OneSpaWorld (OSW) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 marked a second consecutive year of record performance, with total revenues of $895.0M, income from operations of $78.1M, and adjusted EBITDA of $112.1M, all up significantly year-over-year, driven by global operations, innovation, and a dedicated team.

• Fourth quarter revenues rose 11% to $217.2M, income from operations up 37% to $17.2M, and adjusted EBITDA up 14% to $26.7M compared to Q4 2023.

• Net income for Q4 was $14.4M (EPS $0.14) vs. net loss of $7.3M (EPS -$0.07) in Q4 2023; full-year adjusted net income up 45% to $89.7M (EPS $0.85).

• Expanded operations with seven new maritime centers and a seven-year agreement with Royal Caribbean and Celebrity Cruises.

• Initiated quarterly dividend and share repurchase program; published inaugural Sustainability and Social Responsibility Report.

Financial highlights

• Q4 2024 total revenue rose 11% to $217.2M from $194.8M in Q4 2023; full-year revenue up 13% to $895M from $794M.

• Q4 income from operations increased 37% to $17.2M; full-year income from operations up 44% to $78.1M.

• Q4 Adjusted EBITDA up 14% to $26.7M; full-year Adjusted EBITDA up 26% to $112.1M.

• Q4 2024: Service revenues $175.8M (+11%), product revenues $41.4M (+15%) year-over-year.

• FY 2024: Service revenues $723.3M (+12%), product revenues $171.7M (+18%) year-over-year.

Outlook and guidance

• Fiscal 2025 guidance affirmed: revenue expected at $950M–$970M, Adjusted EBITDA at $115M–$125M.

• Q1 2025 revenue expected at $215M–$220M, Adjusted EBITDA at $25M–$27M, impacted by fewer operating days and more dry docks.

• Nine new maritime health and wellness centers to open in 2025, mostly in Q4.

• Expects to generate positive cash flow from operations in FY 2025.