Arab Finance: International Workplace Group (IWG), the world's largest provider of hybrid work solutions with brands like Regus and Spaces, delivered strong financial performance for the first quarter (Q1) of 2026, supported by robust growth in Egypt.
The group achieved a 9% year-on-year increase in system-wide revenue at the end of March 2026, driven by rising demands in Egypt, which emerged as one of IWG’s fastest-growing markets.
A key contributor to the group’s performance was the rapid expansion of its capital-light partnership model, which saw Managed and Franchise fee income leap by 70% to $39 million. This growth is set to continue, with 382 new centers signed globally in Q1 alone.
The company has maintained its full-year 2026 guidance, with an anticipated adjusted EBITDA in the range of $585 million to $625 million.
Globally, IWG achieved a group revenue of $958 million, marking an annual rise of 4%, and a system-wide revenue of $1.166 billion, up 9% YoY.
Egypt-based companies are rapidly adopting hybrid models to reduce costs, which can average up to $11,000 per employee, while employees are seeking a better work-life balance and an escape from the 2-3 hour daily commutes common in Cairo. This demand has prompted IWG to embark on an aggressive expansion plan, with a goal of reaching 150 centers across Egypt by 2030.
This expansion includes several high-profile new centers in Cairo, including the upcoming "Spaces at The Arc" in New Cairo, which is expected to be IWG's largest flexible workspace worldwide.
Mark Dixon, Chief Executive of IWG plc, commented: "We set out a clear strategy at our first Investor Day in New York in December 2023 for capital-light growth to deliver cash flow and business simplification.”
“As we outlined in our Investor Day in December 2025, this is what we have been delivering on, and we will continue to do so. We continue to have structural tailwinds and a business which is both prepared for and delivering network growth,” Dixon indicated.
He concluded: “In the last twelve months, more locations were opened than we had open after fifteen years of operating. We now have over 1 million rooms in over 120 countries with a significant pipeline. This is expected to drive our future growth in revenue, EBITDA, and cash flow.”
