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WeWork reports second-quarter earnings: 'Substantial doubt exists' about staying in business

WeWork released its second-quarter earnings Tuesday and raised "substantial doubt" about its ability to continue as a going concern, sending shares plummeting.

WeWork on Tuesday said there was "substantial doubt" about its ability to stay in business, sending its shares down by nearly 20%. 

The news came in the company’s second-quarter earnings release which said WeWork had a net loss of $397 million – down from a $635 million loss the year prior. 

"[C]ombined with increased member churn and current liquidity levels, substantial doubt exists about the Company’s ability to continue as a going concern," the release said. "The Company’s ability to continue as a going concern is contingent upon successful execution of management’s plan to improve liquidity over the next 12 months." 

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WeWork said it has replaced three board members and added another, stating that it was still continuing its search for a permanent CEO after Sandeep Mathrani stepped down in May. 

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The workspace-sharing startup will host an earnings conference call at 8 a.m. EDT on Wednesday. 

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