Financial services giant Fidelity Investments, already WeWork’s second-largest shareholder after SoftBank, added to its stake in the flexible office space provider.

Under the entity FMR, Fidelity has accumulated a total of 83.5 million WeWork shares, giving it a stake of 11.1%, according to a filing Monday with the Securities and Exchange Commission.

Based on past regulatory filings, Fidelity’s stake was just 3.66% in November, after WeWork went public the prior month. It had increased its ownership of WeWork to 7.1% before raising it to 9.1%, based on filings in February and April.

That made it the second-largest shareholder just behind entities tied to Japan’s SoftBank, which has a combined stake of about 66% in WeWork. Adam Neumann, WeWork’s co-founder and former CEO, has a 6.1% stake, according to the April filing.

Fidelity and WeWork declined to comment.

Fidelity, well known as a manager of retirement fund accounts, is no stranger to WeWork, having first invested in the New York firm in 2015 during its series E round of financing. It was also an investor in BowX, the special-purpose acquisition company created to buy WeWork and take it public last year.

Fidelity’s latest investment is a shot of confidence in WeWork as the company’s stock has lost more than 40% of its value this year, more than the broader market indexes. WeWork in May narrowed its first-quarter loss as it cut costs and said its consolidated desk sales reached the highest level since the pandemic’s start.

WeWork said at the time it still expected its adjusted bottom line to break even by year’s end.

The high-profile firm went public in October after corporate governance concerns led to its first failed attempt in 2019 and the ouster of Neumann.

Under new CEO Sandeep Mathrani, WeWork has cut costs, exited some money-losing leases and introduced all-access memberships and what it describes as “asset-light” management agreements that don’t involve leasing risks.

Mathrani has said recession, inflation and supply-chain concerns are poised to benefit WeWork, adding that it takes companies 18 to 24 months to build out space versus most users typically moving into a WeWork space within 60 days. He’s also said the hybrid work model of working some days in the office will create increased demand for flexible space, with WeWork taking share.

“We continue to believe [WeWork] will achieve profitability due to highly visible revenue for the remainder of the year and additional opportunities to lower expenses,” Alexander Goldfarb, an analyst at Piper Sandler, said in a report last month. “Companies of all sizes are budgeting for flexible workspace in their office plans, some requiring up to 25% of their footprint to be flex. This is helping drive demand" for WeWork. Goldfarb rated WeWork stock with the equivalent of a buy recommendation.

WeWork’s progress aside, the company faces increased competition from both landlords and other flexible space providers.

For instance, Convene, a more than decade-old provider of event, meeting and flexible office spaces, secured in April an investment from HBC, parent of department stores Hudson’s Bay and Saks Fifth Avenue, and investment firm Ares Management. Industrious, a flexible space provider that counts brokerage giant CBRE among its investors, has joined a major real estate owner, Nuveen, to open an upscale workplace lounge concept in New York.

WeWork is also not the only flexible space provider eyeing space management agreements. The majority of Industrious’ flexible locations, for instance, already are operated under the management agreement model, with a company executive recently telling CoStar News management agreements will represent 100% of its future growth.