The Reason the Office Isn’t Fun Anymore

When David Witting prepared digital-marketing agency Dept@’s Boston-area offices for employees’ return in 2022, he ordered trendy couches, chairs and high tables, envisioning lively collaboration and banter.

Yet when his co-workers arrived, many skipped the furniture and gravitated toward the private booths scattered in the office. Since then he’s jettisoned some of the furniture, and added more booths.

“People are coming in to do occasional big meetings, but really the rest of the time, they want a quiet private spot to get on a Zoom call,” said Witting, a partner at the company. “It’s weird.”

As Covid-19’s remote-work surge fades, some workplaces are quieter and odder than ever. Employees have returned only to park themselves in deserted conference rooms or sound-muffling chambers. Colleagues grumble about booth-hogging co-workers, and some companies have started enforcing time limits on them.

The pods, some resembling old-school telephone booths, have emerged as one of the hottest segments in the $24 billion North American office-furniture industry. Manufacturers such as Room, Nook and Framery say business has been brisk. But some workers and managers say more booths means less eavesdropping, less gossiping, less camaraderie and less fun.

“It’s strange,” said William Blaze, a technology recruiter and consultant, referring to colleagues who end up occupying booths for much of their workdays. Blaze, who lives in Atlantic Highlands, N.J., observed the phenomenon while working at tech companies from 2021 to 2023, as well as at a client’s Manhattan co-working office where he now works two days a week.

“It seems that the goal of returning to office has been to create a rowdy buzz,” said Blaze. “We’re not seeing that.”

Janet Pogue McLaurin, global director of workplace research at architecture and design firm Gensler, said workplace privacy has never been more important. Many of the firm’s clients, which include big companies such as Amazon, have more than doubled their booths and other private or semiprivate areas since the pandemic.

“This is a huge trend,” she said.

Demand for privacy has office architects and landlords scrambling to rearrange layouts. Open-plan offices, often dreaded by employees, are now being peppered with pods and booths that scream “do not disturb.”

Jamie Hodari, chief executive of global co-working company Industrious, said some workers are monopolising private areas in office spaces that were designed for professionals to connect with other professionals. “We see a lot more people linger for two hours post-phone call or a Zoom call because they like having a little space to themselves.”

Booth-inclined office workers say their needs have changed post-Covid, and they have a harder time concentrating among noise and distractions.

At CrowdComms, a U.K.-based maker of event technology, managing director Matthew Allen got used to working in near-silence at the office during the pandemic. When colleagues returned, their phone calls—even at normal volume—annoyed him so much he bought a sound-dampening booth.

Though it was ostensibly for the entire office, he soon moved in.

“It’s quite selfish,” said Allen, who has added a trio of plants. “I think it has very much become my home.”

On social-media sites such as X, Reddit and TikTok, employees generally celebrate the booths. Even Chatty Cathys are seeking them out. One X user tweeted that she locks herself in an office phone booth most days because she talks too much.

Others vent about booths’ poor ventilation and small size, or their aesthetics. Kirsten Auclair, a biomedical researcher in San Francisco, shudders at the harsh lighting in the booths she uses to take Zoom calls at work.

“It casts like the worst shadows, you look just kind of, like, on the brink of death,” she said. Still, Auclair considers the oasis from colleagues’ noise an office lifesaver.

Booth manufacturers insist their products can coexist with collegiality. SnapCab founder and CEO Glenn Bostock said the glass walls of his company’s pods allow for a sense of connection with co-workers.

“They can see you,” he said. “You can wave at them. You can still interact with people visually but you get that audio privacy.”

Other products seek a different balance between isolation and community. Furniture maker Steelcase offers a desk-encircling tent meant to ensure “territorial privacy” instead of silence. Nook, headquartered in the U.K., makes hut-shaped hideaways intended to provide a sense of psychological safety without being completely enclosed.

Nook founder David O’Coimin said an office filled with phone booths “is like you have a jail instead of having a workplace.”

Furniture distributor Thinkspace sells booths that Sid Meadows, principal and vice president, said are designed to allow a low level of outside sound. Humans are wired to crave some background noise, he said, pointing to popular YouTube videos of ambient office chatter.

That matches the findings of a study co-authored by Dr. Esther Sternberg, director of the University of Arizona Institute on Place, Wellbeing and Performance. She and colleagues discovered people became stressed when their surroundings were too quiet as well as too loud. The typical volume of birdsong, at 45 decibels, appears to be just right.

Nick Fine, a user-experience researcher in London, describes himself as an “old school, pre pandemic office worker” who enjoys the hubbub of a busy workplace. But the now-hybrid worker still spends considerable time in an enclosed pod to work without overhearing his colleagues’ chatter on days he’s in the office.

“I have ADHD and working in a pod engages my hyper focus,” he said, adding he likes having the booth option when the din is too much.

Farmer’s Fridge, which sells fresh salads out of vending machines, has eight pods made by Zenbooth and a plethora of conference rooms in its Chicago office. It offers about 40 hideaways for the 85 people who work there, yet that bounty of isolation isn’t always enough, even for the CEO.

“I actually live three minutes from here,” said Luke Saunders, also the company’s founder. “If I really have to get work done, I do it at home.”

Reporting season has once again reminded investors that a strong profit does not guarantee a rising share price, and a large loss does not always trigger a sell-off. What matters most is how each result compares with expectations and, increasingly, what management says about the year ahead. During the August 2026 season, companies offering credible turnarounds or unexpectedly strong guidance were rewarded handsomely, while those flagging weaker margins, slowing demand or greater uncertainty were punished.

The following ranking draws on Morningstar’s review of 164 ASX-listed companies and measures each company’s share-price movement on the day it reported. This captures the market’s immediate response to the earnings announcement, before subsequent economic developments, dividends and company-specific news cloud the picture. Here are the five biggest winners, and the five hardest-hit losers, of the season so far.

The five winners

1. Bapcor (ASX:BAP): +41.0%

Bapcor delivered reporting season’s largest relief rally after presenting early evidence that its troubled automotive-parts business was stabilising. Although underlying revenue fell 1.8% to $1.92 billion and underlying NPAT collapsed 85% to $10.8 million, underlying EBITDA of $152.5 million exceeded guidance.

More importantly, working-capital initiatives released $68.5 million in the second half, lifting cash conversion to 109.4% and reducing net debt by 63% to $135 million. The statutory loss was $431.6 million, largely because of non-cash impairments. Investors focused on improving operational momentum, stronger liquidity and management’s expectation of modest FY27 revenue growth.

2. Zip Co (ASX:ZIP): +18.2%

Zip comfortably surpassed its FY26 targets, sending the buy-now-pay-later provider’s shares sharply higher. Transaction volume rose 23% to $16.7 billion, while cash earnings before tax, depreciation and amortisation jumped 58% to a record $268.9 million. Statutory profit climbed 46% to $116.4 million, and the cash operating margin expanded by 4.2 percentage points to 20%.

The strongest signal was guidance for FY27 cash earnings of $340 million—around 26% growth and above analysts’ forecasts. US transaction volume increased 42.5% and now represents three-quarters of group volume, offsetting weaker customer activity in Australia.

3. CSL (ASX:CSL): +17.3%

CSL’s result was hardly spectacular in isolation, but it cleared a market bar that had fallen dramatically following earlier downgrades and restructuring announcements. Underlying NPATA was US$3.1 billion, down 2% in constant-currency terms, while operating cash flow reached US$3.51 billion.

CSL maintained its full-year dividend at US$2.92 per share and completed a A$1 billion buyback. The real catalyst was FY27 guidance for approximately 5% underlying profit growth, compared with market expectations closer to 2%. After an extended period of earnings disappointments, investors interpreted the outlook as evidence that CSL’s core plasma business was approaching a sustainable recovery.

4. Judo Capital (ASX:JDO): +16.9%

Judo Capital demonstrated strong operating leverage as its specialist business-lending franchise expanded. Full-year profit before tax rose 34% to $168.1 million, while pre-provision profit increased 42%. Gross loans and advances grew 18% to $14.7 billion, reaching the top of the bank’s guidance range and comfortably exceeding broader system growth.

Deposits increased 24% to $12.2 billion, return on equity improved by 1.1 percentage points to 6.4%, and earnings per share rose 29% to 9.9 cents. Reaffirmation of the FY27 outlook gave investors confidence that loan growth could continue without sacrificing margins or credit quality.

5. Super Retail Group (ASX:SUL): +15.8%

The owner of Supercheap Auto, rebel, BCF and Macpac reported record sales of $4.2 billion, up 3.2%, despite cautious discretionary spending. Profitability went backwards: normalised profit before tax fell 7% to $306 million and normalised NPAT declined 2.8% to $226 million as transformation spending weighed on margins. Nevertheless, the result exceeded subdued expectations, online sales grew 5.3% and membership across the group’s loyalty programs reached 13.1 million. Investors were also encouraged by positive early FY27 trading, stable gross margins and continued market-share gains. A fully franked 33-cent final dividend added to the appeal.

The five losers

1. Hansen Technologies (ASX:HSN): –21.2%

Hansen’s historic result met expectations, but investors recoiled from its outlook. The utility and communications software provider achieved an underlying EBITDA margin of 31%, exceeding its 30% target, while generating strong cash flow. However, management designated FY27 an “investment and transition year”, signalling a roughly five-percentage-point margin contraction as spending on products, sales capabilities and organisational changes increased.

Revenue had already been broadly flat, leaving investors concerned that the investment program would depress earnings before new growth appeared. Leadership changes, including the chief executive’s departure, added uncertainty. Management expects revenue growth and margins above 30% to return in FY28, but the market was unwilling to wait.

2. Life360 (ASX:360): –19.4%

Life360’s headline growth was impressive: quarterly revenue rose 38% to US$159 million, subscription revenue increased 31%, and adjusted EBITDA climbed 53% to US$31.1 million. Monthly active users reached 102.4 million and paying circles grew 27% to 3.2 million. The sell-off reflected expectations rather than a collapsing business.

Net income fell 18%, the net margin contracted from 6% to 3%, hardware shipments dropped 18%, and full-year EBITDA guidance was merely maintained. After a strong valuation run, investors wanted a larger upgrade and clearer evidence that heavy investment in advertising, international expansion and artificial intelligence would generate additional earnings.

3. PEXA Group (ASX:PXA): –17.0%

PEXA reported a 7% increase in continuing-operations revenue and 12% EBITDA growth to $152 million, accompanied by a two-percentage-point margin expansion. Free cash flow increased 39%, suggesting the core Australian electronic-conveyancing platform remained highly profitable. Investors instead concentrated on management’s warning that property-transfer volumes could decline, alongside regulatory uncertainty surrounding the fees PEXA can charge.

The company is also continuing to invest heavily in its loss-making international expansion. Morningstar considered the market reaction excessive, arguing that structural transfer-volume assumptions had not materially changed, but the combination of softer near-term activity and regulatory risk overwhelmed the respectable headline numbers.

4. SEEK (ASX:SEK): –14.3%

SEEK produced solid FY26 figures, including 10% revenue growth to $1.20 billion, a 15% rise in EBITDA and 28% growth in adjusted earnings per share. It also lifted its fully franked annual dividend by 13% to a record 52 cents. Those achievements were overshadowed by falling paid job-ad volumes and cautious FY27 assumptions.

The statutory accounts included a $201 million loss from the SEEK Growth Fund and $377 million of significant items, making the headline result considerably less attractive. Investors were particularly concerned that economic weakness could limit volumes while the company continued investing in platform integration and artificial-intelligence products.

5. JB Hi-Fi (ASX:JBH): –12.3%

JB Hi-Fi’s full-year result was broadly respectable, with group sales rising 5% to $11.1 billion and underlying earnings per share increasing 6% to $4.48. The damage came from its current-trading update. Australian sales were almost flat during the June quarter and deteriorated further in July, while earnings in the core Australian electronics business fell 3.6%.

Housing-related categories were particularly weak as higher living costs and interest rates constrained household budgets. With JB Hi-Fi entering the season on a demanding valuation, an in-line historic result was not sufficient: the loss of sales momentum prompted investors to rapidly reduce their expectations for FY27.

Overall, the season showed that share prices react less to whether profits rose or fell than to the gap between results and expectations. Bapcor was rewarded for being less troubled than feared, while several fundamentally profitable companies were punished because their outlooks failed to justify elevated valuations.