Core Viewpoint - OneSpaWorld Holdings Limited, a leading provider of health and wellness products and services on cruise ships and in destination resorts, is set to release its Fourth Quarter Fiscal 2025 earnings on February 18th before market open [1] Financial Announcement - The earnings release will be followed by a conference call on the same day at 10:00 am ET to discuss the quarterly results [1]

Core Viewpoint - OneSpaWorld Holdings Limited has been included in the S&P SmallCap 600® Index, marking a significant milestone for the company [1] Company Summary - OneSpaWorld is recognized as a leading global provider of health and wellness products and services, specifically catering to cruise ships and destination resorts worldwide [1] - The inclusion in the S&P SmallCap 600® Index is effective prior to the opening of trading on February 10, 2026 [1] - Leonard Fluxman, the Executive Chairman and CEO, highlighted this inclusion as a notable achievement in the company's history [1]

Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for the fourth quarter and 2026 [3][4] - Guest spend reached the highest level ever, with metrics indicating strong performance during the holiday season, particularly Christmas and New Year cruises [12] Business Line Data and Key Metrics Changes - The company is seeing significant growth in the acupuncture and med spa segments, which currently account for about 8% of total revenue and are growing at 10% annually [9] - Changes in revenue recognition in Europe will not impact EBITDA, as the company will now recognize management fees instead of direct revenue from certain cruise lines [6][7] Market Data and Key Metrics Changes - The company noted that pre-booking rates are around 22%, with a goal to increase this to 30%, as pre-booked guests tend to spend 35% more than those who book on board [18][22] - The company is piloting revenue enhancement features on 80 vessels, with plans to expand to 185 vessels by the end of the second quarter [24] Company Strategy and Development Direction - The company is focusing on enhancing its wellness offerings, particularly in the med spa segment, and is exploring options to integrate longevity services into its offerings [10][33] - The company aims to maintain a collaborative relationship with cruise line partners, focusing on growing the overall business rather than competing for smaller slices of revenue [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consumer spending trends and the ability to maintain pricing power across different macro environments, despite some concerns about consumer nervousness [14][15] - The company is optimistic about the future, with a focus on improving operational efficiency through AI and machine learning initiatives [25][26] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt reduction [38] - Staff retention has improved significantly, with a retention rate of 76%, which is expected to enhance productivity and reduce training costs [31][32] Q&A Session Summary Question: Can you provide insights on the preliminary fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December, leading to a positive outlook for the fourth quarter and 2026 [3][4] Question: What are the implications of closing the Asia land-based operation? - The exit from the Asia land-based operation will impact revenue but not EBITDA, as it was not profitable [6] Question: How is the company addressing the growth in guest spend? - The company has reworked service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spend [11] Question: What is the company's strategy regarding pre-booking? - The company aims to enhance pre-booking capabilities, as pre-booked guests tend to spend significantly more [22] Question: How does the company view its relationships with cruise line partners today? - The company emphasized a collaborative approach with cruise line partners to grow the overall business, contrasting with past competitive dynamics [41][42]

Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for the fourth quarter and 2026 [4][3] - Retail spend increased significantly during the holiday season, with penetration around 11%, marking the best New Year cruises on record [4] Business Line Data and Key Metrics Changes - The company is reorganizing its operations, exiting the Asia land-based operation, which will impact revenue but not EBITDA, as it was not profitable [6][8] - In Europe, the company will now recognize management fees instead of revenue from certain cruise lines, maintaining EBITDA levels while simplifying operations [7] Market Data and Key Metrics Changes - The company noted a strong consumer appetite for wellness services, particularly in acupuncture and med spa offerings, which currently represent about 8% of total revenue and are growing at 10% annually [9][10] - Guest spend is at an all-time high, with December and New Year cruises performing exceptionally well [12] Company Strategy and Development Direction - The company is focusing on enhancing its wellness offerings and exploring new services related to longevity, which is seen as a significant growth area [10] - There is an emphasis on improving pre-booking capabilities, which currently stands at around 22%, with a goal to increase this to 30% [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining pricing power across various macro environments, noting that consumer spending has remained strong despite economic uncertainties [14][15] - The company is optimistic about the impact of tax breaks on consumer spending and overall business performance [15] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt reduction [38] - Staff retention has improved significantly, with a focus on bringing back experienced staff, which enhances productivity and reduces training costs [31][32] Q&A Session Summary Question: Can you provide insights on the preliminary fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December recovery [4] Question: What are the implications of exiting the Asia land-based operation? - The exit will not impact EBITDA as the operation was not profitable, but it will affect revenue numbers [6] Question: How is the company addressing the growth in guest spend? - The company has revamped service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spend [11] Question: What is the company's strategy regarding pre-booking? - Management emphasized the importance of improving pre-booking capabilities, which significantly enhance guest spending [18][22] Question: How does the company view its relationships with cruise line partners today? - The focus has shifted to collaborative growth with cruise line partners, moving away from past practices of aggressive cost-cutting [40][42]

Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for 2026 [3][4] - Guest spend reached the highest level ever, with metrics indicating strong performance during the holiday season [12] Business Line Data and Key Metrics Changes - The company is focusing on expanding its acupuncture and med spa services, which currently account for about 8% of total revenue and are growing at 10% annually [9] - The reorganization included exiting the Asia land-based operation, which will not impact EBITDA but will affect revenue numbers [6][7] Market Data and Key Metrics Changes - The company noted a strong consumer appetite for wellness services, particularly in the maritime segment, indicating a trend towards higher guest spending [9][11] - Pre-booking rates are currently around 22%, with a goal to increase this to 30%, as pre-booked guests tend to spend 35% more than those who book on board [16][21] Company Strategy and Development Direction - The company is implementing machine learning and AI initiatives to enhance revenue and efficiency, with plans to roll out these technologies across more vessels [22][23] - The focus is on maintaining collaborative relationships with cruise line partners to grow the overall business rather than competing for smaller slices of revenue [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining pricing power across different macro environments, citing strong demand for services [13][14] - The company is optimistic about the future, particularly in the wellness and longevity sectors, and is exploring new service offerings [10][32] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt pay down [36] - Staff retention has improved significantly, with a current retention rate of 76%, which enhances productivity and reduces training costs [30] Q&A Session Summary Question: Can you provide insights on the pre-announcement and fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December, leading to a positive outlook for 2026 [3][4] Question: What are the implications of closing the Asia land-based facility? - The exit will not impact EBITDA but will affect revenue, as the operation was not profitable [6][7] Question: How is the company addressing the growth in guest spending? - The company has reworked service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spending [11][12] Question: What is the strategy for improving pre-booking rates? - Management aims to enhance pre-booking capabilities and increase visibility on mobile platforms to boost rates from 22% to 30% [16][21] Question: How does the company view its relationships with cruise line partners? - The focus has shifted to collaborative growth with cruise lines, emphasizing the importance of enhancing the overall guest experience [40][41]

Company Performance & Financials - OneSpaWorld delivered a record third quarter in 2025, marking the 18th consecutive quarterly period of year-over-year growth in Total Revenues and Adjusted EBITDA[18] - The company expects fiscal 2025 annual Total Revenues to increase by 8% and Adjusted EBITDA to increase by 10% at the mid-point of the guidance ranges from actual fiscal 2024 annual results[18] - FY 2025 Revenue is projected to be between $958.5 million and $963.5 million, with Adjusted EBITDA between $122 million and $124 million[20] - FY 2026 Revenue is projected to be between $1.01 billion and $1.03 billion, with Adjusted EBITDA between $128 million and $138 million[21] - In Q3 2025, Passenger Cruise Days ("PCD"s) are at 116%+ of Q3 2019 levels, and bookings are ~55% above Q3 2019[39] Market Position & Growth Drivers - OneSpaWorld holds a >90% market share at sea in the outsourced health and wellness market[17] - The company is nearly 20x larger than its nearest maritime competitor[12] - The company has access to a ~23 million annual captive audience[12] - Cruise industry passenger bookings have rebounded, with 2025 expected to eclipse 2019 levels[34] - Onboard spend per PCD (Passenger Cruise Day) was up ~22% in 2024 vs 2019[39] Strategic Advantages - OneSpaWorld operates on 204 ships[17] and 49 resorts[17] - The company has long-term agreements with the largest and most reputable cruise lines, with an average cruise line relationship history of 20+ years and a ~97% historical contract renewal rate[25]

Core Insights - OneSpaWorld Holdings Limited is providing preliminary revenue and Adjusted EBITDA expectations for Fiscal Year 2025 and introducing guidance for Fiscal Year 2026 ahead of investor meetings and the ICR Conference 2026 [1][10] Fiscal Year 2025 Expectations - For Fiscal Year 2025, the company expects total revenues in the range of $958.5 million to $963.5 million, representing a growth of 7% at the mid-point from total revenues of $895 million in Fiscal Year 2024 [7] - Adjusted EBITDA is expected to be in the range of $122 million to $124 million, indicating a growth of 10% at the mid-point from Adjusted EBITDA of $112.1 million in Fiscal Year 2024 [7] Fourth Quarter Expectations - For the Fourth Quarter (13 weeks ended December 31, 2025), total revenues are expected to be in the range of $239.5 million to $244.5 million, reflecting an 11% growth at the mid-point from fourth quarter Fiscal Year 2024 total revenues of $217.2 million [7] - Adjusted EBITDA for the Fourth Quarter is anticipated to be in the range of $30 million to $32 million, representing a 16% growth at the mid-point from fourth quarter Fiscal Year 2024 Adjusted EBITDA of $26.7 million [7] Fiscal Year 2026 Guidance - The company is introducing Fiscal Year 2026 guidance, expecting total revenues in the range of $1.01 billion to $1.03 billion, compared to pro forma 2025 revenue of approximately $938 million at the mid-point of its preliminary guidance range [8] - Adjusted EBITDA for Fiscal Year 2026 is projected to be in the range of $128 million to $138 million, with no impact from the business reorganization [8] Business Reorganization - On December 31, 2025, the company completed a reorganization of its operations in the United Kingdom and Italy, and is exiting its land-based health and wellness center operations in Asia, which generated approximately $23 million in revenue in 2025 [5] - The reorganization aims to focus resources on areas of the business that deliver strong revenue and margin growth, with expectations for significant milestones in Fiscal Year 2026 [6]

Core Viewpoint - OneSpaWorld Holdings Limited will participate in investor meetings and a fireside chat presentation at the ICR Conference 2026, highlighting its position as a leading provider of health and wellness services in the cruise and resort industries [1][2]. Company Overview - OneSpaWorld is headquartered in Nassau, Bahamas, and is recognized as one of the largest health and wellness services companies globally [3]. - The company operates health and wellness centers on 207 cruise ships and at 46 destination resorts worldwide, offering a comprehensive suite of premium services, treatments, and products [3]. - OneSpaWorld has maintained a leading market position in the cruise industry segment of the international leisure market for over six decades, attributed to its exceptional service, extensive recruitment and training platforms, and innovative product offerings [3].

Core Insights - Ariel Investments reported a strong performance for its Small Cap Concentrated Value Strategy in Q3 2025, with a gross return of +15.08% and a net return of +14.93%, outperforming the Russell 2000 Value Index and the Russell 2000 Index [1] Company Performance - OneSpaWorld Holdings Limited (NASDAQ:OSW) operates health and wellness centers on cruise ships and at destination resorts, with a market capitalization of $2.094 billion as of November 27, 2025 [2] - In Q3 2025, OneSpaWorld's revenue increased by 7% to $258.5 million, despite a one-month return of -12.56% and a 52-week gain of 7.32% [4] Investment Analysis - OneSpaWorld's stock performance detracted from the overall strategy's performance, even though the company beat earnings estimates and raised full-year guidance [3] - The company is focusing on AI-driven initiatives to improve yields and expand margins, while also managing debt and returning capital to shareholders through buybacks and dividends [3] - Despite acknowledging OneSpaWorld's potential, the analysis suggests that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - OneSpaWorld has published its second annual Sustainability and Social Responsibility Report, emphasizing its commitment to responsible business practices and transparency in ESG matters across global operations [2][3]. Group 1: ESG Commitment - The report outlines ongoing efforts to support people, partners, and the planet, highlighting the company's scale and responsibility as a steward for its workforce and the environment [3]. - OneSpaWorld's approach to ESG is grounded in core practices such as investing in employees, prioritizing safety and sustainability, and strengthening global partnerships [3]. Group 2: Key Focus Areas - **Our Talent**: The company prioritizes employee development and inclusion, with a workforce representing 88 nationalities and a shipboard personnel retention rate above 70% [4]. - **Our Care**: Health and safety are core responsibilities, with over 750 site visits completed in 2024 to ensure structured training and proactive reporting [4]. - **Our Planet**: Collaborations with cruise line and resort partners aim to integrate sustainability into facility design and reduce environmental footprints by limiting single-use plastics and adopting paperless practices [4]. - **Our Supply Chain**: OneSpaWorld partners with over 90 suppliers to source safe and high-quality products, ensuring safety and care for guests and the planet [5]. - **Our Integrity**: The company emphasizes strong corporate governance and cybersecurity practices, focusing on ethical operations and secure information handling [5]. Group 3: Company Overview - OneSpaWorld, headquartered in Nassau, Bahamas, is one of the largest health and wellness services companies globally, operating on 205 cruise ships and at 48 destination resorts [7]. - The company has established a leading market position within the cruise industry segment of the international leisure market, built over six decades through exceptional service and product innovation [7].