OneSpaWorld Holdings Limited Q4 2025 Earnings Call Summary

• Achieved 19 consecutive quarters of year-over-year growth driven by the introduction of 8 new ship builds and expanded high-value Medi-Spa services.

• Strategic reorganization included exiting land-based wellness centers in Asia and restructuring UK and Italy operations to focus capital on high-growth maritime assets.

• Next-generation Medi-Spa technologies, including Thermage FLX and CoolSculpting Elite, reduced treatment times by up to 50% while driving revenue growth between 23% and 40%.

• Improved staff retention by 4 percentage points through internal initiatives, which management notes is critical as experienced staff generate significantly higher daily revenue.

• Productivity gains were realized across all key metrics, including revenue per passenger per day and pre-cruise revenue, despite a lack of service price increases in 2025.

• The asset-light business model supported the return of nearly $93 million to shareholders through buybacks and dividends while simultaneously reducing total debt.

• Reaffirmed fiscal 2026 guidance with total revenues expected to exceed $1 billion for the first time, assuming high single-digit growth at the midpoint.

• Planned introduction of health and wellness centers on 6 new ship builds in 2026, with 3 expected to commence voyages in the first half of the year.

• Guidance currently excludes potential financial upside from new AI initiatives, which management expects to discuss with more specificity after Q2 results.

• Strategic shift toward a condensed spa menu aims to narrow the guest aperture toward more popular, high-margin treatments with higher retail attachment rates.

• Assumes a stable consumer environment where higher net prices are being accepted despite slightly higher levels of tactical discounting.

• Recognized $2.7 million in restructuring expenses related to the strategic exit from Asian resort operations and European reorganization.

• Recorded a $3 million long-lived asset impairment charge, primarily consisting of $2.2 million in intangible assets associated with the exited Asian business.

• Management highlighted the successful mitigation of a brief period of consumer softness observed in November, with performance rebounding strongly in December.

• Inventory write-off charges of $0.3 million were incurred as a non-recurring impact of the land-based center closures.

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