OneSpaWorld Q1 Earnings Call Highlights

Key Points

• 20th consecutive quarter of record revenues and Adjusted EBITDA: Q1 revenue rose 13% to $247.6M, adjusted EBITDA grew 21% to $32.2M, and net income increased 40% to $21.3M.
• Growth driven by expansion of higher‑value services and fleet additions — Medi‑Spa, IV therapy and aesthetic treatments posted strong double‑digit growth, with Medi‑Spa available on 155 ships (expected 157 by year‑end) and new centers on two maiden ships.
• Significant AI rollout to boost revenue and efficiency: a machine‑learning pricing engine is live on ~190 vessels, an AI "maritime agent" autonomously resolves 94% of tickets, and dynamic pricing and customer chatbots are being developed.

OneSpaWorld NASDAQ: OSW opened fiscal 2026 with what management described as “continued strong momentum,” delivering better-than-expected results and extending a multi-year streak of records in the first quarter.

Executive Chairman and CEO Leonard Fluxman said the company posted its “20th consecutive quarter of record total revenues and Adjusted EBITDA,” crediting staff execution and continued innovation in product and service offerings across its health and wellness centers at sea. President, COO, and CFO Stephen Lazarus said results reflected “broad-based strength across all key operating and financial metrics,” and highlighted ongoing investments in artificial intelligence intended to drive additional revenue and efficiency.

First-quarter results and operating metrics

Fluxman reported that first-quarter total revenue increased 13% to $247.6 million, while income from operations rose 36% to $22.9 million. Net income increased 40% to $21.3 million, and adjusted EBITDA grew 21% to $32.2 million.

Operationally, the company ended the quarter operating health and wellness centers on 208 ships, with an average ship count of 202 during the quarter, compared with 199 ships and an average of 193 in the prior-year period. OneSpaWorld had 4,585 personnel staffed on vessels at quarter end, up from 4,240 on March 31, 2025, Fluxman said.

Lazarus said revenue growth was driven by a 4% increase in revenue days and a 2% increase in average guest spend, as well as fleet expansion from new ship builds. He also noted that maritime revenue growth was partially offset by a $1.2 million decline in destination resorts, “partially due to the closure of hotels where we had previously operated.”

New ships and higher-value services

Fluxman said OneSpaWorld added health and wellness centers on two new ship builds during the quarter: Norwegian Cruise Line’s Norwegian Luna and Disney Adventure, which launched maiden voyages in March. On Norwegian Luna, the company introduced TruFlex, which Fluxman described as a new non-invasive muscle-sculpting Medi-Spa service. Management reiterated it expects to introduce health and wellness centers on six new ship builds in 2026.

The company also emphasized expansion of higher-value services. Fluxman cited Medi-Spa, IV therapy, and acupuncture as areas “enhanc[ing] onboard productivity and expand[ing] our addressable market.” He said next-generation offerings such as Thermage, TruSculpt, CoolSculpting, IV therapy, and acupuncture LED light therapy produced “strong double-digit growth for those treatments in Q1.”

During the quarter, OneSpaWorld accelerated the rollout of Niagen Plus NAD boosting intravenous solutions across all “90+ ships offering IV services” following pilot results, Fluxman said. Medi-Spa services were available on 155 ships at quarter end, up from 148 a year earlier, and the company expects that figure to reach 157 ships by year-end 2026.

In response to a question from Jefferies’ Randal Konik about the mix shift toward higher-value services, Fluxman said the company has “moved away from just offering injectables and fillers to a complete menu of IVs and other aesthetic services,” adding that demand has remained strong even at higher price points.

Productivity, pre-bookings, and staffing

Fluxman said OneSpaWorld delivered “across-the-board increases” in key operating metrics, including revenue per passenger per day, weekly revenue, and revenue per staff per day. Asked by Stifel’s Steven Wieczynski about the drivers of improved productivity, Fluxman pointed to newer ships with larger spa footprints, Medi-Spa facilities, and thermal suites, along with “innovation” across offerings such as acupuncture and red light therapy. He cited a “6% productivity increase” and said management was “thrilled with that.”

Pre-booked revenues increased 17% in the quarter, Fluxman said, and management reiterated that pre-booking remains a lever for higher spend. Fluxman said pre-booked appointments generate “30% more guest spend than services booked on board.” He also noted the company is evaluating whether to include additional services—such as certain Medi-Spa and acupuncture offerings—on the pre-booking menu over time.

Lazarus clarified that the company’s AI-driven dynamic pricing initiative related to pre-booking “is not yet in play,” and that current pre-booking performance is not being influenced by that model.

On staffing, Fluxman said retention improved to 77%, up 5 percentage points from the first quarter of 2025, attributing the improvement to onboarding and retention initiatives. He also said experienced staff generate significantly higher revenue per day versus a first contract.

AI initiatives and operational efficiency

Lazarus highlighted several AI-related initiatives underway. He said the company’s machine learning “algorithmic engine” designed to improve revenue and utilization is now available on 190 vessels. He also said OneSpaWorld is working on “a true dynamic price optimization model” expected to begin rolling out for pre-booking of services.

On the operational side, Lazarus described early results from an AI assistant used by managers. The “maritime agent” is “autonomously resolving 94% of tickets with response times in seconds,” and has been deployed on 191 vessels, he said. He added that upcoming projects include customer-facing chatbots for product and service inquiries, as part of a broader effort to reduce repetitive work and improve scalability.

Balance sheet, capital returns, and guidance

OneSpaWorld ended the quarter with $17.3 million in cash after paying $5.1 million in quarterly dividends and repaying $1.3 million under its term loan facility, Lazarus said. The company also had full availability under its $50 million revolving credit facility, bringing total liquidity to $67.3 million as of March 31, 2026. Total debt, net of deferred financing costs, was $82.8 million at quarter end. Lazarus also noted $37.5 million remained on the company’s $75 million share repurchase program adopted in April 2025.

For full-year 2026, management guided to total revenue of $1.014 billion to $1.034 billion and adjusted EBITDA of $129 million to $139 million, representing 9% growth at the midpoint for both metrics. Lazarus noted that fiscal 2025 revenue included $23 million associated with previously announced reorganizations and exits in the United Kingdom, Italy, and land-based operations in Asia.

For the second quarter, the company guided to revenue of $257 million to $262 million and adjusted EBITDA of $32.5 million to $34.5 million, implying 10% growth at the midpoint for both. Fluxman said the outlook reflects first-quarter performance and continued momentum, while also acknowledging a “dynamic environment.”

During the Q&A, Fluxman said the company factored geopolitical-related uncertainty and possible demand shifts into its back-half guidance. Lazarus added that OneSpaWorld typically serves “about 11% of the guests on board,” which he said provides some insulation, and he emphasized cruise lines’ ability to market and fill ships.

Fluxman also addressed itinerary mix, saying the company “love[s] Caribbean performance” and described the seven-day program model as the most effective for results. On potential shifts within European itineraries, Fluxman said there is “no difference” to the company between Eastern Mediterranean and Western or Northern Europe itineraries.

In closing remarks, Fluxman said the company expects 2026 to be “another year” of execution against its growth strategy and reiterated confidence in further strengthening OneSpaWorld’s leadership position in health and wellness services at sea.

About OneSpaWorld NASDAQ: OSW

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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