OneSpaWorld (NASDAQ:OSW) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• OneSpaWorld exceeded quarterly expectations: Earnings per share came in at $0.29 versus the $0.28 consensus, while revenue reached $261.25 million, up 8.5% year over year. Adjusted EBITDA rose 13% to $34.4 million, extending the company’s streak of 21 consecutive quarters with record revenue and adjusted EBITDA.
• Management raised its 2026 outlook to $1.018 billion-$1.038 billion in revenue and $130 million-$140 million in adjusted EBITDA. Forward bookings and pre-booked revenue remained strong, while Medi-Spa services grew 17% during the quarter.
• AI initiatives are beginning to improve performance: The Amanda yield-optimization platform is deployed on 188 vessels and has generated a reported 4% service-revenue uplift among less-experienced managers, alongside improvements in customer-service efficiency.

OneSpaWorld (NASDAQ:OSW - Get Free Report) posted its earnings results on Wednesday. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.01, FiscalAI reports. The firm had revenue of $261.25 million for the quarter, compared to analyst estimates of $260.54 million. OneSpaWorld had a net margin of 7.85% and a return on equity of 18.00%. The company's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.19 EPS.

Here are the key takeaways from OneSpaWorld's conference call:

• Record performance continued: Second-quarter 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 revenue and adjusted EBITDA.
• OneSpaWorld raised its full-year 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 of both ranges.
• AI initiatives are beginning to support growth: The Amanda yield-optimization platform is deployed on 188 vessels and has produced a reported 4% service-revenue uplift among less-experienced managers, while other AI tools are improving support-ticket resolution and customer service efficiency.
• Forward demand remains strong, with pre-booked revenue up 14% and forward bookings up 20% year over year; guests who pre-book continue to spend more than 30% above other guests. Medi-Spa services also grew 17% in the quarter and are expected on 159 ships by year-end.
• The company cited a $1.3 million decline in destination-resort revenue and higher administrative expenses tied to the U.K. and Italy reorganization, while product revenue growth slowed after prior-year promotional inventory sales; management said it was not currently concerned about retail attachment.

OneSpaWorld Trading Up 0.1%

NASDAQ OSW traded up $0.03 on Thursday, hitting $26.00. The company's stock had a trading volume of 1,366,271 shares, compared to its average volume of 987,959. The company's 50-day simple moving average is $26.06 and its 200 day simple moving average is $23.61. The firm has a market cap of $2.64 billion, a P/E ratio of 34.67 and a beta of 0.90. The company has a current ratio of 2.52, a quick ratio of 1.40 and a debt-to-equity ratio of 0.15. OneSpaWorld has a 52-week low of $19.06 and a 52-week high of $29.25.

OneSpaWorld Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.20 annualized dividend and a yield of 0.8%. OneSpaWorld's dividend payout ratio is presently 26.67%.

Key Stories Impacting OneSpaWorld

Here are the key news stories impacting OneSpaWorld this week:

• Positive Sentiment: Quarterly results exceeded expectations. OneSpaWorld reported second-quarter adjusted EPS of $0.29, above the $0.28 consensus estimate, while revenue reached $261.25 million, modestly ahead of the $260.54 million forecast. Revenue increased 8.5% year over year, and EPS rose from $0.19 in the prior-year quarter. OneSpaWorld second-quarter earnings report
• Positive Sentiment: Management raised its 2026 revenue outlook. The company now expects full-year revenue of approximately $1.02 billion to $1.04 billion, compared with a FactSet estimate of $1.03 billion. Third-quarter revenue guidance of $268 million to $273 million is broadly consistent with analyst expectations. OneSpaWorld Q2 adjusted net income and revenue outlook
• Positive Sentiment: Truist turned more bullish. Truist Financial raised its price target from $28 to $29 and assigned a “buy” rating, implying roughly 11.5% potential upside from the referenced share price. Truist price-target upgrade
• Positive Sentiment: The company declared a quarterly dividend of $0.05 per share. The payment is scheduled for September 2 for shareholders of record on August 19, providing an additional shareholder-return catalyst, although the indicated annualized yield is approximately 0.8%.
• Neutral Sentiment: Despite the earnings beat, Zacks characterized EPS as matching consensus, and the company’s valuation remains relatively full at roughly 35 times earnings. This could limit gains unless growth and guidance continue to improve.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Weiss Ratings raised OneSpaWorld from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, May 4th. Wall Street Zen downgraded OneSpaWorld from a "buy" rating to a "hold" rating in a research note on Saturday, May 23rd. TD Cowen raised their price target on shares of OneSpaWorld from $27.00 to $29.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Truist Financial boosted their price objective on OneSpaWorld from $28.00 to $29.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Stifel Nicolaus increased their target price on shares of OneSpaWorld from $28.00 to $32.00 and gave the company a "buy" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $30.60.

Insider Activity

In related news, Director Walter Field Mclallen sold 10,500 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $24.67, for a total value of $259,035.00. Following the transaction, the director owned 137,382 shares of the company's stock, valued at approximately $3,389,213.94. This trade represents a 7.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Andrew R. Heyer sold 20,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $26.04, for a total value of $520,800.00. Following the transaction, the director owned 489,817 shares of the company's stock, valued at approximately $12,754,834.68. This trade represents a 3.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On OneSpaWorld

Several large investors have recently made changes to their positions in OSW. Brown Brothers Harriman & Co. bought a new stake in OneSpaWorld during the fourth quarter worth approximately $31,000. Arax Advisory Partners lifted its position in shares of OneSpaWorld by 428.8% during the fourth quarter. Arax Advisory Partners now owns 1,597 shares of the company's stock worth $33,000 after purchasing an additional 1,295 shares during the last quarter. Aquatic Capital Management LLC purchased a new stake in OneSpaWorld in the 3rd quarter valued at about $50,000. Empowered Funds LLC purchased a new stake in shares of OneSpaWorld in the fourth quarter valued at approximately $66,000. Finally, CIBC Private Wealth Group LLC bought a new position in OneSpaWorld in the third quarter worth approximately $87,000. 95.98% of the stock is owned by institutional investors.

About OneSpaWorld

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.

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