OSW

Interested in OneSpaWorld Holdings Limited? Here are five stocks we like better. OneSpaWorld has posted 21 consecutive quarters of record revenue and adjusted earnings, with second-quarter revenue rising 9% to $261.2 million. Analysts maintain an overall Buy rating on the stock, with an average price target of $30.60 implying about 15% upside from current levels. The company's heavy reliance on revenue-sharing deals with cruise operators poses a key risk, and its shares trade at a premium valuation near 33 times earnings. While major cruise lines are performing well these days with more passengers and revenue, OneSpaWorld Holdings (NASDAQ: OSW) is performing even better. In fact, every time you walk past the spa deck on one of these ships, there’s a good chance the massages, facials, and medi-spa treatments are brought to you by OneSpaWorld. And this Bahamas-based company has become a favorite of analysts. → Applied Materials Beat Everything but Wall Street’s Expectations for Margins With a current Buy rating, this company has built a business model on decades-long revenue-sharing partnerships rather than on ships or hardware. It has now delivered 21 consecutive quarters of record revenue and adjusted earnings, a streak that even includes the pandemic years. For investors, it’s a little-known company to know about, whether it continues smooth sailing or if major cruise operators decide to change their direction. → Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing The company’s latest report from July 29 tells the continuing story. Although not exactly blowout numbers, they extended a streak that is hard to find in the consumer services world. For the second quarter, OneSpaWorld reported that total revenue rose 9% year-over-year to $261.2 million, a record for the quarter, and above analysts’ expectations. → AirJoule Technologies: Short Squeeze Setup Amid Rising Risks Net income jumped 16% to $23.2 million, or 23 cents per diluted share. On an adjusted basis, earnings came in at $29.8 million, or 29 cents per share, edging past the 28 cents analysts had modeled, and up from 25 cents a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the profitability measure the industry prefers, climbed 13% to $34.4 million. The first half of the year tells an even stronger story. Six-month revenue rose 11% to $508.9 million and reported net income surged 27% to $44.5 million, or 44 cents per diluted share. Supported by that momentum, management raised full-year 2026 guidance to a range of $1.018 billion to $1.038 billion in total revenue. Adjusted EBITDA is targeted at $130 million to $140 million, implying roughly 10% growth at the midpoint. For the third quarter alone, the company is guiding to $268 million to $273 million in revenue and adjusted EBITDA of $35 million to $37 million. Unlike other cruise recovery stories, the drivers of growth at OneSpaWorld help explain the durable expansion. The company focuses on catering to passengers rather than spending to get them on board. It now operates health and wellness centers on 208 ships, up from 200 a year earlier, and is layering in higher-margin services like medi-spa treatments, which grew faster than the overall business in the quarter, though it accounts for less than 10% of revenue. Pre-booked services, where guests reserve treatments before boarding, rose 14% for the period, and forward bookings across the fleet are running 20% ahead of a year ago, a leading indicator that demand remains strong. The company is also betting on artificial intelligence to squeeze out more revenue and efficiency. It has put in place an internal tool called Amanda, which is deployed across 188 vessels to help optimize scheduling and upsell services. The company said its virtual assistant called Ava resolved 96% of internal support requests without a human involved. Analysts clearly like what they see. With an overall Buy rating, shares at the company carry one Strong Buy rating, five Buys, and a single Hold. The average 12-month price target now sits at $30.60, implying about 15% upside from current levels. The highest price target is $35 per share, and the lowest is $28, suggesting little expectation for a wild swing either way. Indeed, wild swings are rarely seen. With shares trading around $26.60, shares are up about 28% so far this year. Some recent pullback in the stock appears to be linked to a spate of insider selling, but during the second quarter, BlackRock reportedly opened a position in the company worth $278 million, while several other funds also bought shares. Perhaps the biggest risk is the question of concentration. Nearly all of OneSpaWorld's revenue flows through long-term, revenue-sharing agreements with major cruise operators. Any significant disruption or a broader cruise industry downturn could hit the business disproportionately hard. For investors looking for income, OneSpaWorld only pays a quarterly dividend of 5 cents, translating to a yield of roughly 0.8%. As more of a growth stock with a price/earnings ratio of about 33, a serious hit to the industry could also affect the company’s premium price. For investors, the question to ask is less about the company than the industry it sails within. Without any serious waves in sight, OneSpaWorld is a business that is executing well in a niche that is easily overlooked. Its revenue and earnings growth, coupled with the prospect of AI efficiency, could keep it on watchlists for growth investors. With a market capitalization of only $2.7 billion and a business that depends on a single industry, though, the valuation leaves little room for disappointment. If the cruise industry keeps its momentum, OneSpaWorld might be a strong play for tapping a captive segment that appears ready to spend. The article "OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 10:00 a.m. ET Executive Chairman and Chief Executive Officer - Leonard Fluxman President, Chief Operating Officer and Chief Financial Officer - Stephen Lazarus Investor Relations - Allison Malkin Operator: Greetings, and welcome to the OneSpaWorld Second Quarter 2026 Earnings Call. Allison Malkin: Thank you. Good morning, and welcome to OneSpaWorld's Second Quarter 2026 Earnings Call and Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements. These forward-looking statements reflect our judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our second quarter 2026 earnings release, which was furnished to the SEC today on Form 8-K. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics on this call. Explanations of these metrics can be found in our earnings release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman and Chief Executive Officer; and Stephen Lazarus, President, Chief Operating Officer and Chief Financial Officer. Leonard will begin with a review of our second quarter performance and provide an update on our key priorities. Then Stephen will provide more details on the financials and guidance. Following our prepared remarks, we will turn the call over to the operator to begin the question-and-answer portion of the call. I would now like to turn the call over to Leonard. Leonard Fluxman: Thank you, Allison. Good morning, and welcome to OneSpaWorld's Second Quarter 2026 Earnings Conference Call. It's a pleasure to speak with you all this morning and share another strong performance that delivered our 21st consecutive quarter of record total revenues and adjusted EBITDA to cap an exceptional first half of the year. Our sustained positive performance continues to reflect our team's innovation mindset and the increasing power of our global operating platform, which combined creates remarkable experiences for our guests, outstanding value for our cruise line and destination resort partners and strong operating and financial performance. This further reinforces our leadership position as a trusted global provider of health and wellness services at sea. I remain proud of our exceptional team members around the world whose dedication and commitment continue to drive our success. We began the second half of the year with positive momentum and expect to generate double-digit growth in total revenue and adjusted EBITDA at the midpoint of our fiscal year 2026 guidance ranges. Our confidence is buoyed by the impact of increasing innovations across our business, including the emerging impact of AI and growth from new partnerships and new ship introductions. Turning to the highlights of the second quarter. Total revenues increased 9% and adjusted EBITDA increased 13%. At quarter end, we operated health and wellness centers on 208 ships with an average ship count of 202 for the quarter. This compares with a total of 200 ships and an average ship count of 191 ships at the end of the second quarter of fiscal 2025. Also at quarter end, our cruise ship health and wellness centers were staffed by 4,664 personnel compared with 4,365 personnel on vessels at the end of the second quarter of fiscal 2025. The quarter marked meaningful progress in our key priorities. And while I'm going to address my favorite four, I'm going to leave probably one with much curiosity is AI will be covered by Stephen in his remarks. So firstly, we captured high visible new ship growth with current cruise line partners. During the quarter, we launched our state-of-the-art health and wellness center onboard Royal Caribbean's Legend of the Seas and expanded our partnership with Azamara Cruises. We remain on track to introduce health and wellness centers on three additional new ship builds later this year. Second, we continue to expand higher-value services and products. These services, including our innovative offerings of Thermage, truSculpt and CoolSculpting, IV therapy, Acupuncture LED therapy continue to drive strong double-digit growth in the second quarter. We will continue expanding these services across our fleet while introducing new offerings that address travelers' growing focus on longevity and wellness. At quarter end, medi-spa services were available on 156 ships, up from 147 ships at the end of the second quarter of 2025. We expect to have medi-spa offerings on 159 ships by year-end 2026. Third, we focused on enhancing health and wellness center productivity. This is best reflected in continued growth in key operating metrics, including revenue per passenger per day, weekly revenue and revenue per staff per day. Additionally, prebooked revenue grew 14% in total and grew as a percentage of total service revenue with forward bookings looking strong, up 20% as compared to last year. Staff retention continues to deliver impressive gains. At quarter end, staff retention was 81%, rising 4 percentage points over last year. As we have stated in the past, having experienced staff is a key contributor to our consistent gains in operating metrics as these members continue to drive incremental revenue through more effective guest recommendations, cross-selling and upselling. We remain committed to investing in best-in-class training to support productivity and long-term growth in our operating metrics. Fourth and finally, we maintained a strong and durable balance sheet and generated robust free cash flow. During the quarter, we returned $5.1 million to shareholders through our quarterly dividend and reduced debt by $1.3 million under our term loan facility. We ended the quarter with a strong balance sheet, including $41.6 million in cash and $91.6 million of total liquidity, providing continued flexibility to invest in our business while returning capital to shareholders. During the quarter, we opportunistically purchased 16,134 shares of our common stock and at quarter end, had $37.1 million available under our share repurchase authorization. Looking ahead, we remain confident that 2026 will be another record year for this company, backed by our exceptional team, differentiated operating platform, and continued focus on innovation and execution. We believe we are well positioned to extend our leadership in health and wellness services at sea while delivering exceptional value to our cruise line partners, memorable experiences for our guests and long-term value to our shareholders. With that, I'll turn you over to Stephen, who will provide more details on our second quarter results and guidance. Stephen? Stephen Lazarus: Thank you, Leonard. Good morning, everyone. We are indeed pleased with our second quarter performance with total revenues increasing 9% and adjusted EBITDA increasing 13% compared to the second quarter of 2025, driven by increases across our key operating and financial metrics. Our results continue to demonstrate the strength and resilience of our business model and the successful execution by our talented teams. We generated strong profitability and cash flow during the quarter while maintaining a healthy balance sheet, enabling us to continue investing in strategic growth initiatives, return capital to shareholders through our quarterly dividend and share repurchases, and further reduce debt. Before I review our results, I would like to take a moment to provide details on some of our AI initiatives and the positive impact that this is having across our business. We remain confident these technologies will enhance revenue growth, operating efficiency and longer-term profitability. AI has been introduced to substantially all of our ships and our corporate office. We have many work streams underway at various stages, some already in production, others still in development or at the concept stage. Today, I'd like to focus on four areas that are live and generating value. The first relates to revenue enhancement. Amanda, previously referred to as Project Shell, our AI-powered recommendation and yield optimization platform that provides daily yield improvement recommendations to our managers onboard vessels. This is our machine learning algorithmic engine to improve facility and staff utilization to increase revenue. Amanda was launched in March of this year and is currently deployed across 188 vessels. Service revenue improvement as a result of these recommendations is most evident with less experienced managers, where we are seeing a 4% service revenue uplift from the implementation of the recommendations. Manager adoption has also grown, reaching nearly 99%. Looking ahead, we'll continue enhancing the platform, incorporating manager feedback, adding new services and post-voyage recommendations. Second, we continue to expand our operational AI capabilities. AVA, our artificial intelligence virtual assistant, which is a task executing Agentic app supports managers with ship operations and was launched in August of 2025. This has a proven ROI autonomously resolving 96% of support tickets without human intervention. Based on this, we've begun implementing new use cases and will extend AVA to all onboard staff. Third, as it relates to automating automation and streamlining work, at the end of May, we launched Serena, our guest-facing conversational assistant, a generative AI-enabled chatbot for our e-commerce platform, a natural extension to our customer service team with nearly half of all sessions occurring outside normal business hours utilizing Serena to date. We plan to introduce new Serena capabilities to further increase efficiency while maintaining our high customer relations standards through seamless human handoff and guest satisfaction tracking. Finally, Claude, our enterprise-wide AI system continues to be adopted across the organization to improve productivity and streamline day-to-day workflows. In parallel, we completed the implementation of a modernized ERP system across the organization this quarter, bringing our teams onto a single platform that further supports our AI initiatives and positions us for continued efficiency gains. While we remain in the initial stages of these initiatives with many others to follow, we are increasingly encouraged by the measurable benefits we are seeing and believe our investments in AI will continue to strengthen our competitive position and create long-term value for our shareholders. I will now share further details about our second quarter results that we reported earlier this morning. Total revenues increased 9% to $261.2 million compared to $240.7 million for the second quarter of 2025, driven by a 4% increase in revenue days, health and wellness center expansion from 2026 new ship builds and a 1.2% increase in average guest spend, contributing $14.5 million, $4.8 million and $2.7 million, respectively, to the increase in total revenues, of which $4.7 million was attributable to increased guest prebooked services. Growth in our maritime total revenues was offset by $1.3 million decrease in destination resorts total revenue, partially due to the closure of hotels where we had previously operated. The decrease in product revenue was driven by the previously announced reorganization of operations in the United Kingdom and Italy, which accounted for $1 million of product revenue in the second quarter of 2025. Cost of service increased $15.6 million attributable to the $21.1 million increase in service revenue compared to the second quarter of prior year. Cost of product decreased $200,000 attributable to the $500,000 decrease in product revenue compared to the second quarter of last year. Administrative expenses were $7.2 million compared to $4.4 million in the second quarter of 2025. The increase was primarily due to $2 million in third-party fees for certain management and logistics services as a result of our previously announced reorganization of operations in the United Kingdom and Italy, pursuant to which services previously performed internally by company personnel and related costs have shifted from salary benefits and payroll taxes to administrative expenses. Salary benefit and payroll taxes were flat at $8.8 million. Net income was $23.2 million or net income per diluted share of $0.23 as compared to net income of $19.9 million or net income per diluted share of $0.19 for the second quarter of 2025. The increase was attributable primarily to a $2.4 million increase in income from operations and a benefit from a $300,000 decrease in interest expense. The $300,000 decrease in interest expense net was attributable primarily to lower net balances and lower effective interest rates. Adjusted net income was $29.8 million or adjusted net income per diluted share of $0.29 compared to adjusted net income of $25.8 million or adjusted net income per diluted share of $0.25 for the second quarter of 2025. Adjusted EBITDA was $34.4 million compared to adjusted EBITDA of $30.5 million in the second quarter of last year. Turning to the balance sheet. We continue to possess a strong balance sheet at quarter end with total cash of $41.6 million after giving effect to the payments of $10.2 million in quarterly dividends and repaying $2.5 million of our term loan facility during the first 6 months of June of 2026. In addition, we had full availability of our $50 million revolving loan facility, giving us total liquidity of $91.6 million as of June 30. Total debt, net of deferred financing costs was $81.6 million at June 30. Also at quarter end, we had $37.1 million remaining on our $75 million share repurchase program, which was adopted in April 2025. We intend to utilize this remaining authorization this year. We remain focused on disciplined capital allocation, supported by our strong cash flow generation and balance sheet flexibility. We will continue to prioritize investing in the business, returning capital to shareholders through our share repurchase program, our quarterly dividend and debt reduction while maintaining the flexibility to pursue additional opportunities to enhance long-term shareholder value. As it relates to guidance, based on our positive momentum and the impact of innovation across our businesses, we are increasing our full year 2026 guidance to total revenue in the range of $1.018 billion to $1.038 billion and adjusted EBITDA in the range of $130 million to $140 million. This represents growth of 10% at the midpoint of the guidance ranges for both metrics compared with actual fiscal 2025 results, excluding exited and reorganized operations and marks our fourth consecutive fiscal year of record performance. Please keep in mind that fiscal 2025 reported total revenue included $23 million associated with the reorganization of operations in the United Kingdom and Italy and the exit of land-based operations in Asia. For the third quarter of 2026, we are introducing guidance for total revenue in the range of $268 million to $273 million and adjusted EBITDA in the range of $35 million to $37 million. This guidance reflects our confidence in our ability to deliver sustained momentum and the visibility of our growth pipeline while acknowledging the dynamic environment. With that, we will open the call for questions. Marie, if you could please open the call. Operator: Thank you. Our first question comes from Steve Wieczynski with Stifel. Steven Wieczynski: So look, it seems pretty clear that the onboard, the spend levels on board remain incredibly strong at this point. And even yesterday, we heard from Royal Caribbean, they specifically called out how strong their onboard metrics have been. So I guess what I'm wondering is with only five months left here in the year and onboard trends still remaining pretty healthy, to us, I would say your guidance range is still probably pretty elongated. So I'm just wondering what would get you maybe more towards the low end versus the high end? Or is there something in the fourth quarter that we should be watching that could skew that quarter one way or the other? Stephen Lazarus: As of today, we feel good about the guidance that we've provided and the range. Obviously, as you're aware, revenue, our second quarter beat was $300,000. We've taken the full year up by $4 million on EBITDA. The beat was $400,000, and we've taken the full year up $5 million. So we feel comfortable with where we're guiding to the extent that there are improvements in the environment or innovations or activities that we're working on that accelerate at a faster pace, then you could see the numbers towards the upside. Steven Wieczynski: Okay. Got you. And then Stephen, thanks for all the color around the AI initiatives. And maybe I'm reading into this wrong, but it seems like for now, the AI benefits are at least for now coming more on the revenue side and then the expense benefits will follow later on. I just want to make sure I'm kind of thinking about that the right way. And I doubt you're ready to provide this. But at this point, do you have any idea of what all this AI technology could eventually do to your margin profile? Or is it still just a total work in progress? Stephen Lazarus: The response to the first question is correct. And as it relates to the second part of the question, and by the way, for the first part, obviously, as you know, Steve, after all these years, we run a very, very lean organization. And so further reducing costs, et cetera, will happen, but the impact we feel ultimately is more on the revenue side than on the cost side. That is indeed still too early to quantify exactly what that means and what it does to margins. And I would also frankly say this, there is so much happening and so much innovation and continued innovation in this arena that I hope we always have projects in the pipeline and therefore, continue to see small incremental benefits coming through as opposed to getting to a point in time where we're done and we can quantify really what it means. So too soon to tell. We're working on it. I mean some of these things have literally only been in place for a month or two, maybe six. So when we get there, we will, but we're happy to continue to report whatever we know. Operator: Our next question comes from Sharon Zackfia with William Blair. Sharon Zackfia: I wanted to ask about product revenue because even if I adjust for the reorg, it looks like it did kind of decelerate quite a bit in the growth rate. And I'm wondering kind of what you're seeing with product attach on the ships or if there's something else that would help explain that decel? Stephen Lazarus: Yes. So when you take into account the amount due to the reorg, it was, in fact, positive, but you're correct at a slower rate than previously. One of the things to bear in mind is that we continue to see our medi-spa modalities growing overall at a faster rate than we're seeing overall revenue growth. In the second quarter, for example, our medi-spa functionalities grew at a 17% which is exceeding what other things are growing at, although recognizing it's still a small proportion, less than 10% of our service revenue. And those today have virtually no retail attachment to them. And so as you see those portions continue to grow, it does weigh in on the numbers. We're not concerned at this point in time, to be honest, about any sort of attachment or takeaway issues on board. It does remain a focus for us. We did have significantly more retail promotional activity in the prior year as we were moving out some older inventory at significantly discounted prices. So having said that, we will continue to focus on it, have been focusing on it, but I'm not calling it out as an issue at this point. Sharon Zackfia: And then a second question on the third quarter itself. We've heard a lot of companies talk about particularly for MED deployment that they're going to have maybe a higher mix than normal of European customers, which I know tend to kind of spend less at the spot than American passengers. Is that something you've already contemplated in the third quarter guide, particularly just given the seasonality of MED? Leonard Fluxman: Yes. We've taken all of that into what we guided. Operator: Our next question comes from Randy Konik with Jefferies. Randal Konik: You talked about early days, I think, one month or a couple of months of AI deployment. Have you kind of done this from a perspective of implementing some of the strategies in an experimental versus control setting where you were able to kind of discern what your uplift is in the portion of your business or areas where you've kind of put in these processes. Just curious because if we're early days and you're starting to see progress yet still early days, it feels like the revenue upside could accelerate and uplift from here. Just kind of curious on your thoughts there. Stephen Lazarus: So from a process standpoint, Randy, the way you're describing it is the way we are doing -- have done and continue to do all of these projects, i.e., we roll them out in a smaller group. We make sure that they're working still in the loop, et cetera, et cetera, and then ultimately roll them out further. We do, as these are literally these agents or learning algorithms learn from themselves, we naturally do expect that they will get better over time. The recommendations that are implemented on board, for example, are literally at the end of every week, the machine goes back and looks at and says, okay, we made these recommendations, how successful were they? And then if they were good, is we recommending them? If they weren't, might be calling our ops team back into the loop to say what other sorts of things could be providing. So hopefully, over time, there is continued improvement. We definitely think that some of the other projects, we wouldn't talk about them again today because they are still in early, early stages like dynamic pricing will have the ability to help us continue to improve driver revenue. Randal Konik: Got it. And then just in terms of expanding upon, you gave a metric of a little over 1%, I believe it was, increase in average guest spend. How should we be thinking about that in the go-forward guidance for the balance of the year? What's that metric looking like from your standpoint for the balance of 2026? Stephen Lazarus: I think it's going to be about 1%, 2% growth is kind of what we're expecting through the back half, might be able to do a little better fourth quarter, but that's kind of where we're settling in. Operator: Our next question comes from Max Rakhlenko with TD Cowen. Maksim Rakhlenko: So with the AI progress that is still in the earlier innings, how are you thinking about the evolution of your growth algorithm? Historically, you spoke to high single-digit revenue growth and a bit of margin expansion. What do you think that the go forward could be as we think about the next couple of years given all the progress that you've already made and will continue to make on the AI front? Stephen Lazarus: We'd love to give you that specificity, Max, but the reality is that it just is too soon. I mean we are seeing revenue grow at a slightly higher rate than that high single-digit rate. And we have and do see margin improvement at the EBITDA level. So we're just not really, frankly, we don't have enough conviction around sample sizes, et cetera, to be able to talk specifically to answer your question, I think we're trying to avoid it. But for now, we will continue with our long-term algo as it has been in the past, single-digit revenue growth, slightly better EBITDA. Maksim Rakhlenko: So, then separately, it's great to hear about the pickup in prebooking. Obviously, that's something that we've all been focused on for quite a while here. So given the acceleration, do you think your prior targets that we've spoken to in the past are achievable? And where do you think that mix can go in both the near as well as the medium term? And then just lastly, is the bigger spend continuing to hold at a similar rate? Or has there been any evolution to that? Stephen Lazarus: As it relates to the spend, it generally continues to hold at a plus 30% or above. So we have seen no degradation in the incremental spend from those guests who prebook. We do continue to think that there is still the opportunity for that number to drive significantly higher. Obviously, we see that with some cruise lines, and that gives us that confidence. And frankly, in order to spend the money on yield optimization, AI activities or tools that we're looking at, we would have to have that conviction. Otherwise, why put the money into the project. So we do think that there's still upside in that number. Leonard Fluxman: Yes. And Max, one other thing that's going to start kicking in that we just started now sort of at the end of the second quarter, is we started offering medi-spa and acupuncture on the pre-book platform, which we didn't have before. And that was a missing opportunity. We think that's going to also start to elevate that prebook percentage. Operator: Our next question comes from Gregory Miller with Truist Securities. Gregory Miller: Thought I'd start off with asking about how your progress is on expanding your resort operations portfolio in the U.S. and Caribbean. I'm curious if you could provide an update in terms of how the pipeline is looking and progress there. Leonard Fluxman: Yes. No, good question, Greg. Thanks for asking. We, as you know, we brought this person on a little over 90 days or so ago. The pipeline is really looking strong. I mean there are a lot of opportunities that have been indicated that have interest, we've sent out two or three answers to an RFP. Inbounds are still continuing to grow. And I got to tell you for the first time, we're in a proactive looking for opportunities, getting our name out there, building the brand and recognition. So I'm very excited that we've been able to cultivate this interest in a very short period of time. Now we're just going to convert them, and I'm confident we will. Gregory Miller: Terrific. Well, look forward to hearing the news when it happens. Separately, I want to ask about GLP-1s that are using the products. And I'm curious what you're seeing in terms of any changing trends in terms of service or products, different types of usage of the spa menu as consumers are adapting to using the GLP-1s. Leonard Fluxman: So we have not introduced GLP-1s on board yet. That's not to say we won't or let's just say, I think the emerging regulatory control around peptides will change favorably such that we'll be able to start offering peptides hopefully, in 2027, if the regulations are such that we can support it, then we'll do it. In that respect, there's a very good competitive advantage in tirzepatide and some of the other exciting peptides out there that we're looking to roll out as soon as we have the approval to do so. So if it's not GLP-1, it will be in another format or it could be GLP-1. I think there's sufficient confidence out there that these weight, fat reducing peptides, GLP-1s, which is a form of a peptide will effectively be mainstream in the next couple of years. So we will follow suit. Operator: Our next question comes from Andrew May with Northcoast Research. Andrew May: So I wanted to ask the Europe question a little bit differently. So I think historically, Europe has been a little lower yielding for you guys versus like the bread and butter Caribbean. And one of the cruise operators had mentioned maybe a little lower occupancy for Europe this year. So I wanted to see how you guys kind of think about that. Is lower occupancy on these lower-yielding itineraries kind of hurt you more? Is it kind of net out to neutral? Leonard Fluxman: Yes. It hasn't really, I'm sure this was spoken about yesterday on the call with respect to Royal. Maybe there's some softness there due to geopolitical pressures, people being scared to maybe fly into the Mediterranean with the war going on. We certainly didn't see load factors dip significantly enough to impact any of our revenues. That being said, there's Alaska as well as the Caribbean that are happening at the same time, and those continue to be executed very well. Andrew May: Got it. Okay. And then separately, I wanted to ask, there was a recent announcement from the Norwegian banner. The Jade and Gem ship got some thermal suite upgrades. I wanted to see, is there any way to quantify what these dry dock upgrades can do for you guys? Or any additional color you can give about what a dry dock refurb typically represents for you? Leonard Fluxman: It's a couple of things, right, because they're always scheduled to do it. We try and prepare as much in advance with the business folks, the dry dock, newbuild folks. Firstly, we want to make sure that the facilities in and of itself, wherever there's required maintenance or improvements, we get that in to the requisition. But at the same time, as we mentioned before, we look at any areas, not just including our areas, but any area ship wide or on the Promenade or anything else, underutilized space, which we can use for any of the purposes or some of the new modalities. And where we can get that moved and we have done that in the past, we focus on that heavily. So it's an opportunity not just to repurpose underutilized space, but also perhaps to improve the existing. Operator: Our next question comes from Assia Georgieva with Infinity Research. Assia Georgieva: Great job on Q2. I had basically, my question is now sort of a follow-up to what was just discussed. Through our sort of weekly pricing surveys, we were seeing a lot of strength in the Caribbean and Alaska, just as you mentioned, Leonard, it's not just Europe during the summer. And it seems that especially some of the destinations, the shorter cruises that are sort of new to cruise, which I think are probably the better passenger for you are really strong in price. Obviously, demand is there. So is that also something that you're already seeing in Q2 and building into the Q3 part of the model? Or do you expect just a more regular Caribbean and Alaska season than we are thinking? Leonard Fluxman: Yes. Look, there's significant capacity still in the Caribbean. And as you know, Assia, the Caribbean we love, always good, short cruises, long cruises, seven-day being the sweet spot. So yes, you're right, three- and four-day always introduces that new passenger you might just want to try cruise for the first time. While it doesn't give us the breadth of time to do as well as we do in the seven-day, the three-, four-day combined typically comes close, but obviously, the three-day gives us a shorter period of time to penetrate the guest spend. So, we love it all, and we won't say no to any more Caribbean because it doesn't impact us adversely, perhaps from a capacity perspective that it does others. But for us, it's always good because it brings along a lot of North American focus and spend, which is always healthy. Assia Georgieva: We might get another 6% or 7% capacity increase there next year still. More to come, I think, Leonard. Operator: We've reached the end of our question-and-answer session. I'd now like to turn the floor back over to Leonard Fluxman for closing comments. Leonard Fluxman: Great. Thank you again for joining us today, and we look forward to speaking with many of you at the upcoming investor conferences that we'll be attending and presenting and we report our third quarter results in October. Operator: Thanks for joining today. Bye-bye. 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Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. OneSpaWorld Holdings (OSW) is back in focus after reporting second quarter 2026 earnings, updating its revenue outlook for the year, authorizing a quarterly dividend, and providing an update on its ongoing share repurchase activity. See our latest analysis for OneSpaWorld Holdings. The latest earnings, guidance increase, dividend announcement and ongoing buybacks have arrived after a strong run in OneSpaWorld Holdings shares. The stock at $25.97 has delivered a 25.82% year to date share price return and a 153.28% five year total shareholder return. This suggests momentum has built over the longer term, even with a recent 8.04% one month share price pullback and 6.35% one day share price decline. If you are weighing OneSpaWorld Holdings against other growth stories in services and wellness, it can help to broaden the search and see what stands out in our 18 top founder-led companies For OneSpaWorld Holdings, the slide after earnings now sits against a long run of share price gains and steady business updates. Is this latest move saying more about changing sentiment, or about what the company is actually worth next? The most followed narrative for OneSpaWorld Holdings sets a fair value of $28.60 against the last close at $25.97. That gap frames how supporters view the company’s contract base and wellness exposure. Read the complete narrative. Want to see what sits behind that confidence in OneSpaWorld Holdings? The narrative leans on moderate revenue growth, rising margins, and a higher future earnings multiple. The exact mix of those inputs may surprise you. Result: Fair Value of $28.60 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, for this OneSpaWorld Holdings narrative to hold, cruise-dependent revenues and tighter spa and wellness regulations remain key watchpoints that could pressure margins and demand. Find out about the key risks to this OneSpaWorld Holdings narrative. The fair value narrative for OneSpaWorld Holdings points to a share price of $28.60 and labels the stock as 9.2% undervalued. However, its current P/E of 33.9x is far above the estimated fair ratio of 20x, the US Consumer Services average of 17.2x, and the peer average of 13.6x. That gap suggests investors are paying a steep premium. How comfortable are you with that kind of valuation risk? See what the numbers say about this price — find out in our valuation breakdown. With sentiment on OneSpaWorld Holdings split between optimism and caution, it makes sense to move quickly and weigh both sides of the story for yourself. To see how those concerns and potential upsides line up in one place, take a closer look at the 2 key rewards and 1 important warning sign. If OneSpaWorld Holdings has your attention, do not stop here. The right mix of quality, value, and resilience often sits just outside your current watchlist. Spot potential value opportunities early by scanning our 48 high quality undervalued stocks that combine solid fundamentals with attractive pricing signals. Strengthen your portfolio’s foundation by focusing on companies in the solid balance sheet and fundamentals stocks screener (48 results) that aim to keep debt and financial risk in check. Uncover lesser-known stocks through the screener containing 21 high quality undiscovered gems before they reach everyone’s radar and get priced accordingly. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OSW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 21st consecutive quarter of record total revenues and adjusted EBITDA, driven by an innovation-focused mindset and the scaling of a global operating platform. Performance was bolstered by a 9% increase in total revenues and a 13% rise in adjusted EBITDA, supported by a 4% increase in revenue days and a 1.2% growth in average guest spend. High-value medi-spa services, including Thermage and IV therapy, delivered strong double-digit growth and expanded to 156 ships, reflecting a strategic shift toward longevity and wellness offerings. Operational productivity improved through a 14% increase in total prebooked revenue and a 20% rise in forward bookings compared to the prior year. Staff retention reached 81%, a 4-percentage-point increase, which management identifies as a critical driver for incremental revenue through more effective cross-selling and guest recommendations. The company successfully completed a modernized ERP system implementation, unifying teams on a single platform to support ongoing AI initiatives and efficiency gains. Increased full-year 2026 guidance for total revenue to $1.018 billion–$1.038 billion and adjusted EBITDA to $130 million–$140 million, representing 10% growth at the midpoint. Management expects to introduce health and wellness centers on three additional new ship builds by the end of 2026, bringing medi-spa offerings to a total of 159 ships. AI initiatives are expected to drive long-term value, with the 'Amanda' yield optimization platform already showing a 4% service revenue uplift among less experienced managers. Guidance for the remainder of the year assumes average guest spend growth of approximately 1% to 2%, with potential for slight acceleration in the fourth quarter. Future growth strategies include the proactive expansion of the destination resort portfolio in the U.S. and Caribbean, supported by a strengthening pipeline of RFP responses and inbound interest. Administrative expenses rose to $7.2 million due to $2 million in third-party fees following the reorganization of operations in the UK and Italy, shifting costs from internal payroll to external services. Product revenue was negatively impacted by the UK and Italy reorganization, which accounted for $1 million in the prior-year period, alongside the exit of land-based operations in Asia. Management noted a $1.3 million decrease in destination resort revenue, partially attributed to the closure of hotels where the company previously operated. While monitoring geopolitical pressures that may affect Mediterranean cruise occupancy, management stated that current load factors have not significantly impacted revenue due to offsetting strength in Alaska and the Caribbean. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that AI benefits are currently more evident on the revenue side through yield optimization rather than cost reduction, given the company's already lean organizational structure. It is too early to quantify the exact impact on long-term margin profiles as many AI tools, such as the 'Serena' chatbot and 'AVA' assistant, are in early deployment stages. The perceived deceleration in product revenue is partly due to the rapid growth of medi-spa services, which currently have virtually no retail product attachment. Prior-year comparisons were also affected by significant promotional activity used to clear older inventory at discounted prices. OneSpaWorld has not yet introduced GLP-1s on board but is monitoring regulatory changes regarding peptides for a potential rollout in 2027. Management views weight-reducing peptides as a significant future mainstream opportunity for their wellness portfolio once approvals are secured. Incremental spend from guests who prebook remains stable at 30% or above, with no signs of degradation. The company recently began offering medi-spa and acupuncture on the pre-book platform, which is expected to further elevate pre-booking percentages.

Interested in OneSpaWorld Holdings Limited? Here are five stocks we like better. Strong second-quarter results: Revenue rose 9% to $261.2 million and adjusted EBITDA increased 13% to $34.4 million, marking the company’s 21st consecutive quarter of record results. Growth driven by expansion and premium services: OneSpaWorld operated wellness centers on 208 ships, while Medi-Spa revenue grew 17% and pre-booked revenue increased 14%. Forward bookings rose 20% year over year. Outlook raised: The company increased its 2026 guidance to $1.018 billion-$1.038 billion in revenue and $130 million-$140 million in adjusted EBITDA, representing approximately 10% growth at the midpoint. OneSpaWorld (NASDAQ:OSW) reported second-quarter 2026 revenue growth of 9% and adjusted EBITDA growth of 13%, extending what Executive Chairman and Chief Executive Officer Leonard Fluxman described as the company’s 21st consecutive quarter of record total revenue and adjusted EBITDA. Total revenue rose to $261.2 million from $240.7 million in the second quarter of 2025. Adjusted EBITDA increased to $34.4 million from $30.5 million, while net income rose to $23.2 million, or $0.23 per diluted share, from $19.9 million, or $0.19 per diluted share, a year earlier. Adjusted net income was $29.8 million, or $0.29 per diluted share, compared with $25.8 million, or $0.25 per share, in the prior-year period. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “We began the second half of the year with positive momentum,” Fluxman said, adding that the company expects double-digit growth in revenue and adjusted EBITDA at the midpoint of its full-year guidance ranges. At the end of the quarter, OneSpaWorld operated health and wellness centers on 208 ships, compared with 200 ships at the end of the second quarter of 2025. The average ship count during the quarter was 202, up from 191 a year earlier. The company’s onboard staffing rose to 4,664 personnel from 4,365 personnel. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Fluxman said the company launched a health and wellness center aboard Royal Caribbean’s Legend of the Seas during the quarter and expanded its partnership with Azamara Cruises. OneSpaWorld also remains on track to open wellness centers on three additional new ship builds later this year. The company continued to expand its higher-value Medi-Spa offerings, including Thermage, truSculpt, CoolSculpting, IV therapy, acupuncture and LED therapy. Fluxman said these services generated strong double-digit growth during the quarter. Medi-Spa services were available on 156 ships at quarter-end, compared with 147 ships a year earlier, and the company expects that figure to reach 159 ships by the end of 2026. → Innovative ETF Strategies That Are Paying Off This Summer President, Chief Operating Officer and Chief Financial Officer Stephen Lazarus said Medi-Spa services grew 17% in the second quarter, outpacing overall revenue growth. He noted, however, that the offerings remain less than 10% of service revenue and currently have little associated retail-product attachment. Lazarus said the revenue increase reflected a 4% increase in the company’s revenue base, contributing $14.5 million; health and wellness center expansion from new ship builds, contributing $4.8 million; and a 1.2% increase in average guest spending, contributing $2.7 million. Increased guest pre-booked services accounted for $4.7 million of total revenue growth. Pre-booked revenue increased 14% and grew as a percentage of total service revenue, while forward bookings rose 20% from the prior year. Fluxman said staff retention reached 81%, up four percentage points from a year earlier, which he said supports productivity through more effective guest recommendations, cross-selling and upselling. During the question-and-answer session, Lazarus said guests who pre-book continue to spend more than 30% above other guests, with no degradation in that incremental spending level. Fluxman added that OneSpaWorld began offering Medi-Spa and acupuncture services through its pre-booking platform near the end of the second quarter, which he said could further support booking penetration. Lazarus said the company expects average guest spending growth of roughly 1% to 2% during the second half of 2026. He also said the company incorporated anticipated seasonal Mediterranean customer mix into its third-quarter outlook. OneSpaWorld said artificial intelligence has been introduced across substantially all ships and its corporate office. Lazarus highlighted four initiatives currently generating value. Amanda: The company’s AI-powered recommendation and yield-optimization platform, launched in March and deployed on 188 vessels, provides managers with daily recommendations intended to improve facility and staff utilization. Lazarus said the tool has produced a 4% uplift in service revenue among less-experienced managers when recommendations are implemented, and manager adoption has reached nearly 99%. Ava: The company’s operational virtual assistant, launched in August 2025, has autonomously resolved 96% of support tickets without human intervention, according to Lazarus. OneSpaWorld plans to expand the tool’s use cases and extend it to all onboard staff. Serena: A guest-facing conversational assistant launched in late May for the company’s e-commerce platform. Lazarus said nearly half of Serena sessions have occurred outside normal business hours. Claude: An enterprise-wide AI system being adopted to streamline workflows and improve productivity across the organization. Lazarus said OneSpaWorld also completed implementation of a modernized enterprise resource planning system during the quarter, consolidating teams onto a single platform. He said AI’s nearer-term effect is likely to be more meaningful on revenue than expenses, though the company is not yet prepared to quantify the longer-term impact on margins. OneSpaWorld ended June with $41.6 million in cash and total liquidity of $91.6 million, including full availability under its $50 million revolving credit facility. Total debt, net of deferred financing costs, was $81.6 million. During the first six months of 2026, the company paid $10.2 million in quarterly dividends and repaid $2.5 million under its term loan facility. Fluxman said the company returned $5.1 million to shareholders through its quarterly dividend during the second quarter and reduced debt by $1.3 million under the term loan. OneSpaWorld had $37.1 million remaining under its $75 million share repurchase authorization at quarter-end and said it intends to use the remaining authorization this year. The company raised its full-year 2026 guidance to revenue of $1.018 billion to $1.038 billion and adjusted EBITDA of $130 million to $140 million. At the midpoint, the outlook represents 10% growth in both measures compared with fiscal 2025 results excluding exited and reorganized operations. For the third quarter, OneSpaWorld expects revenue of $268 million to $273 million and adjusted EBITDA of $35 million to $37 million. OneSpaWorld Holdings Ltd is a global provider of spa and wellness services, catering primarily to the cruise line, hospitality and venue-based leisure industries. The company designs and operates on-board spa facilities, salon services and retail boutiques, offering treatments such as massage, facial and body therapies, nail care, hair styling and aesthetic enhancements. Additionally, OneSpaWorld provides program consulting, management, training and product distribution services to its partners, enabling tailored spa experiences across diverse passenger and guest demographics. OneSpaWorld’s core operations span major cruise lines—such as Carnival Corporation, Royal Caribbean Group, MSC Cruises and Virgin Voyages—as well as luxury resort and hotel brands. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OneSpaWorld Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Total Revenues of $261.2 Million, Net Income of $23.2 Million and Adjusted EBITDA of $34.4 Million Introduces Third Quarter 2026 Guidance of $268 to $273 Million in Total Revenues and $35 to $37 Million in Adjusted EBITDA Increases FY 2026 Guidance to $1.018 to $1.038 Billion in Total Revenues and $130 to $140 Million in Adjusted EBITDA Board Declares Quarterly Dividend of $0.05 Per Share NASSAU, Bahamas, July 29, 2026--(BUSINESS WIRE)--OneSpaWorld Holdings Limited (NASDAQ: OSW) ("OneSpaWorld," or the "Company"), the pre-eminent global provider of health, wellness and aesthetic services, products and experiences for guests on-board cruise ships and in destination resorts around the world, today announced its financial results for the second quarter and first six months of fiscal 2026 ended June 30, 2026. Leonard Fluxman, Executive Chairman and Chief Executive Officer, commented: "We are pleased to deliver our 21st consecutive quarter of record Total revenues and Adjusted EBITDA to cap an exceptional first half of the year. Our sustained positive performance continues to reflect our team’s innovation mindset and increasing impact of our powerful global operating platform to deliver remarkable experiences for our guests, outstanding value for our cruise line and destination resort partners, and strong operating and financial performance. I am particularly excited to see the emerging impact of the AI powered innovations we are developing and implementing across our business. In addition, we launched our state-of-the-art health and wellness center onboard Royal Caribbean’s Legend of the Seas and have commenced the expansion of our spa facilities onboard Azamara Cruises vessels in collaboration with Azamara, our partner for nearly 20 years, enhancing our guests' wellness journey." "We have begun the second half of the year with positive momentum," continued Mr. Fluxman. "As we look ahead, we will continue investing in our outstanding team, our irreplicable operating platform and our strategic priorities to deliver increasingly exceptional guest experiences and value for our cruise line and destination resort partners and our shareholders." Stephen Lazarus, President, Chief Financial Officer and Chief Operating Officer, added: "We are pleased to report a strong second quarter with record Total revenues and record Adjusted EBITDA, which increased 9% and 13%, respectively, from 2025 second quarter performance, driven by increases across key operating and financial metrics. And while early, we are realizing initial revenue gains from introducing our AI driven strategies to substantially all of our health and wellness centers at sea." Mr. Lazarus noted further: "During the second quarter, we continued to leverage our asset-light business model, utilizing $5.1 million of our free cash flow to pay our quarterly dividend and $1.3 million to reduce debt on our Term Loan Facility. We ended the second quarter with a strong balance sheet, including cash of $41.6 million, total liquidity of $91.6 million, and Total debt, net of deferred financing costs, of $81.6 million." Mr. Lazarus concluded: "Based on our positive momentum and the impact of innovations across our business, our fiscal 2026 guidance reflects expected growth of 10% for both Total revenues and Adjusted EBITDA at the midpoints of our guidance ranges, compared with actual Fiscal 2025 results, excluding exited and reorganized operations - marking our fourth consecutive fiscal year record performance." Second Quarter 2026 Highlights: Total revenues increased 9% to a record $261.2 million compared to $240.7 million in the second quarter of 2025 and included $0.9 million and $1.5 million in revenues, respectively, attributable to the Company’s Asia resorts business in the process of being exited. Income from operations increased 11% to a record $24.5 million compared to $22.1 million in the second quarter of 2025. Net income increased 16% to $23.2 million compared to $19.9 million in the second quarter of 2025. Adjusted EBITDA increased 13% to a record $34.4 million compared to $30.5 million in the second quarter of 2025. Operating Network Update: Cruise Ship Count: The Company ended the second quarter operating health and wellness centers on 208 ships with an average ship count of 202 ships for the quarter, compared with 200 ships and an average ship count of 191 ships for the second quarter of 2025. Destination Resort Count: The Company ended the second quarter operating 25 destination resort health and wellness centers with an average resort count of 32 for the quarter, compared with 51 destination resort health and wellness centers and an average resort count of 50 for the second quarter of 2025. Of the destination resort health and wellness centers operating at quarter end, 13 pertained to the Asia operations we are exiting, down from 35 at the end of the second quarter of 2025. Staff Count: The Company ended the second quarter with 4,664 cruise ship personnel on vessels compared with 4,365 cruise ship personnel on vessels at the end of the second quarter of 2025. Liquidity Update: Cash totaled $41.6 million and liquidity, including the Company’s fully undrawn $50 million credit facility, totaled $91.6 million at June 30, 2026. The Company’s results are reported in this press release on a GAAP basis and on an as adjusted non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. This press release also refers to Adjusted EBITDA and Adjusted Net Income (non-GAAP financial measures), the definitions and reconciliations to their nearest GAAP equivalents for which are presented below. Second Quarter Ended June 30, 2026 Compared to June 30, 2025 Total revenues increased 9% to $261.2 million compared to $240.7 million for the second quarter of 2025, driven by a 4% increase in revenue days, health and wellness center expansion from 2026 new ship builds, and a 1.2% increase in average guest spend, contributing $14.5 million, $4.8 million and $2.7 million, respectively, to the increase in Total revenues, of which $4.7 million was attributable to increased guest pre-booked services. Growth in our Maritime Total revenues was offset by a $1.3 million decrease in destination resorts Total revenues, partially due to the closure of hotels where we had previously operated. The decrease in Product revenues was driven by the previously announced reorganization of operations in the United Kingdom and Italy. Cost of services increased $15.6 million, attributable to the $21.1 million increase in Service revenues compared to the second quarter of 2025. Cost of products decreased $0.2 million, attributable to the $0.5 million decrease in Product revenues compared to the second quarter of 2025. Administrative expenses were $7.2 million compared to $4.4 million in the second quarter of 2025. The increase was primarily due to $2.0 million in third-party fees for certain management and logistics services as a result of our previously announced reorganization of operations in the United Kingdom and Italy, pursuant to which services previously performed internally by Company staff and related costs have shifted from Salaries, benefits and payroll taxes to Administrative. Salaries, benefits and payroll taxes were $8.8 million in each of the second quarter of 2026 and the second quarter of 2025. Net income was $23.2 million, or Net income per diluted share of $0.23, as compared to Net income of $19.9 million, or Net income per diluted share of $0.19, for the second quarter of 2025. The increase was primarily attributable to a $2.4 million increase in Income from operations and a benefit from a $0.3 million decrease in Interest expense, net. The $0.3 million decrease in Interest expense, net, was primarily attributable to lower debt balances and lower effective interest rates. Adjusted net income was $29.8 million, or Adjusted net income per diluted share of $0.29, compared to Adjusted net income of $25.8 million, or Adjusted net income per diluted share of $0.25, for the second quarter of 2025. Adjusted EBITDA was $34.4 million, compared to Adjusted EBITDA of $30.5 million in the second quarter of 2025. Year-to-date June 30, 2026 Compared to June 30, 2025 Total revenues increased 11% to $508.9 million compared to $460.4 million for the six months ended June 30, 2025, driven by a 4% increase in revenue days, a 2% increase in average guest spend, and fleet expansion, contributing $37.6 million, $7.7 million and $6.0 million, respectively, to the increase in Total revenues, of which $10 million was attributable to increased pre-booked revenues at health and wellness centers included in our ship count as of June 30, 2026. This was offset by a $2.5 million decrease in our land-based spa business, partially due to the closure of hotels where we had previously operated. Cost of services increased $35.8 million, attributable to the $46.2 million increase in Service revenues compared to the six months ended June 30, 2025. Cost of products increased $2.3 million, attributable to the $2.3 million increase in Product revenues compared to the six months ended June 30, 2025. Administrative expenses were $13.4 million compared to $8.6 million in the six months ended June 30, 2025. The increase was primarily due to $3.9 million in third-party fees for certain management and logistics services as a result of our previously announced reorganization of operations in the United Kingdom and Italy, pursuant to which services previously performed internally by Company staff and related costs have shifted from Salaries, benefits and payroll taxes to Administrative. Salaries, benefits and payroll taxes were $17.2 million, compared to $19.8 million in the six months ended June 30, 2025. The decrease was primarily attributable to the non-recurrence of $2.5 million in separation-related severance expenses incurred during the first quarter of 2025 associated with the termination of employment of the Company’s former Chief Commercial Officer. The variance also reflects a reduction in internal personnel costs in the first six months of 2026 resulting from the transition of certain management and logistics services to third-party providers, as discussed above, partially offset by annual merit increases and higher incentive-based compensation. Net income was $44.5 million, or Net income per diluted share of $0.44, compared to Net income of $35.2 million, or Net income per diluted share of $0.34, for the six months ended June 30, 2025. This increase was primarily attributable to a $8.4 million improvement in operating income including the non-recurrence of $2.5 million of severance expense recorded in the first quarter of 2025. Adjusted net income was $57.7 million, or Adjusted net income per diluted share of $0.56, as compared to Adjusted net income of $48.4 million, or Adjusted net income per diluted share of $0.46, for the six months ended June 30, 2025. Adjusted EBITDA was $66.5 million, compared to Adjusted EBITDA of $57.1 million in the six months ended June 30, 2025. Balance Sheet Highlights Cash at June 30, 2026 was $41.6 million after giving effect to the payments of $10.2 million in quarterly dividends and repaying $2.5 million of our Term Loan Facility during the six months ended June 30, 2026. Total debt, net of deferred financing costs, was $81.6 million at June 30, 2026. Dividend Announcement The Company announced today that the Board of Directors approved a quarterly dividend payment of $0.05 per common share payable on September 2, 2026 to shareholders of record as of the close of business on August 19, 2026. Share Repurchase Program During the second quarter of fiscal 2026, the Company repurchased 16,134 shares of its outstanding common shares, returning $0.4 million to shareholders. As of June 30, 2026, the Company had $37.1 million remaining available for future share repurchases under its $75 million share repurchase program adopted in April 2025. Q3 2026 and Fiscal Year 2026 Guidance (1) Total revenues for the three months ended September 30, 2025 and the Fiscal Year ended December 31, 2025 include $6.4 million and $23.0 million, respectively, related to the reorganization of operations in the United Kingdom and Italy and the exit of destination resorts operations in Asia. (2) The Company’s fiscal year 2026 guidance for the year ended December 31, 2026 as presented above compares to its previous guidance for Total revenues of $1.014 to $1.034 billion and Adjusted EBITDA of $129.0 to $139.0 million provided with first quarter 2026 results issued on April 29, 2026. Conference Call Details A conference call to discuss the second quarter 2026 financial results is scheduled for Wednesday, July 29, 2026, at 10:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-0784 (international callers please dial 1-201-689-8560) and provide the passcode 13761343 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://onespaworld.com/investor-relations. A replay of the call will be available by dialing 844-512-2921 (international callers please dial 412-317-6671) and entering the passcode 13761343. The conference call replay will be available from 2:00 p.m. Eastern Time on Wednesday, July 29, 2026 until 11:59 p.m. Eastern Time on Wednesday, August 5, 2026. The Webcast replay will remain available for 90 days. About OneSpaWorld Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld’s distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, aesthetics and fitness services, treatments, and products, currently onboard 208 cruise ships and at 25 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades upon its exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer, and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. Non-GAAP Financial Measures We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Please see "Note Regarding Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information" below for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. (1) Average Ship Count reflects the fact that during the period ships were in and out of service and is calculated by adding the total number of days that each of the ships generated revenue during the period, divided by the number of calendar days during the period. (2) Revenue Days reflects a day on which the health and wellness centers are open onboard a revenue generating cruise with passengers. (3) Average Resort Count reflects the fact that during the period destination resort health and wellness centers were in and out of service and is calculated by adding the total number of days that each destination resort health and wellness center generated revenue during the period, divided by the number of calendar days during the period. Note Regarding Non-GAAP Financial Information This press release includes financial measures that are not calculated in accordance with GAAP, including Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA. We define Adjusted net income as Net income, adjusted for items, including Amortization of intangible assets and Stock-based compensation. Adjusted net income per diluted share is defined as Adjusted net income divided by Diluted weighted average shares outstanding during the period, as if such shares had been outstanding during the entire three and six month periods ended June 30, 2026 and 2025. We define Adjusted EBITDA as Net income adjusted for items, including Income tax expense; Interest expense, net; Depreciation and amortization; and Stock-based compensation as set forth below. We believe that these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA have limitations as profitability measures in that they do not include total amounts for interest expense on our debt and provision for income taxes, and the effect of our expenditures for capital assets and certain intangible assets. In addition, all of these non-GAAP measures have limitations as profitability measures in that they do not include the effect of non-cash stock-based compensation expense and the impact of certain expenses related to items that are settled in cash. Because of these limitations, the Company relies primarily on its GAAP results. In the future, we may incur expenses similar to those for which adjustments are made in calculating Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as a basis to infer that our future results will be unaffected by extraordinary, unusual, or nonrecurring items. Reconciliation of GAAP to Non-GAAP Financial Information The following table reconciles Net income to Adjusted net income for the second quarters and year-to-date periods ended June 30, 2026 and 2025 and Adjusted net income per diluted share for the second quarters and year-to-date periods ended June 30, 2026 and 2025 (amounts in thousands, except per share amounts): (a) Amortization of intangible assets represents non-cash amortization charges that are excluded as they are not representative of the ongoing operating performance of the business. Beginning in Q1 2026, the Company updated its Adjusted net income reconciliation to reflect actual amortization of intangible assets in place of the previously used fixed addback amount. Management believes this change provides a more accurate and transparent presentation of non-cash charges. Prior period amounts have not been restated as the difference was not material. The following table reconciles Net income to Adjusted EBITDA for the second quarters and year-to-date periods ended June 30, 2026 and 2025 (amounts in thousands): Follow OneSpaWorld:Instagram: @onespaworldLinkedIn: OneSpaWorldFacebook: @onespaworld View source version on businesswire.com: https://www.businesswire.com/news/home/20260729276411/en/ Contacts ICR:Investors:Allison Malkin, [email protected]

OneSpaWorld (OSW) came out with quarterly earnings of $0.29 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of +8%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. OneSpaWorld, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $261.25 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $240.73 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OneSpaWorld shares have added about 33.7% since the beginning of the year versus the S&P 500's gain of 8.5%. While OneSpaWorld has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OneSpaWorld was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $273 million in revenues for the coming quarter and $1.16 on $1.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, United Parks & Resorts (PRKS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This theme park operator is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +11.7%. The consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. United Parks & Resorts' revenues are expected to be $485.23 million, down 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report United Parks & Resorts Inc. (PRKS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OneSpaWorld Holdings Ltd (NASDAQ:OSW) achieved its 21st consecutive quarter of record total revenues and adjusted EBITDA. Total revenues increased by 9% and adjusted EBITDA by 13% in the second quarter of 2026. The company expanded its health and wellness centers to 208 ships, up from 200 ships in the previous year. Innovative services like Dimage, TruSculpt, CoolSculpting, and IV therapy drove strong double-digit growth. AI initiatives, such as the Amanda platform, have been successfully implemented, enhancing revenue growth and operational efficiency. Product revenue decreased due to the reorganization of operations in the United Kingdom and Italy. Administrative expenses increased significantly due to third-party fees related to the reorganization. The company faces challenges in quantifying the long-term impact of AI on margins and profitability. There is a potential risk of lower occupancy rates in European itineraries affecting revenue. The company has not yet introduced GLP-1s on board, which could be a missed opportunity if regulatory conditions change. Warning! GuruFocus has detected 9 Warning Signs with APYRF. Is OSW fairly valued? Test your thesis with our free DCF calculator. Q: With strong onboard spend levels and only five months left in the year, what factors could influence whether you hit the low or high end of your guidance range? A: Stephen Lazarus, President, COO, and CFO, stated that they feel comfortable with the current guidance. Improvements in the environment or accelerated innovations could push numbers towards the upside. Q: Are the benefits of AI currently more on the revenue side, and what impact could AI have on your margin profile? A: Stephen Lazarus confirmed that AI benefits are currently more on the revenue side. It's too early to quantify the impact on margins, but they expect continued incremental benefits from ongoing innovations. Q: What explains the deceleration in product revenue growth, even after adjusting for reorganization? A: Stephen Lazarus explained that while product revenue growth has slowed, MediSpa modalities are growing at a faster rate. The slower growth is partly due to less retail attachment to these services and prior year promotional activities. Q: How are you approaching AI deployment, and what are your expectations for revenue uplift? A: Stephen Lazarus mentioned that AI projects are rolled out in smaller groups to ensure effectiveness. They expect continued improvements as AI systems learn and adapt, with potential revenue uplift from projects like dynamic pricing. Q: How do you view the evolution of your growth algorithm with AI advancements? A: Stephen Lazarus stated that while they are seeing slightly higher revenue growth and margin improvement, it's too early to change their long-term growth algorithm, which remains high single-digit revenue growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ranger Investment Management sold out its entire position in OneSpaWorld Holdings Limited (NASDAQ:OSW) during the first quarter, according to a May 15, 2026, SEC filing. The estimated transaction value was $21.54 million, based on quarterly average pricing. According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Ranger Investment Management, L.P., sold all 1,012,656 shares of OneSpaWorld Holdings Limited (NASDAQ:OSW) during the first quarter. The estimated transaction value was $21.54 million, based on the average closing price over the period. The fund’s quarter-end position in the company is now zero. The net position value shift, including price movement, was a decrease of $21.00 million. Top holdings for Ranger Investment Management, L.P. after the filing: As of May 14, 2026, shares of OneSpaWorld Holdings Limited were priced at $23.82, up 25% over the past year and underperforming the S&P 500, which is up about 28%. OneSpaWorld offers health and wellness services, including spa treatments, salon services, fitness programs, medi-spa procedures, and branded beauty products, primarily onboard cruise ships and at destination resorts. The firm generates revenue through direct service delivery, product sales, and exclusive partnerships with leading wellness brands within the cruise and leisure sector. It serves cruise line guests and resort visitors worldwide, targeting the leisure and travel market seeking premium wellness experiences. OneSpaWorld Holdings Limited operates an extensive network of health and wellness centers across cruise ships and destination resorts, leveraging exclusive brand partnerships to differentiate its service offering. The company’s integrated business model combines spa, fitness, and beauty services with product sales, creating multiple revenue streams and broadening its market reach. With a global footprint and established relationships in the cruise industry, OneSpaWorld is positioned as a leading provider of high-end wellness experiences for travelers. Ranger Investment Management completely exited its OneSpaWorld position even as the company continues to post record operating results and guide for further growth, which seemingly makes this look like a potential call on opportunity costs rather than a strict conviction call. OneSpaWorld’s first-quarter revenue climbed 13% year over year to a record $247.6 million, while net income rose 40% to $21.3 million and adjusted EBITDA increased 21% to $32.2 million. The company also marked its 20th consecutive quarter of record revenue and adjusted EBITDA, a streak that speaks to the consistency of the cruise industry's post-pandemic recovery.Meanwhile, management sounded confident about the road ahead. CEO Leonard Fluxman highlighted plans to launch wellness operations on six new cruise ships this year and said the company expects another record year. OneSpaWorld said its full-year outlook includes as much as $1.034 billion in revenue and $139 million in adjusted EBITDA.Ultimately, it seems like OneSpaWorld's asset-light model, expanding ship count, and growing guest spending could continue driving earnings growth. The stock has very slightly underperformed the S&P 500 over the past year, but the business itself appears to be gaining momentum. Before you buy stock in OneSpaWorld, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OneSpaWorld wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $465,733!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,313,467!* Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 29, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ul Solutions. The Motley Fool has a disclosure policy. OneSpaWorld Posted Record Revenue for Last Quarter. Why Did a Fund Exit a $21.5 Million Stake? was originally published by The Motley Fool