Financial Performance - XWELL reported a revenue growth of approximately 13% in 2024, totaling $33.9 million compared to $30.1 million in 2023[22] - Gross margin increased significantly from 12.2% in 2023 to 26.3% in 2024[3] - Total operating expenses were reduced by approximately 19% in 2024, amounting to $25.6 million compared to $31.9 million in the prior year[25] - The operating loss decreased to approximately $16.7 million in 2024 from approximately $28.2 million in 2023[26] - Net loss attributable to XWELL was approximately $16.9 million in 2024, down from approximately $27.7 million in the previous year[27] Strategic Initiatives - XWELL plans to acquire select medical spas in 2025, leveraging a recent $4 million private placement to expand into the wellness and beauty sector[9] - XWELL launched a new Naples Wax Center in Estero, Florida, marking the first of six planned openings across Florida in 2025[14] - The company aims to unify its wellness offerings under a single XWELL brand identity to enhance customer relationships and brand loyalty[6] Government Contracts - The CDC extended its Traveler-based Genomic Surveillance Program for three years, with a total base value of $53.7 million and a maximum ceiling value of $85.7 million[17] Financial Position - As of December 31, 2024, XWELL had approximately $4.6 million in cash and cash equivalents and no long-term debt[20]

Core Insights - XWELL, Inc. reported first quarter 2025 revenue of approximately $7.0 million, a decrease from $8.7 million in the same period of 2024, primarily due to lower revenues from XpresTest and XpresSpa, offset by new revenue from Priority Pass [9][14] - The company is focused on expanding its wellness offerings through a multi-brand strategy, including plans to acquire medical spas in metropolitan areas and enhance its airport wellness services [4][3] - XWELL secured a three-year extension of its Traveler-based Genomic Surveillance Program with the CDC, aimed at early detection of pathogens in major airport hubs [6][5] Operating Highlights - The company operates 28 XpresSpa locations across major airports, with upgrades to reflect a science-driven approach to wellness [8] - XWELL's revenue for the first quarter included approximately $4.3 million from XpresSpa, $2.2 million from XpresTest, and $552,000 from Naples Wax Center [15] - Total cost of sales decreased by approximately 6% year-over-year, while total operating expenses decreased by approximately 11% [9][19] Financial Condition - As of March 31, 2025, XWELL had approximately $3.7 million in cash and cash equivalents and $7.3 million in marketable securities, with no long-term debt [12] - The operating loss for the first quarter was approximately $3.2 million, compared to $2.4 million in the same quarter of 2024 [20] - The net loss attributable to XWELL for the first quarter was approximately $4.7 million, an increase from $2.5 million in the prior year, attributed to higher one-time expenses [22] Future Plans - The company plans to open a new XWELL location in New York City's Penn Station in mid-2025, designed for quick-access wellness services [11] - XWELL is actively broadening its retail product portfolio to include wellness devices, nutritional supplements, and innovative wellness patches [8] - An investor conference call is planned to discuss growth initiatives and forthcoming programs [23]

Business Operations - As of December 31, 2024, XWELL operated 18 domestic XpresSpa locations and 10 international locations, including 4 in Istanbul Airport and 3 in Schiphol Amsterdam Airport[13]. - The acquisition of Naples Wax Center on September 12, 2023, was for a purchase price of $1,624, aimed at diversifying XWELL's wellness services beyond airport locations[19]. - XWELL plans to optimize its airport portfolio while pursuing off-airport growth through acquisitions, particularly in the med spa sector, to enhance brand reach[23]. - The company aims to expand its health and wellness services outside of airports, believing this represents the fastest way to scale its brand[21]. - XWELL's flexible retail format allows it to operate multiple stores within airports, adapting to various location sizes from 200 to 2,600 square feet[30]. - The company is strategically positioned to capitalize on the growing consumer interest in travel, health, and wellness, with a focus on expanding its retail strategy[28]. Financial Performance - XpresTest's revenue from a one-year program extension totaled approximately $7,044, with an increase to an estimated $15,100 following further funding expansion[15]. - The company may lend money to ACDBEs to help fund capital investments required under concession agreements[35]. Strategic Initiatives - XWELL's strategy includes integrating offerings across its brands and developing membership programs to enhance customer relationships and brand loyalty[22]. - The company recognizes the opportunity to leverage its products and services across its brand platform, including adding complementary products to service offerings[20]. - XWELL's bio-security services are set to expand beyond the U.S. through partnerships with government clients, supporting international growth goals[25]. Workforce and Compliance - As of December 31, 2024, the company had approximately 246 full-time and 66 part-time employees[37]. - The company is subject to various federal and state laws, including the Fair Labor Standards Act and the Americans with Disabilities Act, which may impact operational costs and compliance[35]. - The company must meet minimum Airport Concession Disadvantaged Business Enterprise (ACDBE) participation requirements, which are complex and costly to ensure compliance[35]. - The company considers its relationships with employees to be good, indicating a positive workplace environment[37]. Corporate Information - The company's common stock has been listed under the trading symbol "XWELL" since October 25, 2022[38]. - The company operates multiple websites, including www.xwell.com and www.xpresspa.com, to provide information and services to customers[38]. - The company is not required to disclose quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[260]. - The company is subject to truth-in-advertising and consumer protection rules, which govern its retail operations[36]. - The company’s principal executive offices are located in New York, New York[38].

Core Insights - XWELL, Inc. reported a revenue growth of approximately 13% for the year ended December 31, 2024, reaching $33.9 million compared to $30.1 million in 2023 [6][23] - The company successfully reduced operating expenses by approximately 19% year-over-year, while gross margin more than doubled from 12.2% in 2023 to 26.3% in 2024 [6][26] - XWELL is focusing on expanding its wellness offerings and integrating its brands under a unified identity, aiming to enhance customer loyalty and relationships [5][9] Financial Performance - Total revenue for 2024 was $33.9 million, with contributions from various segments: approximately $18.3 million from XpresSpa, $430,000 from Treat, $13.1 million from XpresTest, and $2.1 million from Naples Wax Center [23] - Total cost of sales decreased to approximately $25.0 million in 2024 from approximately $26.4 million in 2023 [24] - General and administrative expenses were approximately $12.5 million in 2024, down from approximately $13.0 million in the previous year [25] Strategic Initiatives - XWELL announced plans to acquire select medical spas in 2025, leveraging a recent $4 million private placement to expand into the wellness and beauty sector [9][22] - The company is extending its Traveler-based Genomic Surveillance Program in partnership with the CDC for three more years, with a total base value of $53.7 million [17] - XWELL is actively expanding its out-of-airport wellness portfolio, including the opening of a new Naples Wax Center location in Estero, Florida, and plans for six additional locations in Florida during 2025 [14][9] Brand and Market Positioning - XWELL aims to unify its wellness offerings under a single brand identity, enhancing its market presence and customer engagement [5][7] - The company operates at the intersection of travel, health, and wellness, with brands including XWELL™, XpresSpa®, Treat™, Naples Wax Center®, XpresCheck®, and HyperPointe™ [11][29] - XpresSpa is recognized as a leading airport retailer of wellness services, with 18 domestic and 10 international locations as of December 31, 2024 [12]

Core Insights - XWELL, Inc. plans to acquire select medical spas by the end of 2025, utilizing a recent $4 million private placement to expand into the wellness and beauty sector [1][2] - The company aims to create a seamless continuum of care, extending its services beyond airports into metropolitan areas with rising demand for advanced beauty and wellness treatments [1][2] - XWELL's strategy focuses on enhancing medical spas to provide high-quality, science-backed wellness experiences, positioning itself as a leading brand in holistic self-care [2][3] Company Strategy - The initial focus for acquisitions will be on metropolitan areas such as Orlando, Austin, and Salt Lake City, where there is strong demand for medspa services [2] - XWELL intends to introduce state-of-the-art treatments, AI-driven personalization, and innovative skincare solutions to meet evolving wellness needs [2][3] - This expansion is part of a long-term strategy to establish a nationwide presence in the beauty and wellness market, delivering cutting-edge self-care solutions [3] Market Context - The global medical spa market is rapidly expanding as consumers increasingly seek non-invasive, results-driven treatments that enhance beauty and overall quality of life [3] - XWELL's approach will combine luxury with medical expertise, offering a curated selection of high-impact treatments administered by certified professionals [3] - The company aims to prioritize health, confidence, and well-being through its offerings, which include various aesthetic and wellness services [6]

Core Viewpoint - XWELL, Inc. has successfully closed a private placement offering of $4 million in Series G Convertible Preferred Stock, which will be utilized for working capital and corporate purposes, supporting the company's growth strategy in wellness solutions [1][2][3]. Group 1: Financial Details - The gross proceeds from the private placement amounted to approximately $4.0 million, before deducting offering expenses [2]. - The private placement involved the issuance of 4,000 shares of Series G Convertible Preferred Stock with an initial conversion price of $1.496, along with Series A and Series B warrants exercisable at prices of $1.496 and $1.7952, respectively [3]. Group 2: Strategic Intent - The funding will enable the advancement of AI-driven health, wellness, and beauty products, and support the expansion of XWELL locations beyond airports [3]. - The company aims to enhance its integrated branding efforts as part of its strategy outlined in a shareholder letter dated December 5, 2024 [2][3]. Group 3: Regulatory and Compliance - The securities offered in the private placement were exempt from registration requirements under the Securities Act, and the company plans to file a registration statement with the SEC for the resale of common stock [4][5]. - Full conversion of the Series G Convertible Preferred Stock and exercise of the accompanying warrants are subject to stockholder approval [5]. Group 4: Company Overview - XWELL, Inc. operates multiple wellness brands including XpresSpa®, Treat™, Naples Wax Center®, XpresCheck®, and HyperPointe™, positioning itself as a leading global wellness holding company [7].

Core Points - XWELL, Inc. has successfully closed a private placement offering of $4 million in Series G Convertible Preferred Stock, along with Series A and Series B warrants [1][2][3] - The net proceeds from this private placement will be utilized for working capital and general corporate purposes, aligning with the strategy outlined in a shareholder letter dated December 5, 2024 [2] - CEO Ezra Ernst stated that the funding will facilitate the development of AI-driven health, wellness, and beauty products, and support the expansion of XWELL locations beyond airports [3] Financial Details - The gross proceeds from the private placement amounted to approximately $4.0 million before deducting offering expenses [2] - The offering included 4,000 shares of Series G Convertible Preferred Stock with an initial conversion price of $1.496, and warrants exercisable at prices of $1.496 for Series A and $1.7952 for Series B [3] Regulatory Information - The securities were offered in transactions exempt from the registration requirements of the Securities Act of 1933, relying on specific exemptions [4] - The company plans to file a registration statement with the SEC to register the resale of common stock issuable upon conversion of the Series G Convertible Preferred Stock and exercise of the related warrants [4][5]

Senior Leadership Appointments - Ian Brown appointed as the new Chief Financial Officer (CFO) of XWELL, succeeding Suzanne Scrabis, effective January 6, 2025 [1] - Peter Vermeulen joins XWELL as the new Head of Human Resources [1][3] - Mike Heronime joins XWELL as the new Marketing Director [1][3] Compensation and Stock Options - Ian Brown granted stock options to purchase up to 37,000 shares of common stock at an exercise price equal to the fair market value on January 6, 2025 [2] - Stock options vest in four quarterly installments of 25% each, contingent on continued employment [2] Leadership Backgrounds - Ian Brown has over 25 years of experience in operational finance, including roles at Accordion, FTI Consulting, Charter Communications, and Insight Communications [5] - Peter Vermeulen brings over 25 years of global HR experience, with senior roles at TeleSign, Amazon, and Johnson & Johnson [6] - Mike Heronime has more than 25 years of strategic marketing experience, including roles at Positive Brand, RKD Group, Tribal DDB, and Bozell [7][8] Company Strategy and Vision - New leadership appointments aim to support XWELL's strategic growth, unify brands, enhance company culture, and improve financial and operational performance [4] - CEO Ezra Ernst emphasizes the importance of these appointments in driving growth and liberating wellness [4] Company Overview - XWELL operates multiple wellness brands including XpresSpa, Treat, Naples Wax Center, XpresCheck, and HyperPointe [9] - XpresCheck conducts biosurveillance monitoring in partnership with the CDC and Ginkgo Biosecurity to identify new SARS-CoV-2 variants and other pathogens [11]

Core Insights - XWELL, Inc. is undergoing a transformation in the wellness industry, comparable to the fitness revolution of the 1970s, focusing on holistic health and self-care [3][4] - The global wellness market is projected to exceed $9 trillion by 2033, with the MedSpa industry expected to grow at a compound annual growth rate of over 15%, reaching a total addressable market of more than $49 billion by 2030 [4] - XWELL aims to unify its wellness services under a single brand starting in 2025, enhancing customer experience and loyalty [9][10] Industry Overview - The wellness industry is experiencing a significant cultural shift towards holistic health, mindfulness, and mental well-being, creating opportunities for growth [3][4] - Innovations in AI-driven health monitoring and personalized wellness programs are making health management more accessible and tailored to individual needs [5] Company Strategy - XWELL's vision is to make wellness a mainstream category synonymous with health and self-care, with a mission to create inspiring environments for self-improvement [7][8] - The company plans to open seven new out-of-airport locations in Florida by the end of 2025, expanding its reach beyond airports [13] - XWELL will leverage autonomous service capabilities and innovative self-service options to enhance customer experiences and operational efficiency [15][16] Brand Development - The rebranding of airport spa locations to reflect the XWELL identity aims to drive revenue growth and customer engagement [11][12] - The integration of loyalty programs and branded wellness products will extend the XWELL experience into customers' daily lives [17] Financial Outlook - XWELL is positioned for solid growth as it integrates its offerings under the XWELL brand and invests in technology to enhance customer experience [18] - The company recognizes the importance of operational efficiency and resource management to achieve sustainable profitability [19]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was approximately $8.4 million, an increase from $7.5 million in the prior year period [22] - Operating loss for Q3 2024 was $4.8 million, improved from an operating loss of $12.1 million in the prior year [24] - Net loss attributable to common shareholders was $4.8 million compared to $11.5 million in the prior year [24] - Total operating expenses were approximately $6.8 million, down from approximately $13.2 million in Q3 2023 [24] - Salaries and benefits were approximately $1.9 million in Q3 2024, compared to $1.2 million in the same period in 2023, but adjusted for a non-recurring credit, this represents a 4% decrease year-over-year [23] Business Line Data and Key Metrics Changes - Revenue from XpresSpa locations and Treat locations was approximately $4.9 million [22] - Revenue from XpresTest, including biosurveillance partnerships and HyperPointe business, was approximately $3.1 million [22] - Revenue from Naples Wax Center, acquired near the end of Q3 2023, was approximately $0.4 million [22] Market Data and Key Metrics Changes - Foot traffic and customer traction at the newly opened XpresSpa at Philadelphia International Airport have been solid, indicating positive market reception [13] - The company plans to open its Penn Station XpresSpa next year, targeting commuters and local residents [14] Company Strategy and Development Direction - The company is prioritizing its out-of-airport brand strategy, planning to expand into several attractive markets in Florida, with expectations to operate up to 10 XWELL properties by mid-2025 [11] - A focus on aligning additional XWELL properties with existing in-airport markets to enhance competitive positioning [12] - Commitment to driving higher sales and margins through partnerships, such as with Priority Pass, which has increased foot traffic and revenue [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's continued momentum and growth potential, emphasizing a commitment to cost reduction and returning to profitability [10][20] - The company has reduced total operating expenses by approximately 35% compared to the same nine-month period in 2023 [19] - Management is focused on sustainable top-line growth and improving efficiencies across all brands [18] Other Important Information - The company reported solid liquidity with cash and cash equivalents totaling $4.4 million and $11.7 million in marketable securities [25] - There is no long-term debt, indicating a strong balance sheet position [25] Q&A Session Summary - The Q&A session details were not provided in the content, thus no specific questions and answers can be summarized.