XpresSpa Group(XWEL) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Results Overview XWELL, Inc. announced its second quarter ended June 30, 2025, results, highlighting its position as a leading provider of wellness solutions and its current growth trajectory Company Introduction XWELL, Inc. reported its Q2 2025 results, affirming its position as a leading provider of wellness solutions with a clear growth trajectory - XWELL, Inc. (Nasdaq: XWEL) announced results for the second quarter ended June 30, 2025[2][3] - The Company is a leading provider of wellness solutions for people on the go and is currently on a growth trajectory[3] Operating Highlights XWELL achieved solid Q2 operating results through strategic expansion, increased wellness access, and enhanced customer engagement - CEO Ezra Ernst noted solid momentum and measurable results from a focused, multi-pronged strategy to expand operational footprint, increase access, and deepen customer engagement[5] Key Financial Metrics | Metric | Q2 2025 | Change from Q2 2024 | | :-------------------------- | :------ | :------------------ | | Revenue | $7.7 million | N/A (detailed later) | | Cost of sales | N/A | Decreased ~5% | | General and administrative expenses | N/A | Decreased ~9% | - Key operational achievements include being named the official wellness spa of the Orlando Magic, XpresSpa's recognition as one of Yelp's most loved airport brands, expanded partnership with Priority Pass, and the opening of a new non-airport brick-and-mortar location in Clearwater, Florida[6] Business Developments and Strategic Initiatives XWELL advanced its wellness offerings and biosurveillance programs through strategic partnerships, brand expansion, and critical public health initiatives Wellness Channels and Brand Expansion XWELL expanded its wellness offerings through strategic partnerships, brand recognition, digital platform enhancements, new physical locations, and potential acquisitions - XWELL was named the Official Wellness Spa of the Orlando Magic in June 2025 through a multiyear partnership, marking a strategic push into local markets[7] - XpresSpa was recognized as one of Yelp's 'Most Loved Airport Brands,' ranking 10 based on traveler reviews[7] - The Company expanded its relationship with Priority Pass, providing members with access to an enhanced range of wellness services across U.S. and international locations[7] - A newly redesigned website (www.XWELL.com) was unveiled, integrating all wellness and beauty brands (XpresSpa®, Naples Wax Center®, XpresCheck®, and HyperPointe™) into a seamless digital experience[7] - XWELL opened an out-of-airport full-service wellness center in Clearwater, Florida, and is advancing plans for a grab-and-go destination in New York City's Penn Station[7] - The Company continues to pursue opportunities to potentially acquire select medical spas in high-demand cities like Orlando, Dallas, and Salt Lake City[8] Biosurveillance Program XWELL extended its Traveler-based Genomic Surveillance Program (TGS) with the CDC and Ginkgo Bioworks, reinforcing its biosurveillance and digital healthcare role - XWELL secured a three-year extension of its Traveler-based Genomic Surveillance Program (TGS) in March 2025, operated with the CDC and Ginkgo Bioworks Holdings[9] - The TGS program provides early detection of emerging pathogens, safeguarding national health through airport-based biosurveillance[9] - XpresCheck and HyperPointe serve as the operational and technological core of this strategic, science-driven wellness program[10] Financial Performance and Liquidity XWELL's financial performance in Q2 2025 showed sequential revenue growth, a strong liquidity position, but increased operating and net losses year-over-year Liquidity and Financial Condition As of June 30, 2025, XWELL maintained a strong liquidity position with substantial cash and marketable securities, healthy current assets, and no long-term debt Q2 2025 Liquidity Position (Millions USD) | Metric | Amount (Millions) | | :------------------------ | :---------------- | | Cash and cash equivalents | $5.3 | | Marketable securities | $2.9 | | Total current assets | $11.8 | | Long-term debt | $0 | Second Quarter Financial Overview XWELL's Q2 2025 revenue reached $7.7 million, showing sequential growth but a year-over-year decline due to reduced CDC surge billing, leading to increased operating and net losses Q2 2025 Revenue by Source (Millions USD) | Revenue Source | Q2 2025 Amount (Millions) | | :------------- | :------------------------ | | Total Revenue | $7.7 | | XpresSpa | $4.9 | | XpresCheck | $2.2 | | Naples Wax Center | $0.647 | - Second quarter 2025 revenue of $7.7 million increased sequentially from $7.0 million in Q1 2025 but decreased from $9.3 million in Q2 2024[12] - The year-over-year revenue decrease was primarily due to additional CDC revenue generated during Q2 2024 from providing more services to airports than base contract amounts, resulting in increased surge billing prices[12] Q2 2025 vs Q2 2024 Key Financials (Millions USD) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :-------------------------- | :----------------- | :----------------- | :----------- | | Total Cost of Sales | $5.9 | $6.2 | Down $0.3M | | General and Administrative Expenses | $4.3 | $4.7 | Down $0.4M | | Operating Expenses | $4.5 | $5.0 | Down $0.5M | | Operating Loss | $(2.7) | $(1.9) | Increased Loss | | Net Loss Attributable to XWELL | $(2.3) | $(2.0) | Increased Loss | Corporate Information This section provides details on XWELL's Q2 earnings call, company overview, forward-looking statement disclaimers, and media contact information Second Quarter Earnings Conference Call XWELL hosted a webcast and conference call on August 14, 2025, to discuss its second quarter earnings, with the webcast accessible through the Investor Relations section of the Company's website - XWELL hosted a webcast and conference call at 5:00 pm Eastern Time on August 14, 2025[13] - The live and archived webcast can be accessed from the Investor Relations section of the Company's website at www.XWELL.com[13](index=13&type=chunk)[15] About XWELL, Inc. XWELL, Inc. is a global wellness company dedicated to providing accessible, science-proven wellness solutions across travel, retail, and clinical settings through its diverse portfolio of brands - XWELL, Inc. (Nasdaq: XWEL) is a global wellness company focused on liberating science-proven wellness for all[16] - The Company's brand portfolio includes XpresSpa®, Naples Wax Center®, XpresCheck®, and HyperPointe™[16] - XWELL delivers accessible, real-world wellness across travel, retail, and clinical settings[16] Forward-Looking Statements This section serves as a cautionary statement regarding forward-looking statements within the press release, indicating that actual results may differ materially from expectations due to various risks and uncertainties, and the Company does not commit to updating these statements - The press release may contain 'forward-looking' statements subject to risks and uncertainties as defined by the Private Securities Litigation Reform Act of 1995[18] - Actual results may differ materially from those indicated by such forward-looking statements due to various important factors[18] - XWELL does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof[18] Media Contact Contact information for media inquiries is provided for Heather Tidwell at MWW - Media Contact: Heather Tidwell, MWW, htidwell@mww.com[19]