OneSpaWorld Reports Record Fourth Quarter and Fiscal Year 2025 Results
NASSAU, Bahamas--( BUSINESS WIRE)--OneSpaWorld Holdings Limited (NASDAQ: OSW) (“OneSpaWorld,” or the “Company”), the pre-eminent global provider of health and wellness services and products onboard cruise ships and in destination resorts around the world, today announced its financial results for its fourth quarter and twelve months of fiscal 2025, ended December 31, 2025.
Leonard Fluxman, Executive Chairman and Chief Executive Officer, commented: “Our record fourth quarter capped a year of exceptional performance underpinned by innovation across our global operating platform to deliver extraordinary guest experiences and excellent results for our cruise line and destination resorts partners. We drove increases in key operating metrics during the quarter which produced double-digit growth in quarterly Total revenues and Adjusted EBITDA and our fourth consecutive year of record financial results. We also further cemented our market leadership position adding health and wellness centers on two new ship builds launched during the quarter. At the start of fiscal 2026, we joined the S&P SmallCap 600® Index and expect another banner year driven by our relentless focus and successful execution of our strategy by our outstanding teams.”
Stephen Lazarus, President, Chief Financial Officer and Chief Operating Officer, added: “Our record performance reflects our investments in breakthrough technology applications across our business, reinforcing our market-leading strengths, and deepening our cruise line and resort partnerships. We are particularly excited by the increasing impact of accelerated AI technology integration across our fleet to further drive revenue, cash flow and earnings growth. During the quarter, we also implemented strategic actions to focus operational and capital investment on our highest growth and most profitable operations, exiting land-based health and wellness centers in Asia and reorganizing operations in the United Kingdom and Italy."
Mr. Lazarus noted further: "Our balanced capital allocation strategy, fueled by our strong cash flow generation and positive outlook, enabled us to return $92.9 million to shareholders during the year - $17.5 million in quarterly dividends and $75.4 million from our repurchase of 3.9 million common shares, while repaying $15.0 million of our Term Loan Facility. We ended 2025 with a strong balance sheet, including $17.5 million in cash and $67.5 million of total liquidity.”
Mr. Lazarus concluded, “We begin fiscal 2026 with strong momentum and confidence to deliver another record year. Based on our market outlook, outstanding team, proven strategies and execution, scaling innovations, new ship builds, and strong capitalization, we expect fiscal 2026 Total Revenues to exceed the one-billion-dollar mark and for Total Revenues, and Adjusted EBITDA, to deliver high-single digit growth at the mid-point of our guidance ranges from actual fiscal 2025 results, excluding revenues from exited and reorganized operations.”
Fourth Quarter 2025 Highlights:
Fiscal Year 2025 Highlights:
Operating Network Update:
Liquidity Update:
The Company’s results are reported in this press release on a GAAP basis and on an as adjusted non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. This press release also refers to Adjusted EBITDA and Adjusted Net Income (non-GAAP financial measures), the terms for which definition and reconciliation are presented below.
Fourth Quarter Ended December 31, 2025 Compared to December 31, 2024
Fiscal Year 2025 Ended December 31, 2025 Compared to December 31, 2024
Balance Sheet Highlights
Fiscal Year 2026 Guidance
Three Months Ended March 31, 2026
Year Ended December 31, 2026
Total Revenues (1)
$
241-246 million
$
1.01-1.03 billion
Adjusted EBITDA
$
30-32 million
$
128-138 million
(1)
Revenues for the three months ended March 31,2025 and the Fiscal Year ended December 31, 2025 included $5.3 million and $23.0 million, respectively related to the reorganization of operations in the United Kingdom and Italy and the exit of land-based operations in Asia. The revenues related to these operations in 2025 are excluded from 2026 guidance.
Dividend Announcement
The Company announced today that the Board of Directors approved a quarterly dividend payment of $0.05 per common share payable on March 25, 2026 to shareholders of record as of the close of business on March 11, 2026.
Share Repurchase Program
During the fourth quarter of fiscal 2025, the Company repurchased 968,347 shares of its outstanding common shares, returning $19.9 million to shareholders. For fiscal 2025, the Company repurchased 3,878,873 shares of its outstanding common shares, returning $75.4 million to shareholders during the year. As of December 31, 2025, the Company had $37.5 million remaining on its $75 million share repurchase program adopted in April 2025.
Conference Call Details
A conference call to discuss the fourth quarter and twelve months of 2025 financial results is scheduled for Wednesday, February 18, 2026, at 10:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-283-8977 (international callers please dial 1-412-542-4171) and provide the passcode 10206221 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://onespaworld.com/investor-relations. A replay of the call will be available by dialing 844-512-2921 (international callers please dial 412-317-6671) and entering the passcode 10206221. The conference call replay will be available from 2:00 p.m. Eastern Time on Wednesday, February 18, 2026 until 11:59 p.m. Eastern Time on Wednesday, February 25, 2026. The Webcast replay will remain available for 90 days.
About OneSpaWorld
Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld’s distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, aesthetics and fitness services, treatments, and products, currently onboard 207 cruise ships and at 46 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades upon its exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners.
On March 19, 2019, OneSpaWorld completed a series of mergers pursuant to which OSW Predecessor, comprised of direct and indirect subsidiaries of Steiner Leisure Ltd., and Haymaker Acquisition Corp. (“Haymaker”), a special purpose acquisition company, each became indirect wholly owned subsidiaries of OneSpaWorld (the “Business Combination”). Haymaker is the acquirer and OSW Predecessor the predecessor, whose historical results have become the historical results of OneSpaWorld.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer, and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”). Please see “Note Regarding Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
ONESPAWORLD HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
$
%
$
%
2025
2024
Inc/(Dec)
Inc/(Dec)
2025
2024
Inc/(Dec)
Inc/(Dec)
REVENUES:
Service revenues
$
197,343
$
175,811
$
21,532
12
%
$
777,262
$
723,273
$
53,989
7
%
Product revenues
44,784
41,395
3,389
8
%
183,739
171,746
11,993
7
%
Total revenues
242,127
217,206
24,921
11
%
961,001
895,019
65,982
7
%
COST OF REVENUES AND OPERATING EXPENSES:
Cost of services
163,879
145,332
18,547
13
%
645,360
599,756
45,604
8
%
Cost of products
38,354
34,984
3,370
10
%
156,493
145,799
10,694
7
%
Administrative
4,872
5,792
(920
)
(16
)%
18,063
18,827
(764
)
(4
)%
Salary, benefits and payroll taxes
8,874
9,351
(477
)
(5
)%
37,092
35,630
1,462
4
%
Amortization of intangible assets
4,109
4,140
(31
)
(1
)%
16,508
16,571
(63
)
(0
)%
Restructuring expenses
2,703
—
2,703
—
2,703
—
2,703
—
Long-lived assets impairment
2,965
376
2,589
689
%
3,145
376
2,769
736
%
Total cost of revenues and operating expenses
225,756
199,975
25,781
13
%
879,364
816,959
62,405
8
%
Income from operations
16,371
17,231
(860
)
(5
)%
81,637
78,060
3,577
5
%
OTHER (EXPENSE) INCOME:
Interest expense, net
(1,256
)
(1,209
)
(47
)
(4
)%
(5,177
)
(8,881
)
3,704
42
%
Change in fair value of warrant liabilities
—
—
—
—
—
7,677
(7,677
)
—
Other expense
(348
)
—
(348
)
—
(348
)
—
(348
)
—
Total other expense, net
(1,604
)
(1,209
)
(395
)
(33
)%
(5,525
)
(1,204
)
(4,321
)
359
%
Income before income tax expense
14,767
16,022
(1,255
)
(8
)%
76,112
76,856
(744
)
(1
)%
INCOME TAX EXPENSE
2,705
1,634
1,071
66
%
4,494
3,992
502
13
%
NET INCOME
$
12,062
$
14,388
$
(2,326
)
(16
)%
$
71,618
$
72,864
$
(1,246
)
(2
)%
NET INCOME PER SHARE:
Basic
$
0.12
$
0.14
$
0.69
$
0.70
Diluted
$
0.12
$
0.14
$
0.69
$
0.69
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic
101,825
104,627
103,191
104,024
Diluted
102,381
105,478
103,666
104,940
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Selected Statistics
Period End Ship Count
206
199
206
199
Average Ship Count (1)
199
188
196
190
Average Weekly Revenues Per Ship
$
89,428
$
83,913
$
90,608
$
86,213
Average Revenues Per Shipboard Staff Per Day
$
577
$
550
$
593
$
572
Revenue Days (2)
18,294
17,307
71,459
69,365
Period End Resort Count
48
50
48
50
Average Resort Count (3)
48
51
49
52
Average Weekly Revenues Per Resort
$
11,945
$
13,219
$
12,738
$
13,962
Capital Expenditures (in thousands)
$
5,049
$
3,310
$
15,073
$
6,743
Forecasted
Q1 2026
FY 2026
Period End Ship Count
208
210
Average Ship Count (1)
201
202
Period End Resort Count
40
13
Average Resort Count (2)
41
23
(1)
Average Ship Count reflects the fact that during the period ships were in and out of service and is calculated by adding the total number of days that each of the ships generated revenue during the period, divided by the number of calendar days during the period.
(2)
Revenue Days reflects a day on which the health and wellness centers are open onboard a revenue generating cruise with passengers.
(3)
Average Resort Count reflects the fact that during the period destination resort health and wellness centers were in and out of service and is calculated by adding the total number of days that each destination resort health and wellness center generated revenue during the period, divided by the number of calendar days during the period.
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not calculated in accordance with GAAP, including Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA.
We define Adjusted net income as Net income (loss), adjusted for items, including Change in fair value of warrant liabilities; increase in Depreciation and amortization resulting from the Business Combination; Long-lived assets impairment; Stock-based compensation, Restructuring expenses and Inventory write-off. Adjusted net income per diluted share is defined as Adjusted net income divided by Diluted weighted average shares outstanding during the period, as if such shares had been outstanding during the entire three and twelve month periods ended December 31, 2025 and 2024.
We define Adjusted EBITDA as Net income adjusted for items, including Income tax expense (benefit); Interest expense, net; Change in fair value of warrant liabilities; Depreciation and amortization; Long-lived assets impairment; Stock-based compensation; Restructuring expenses, Inventory write-off, Other expense and Business combination costs as set forth below.
We believe that these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA have limitations as profitability measures in that they do not include total amounts for interest expense on our debt and provision for income taxes, and the effect of our expenditures for capital assets and certain intangible assets. In addition, all of these non-GAAP measures have limitations as profitability measures in that they do not include the effect of non-cash stock-based compensation expense and the impact of certain expenses related to items that are settled in cash. Because of these limitations, the Company relies primarily on its GAAP results.
In the future, we may incur expenses similar to those for which adjustments are made in calculating Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as a basis to infer that our future results will be unaffected by extraordinary, unusual, or nonrecurring items.
Reconciliation of GAAP to Non-GAAP Financial Information
The following table reconciles Net income to Adjusted net income for the fourth quarters and year-to-date periods ended December 31, 2025 and 2024 and Adjusted net income per diluted share for the fourth quarters and year-to-date periods ended December 31, 2025 and 2024 (amounts in thousands, except per share amounts):
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net income
$
12,062
$
14,388
$
71,618
$
72,864
Change in fair value of warrant liabilities
—
—
—
(7,677
)
Depreciation and amortization (a)
3,761
3,761
15,044
15,044
Long-lived assets impairment
2,965
376
3,145
376
Stock-based compensation
2,335
2,907
10,086
9,071
Restructuring expenses
2,703
—
2,703
—
Inventory write-off (b)
348
—
348
—
Adjusted net income
$
24,174
$
21,432
$
102,944
$
89,678
Adjusted net income per diluted share
$
0.24
$
0.20
$
0.99
$
0.85
Diluted weighted average shares outstanding
102,381
105,478
103,666
104,940
(a) Depreciation and amortization refers to addback of purchase price adjustments to tangible and intangible assets resulting from the Business Combination.
(b) Inventory write-off represent addbacks related to our exit from land-based health and wellness center operations in Asia. These expenses were recorded in Cost of products.
The following table reconciles Net income to Adjusted EBITDA for the fourth quarter and year-to-date periods ended December 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net income
$
12,062
$
14,388
$
71,618
$
72,864
Income tax expense
2,705
1,634
4,494
3,992
Interest expense, net
1,256
1,209
5,177
8,881
Change in fair value of warrant liabilities
—
—
—
(7,677
)
Depreciation and amortization
6,492
6,186
25,332
24,276
Long-lived assets impairment
2,965
376
3,145
376
Restructuring expenses
2,703
—
2,703
—
Inventory write-off (b)
348
—
348
—
Stock-based compensation
2,335
2,907
10,086
9,071
Other expense
348
—
348
—
Business combination costs (c)
—
—
—
293
Adjusted EBITDA
$
31,214
$
26,700
$
123,251
$
112,076
(b) Inventory write-off represent addbacks related to our exit from land-based health and wellness center operations in Asia. These expenses were recorded in Cost of products.
(c) Business combination costs refers to legal and advisory fees incurred by OneSpaWorld in connection with warrant conversion.