WeWork Inc.

Q2 revenue increased $29 million, or 4%, year over year. Occupancy rose 2 percentage points year over year but declined 1 percentage point sequentially. Adjusted EBITDA was a little over $20 million below the low end of guidance, and levered free cash flow was significantly below plan. Management said cash rent and tenancy expense was 74% of revenue and more than two-thirds of total operating expenses. As of June 30, liquidity was $680 million, and the company drew $175 million of its $475 million committed delayed draw first lien notes. For regional occupancy, the U.S. and Canada were about 67%, EMEA about 78%, and the Pacific region about 83%. Forward-looking commentary focused on reducing churn, increasing new desk sales and occupancy, lowering rent and tenancy expenses, and improving operating efficiency and SG&A control; the company also said the reverse stock split has until mid-October to be effectuated, and SoftBank had already extended credit support for certain facilities to 2027.

David Tolley framed the business as benefiting from long-term changes in office demand, arguing that companies want flexibility and employees value a better workplace experience beyond just square footage. He sounded cautious about the market, citing 30-year low U.S. occupancy rates, weak commercial office conditions, and softer demand from rates, inflation, and lower venture funding. At the same time, he emphasized WeWork’s brand, hospitality, and global scale, and pointed to continued efforts to become more asset-light and digitally integrated through Yardi and a single WeWork app.

No separate CFO remarks were included beyond management’s financial commentary in the prepared remarks. The company said revenue rose $29 million year over year, location operating costs fell $11 million, preopening expenses declined $30 million, and SG&A fell $39 million. Kurt Wehner’s named contribution was not separately transcribed here, but the financial framing centered on liquidity of $680 million, the $175 million draw on delayed draw first lien notes, and the need to address rent and tenancy costs, which were 74% of revenue in Q2.

In the Q&A, management addressed the reverse stock split, saying the shareholder-approved proposal is on the agenda for the next board meeting and that the company has until mid-October to act. On debt, David Tolley said SoftBank already extended credit support for the relevant facilities to 2027 as part of the May restructuring, with the extension process for the underlying facilities expected later this year or early next year. He also gave occupancy by region: U.S. and Canada about 67%, EMEA about 78%, and Pacific about 83%, underscoring that North America remains the weakest area.