IWG Reports 9% Growth in Q1 2026 System-Wide Revenue and Accelerates Egypt Expansion with Target of 150 Centers by 2030
International Workplace Group (IWG), the world’s largest provider of hybrid work solutions and the company behind leading brands such as Regus and Spaces, has announced strong financial results for the first quarter of 2026, reporting a 9% year-on-year increase in system-wide revenue. The performance reflects continued global demand for flexible workspace solutions and highlights Egypt’s emergence as one of the company’s fastest-growing markets.
The strong results were driven in part by the rapid expansion of IWG’s capital-light partnership model. Managed and Franchise fee income increased by 70% to reach $39 million during the first quarter, supported by the signing of 382 new centers worldwide. Based on this momentum, the company has maintained its full-year 2026 guidance, with anticipated adjusted EBITDA expected to range between $585 million and $625 million.
Across its key performance indicators, IWG reported group revenue of $958 million in Q1 2026, representing a 4% increase compared to the same period last year. System-wide revenue reached $1.166 billion, up 9% year-on-year, demonstrating the continued strength of demand for flexible and hybrid workplace solutions.
This global trend is particularly evident in Egypt, where businesses are increasingly adopting hybrid work models to enhance agility and reduce operational costs, which can average up to $11,000 per employee. At the same time, employees are seeking greater work-life balance and alternatives to Cairo’s lengthy daily commutes, which often range between two and three hours.
As a result of this growing demand, Egypt has become one of IWG’s fastest-growing markets for the second consecutive year. The company has embarked on an ambitious expansion strategy, aiming to establish 150 flexible workspace centers across the country by 2030.
The expansion plan includes several major new locations in Cairo, most notably Spaces at The Arc in New Cairo, which is set to become the largest flexible workspace operated by IWG anywhere in the world. The project underscores Egypt’s growing strategic importance within the company’s global growth agenda.
Commenting on the company’s performance, Mark Dixon, Chief Executive Officer of IWG plc, said:
“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 at our Investor Day in December 2025, this is exactly what we have been delivering, and we will continue to do so.
We continue to benefit from strong structural tailwinds and a business model that is both prepared for and delivering network growth. In the last twelve months, more locations were opened than we had open after fifteen years of operating. We now have over one million rooms across more than 120 countries, supported by a significant development pipeline. This is expected to drive future growth in revenue, EBITDA, and cash flow.”
Beyond transforming the commercial real estate landscape, IWG’s continued investment in Egypt is helping attract multinational corporations, support economic growth, and advance the decentralization of work by expanding access to professional workspaces in suburban communities, coastal cities, and the New Administrative Capital.
With demand for flexible work solutions continuing to accelerate, Egypt is expected to remain a key pillar of IWG’s regional and global expansion strategy in the years ahead.