Achieved 19 consecutive quarters of year-over-year growth driven by the introduction of 8 new ship builds and expanded high-value Medi-Spa services. Strategic reorganization included exiting land-based wellness centers in Asia and restructuring UK and Italy operations to focus capital on high-growth maritime assets. Next-generation Medi-Spa technologies, including Thermage FLX and CoolSculpting Elite, reduced treatment times by up to 50% while driving revenue growth between 23% and 40%. Improved sta ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 increased by 11% to $242.1 million, compared to $217.2 million in Q4 2024 [15] - Adjusted EBITDA rose to $31.2 million from $26.7 million in Q4 2024, marking a 17% increase [20] - For the fiscal year, total revenue reached $961 million, a 7% increase from $895 million in the previous year [20] - Adjusted net income increased by 15% to $102.9 million, or $0.99 per diluted share, compared to $89.7 million, or $0.85 per diluted share in 2024 [20] Business Line Data and Key Metrics Changes - The company operated health and wellness centers on 206 ships at year-end, up from an average of 188 ships in fiscal 2024 [5] - MedSpa services were available on 153 ships, an increase from 147 ships at the end of fiscal 2024 [8] - Revenue per passenger per day and other key operating metrics showed across-the-board increases, reflecting enhanced productivity [8] Market Data and Key Metrics Changes - The company introduced two new health and wellness centers aboard new ship builds during the quarter, contributing to market leadership [6] - The average guest spend increased by 1%, contributing $2.1 million to total revenue growth [16] Company Strategy and Development Direction - The company is focused on innovation, including AI integration and the reorganization of operations in the UK and Italy, to enhance efficiency and growth [5][11] - Plans to introduce health and wellness centers on six new ship builds in 2026, with three expected to commence voyages in the first half of the year [6] - The company aims to maximize its position as a leading operator of health and wellness centers at sea [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of outstanding performance in 2026, supported by strong financial results and strategic initiatives [4][10] - The outlook for 2026 includes expectations for total revenues to exceed $1 billion for the first time, with adjusted EBITDA projected to increase [23] Other Important Information - The company returned nearly $93 million to shareholders through stock buybacks and dividends while reducing outstanding debt [9] - Total cash at year-end was $17.5 million, with total debt net of deferred financing costs at $84 million [21] Q&A Session Questions and Answers Question: Insights on AI integration and its potential benefits - Management confirmed that the current guidance does not include potential impacts from AI initiatives, which are expected to show meaningful results in the second half of 2026 [26][27] Question: Consumer trends and pricing strategies - Management noted that while there may be slight additional discounting, overall higher prices are being accepted by consumers, reflecting confidence in future performance [29] Question: Dynamic price optimization model rollout - The initial rollout of the dynamic pricing model will focus on pre-booking across 94% of vessels, with broader implementation expected in the latter half of the year [32][33] Question: Spa menu reformats and offerings - The company has proactively condensed its spa menu to focus on popular items, aiming to enhance guest choice and increase conversion rates [34]

Financial Data and Key Metrics Changes - Total revenues increased by 7% to $258.5 million compared to $241.7 million in Q3 2024 [5][15] - Income from operations rose by 5% to $26.3 million compared to $25 million in Q3 2024 [5] - Net income increased by 13% to $24.3 million compared to $21.6 million in Q3 2024 [5][16] - Adjusted EBITDA grew by 6% to $35 million compared to $33 million in Q3 2024 [5][17] - Service margin was 17.3%, slightly below the previous year but higher than the first and second quarters of 2025 [16][30] Business Line Data and Key Metrics Changes - Health and wellness centers operated on 204 ships, up from 196 ships in Q3 2024 [5][6] - Medi-Spa services were available on 150 ships, an increase from 144 ships in the previous year [7][8] - Higher value services such as Medi-Spa, IV Therapy, and acupuncture saw strong double-digit sales growth [7] Market Data and Key Metrics Changes - The average ship count for the quarter was 199, compared to 195 in Q3 2024 [5] - The company reported a 4% increase in average guest spend, contributing to revenue growth [15] Company Strategy and Development Direction - The company continues to execute an asset-light business model, generating strong free cash flow and returning value to shareholders through dividends and share repurchases [4][10] - Plans to introduce two additional health and wellness centers on new ship builds in Q4 2025, totaling eight new centers for the year [6][10] - The company is focusing on enhancing productivity through AI initiatives aimed at revenue enhancement and operational efficiency [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's favorable momentum and positive outlook for Q4 2025 [10][20] - The board approved a 25% increase in the quarterly dividend payment, reflecting strong cash flow generation [10][12] - Management noted no material changes in guest spending patterns, maintaining strong attachment rates and pre-cruise revenue [26] Other Important Information - The company repurchased $17.6 million worth of common shares during the quarter and paid down $11.3 million in debt [12][19] - Total cash at quarter end was $30.8 million, with total debt reduced to $85.2 million [18][19] Q&A Session Summary Question: Benefits from AI technology implementation - Management indicated that it is too early to commit to specific improvements from AI initiatives, with expectations for more clarity by Q2 next year [22][23] Question: Guest spending patterns - Management reported positive trends in revenue per passenger per day and consistent pre-cruise revenue, with no material reduction in guest spending observed [26] Question: Service margin mix - The slight decrease in service margin was attributed to the mix of cruise lines rather than a shift in passenger spending behavior [30][32] Question: Global minimum tax impact - Management expects no impact from the global minimum income tax due to ongoing organizational changes [34] Question: Increase in guest count and average spend - The increase in guest count and spending was attributed to new ships entering service and improved facility utilization [38] Question: Cash management strategy - The company aims to maintain around $25 million in cash while prioritizing share repurchases and dividends in its capital allocation strategy [40] Question: Staffing and talent management changes - The company is redesigning its talent management process to enhance staff utilization across different service modalities [44][45] Question: Impact of hurricane season - Management reported no tangible or material impact from the hurricane season on operations [50] Question: CapEx related to AI initiatives - The increase in CapEx was primarily related to investments in AI projects [51]

Financial Data and Key Metrics Changes - Total revenues increased by 7% to $258.5 million compared to $241.7 million in Q3 2024 [6][17] - Income from operations rose by 5% to $26.3 million from $25 million in Q3 2024 [6] - Net income increased by 13% to $24.3 million compared to $21.6 million in Q3 2024 [6][19] - Adjusted EBITDA grew by 6% to $35 million from $33 million in Q3 2024 [6][19] - Service margin was 17.3%, slightly down from the previous year but higher than the first and second quarters of 2025 [18] Business Line Data and Key Metrics Changes - The company operated health and wellness centers on 204 ships, up from 196 ships in Q3 2024 [6][7] - Medi-Spa services were available on 150 ships, an increase from 144 ships in the previous year [9][10] - Higher value services, including Medi-Spa, IV Therapy, and acupuncture, saw strong double-digit sales increases [9] Market Data and Key Metrics Changes - The average ship count for the quarter was 199, compared to 195 in Q3 2024 [6] - The company had 4,466 cruise ship personnel, up from 4,204 in Q3 2024 [7] Company Strategy and Development Direction - The company continues to execute an asset-light business model, generating strong free cash flow and returning value to shareholders through dividends and share repurchases [5][12] - The board approved a 25% increase in the quarterly dividend to $0.05 per share, reflecting consistent cash flow generation [12][14] - The company is focused on enhancing health and wellness center productivity and expanding higher value services [10][11] - AI initiatives are being implemented to enhance revenue and operational efficiencies [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's favorable momentum and outlook for Q4 2025, expecting continued growth [12][21] - The company anticipates total revenue for fiscal 2025 to increase in the high single-digit range, with adjusted EBITDA expected to rise by 10% [22] Other Important Information - The company repurchased $17.6 million worth of common shares during the quarter and an additional $15 million post-quarter [14][20] - Total cash at quarter end was $30.8 million, with total debt reduced to $85.2 million [19][20] Q&A Session Summary Question: Benefits from AI technology implementation - Management indicated that it is too early to commit to specific improvements from AI initiatives, with expectations for more clarity by Q2 next year [25][26] Question: Guest spending patterns - Management reported positive trends in revenue per passenger per day and consistent spending, with no material changes observed [28][30] Question: Service margin mix - The slight decrease in service margin was attributed to ship mix rather than a shift to lower-priced services [34][36] Question: Global minimum tax impact - Management expects no impact from the global minimum tax due to ongoing organizational changes [39] Question: Increase in guest count and average spend - The increase in guest count and average spend was attributed to new ships coming into service and improved facility utilization [44] Question: Cash management strategy - The company aims to maintain around $25 million in cash while prioritizing share repurchases and dividends [46] Question: Staffing and talent management changes - The company is redesigning its talent management process to enhance staff utilization across different service modalities [51][52] Question: CapEx related to AI initiatives - The increase in CapEx was primarily related to investments in AI projects [60]

Financial Data and Key Metrics Changes - Total revenues increased by 7% to a record $240.7 million compared to $224.9 million in 2024 [6][16] - Income from operations rose by 17% to a record $22.1 million compared to $18.8 million in 2024 [7] - Net income increased by 27% to $19.9 million compared to $15.8 million in 2024 [7][18] - Adjusted EBITDA increased by 13% to a record $30.5 million compared to $27.1 million in 2024 [8][18] - Net income per diluted share was $0.19 compared to $0.15 in 2024 [18] Business Line Data and Key Metrics Changes - The company operated health and wellness centers on 200 ships, with an average ship count of 101 for the quarter, compared to 197 ships and an average count of 188 at the end of 2024 [8] - MediSpa services were available on 147 ships, up from 144 ships at the end of the second quarter of 2024 [10] - Higher value services, including MediSpa, IV therapy, and acupuncture, contributed to sales productivity growth [9] Market Data and Key Metrics Changes - The average guest spend increased by 4%, positively impacting revenue by $8.5 million [17] - Prebooking revenue as a percentage of services remained strong at 23% [11] Company Strategy and Development Direction - The company is focused on expanding higher value services and products, enhancing health and wellness center productivity, and leveraging AI technologies for operational efficiency [9][12][15] - The introduction of seven new health and wellness centers on cruise ships is planned for the second half of the year [12][20] - The company aims to maintain a disciplined execution of its asset-light business model to deliver strong results [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's favorable momentum and strong consumer demand, with no deterioration in consumer spending observed in the first half of the year [12][33] - The company expects total revenue for fiscal 2025 to increase in the high single-digit range, with adjusted EBITDA guidance increased to reflect productivity gains [20] Other Important Information - The company ended the quarter with total cash of $36.2 million after paying a quarterly dividend of $4.1 million [19] - Total debt net of deferred financing costs was $96.2 million, down from $98.6 million at the end of 2024 [19] Q&A Session Summary Question: Insights on AI-driven strategies for profitability enhancement - Management discussed initiatives focused on yield improvement and operational efficiency through AI and machine learning, with initial results being optimistic [22][23][24] Question: Revenue guidance maintenance despite strong metrics - Management clarified that the timing of new vessels coming into service in the fourth quarter influenced the decision to maintain revenue guidance [28][29] Question: Consumer state and onboard spending indicators - Management indicated that operational and financial metrics remain positive, reflecting strong consumer demand and spending [32][33] Question: Capital allocation strategy regarding stock repurchases and dividends - Management reiterated a focus on stock buybacks, dividends, and debt repurchase, with an increase in dividends expected next quarter [34][36] Question: Gross margin trends and expectations - Management noted that gross margin remained flat year-over-year, with expectations for EBITDA margin improvement [40][43] Question: Trends in thermal suites and onboard spending behavior - Management confirmed steady demand for thermal suites, with geographic variations in utilization [46] Question: Commentary on new brands and market trends - Management provided insights on the early performance of new brands like Arroya and Mitsui, indicating a need for broader market outreach [48][50] Question: Importance of occupancy to revenue generation - Management acknowledged that while occupancy is important, the quality of passengers and their spending behavior also significantly impacts revenue [53][56] Question: AI's impact on cost efficiencies and revenue opportunities - Management clarified that measurable impacts from AI initiatives are expected to begin in the second quarter of the following year [61]

Financial Data and Key Metrics Changes - Total revenues increased by 7% to a record $240.7 million compared to $224.9 million in 2024 [6][15] - Income from operations rose by 17% to a record $22.1 million compared to $18.8 million in 2024 [7] - Net income increased by 27% to $19.9 million compared to $15.8 million in 2024 [7][18] - Adjusted EBITDA increased by 13% to a record $30.5 million compared to $27.1 million in 2024 [7][18] - Net income per diluted share was $0.19 compared to $0.15 in 2024 [18] Business Line Data and Key Metrics Changes - Health and wellness centers operated on 200 ships, with an average ship count of 101 for the quarter, compared to 197 ships and an average of 188 in 2024 [7] - MediSpa services were available on 147 ships, up from 144 ships at the end of 2024 [10] - Higher value services, including MediSpa, IV therapy, and acupuncture, contributed to sales productivity growth [9] Market Data and Key Metrics Changes - The company experienced a 4% increase in average guest spend, contributing $8.5 million to revenue [16] - Prebooking revenue as a percentage of services remained strong at 23% [11] Company Strategy and Development Direction - The company is focused on expanding higher value services and products, enhancing health and wellness center productivity, and leveraging AI technologies for operational efficiency [12][15] - Plans to introduce health and wellness centers on an additional seven new ship builds in the second half of the year [12] - The company maintains a disciplined asset-light business model to drive profitability and shareholder value [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's favorable momentum and affirmed annual revenue guidance while increasing adjusted EBITDA guidance for 2025 [12][20] - The company remains optimistic about consumer spending and demand on board, with no signs of deterioration in the first half of the year [35][36] Other Important Information - The company ended the quarter with total cash of $36.2 million after paying a quarterly dividend of $4.1 million [19] - Total debt was $96.2 million at quarter end, down from $98.6 million at the end of 2024 [19] Q&A Session Summary Question: Strategies for enhancing profitability - Management discussed AI-driven initiatives focused on yield improvement and operational efficiency, with expectations for material improvements over time [22][23][25] Question: Revenue guidance maintenance - Management explained that the timing of new vessels coming into service in the fourth quarter influenced the decision to maintain revenue guidance [30] Question: State of consumer and onboard spend - Management indicated that operational and financial metrics remain positive, reflecting a strong consumer onboard [34][35] Question: Capital allocation and dividend growth - Management reiterated a focus on stock buybacks, dividends, and debt repurchase, with potential for a dividend increase in the next quarter [36][39] Question: Gross margin trends - Management noted that gross margin was flat year-over-year, with expectations for EBITDA margin improvement [42][45] Question: Thermal suites demand - Management confirmed steady demand for thermal suites, with geographic variations in utilization [48] Question: AI impact on revenue and cost efficiencies - Management clarified that AI initiatives are still in the testing phase, with measurable impacts expected in the future [63] Question: Precruise booking opportunities - Management acknowledged opportunities to improve precruise bookings, emphasizing collaboration with cruise lines [66]

Financial Data and Key Metrics Changes - Total revenues increased by 4% to $219.6 million compared to $211.2 million in Q1 2024 [7][14] - Income from operations was $16.8 million, including $2.5 million of nonrecurring severance expense, compared to $17 million in Q1 2024 [7][14] - Adjusted EBITDA rose by 5% to $26.6 million, which included $1.1 million of nonrecurring cash severance expense, compared to $25.3 million in Q1 2024 [8][16] - Net income was $15.3 million or $0.15 per diluted share, down from $21.2 million or $0.21 per diluted share in Q1 2024 [15][16] Business Line Data and Key Metrics Changes - Health and wellness centers operated on 199 ships, with an average ship count of 193 for the quarter, compared to 193 ships and an average of 188 ships in Q1 2024 [8][14] - Revenue per passenger per day, weekly revenue, and revenue per staff per day showed growth, driven by staff retention and enhanced sales training [11] Market Data and Key Metrics Changes - Prebooking revenue as a percentage of total revenues remained strong at 23% [12] - Increased prebooking revenues contributed $2.3 million to overall revenue growth [14] Company Strategy and Development Direction - The company aims to invest in cruise line and destination resort partnerships, innovate guest experiences, and enhance productivity [5][7] - New health and wellness centers were introduced on Norwegian Cruise Line's first PRIMA plus class ship, with plans for additional centers on eight new ships [9] - A new $75 million share repurchase program was approved, extending a previous $50 million program, reflecting a commitment to enhance shareholder value [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic economic environment and reaffirmed annual guidance [6][7] - Strong bookings and onboard spending from cruise line partners were noted, with consumers prioritizing experiences [7][20] - The company expects high single-digit revenue and adjusted EBITDA growth rates for fiscal 2025 compared to fiscal 2024 [20] Other Important Information - The company reported a strong balance sheet with total cash of $23.8 million after share repurchases and dividend payments [17] - The majority of operations are not impacted by tariffs, as products for cruise ships are held in a free trade zone [19] Q&A Session Summary Question: Understanding spend patterns on board - Management noted that there has been no significant increase in discounting and that spending continues to increase, with high demand for high-end services [25][26] Question: Full year guidance sensitivity - The low end of the guidance range assumes a moderation in spending on board, but there are no indicators suggesting a significant deterioration in spending [28][30] Question: Prebooking trends and cruise lines' willingness to invest - Prebooking remains stable at 23%, with no significant pullback from cruise lines in investing to reduce friction in prebooking engines [35][36] Question: MediSpa performance and potential slowdown - Demand for MediSpa services remains strong, with no early signs of deterioration even in high-end services [45][46] Question: Buyback sensitivity to business softening - The decision to buy back shares is based on stock value rather than business performance, indicating continued buybacks even if business softens [54][55] Question: Impact of tariffs on spending behavior - No changes in spending activity were observed immediately after tariffs were announced, as consumers continued to spend while on vacation [58][60]