XWELL, Inc. Reports Second Quarter 2024 Results

Core Insights - XWELL, Inc. reported a revenue growth of approximately 14% in Q2 2024 compared to Q2 2023, driven by increased demand for services and retail products [2] - The company is focused on reducing costs and returning to profitability, achieving significant reductions in various expense categories [2][3] Financial Performance - Total revenue for Q2 2024 was $9.3 million, up from $8.2 million in Q2 2023 [21] - Revenue sources included approximately $4.9 million from XpresSpa and Treat locations, $3.8 million from XpresTest, and $0.5 million from Naples Wax Center [22] - Total cost of sales decreased to approximately $6.2 million from $7.0 million in Q2 2023 [23] - Operating loss improved to approximately $1.9 million from $4.7 million in Q2 2023, with net loss attributable to XWELL at approximately $2.0 million compared to $5.7 million in the prior year [24] Business Developments - XpresSpa opened a new location in Philadelphia International Airport, marking its first U.S. airport opening in over five years [2][5] - The introduction of IV hydration therapy at Miami International Airport aligns with the company's strategy to offer a wider variety of wellness services [6] - The company plans to expand Naples Wax Center locations in Florida, forecasting approximately 10 locations by early 2025 [11] Strategic Initiatives - XWELL is responding to a new three-year biosurveillance program RFP issued by the CDC, with expectations of a contract value similar to previous agreements [2][13] - The company is focused on integrating innovative services and retail products into its offerings while balancing growth outside of airport locations [3] Liquidity and Capital - As of June 30, 2024, XWELL had approximately $5.4 million in cash and cash equivalents and $13.0 million in marketable securities [18] - The company executed a registered direct offering in August 2024, raising approximately $1.4 million for working capital and general corporate purposes [19]