Why WeWork Stock Is Tumbling Wednesday

WeWork Inc WE shares are trading lower Wednesday after the company reported worse-than-expected financial results.

• Q2 Revenue: $844 million missed estimates of $850.13 million
• Q2 EPS: loss of 21 cents missed estimates for a loss of 12 cents

WeWork's real estate portfolio consisted of 777 locations as of June 30. All Access consolidated memberships totaled approximately 75,000 in the second quarter, up 21% year-over-year.

WeWork ended the quarter with $205 million in cash and $680 million in total liquidity.

"In a difficult operating environment, we have delivered solid year-over-year revenue growth and dramatic profitability improvements," said David Tolley, interim CEO of WeWork. 

"Excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility drove higher member churn and softer demand than we anticipated, resulting in a slight decline in memberships."

WeWork also announced changes to its board, appointing four new directors, effective immediately.

"These new director appointments bring a fresh perspective and renewed commitment to the Board and our company," Tolley said.

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WE Price Action: WeWork shares were down 25.7% at 16 cents at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.