OneSpaWorld(US:OSW)2025-10-30 20:11Revenue Performance - Total revenues increased by 7% to $258.5 million for the three months ended September 30, 2025, compared to $241.7 million in the same period of 2024[102]. - Service revenues accounted for 80% of total revenues at $208.0 million, while product revenues made up 20% at $50.5 million for the three months ended September 30, 2025[101]. - Total revenues increased 6% to $718.9 million for the nine months ended September 30, 2025, compared to $677.8 million for the same period in 2024[113]. - Service revenues for the nine months ended September 30, 2025 were $579.9 million, an increase of $32.5 million, or 6%, compared to $547.5 million for the same period in 2024[116]. - Product revenues for the nine months ended September 30, 2025 were $139.0 million, an increase of $8.6 million, or 7%, compared to $130.4 million for the same period in 2024[116]. - The increase in total revenues was driven by a 4% rise in average guest spend and a 1% increase in revenue days[102]. Income and Expenses - Net income for Q3 2025 was $24.3 million, compared to $21.6 million in Q3 2024, representing a 13% increase[101]. - Net income for the nine months ended September 30, 2025 was $59.6 million, an increase of $1.1 million, or 2%, compared to $58.5 million for the same period in 2024[122]. - Interest expense, net for the nine months ended September 30, 2025 was $3.9 million, a decrease of $3.8 million, or 49%, compared to $7.7 million for the same period in 2024[120]. - Administrative expenses for the nine months ended September 30, 2025 were $13.2 million, a decrease of $0.2 million, or 1%, compared to $13.0 million for the same period in 2024[117]. Operational Metrics - Average ship count increased to 199 in Q3 2025 from 195 in Q3 2024, while period end ship count rose to 204 from 196[90]. - Average weekly revenue per ship increased to $95,675 in Q3 2025 from $91,019 in Q3 2024, reflecting improved productivity[90]. - Average revenue per shipboard staff per day rose to $622 in Q3 2025, up from $602 in Q3 2024, indicating enhanced staff productivity[90]. - Revenue days increased to 18,338 in Q3 2025 from 17,908 in Q3 2024, contributing to higher revenue generation[90]. - Average weekly revenue per destination resort decreased to $10,794 in Q3 2025 from $11,860 in Q3 2024, impacted by renovations and closures[90]. Cash Flow and Financing - Cash flow from operating activities for the nine months ended September 30, 2025 was $63.6 million, compared to $62.2 million for the same period in 2024[126]. - Net cash provided by operating activities increased to $63.6 million for the nine months ended September 30, 2025, compared to $62.2 million in 2024, driven by a $10.1 million increase in net income, net of non-cash items[128]. - Cash outflows from working capital for the nine months ended September 30, 2025, were $23.1 million, primarily due to a $16.5 million increase in inventories and a $3.7 million increase in other non-current assets[129]. - Net cash used in investing activities rose to $10.0 million for the nine months ended September 30, 2025, compared to $3.4 million in 2024, with investments in leasehold improvements and technology enhancements[131]. - Net cash used in financing activities increased to ($81.7) million for the nine months ended September 30, 2025, including $55.5 million for share repurchases and $13.7 million repayment on the Term Loan Facility[132]. - The company repaid a total of $73.3 million in debt instruments since the year ended December 31, 2023[108]. - The company plans to continue funding operations through cash flow from operations and has sufficient liquidity to meet capital requirements over the next twelve months[124]. - The company purchased 2,094,000 common shares under its 2024 Share Repurchase Program and 816,028 common shares under its 2025 Share Repurchase Program[123]. Market and Economic Conditions - The company experienced significant seasonality, with higher revenue yields typically occurring in the third quarter and holiday periods due to increased cruise demand[133]. - The company does not believe inflation has materially affected revenues, but acknowledges that economic conditions could adversely impact the cruise and hospitality industries[137]. - There have been no material changes to the company's exposure to market risks since the 2024 Form 10-K[140]. - The company made strategic purchases to increase inventories in anticipation of supplier price increases and to support new health and wellness centers[129]. Future Obligations and Accounting Policies - As of September 30, 2025, future contractual obligations remained consistent with amounts disclosed in the 2024 Form 10-K[134]. - The company’s critical accounting policies have not significantly changed during the nine months ended September 30, 2025, compared to those disclosed in the 2024 Form 10-K[136].