Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $175 million for Q3 2025, impacted by over $5 million in non-recurring SGA expenses related to the divested Mexico business [14][24] - The net loss attributable to common shareholders for Q3 was $14 million or $0.17 per diluted share, while adjusted net income was $31.5 million or $0.36 per diluted share [24][25] - Discretionary cash flow for the quarter was $117 million, an increase of approximately $14 million compared to the same quarter last year [17][26] Business Line Data and Key Metrics Changes - The contract services segment generated a year-over-year revenue increase of 4.5% and a quarter-over-quarter increase of 1.2% [20] - Contract services adjusted gross margin percentage increased by 230 basis points to 68.3%, reflecting higher pricing and lower operating expenses [15][22] - The company added approximately 60,000 new horsepower in Q3, with 40% being electric motor-driven units [10][60] Market Data and Key Metrics Changes - The company successfully exited all international operations, divesting its assets in Mexico, which included approximately 19,000 operating horsepower [7][9] - The demand for large horsepower compression remains strong, particularly in the Permian Basin, with new pipeline projects expected to increase gas takeaway capacity [11][12] Company Strategy and Development Direction - The company implemented a new ERP system to enhance operational efficiency and visibility, which is foundational for future AI initiatives [5] - The strategic focus is on high-grading the fleet and concentrating efforts on U.S. markets, which are believed to offer higher returns and lower operating risks [8][9] - The company plans to continue returning capital to shareholders, having returned over $90 million in Q3 through share repurchases and dividends [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual revenue margin and adjusted EBITDA guidance despite challenges from the sale of Mexico operations [18][28] - The outlook for 2026 is positive, with expectations for continued revenue growth and margin improvement driven by strong demand in the natural gas sector [13][29] Other Important Information - The company achieved a credit agreement leverage ratio of around 3.8 times at quarter-end, with expectations to exit the year at about 3.6 times [27] - The board declared an increased dividend of $0.49 per share, maintaining a coverage ratio of 2.9 times [27] Q&A Session Summary Question: Can you provide more detail about how the backlog is shaping up and your thoughts on fleet additions and pricing power? - Management indicated that they are not ready to provide guidance for 2026 yet but feel good about their current contracts and growth plans [32][33] Question: Is larger scale M&A something on your radar? - Management confirmed they would consider larger M&A opportunities, especially after recent strategic actions that have positioned the company well [34][36] Question: Can you update on the station construction opportunities? - Management noted a resurgence in contract activity and a strong backlog for station construction projects, particularly in the power sector [40][44] Question: What are the implications of lead times exceeding 60 weeks for equipment? - Management expects this demand to positively influence pricing and indicated ongoing constructive pricing discussions with customers [46][49] Question: Will divestments continue at a lower pace now that international operations are sold? - Management confirmed that divestitures will slow down and that exiting lower-margin businesses will help overall margins [50][52] Question: How much of the new horsepower added is electric? - Approximately 40% of the new horsepower added in Q3 was electric, but there are challenges with power access in the Permian Basin affecting future electric-driven compression orders [58][61] Question: What is the outlook for other basins besides the Permian? - Management noted increased activity and opportunities in other basins, including the Northeast and Eagle Ford, alongside the Permian [83]

Core Points - XWELL is celebrating the grand opening of its new wellness center in Orlando, Florida, on September 5, 2025, featuring live demonstrations and participation from the Orlando Magic [1][2][3] - The new location at Waterford Lakes Town Center will offer a variety of wellness services, including facials, massages, and waxing, with plans to introduce injectables, IV therapy, and compression services in the future [4][5] - This opening follows the successful launch of XWELL's Clearwater location, marking the company's continued expansion in Florida and its commitment to providing accessible wellness solutions [5][6] Company Overview - XWELL, Inc. operates a portfolio of wellness brands focused on health, beauty, and self-care, including Xpres Spa and Naples Wax Center, and aims to redefine the modern wellness experience through innovation and accessibility [6]

Market Overview - The overall market is considered expensive by historical metrics, with the S&P 500's forward price-to-earnings (P/E) ratio at 22.1, a level last seen during the COVID rebound and the dot-com bubble [3][4] Investment Opportunities Cheap Dividends - **AES Corp.**: Virginia-based electric utility with a 5.5% yield, trading at 5 times cash-flow estimates and a PEG of 0.6, indicating it is inexpensive compared to growth estimates [4][5] - **Edison International**: Offers a 5.9% yield, with shares down over 25% due to wildfire litigation, but expected to generate decent top-line growth and significant profit recovery in the coming years [6][8][9] - **Amcor**: A packaging specialist yielding 5.2%, acting defensively while being involved in various sectors, with a P/CF of roughly 6x [11][19] - **Kodiak Gas Services**: An energy services firm yielding 5.2%, well-positioned for growth with a young fleet and trading at 6 times cash flow estimates [12][14] - **Atlas Energy Solutions**: Yielding 8.4%, but shares have dropped 45% this year; however, it has sufficient free cash flow to cover dividends [15][17] - **United Parcel Service (UPS)**: A blue-chip stock yielding 7.5%, shares have lost nearly half their value in two years, trading at roughly 8 times cash-flow estimates [18][21][22] - **Western Union**: Yielding 11.3%, facing competition from payment apps, but has launched initiatives to improve operations and expand digital offerings [23][24]

Core Insights - XWELL is opening its first brick-and-mortar location outside of an airport in Clearwater, Florida, on July 25, 2025, focusing on wellness solutions for both locals and visitors [1] - The Clearwater center will offer a range of skincare treatments and services in a calming environment, enhancing the customer experience [3][4] Group 1: New Location and Services - The Clearwater location is modeled after XWELL's successful Naples Wax Centers, providing services such as waxing, facials, and soon to include massages, injectables, IV therapy, and compression services [3] - The center will utilize medical-grade skincare products and experienced health professionals to deliver its services [3] Group 2: Launch Event and Promotions - A celebratory launch event will take place on July 25, featuring live facial demonstrations, complimentary skin analysis, and product sampling [2] - Attendees will receive gift bags with skincare samples and a $25 discount card for future services [2] Group 3: Membership and Community Engagement - XWELL will introduce a flexible membership model at the Clearwater location, valid at both the new site and in-airports nationwide, promoting accessibility to wellness treatments [4] - A Plaza Discount of 15% off products and services will be offered to local employees, supporting community engagement [4] Group 4: Company Overview - XWELL, Inc. operates a portfolio of wellness brands, including Xpres Spa®, Naples Wax Center®, XpresCheck®, and HyperPointe™, aiming to redefine the modern wellness experience through innovation and accessibility [6]