OneSpaWorld (OSW) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenues reached $219.6 million, up 4% year-over-year, driven by higher guest spend and increased revenue days, with net income of $15.3 million and adjusted EBITDA of $26.6 million at the high end of guidance.

• The company operates 199 cruise ship and 50 destination resort wellness centers, maintaining market leadership and expanding partnerships with Norwegian Aqua, P&O, and Cunard.

• Board declared a $0.04 per share quarterly dividend and authorized a new $75 million share repurchase program after nearly completing the prior $50 million program.

• Reaffirmed full-year 2025 guidance and introduced Q2 guidance of $235–$240 million in revenues and $28–$30 million in adjusted EBITDA.

Financial highlights

• Total revenues rose 4% year-over-year to $219.6 million, with service revenues at $178.5 million and product revenues at $41.1 million.

• Adjusted EBITDA increased 5% to $26.6 million, including $1.1 million in non-recurring severance expense.

• Net income was $15.3 million ($0.15 per diluted share), down from $21.2 million ($0.21 per share) due to a prior-year warrant liability benefit.

• Adjusted net income was $22.6 million ($0.22 per share), up from $19.3 million ($0.19 per share) year-over-year.

• Free cash flow enabled $42 million returned to shareholders via dividends and share repurchases.

Outlook and guidance

• Annual guidance reaffirmed, expecting high single-digit revenue and Adjusted EBITDA growth for fiscal 2025.

• Full-year 2025 revenue expected at $950–$970 million; Adjusted EBITDA at $115–$125 million.

• Q2 2025 revenue guidance: $235–$240 million; Adjusted EBITDA: $28–$30 million.

• Management expects sufficient liquidity to meet capital requirements and debt covenants for the next twelve months and beyond.

• Guidance assumes no significant deterioration in guest spending or cruising activity.