously guided range of $525 million to $565 million. Despite this profit warning, the firm reported a strong first half with a 6% rise in adjusted core profit to $262 million and a 43% increase in rooms open compared to the prior year, reflecting robust network growth. CEO Mark Dixon attributed the share price decline to irrational selling and highlighted that economic uncertainty worldwide is driving demand for flexible office solutions, as companies seek to maintain flexibility amid volatile markets. IWG also raised its share buyback target to at least $130 million for 2025, up from $100 million, signaling confidence in its financial position. Investments in the Managed and Franchise division, which saw 26% revenue growth, contributed to the expectation that earnings would be at the lower end of guidance. Despite the share price fall, IWG continues to pursue its $1 billion medium-term EBITDA target and sees a strong global pipeline with nearly one million rooms open across 121 countries.